Buying or selling on eBay is an effortless task, as you have the convenience of using PayPal without going through the complexities of adding banking details on the platform.
However, eBay and PayPal’s happy days are about to end, as the former has made it mandatory to add old-school banking details for selling products on the platform.
But what led to this split between the two online giants? According to the latest reports, eBay has slowly shifted focus to a more convenient payment system (Adyen), especially for those users who joined the platform in 2021.
Although PayPal still remains one of the payment options, eBay estimates that the rollout will be complete by the end of 2022. This article will help you understand the benefits of using old-school bank accounts over PayPal.
Why Did eBay Search For An Alternative?
eBay bought PayPal in 2002 to allow seamless transactions between buyers and sellers on its platform. Although the relationship between eBay and PayPal has gone strong over the years, the need to enhance the customer experience has led eBay to consider other alternatives over PayPal.
Adyen promotes a more convenient pricing structure and has predictable fund access, unlike PayPal. Although the costs associated with products still remain identical, sellers will love this simplified process that can also return more benefits.
Furthermore, the switch to Adyen allows sellers to reach a wider range of buyers, which improves the conversion rate, generating more sales. Additionally, buyers will have more flexibility in choosing payment options with a convenient and streamlined process.
You can follow this article, “Why did eBay stop using PayPal?” to learn more.
Importance Of A Bank Account
Adding a bank account to your eBay seller account simplifies the payment process, as you can get the money directly in your bank account. Furthermore, sellers will have to pay lower fees compared to the earlier fee structure.
Although there is not a significant rise in the profit margin, it is certainly 0.55% higher than previous figures.
For instance, PayPal took a 2.9% cut from any sales while eBay kept around 10% from them. The new payment system ensures more profits for eBay and sellers as eBay now keeps 12.35% from every sale. So, sellers now keep 87.65% as opposed to 87.10% when they used PayPal.
On the flip side, using your bank account for payments can take a bit longer than using PayPal, as payment processes are longer in the traditional banking system. So whenever you receive a payment, expect the money to land in your bank account within a week.
The following table will help you understand the new payment system.
|Sale completed||Once a buyer pays for a product, you can see the funds in the “Pending” section of your Seller Hub. You will have to ship the product to allow the bank to settle the transaction. Once you’ve completed this step, you can see the “Available” option in your Seller Hub.|
|Payout initiated||Once your funds are available, the bank will initiate a payout process, which typically takes around 2 business days. The processing time differs for different banks (1-4 days). However, you can select a preferred payout schedule (daily or weekly) according to your needs.|
|Payout completed||If everything is on track, you should receive your payout within the stipulated time. However, there can be some delays due to various reasons.|
Benefits Of Using A Bank Account For Payments
Here are the benefits of using a bank account for payments.
When you use your bank account to receive payments, you do not have a middleman to deal with, which can make the payout process more transparent. However, the payout process might take longer without a swift mediator like PayPal.
No additional charges
As mentioned above, PayPal kept 2.9% on every sale as the transaction fee, which means sellers were getting fewer profits. Since you can receive payouts directly in your bank account, you will get more benefits from your sale.
As sellers receive their payouts in their bank accounts, they can have more control over the transactions and opt for a scheduled payout process according to their preferences.
In short, you can search for an eBay seller account for sale and start your online business with minimal fuss.
Whether you buy eBay account credentials or create one from scratch, providing banking details is a mandatory step in the account creation process.
We hope this article has helped you understand how adding a bank account to your eBay account can make your online business productive and convenient.