The checkout can be a thorny issue for online retailers, with many shoppers dropping off just when they’re about to pull out their credit card. With eBay managed payments, customers will be able to complete their purchase without being sent to PayPal.
This is surely a good thing, but there’s a lot more to eBay managed payments than that!
Whether you’re making the transition to eBay managed payments now, or contemplating what’s coming, we take a deep dive into what it means for eBay sellers.
What is eBay managed payments?
eBay managed payments is the marketplace’s in-house system to process payments for buyers and sellers.
Announced back in 2018, eBay says the introduction of this simplified payment system will make life easier for all its users.
The marketplace is currently inviting sellers to join eBay managed payments and by 2021, this will become mandatory for the majority of accounts.
PayPal has a trusted reputation, but it required people to leave eBay to complete a purchase. Now, eBay managed payments will eliminate this extra step as well as offering a variety of payment methods to buyers.
eBay managed payments review
eBay managed payments has been rolled out to some sellers gradually over the past couple of years. This was a smart move because eBay’s already made dozens of changes in response to their feedback.
Even now, the system is still in beta and may continue to change. But a lot of problems which had sellers up in arms are already fixed.
You may have heard complaints about the fact that eBay managed payments doesn’t:
- Offer an API
- Facilitate PayPal
- Support charities and donations
- Work for international shipping
But you can rest assured that these issues are no longer a problem. So let’s take a look at the pros and cons of the system as it currently stands.
The advantages of eBay managed payments
eBay is using Adyen to create its new system. This platform already supports payments for big names like Etsy, Shopify, Uber and Booking.com, so it has a strong track record.
What other benefits does eBay managed payments bring to the table?
eBay now offers multiple payment options to meet modern customer expectations and increase eBay sales. Credit card, debit card, gift cards, Google Pay, Apple Pay, Paypal and PayPal Credit are all accepted.
Mobile payment options
Mobile friendly options with eBay managed payments will make a big difference for buyers and sellers alike. 43% of US eCommerce sales are expected to take place on mobile this year, so it’s a timely improvement. Undoubtedly, eBay’s 66 million monthly app users will be happy with the new payment system. Shoppers can even save their card information for easy use.
Better conversion rate
- 21% of people abandon their cart when the checkout process is too complicated
- 17% do so when they don’t trust a site with their credit card information
- 6% leave if there aren’t enough payment methods
Every positive improvement to the checkout experience has a huge impact on your overall conversion rate.
A consolidated system
Managing all your payments in one place should simplify your store’s accounting and reporting. According to eBay, the system was designed to facilitate convenient reconciliation.
All customer disputes will be handled directly by eBay – there’ll be no more jumping between PayPal and eBay to settle an order claim. All your refunds, returns, fees, labels, tax documents and payment scheduling will be done from here too.
One big difference between eBay managed payments and PayPal is the ability to schedule payments straight to your bank account as often as you like.
The disadvantages of eBay managed payments
eBay has been quick to fix many issues with managed payments, but there are still some changes that sellers might struggle with. It looks like these particular pain points are here to stay.
Cash flow complications
Once eBay lists an order as ‘awaiting shipment’, sellers need to send it out. However, this update comes through when payment is approved – not when the funds enter your account.
For some sellers, slow payouts were causing cash flow issues. In response, eBay has shortened its processing times and says payments will be in your account within two business days of order confirmation. It is also allowing sellers to pay for shipping labels out of their pending payments.
However, this is a step down from the same-day access to funds many sellers were accustomed to with PayPal.
It’s also worth noting that sellers using eBay managed payments cannot list certain items. Though eBay plans to facilitate payments for restricted items like coins, vehicles and wine eventually, this may limit the listings of some sellers for the foreseeable future.
More teething problems are likely to appear as eBay completes its roll out across marketplaces, but hopefully it will continue to be responsive to seller input.
eBay managed payments fees
To date, there’s been some confusion around eBay managed payments fees.
PayPal charged sellers 2.9% of the total order cost, as well as 30 cents on each transaction. Initially, eBay managed payments fees followed the same structure but charged less. But this is set to change from July 2020.
eBay plans to make its payment processing fees part of a seller’s Final Value Fee. For most categories this fee came in at 10%, plus payment fees. Now, this is how the new fees break down:
- Sellers with no store or a starter store will now pay 12.35% on orders, as well as 30 cents per transaction
- Sellers with an a basic, premium or enterprise store will pay 11.5% on orders in most categories, as well as 30 cents per transaction
This new structure makes it difficult to compare eBay managed payment fees with PayPal’s payment fees.
According to eBay, most sellers should save money when switching to managed payments. Nevertheless, it’s a good idea for sellers to recalculate their net margin before switching over.
Some eBay sellers aren’t happy with the new announcement as eBay now plans to charge its Final Value Fee on an order’s sales tax. In response to seller questions, an eBay team member offered this example to help people understand the new fees.
In situations where an order or item is cancelled or refunded, sellers will get their Final Value Fee back, but not their 30 cents order fee. All these charges will appear together on your monthly invoice.
How to get started with eBay managed payments
Eventually, all sellers will have to use eBay managed payments if they want to sell on the marketplace. Luckily, getting set up is simple.
Registering for eBay managed payments
eBay plans to introduce its managed payments system to most sellers by the end of July 2020.
If you’ve received a notification to register, you should do it here before July 15th to ensure your sales aren’t disrupted at the end of the month.
Check your email or the ‘My Messages’ section of your account to see if you’ve received a notification. If you haven’t, no action is required. (It’s a good idea to check you’re signed up for emails from eBay to make sure you didn’t miss a notification.)
If you would like to move over to the new system and haven’t received an invite, you can request one here.
Getting set up
After setting up eBay managed payments, all existing listings will automatically be updated to tell your customers how they can pay. So you don’t need to worry about that.
In the meantime, eBay asks that sellers don’t refer to payment methods in their listing descriptions to avoid buyer confusion.
You don’t have to sign up to a platform – everything happens within eBay. To move over to the new payment system, you simply verify your business information and add your bank account details. You can then track the progress of your registration in the ‘Payments’ section of your Seller Hub.
Did you know that over 60% of US online retail purchases were made through Amazon last year? Amazon’s hold over eCommerce is well established, with 9.1 million active Amazon sellers worldwide and an average of 66 thousand orders per day. Newer sellers may be wondering how they can get more sales on Amazon in such a competitive environment.
The truth is, they absolutely can because with Amazon’s booming market share come many opportunities. We’ve assembled this digestible list of 14 quick wins and strategic moves, to help you up your game and sell more on Amazon.
1. Do keyword research
Having the right keywords can be one of the most important tactics in reaching your target audiences. Using the keywords that are common to searches for your products is the objective, but search engine optimisation (SEO) is a constantly evolving game. That means that keywords used successfully in the past may not be as effective with updated search engine algorithms today.
The terms used by customers to find products change daily and are affected by seasonal, cultural, and economic factors. Hence, it’s important to stay on top of the latest SEO trends and make sure you cast a wide net when implementing keywords for each product listing.
Each product should be optimized with as many relevant keywords as possible – into the hundreds! This gives you the best possible chance of getting your products found by customers, helping you sell more on Amazon.
Amazon keyword research tools like Helium 10, SellerApp, Jungle Scout, and AMZ One can help by generating a list of related keywords with search volume, competition level, and other useful metrics, making it easier for you to choose the best keywords for your product listing
2. Use a repricing tool to get more sales on Amazon
When it comes to sealing the deal and making a sale, price is a main deciding factor for many customers. As an Amazon seller, you always want to make sure you’re pricing your products competitively, but equally, you don’t want to lose your margin!
This is something that using repricing software can help with. Repricing software automates the pricing process in real-time, ensuring your prices stay in line with those of competitors, and with market fluctuations, while you get more sales on Amazon.
Repricing software also has many customisable features that allow you to set prices at optimal levels to help drive sales, without compromising profit. It’s worth taking a trial to see how it can help lift your sales.
3. Get more Amazon reviews
Online reviews are important to spread confidence through word of month and for building credibility for your brand. It’s also a fact that 72% of shoppers won’t buy until they’ve read reviews of a product from people like themselves – people they trust.
Even a strong product with great marketing behind it still has to overcome the fear of the unknown if there’s no social proof. Plus, positive reviews are a significant factor in deciding which products win the Amazon Buy Box.
4. Provide great customer service
Customer service is absolutely essential in eCommerce. Offering top-quality customer service not only adds value, but helps retain customers. A big part of making a sale is assuring the customer that they can trust you to deliver, and that trust is hard earned but easily lost. Providing good eCommerce customer service is critical, and committing to providing great customer service is all the more so!
As an Amazon seller, you need to be on top of your customer service. Responsiveness, a friendly manner and quick and easy resolution processes are all ingredients that make for a winning approach to great customer service.
But it can be confusing trying to streamline it all. Thankfully, there are all sorts of tools available to make this job easier, like helpdesk software to keep all your customer interactions in one place. This helps you to respond quickly and accurately to customer inquiries when they come in, so that your customers always know you’ve got their back.
5. Leverage Amazon seller tools
The best part about being an Amazon seller is that you don’t have to go it alone. There are numerous tools available to help you maximize your business and get the most out of selling on Amazon, whether third-party or FBA.
From repricing tools, to help desk software, to review software and even shipping assistance, many tools exist on the market today that specifically help Amazon sellers optimize their listings, prices, feedback, shipping, customer service and even their taxes.
There are many different seller tools available, so it’s worth reading about options and making an informed decision about the right ones to choose for your business. With the right tools, you can grow your business more than you ever thought possible.
6. Get more sales on Amazon with ads
Running ads is almost guaranteed to help you get more sales on Amazon, but it’s easy to just throw money at them and hope for the best. You can do better! Pay attention to your advertising cost of sales (ACOS) metric, the figure for how much ad spend you need in order to make a sale.
By advertising more efficiently, you lower your ACOS and ensure you get more bang for your buck. Over time, you’ll learn what works and you can employ a strategy with regards to how you run your ads. Taking an insight-driven approach to Amazon ads results in a more profitable Amazon business!
7. Optimise your product pages
The old saying goes that 80% of readers never make it past the headline of any piece of content. That means once you’ve written your product title, you’ve effectively spent 80 cents of your dollar.
When writing product titles, stick to the formula of:
- Brand name
- Product name
- Features (size, colour, gender etc).
This lets you include the right keywords in the right order to immediately tell shoppers that this is the product for them.
Moreover, making sure to visually design your product pages so that they’re clean, simple and easy to read will also help win over shoppers. No one wants to read through a cluttered page. The more straightforward (yet informative) and the cleaner you make your design, the more likely you’ll be to win over those elusive eyeballs!
8. Win the Amazon Buy Box
The quickest way to get more sales on Amazon is by ensuring that your products show up consistently in the Amazon Buy Box (the area in the top right of a product page, where shoppers can ‘Add to Cart’ or ‘Buy Now’). This is because over 82% of sales happen through this highly sought after space.
Although the exact formula to win the Buy Box is unknown, there are a few things that we know are essential. These are mainly metrics that prove the seller is providing a good customer experience. Customer reviews play a big role here. The more positive reviews a seller can amass, the likelihood of winning the Buy Box increases.
In addition to reviews, something else that’s obviously very important to Amazon shoppers is price! By using repricing software, you can automatically set your prices at the optimal level to win the Buy Box and maximize profit, even if you’ve got an enormous inventory.
9. Amazon account health rating
The Amazon account health rating (AHR) is a new feature that helps you monitor your account health based on its adherence to Amazon seller policies.
It considers both negative factors (such as the number of unresolved policy violations on your account) as well as positive factors (how your account positively impacts the customer experience through its selling activities).
Each account will be given a rating, which is regularly reviewed as Amazon monitors the performance of its sellers. If your account is off-target, you will be notified so that you can improve your performance. Conversely, a good AHR rating will work in your favor, helping assure customers that they’re doing business with a compliant seller.
10. Maintain your Amazon SLA
A big part of being a seller is cultivating trust with your customers. That means showing them that you operate in an above-board manner and that you’ll make good on your promise of fulfillment to them. One way of doing that is by making sure your Amazon store has a Service Level Agreement (SLA). This is a promise to your customers that they’ll receive their orders on time. When it comes to fulfillment, the SLA is based on the capacity to fulfill open orders and on-time shipping and delivery.
SLAs help manage customer expectations by defining standards and outlining circumstances under which you as the seller won’t be liable for unfulfilled promises (e.g., natural disasters preventing shipping, etc).
eDesk’s customer service solution is designed to alert you when your SLA is expiring, so your business is never caught without one. Having a current SLA helps you maintain transparency with customers, thereby building trust which helps ensure customer loyalty.
11. Focus on products that already sell
Most ambitious business owners want to try new streams of revenue, but it’s important not to lose sight of the things that are making you money now.
By doubling down on the products that already provide your Amazon store with a reliable revenue stream, you not only deliver to market demand but ensure that you have the financial runway required to take risks on innovative new products, if need be.
Review your financial statements every quarter and look at the items that are performing best in your store. Think about how you can continue to market these with ads, SEO keywords and upgraded images to maximize their selling potential in your online store.
12. Sync your inventory
Inventory can be a delicate balancing act. Hold too much inventory for too long and you need to pay over the odds to store it. But hold too little inventory and you lose out on vital sales, or even customers, due to an inability to fulfill. Amazon can also penalize you if your inventory performance isn’t up to standard.
Stock control is something every seller needs to understand and have the capability to manage for optimal results. Smart inventory management is an under-appreciated way to increase your Amazon sales and profit margin. Fortunately, there are tools that can help. Investing in the right tools and software can help sellers take the stress out of balancing supply and demand.
13. Expand into new Amazon marketplaces
Amazon currently has 20 marketplaces around the world, which include the US, Canada, Mexico, UK, France, Germany, Italy, Spain, Japan, Singapore, Brazil, Australia and more.
You can scale your brand by moving into some of these marketplaces. This can involve doing market research to find out which products are popular in each market and then uplevelling your shipping operations in order to be able to ship globally.
But expanding into new markets also means you’ll need to take language into consideration and localize your listings so that they feature each marketplace’s local language and SEO keywords in the appropriate language. Multilingual customer service is also needed in order to be able to service customers across various marketplaces in their local language.
Sounds complicated? It doesn’t have to be. eDesk’s help desk solution is designed to support customer service and workflow in multiple languages, so you can expand your business without investing in the overhead of hiring a global team.
14. Spy on your competitors
Ok, maybe “spy” is a bit of an exaggeration, but profitable sellers are always on the lookout for what their competitors are doing. You want to make sure you’re offering the right inventory for your market at the right prices. Repricing software will monitor this for you, taking the guesswork out of pricing at the right levels.
Using data gleaned from helpdesk reporting can also help you gather valuable insights and feedback from your customers, which will help you to better understand what customers want and need. Acting on analytics-driven insights from easy-to-read reports means you’re always one step ahead of the competition.
The quest to increase your store’s Amazon sales doesn’t need to be an uphill struggle. There are many resources available to Amazon sellers today to help them optimize their store and develop a healthy sales pipeline.
By staying in touch with how the Amazon platform grows and using the right tech tools to drive your business, you can continue to do what you do best: building a great brand, winning customers, retaining existing customers and improving your bottom line.