 Hey everyone! Today we have a super interesting interview with Paul Lipski about the managed payment system in eBay. How are you today Paul? I'm doing great man. How are you doing? I'm great. Thanks for coming and sharing from your knowledge. I actually came to you specifically to talk about this interesting and super hot topic because I saw on your YouTube channel a lot of interesting videos about it so I thought why not to do the interview specifically with you about this topic. So thanks again. I prepared some questions about the managed payments and that's what the live video would be about. So my first question to you is basically what is the managed payments system on eBay in general? Please explain about it. Yeah I think the easiest way to understand this is to kind of look at what we currently have on eBay as of the making of this video and where it's headed. So currently on eBay when someone comes to buy something they come to eBay, they find the item, they click on buy it and then they get sent over to PayPal to actually pay for the item to actually use their credit card and complete the purchase then they are sent back to eBay to get the order confirmation. So they need two websites they need eBay and PayPal and from the seller side from our side what we see is we see the order on eBay but all our money is held in PayPal so again two websites. Now this is very different than the way a lot of other websites work like for instance if you're selling on Amazon because on Amazon the customer purchases the item on Amazon and the money is on Amazon as well so it's all in one place and that's what eBay is trying to do with managed payments. They want everything on eBay.com so the customer comes they find the item they purchase it directly on eBay and then we'll see our money on eBay as well so it's only one website. Cool and how can we get the money from eBay to our bank or PayPal or something like that? Yes so the money is going to be held on eBay as opposed to on PayPal so any new orders it's going to be pending so you won't have access to it right away but usually by the end of the day you'll then be able to transfer it to your bank account. So then you can click a button or you can set it up to do it automatically every night and then it will begin transferring the money from eBay over to your bank account. So this is different from PayPal because when the money's in your PayPal account you can use it right away. You can use your PayPal debit card or you can use that those funds on websites that allow you to purchase items with PayPal such as like Home Depot.com but you're not going to be able to do that with with eBay managed payments because the money can't be used that way. The only way you can actually use it is to transfer it from eBay to your bank account. And we can do that daily? You can you can start the transfer process every single day. Yes now you don't get the money doesn't arrive in your bank account right away it does take some time. So just like with PayPal when you ask PayPal to transfer money from PayPal to your bank account it usually takes one to three business days or longer on the weekends unless you pay for instant transfers. With instant transfer the money it costs a little money to do that but the money does instantly go from PayPal to your bank account. Now with eBay managed payments they haven't announced if there's going to be an instant transfer option yet that is something they might add in the future. So for right now you ask them to transfer the money and it could take some time to reach your bank account. And I've spoken to a lot of sellers that are already using managed payments. Some of them tell me that the day that they ask for a transfer they get the money the next day. Others tell me it takes longer and they all say that over the weekend there's a longer delay. So I think what's happening is that eBay is getting faster at it. They want to they want you to get your money as soon as possible so that you can use it to buy more items and sell more. So I think they're working on it and trying to get it faster and faster. So I think in the beginning it might be a little bit longer but eventually it should just be one business day. Cool. So basically it's a good news because it means that in terms of cash flow it shouldn't be a big problem for the option to send or send it right. Yeah I think maybe at first we'll have a little bit of delay but very soon or hopefully by the time they roll it out for most people it will just be the one day. Cool. And there is any like what are the steps that we need to do to incur to this type of payments. Is it automatically or we should do something for that? To start using managed payments you mean? Yeah. Yeah so eBay has been slowly rolling this out for actually years and they're having some sellers come on board to kind of try it out but they're really pushing this year 2020 to have most sellers using it by the end of the year. So actually July 2020 they want a lot of sellers to start using it. So what's going to happen is that you'll get an email telling you that hey you're eligible for managed payments now you have to sign up and I'll give you a link. You click on that you have to fill out a bunch of information and then once you fill out that information they'll tell you okay now we have that and you have to wait a little bit longer and then we'll let you know when managed payments starts. So on that date you'll will then receive another notification letting us know that we've switched from PayPal to managed payments and then eBay handles the rest of it. You don't have to change your listings you don't have to change anything in your eBay account it's all going to be done automatically assuming that you filled out that information that they asked for. Let's see okay that's interesting and what will be the fees for the payments in this case? That's the million dollar question so unfortunately eBay hasn't been like 100% transparent about this which is surprising because it's coming up pretty soon. Now in the past they've given us some numbers and then they've changed those numbers but most recent what we've got is that they're going to charge for most categories 11.5%. Now the nice thing is that they have consolidated the fee so you're not paying a final value fee plus a processing fee like we do right now because currently we pay eBay final value fee and we pay PayPal a processing fee so we have two different fees to worry about. eBay has consolidated that into one final value fee and it's going to be mostly 11.5% for most items plus another 30 cents per transaction. So as of right now that's what they've said I don't know if that's going to change but that's the latest that we've heard. In the past they've also said that they're going to charge you 25 cents per listing so in other words if someone buys three items from you three different items they would charge you 25 cents for each but they've changed that that's not that's not going to happen anymore so it's 30 cents per transaction so if someone buys one item from you then it's 11.5% plus 30 cents or if they buy 100 items from you it's still 11.5% plus 30 cents and it's not 30 cents times 100 if that makes sense. Yeah okay it's good it means that it will be cheaper than PayPal by the way this fees are the same for all type of the sales I mean from international sales and the US sales for everyone. Again that's something we don't we don't know it's something that they just haven't really talked about a lot which was like how is this going to impact international sellers. I've looked everywhere for information and I can't find anything unfortunately so I think it's one of those things we have to kind of wait and see. Now the good news is that these are lower fees so I would imagine for even international sellers the fees are going to be lower and it's easier it's consolidated we don't have to deal with looking at eBay and PayPal it's all in one place it's basically one fee so it's going to make our bookkeeping a lot easier too. Yeah I agree it's very comfortable when everything is in one place yeah cool okay and what about seller protection and then eBay said something about that. Yeah they have they've said that it's it's going to be the same for the most part so eBay already gives us seller protection that's not going to change it's going to be the same as it was before. What's going to change is that currently if a customer issues a charge back and a charge backs when they call up their credit card company and say hey I never received this item so this charge in my credit card for something I bought on eBay should be reversed. Now normally currently PayPal takes care of that because PayPal handles the credit cards and PayPal we've seen has historically been very pro seller like even if a buyer wins the charge back as long as we have a tracking number that's uploaded showing that the item was delivered PayPal will pay for the charge back and we don't have to worry about it so it's been PayPal has been great when it comes to charge backs. Now eBay says that they do have protections that they're going to give us for charge backs but we don't know what those will really look like until they actually happen so hopefully they're as good as PayPal's it's one of those things we'll have to wait and see but they do say that they will be protecting us in some way against those charge backs. Okay interesting it's a bit interesting that a bit weird so that it's so close and it's so high then yeah it's not very clear. Yeah it is it's it's very strange it just kind of the way that eBay works sometimes I think they're still trying to figure it out and you know they set these deadlines and they want to keep to them so I think that's kind of what's driving them forward. Okay something that's very interesting for me is how will it work from the buyer side like which payment methods the buyer will be able to use to pay us for the products. Yeah it's a it's this is another great feature of it because it actually there's actually more payment options available so they can not only pay with a credit card of course they will still be able to pay with PayPal now this is kind of confusing to people to sellers the buyer can pay with PayPal but the money is not going into our PayPal account okay we're still going to see the money inside eBay so but they can still pay with it and they'll also have the option to pay with Apple Pay or their Google Pay as well so a lot of people as you know are shopping on their phones now and instead of having to enter in their credit card information as long as they have their credit card stored in like their their wallet on their iPhone then they can pay with that really quickly which which will help because that will encourage more impulse buying from consumers which is pretty cool. Yeah it's cool it should increase the conversion rates basically for the products. Yeah I think so. Nice okay and can I still withdraw the money to PayPal or only to bank account? So this is something I'm not entirely sure of because I've heard that PayPal can give you a routing number and checking number for your PayPal account actually let me back up for a second so when you when you sign up for managed payments they're going to ask you for your bank account information because that's where the money has to be transferred to so you need a routing number and checking number now I've heard that you can get one from PayPal so that you can then transfer the money from eBay to your PayPal account but I haven't honestly checked on that so I'm not sure but if they do then I think you could enter in that routing and checking number into eBay and just have the money transferred to your PayPal account. Nice it's pretty cool because it means that maybe we will be able also to use Pioneer for example because they can give you a bank account and then maybe we can withdraw there. Yeah cool okay what about the targeted marketplaces is it only for eBaycom or will it apply also for eBayuk afar of Germany? Yeah I think again this is something I'm not quite clear on with them but from what I've heard it's only going to be eBay.com for now and they're going to add the other marketplaces later. Interesting okay what about people who use stealth accounts or stuff like that will it be any problem for them to use this type of service? Probably to be honest because when you're signing up for managed payments they do ask you for things like a bank account but also your social security number. Now I think from what we've seen from people who create and use stealth accounts they're smart people okay and they always tend to find a way to make things work so what I think is going to happen is that managed payments is going to roll out and I think at first people are not going to be sure what to do with stealth accounts. They're not going to be sure how to run them but I think very soon we're going to figure it out. The problem is that right now we can't because it's we can't start using managed payments yet. I think once we do we can experiment with it and I think very quickly we're going to find a way to make stealth accounts work. We just need some time to figure it out. Yeah we cannot really predict the future but the only thing I agree with the only thing that I know is that workshops always find and found solutions for everything that happened in this market which is crazy. Yeah so okay cool so hopefully people will find solutions. Yeah by the way I also agree about that that usually people who go to these directions are more experienced and settled so mostly they will find a solution for themselves and share with the market. Yeah and I think you know we all work together to find things. I know you like experimenting with stealth accounts I've done it and we're all going to be trying different things and comparing notes and sharing with people on YouTube to kind of explain what's working and what's not working. Yeah I agree cool so basically it sounds like a good service like a good news for sellers and not something bad. I think so yeah at first I wasn't happy because change is just tough and annoying and I've always liked PayPal but you know now that I see what more realistically what it's going to look like I'm pretty happy. I mean lower fees is great you know more streamlined process all in one place. I really can't complain as long as it works as well as as people have been saying it's it's been working lately. Well yeah and also if it increases the conversion rate and it will take eBay forward it will take all of us forward. Right exactly. Cool. Do you think that like if you look at the future what do you think that it shows us about eBay about dropshipping? I don't so what I think this shows us is that eBay is still a viable marketplace that is still looking to the future. You know some people think that eBay is kind of stuck in the past a little bit of an older platform and I tend to agree with that. I think they've been kind of slow to implement some of these new changes but they are still working at it and they are still around and lots of people still shop on eBay and they wouldn't make this change unless they really thought that it would be worth it and that it would actually make a difference. So I think this just shows that that eBay is still going to be around. I don't think this particular move will have any impact on dropshipping. I mean eat shopping and selling on eBay is pretty much not going to change. It's pretty much going to be very similar. The only difference is where the payments are made and where we see the money and how we get access to that money but the actual steps of finding products, listing them for sale, customer service, metrics like all the more important stuff to a healthy robust dropshipping account on eBay, none of that's really going to change. So I don't think the transition is going to be too difficult. Yeah, so basically if you know how to work everything will be okay, same as now. I'm also very positive about the future because I just googled now eBay stock and they see that eBay now on like it's the highest level that they ever went to and also if they check their graphical similar way on similar web and this new feature. So yeah the new highs because of the COVID-19 but all together really shows that eBay is progressing which is cool. Yeah, that's very promising. I'll have to buy some too. Okay, any other topics that you would like to cover from your experience, from the questions that you get on your YouTube channel from people about managed payments, something that we missed? I don't think so. I think you covered the most important or biggest questions that people ask. I'll just say it again, I think that this is change and change is always difficult but I think if we give it a little bit of time and just work with these new changes, we're going to see very quickly that it's really not that much different than what we've been doing. Cool. And one last question that I forgot is what about the people who didn't get the email and should they do something or just wait for the email from eBay and then in crawl and the time comes? Oh yeah, good question. So if you can contact eBay, it's a little bit hard right now but you know if you click on the help and contact at the top and try to chat with them or call with them, ask them because I've had some people say that they've gotten eBay to call them and they actually were supposed to get the email but never did. So first ask them if you qualify for managed payments and how you can sign up but otherwise you'll get an email eventually letting you know when you're supposed to use managed payments. It will probably be by the end of the year. Okay, cool. So thank you very much for all these answers and this amazing content. I will add also some links to your videos below this video on YouTube so people can check more and research more about this topic. Great. Thanks for coming. Thank you. Bye.