eBay Announces Significant Changes to How Sellers Are Invoiced For Fees

eBay posted a notice today that over the next few weeks it will be updating its invoicing process for business sellers in the United States who still receive an invoice for some fees. Here are the details:

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Beginning in late March, all eBay selling fees and expenses, including those that may be invoiced, will be collected from sellers’ earnings. If the earnings are not sufficient to cover these amounts, eBay will charge the seller’s payment method on file (debit or credit card, and/or linked bank account). 

• Examples of eBay selling fees include but are not limited to: insertion fees, promoted listings, listing upgrades, and Store subscription fees.  
• Sellers may find information on fees and expenses via the reports functionality in the Reports section in Seller Hub. 
• Eventually, Sellers will no longer receive a monthly billing invoice, but depending on the seller’s monthly invoice date, sellers may continue to receive invoices for both March and April. Sellers must still pay any outstanding amounts that are reflected on billing invoices that were received during this time.  Charges will not be duplicated.

For more information on finding business fee details, sellers should check out this video and also see the Payments section in My eBay, or in All transactions, Expenses, Tax invoice, or Financial statement areas of Seller Hub.

FAQ About These Changes to The eBay Invoicing Process

Will the “one time payment” feature still be available for sellers who prefer to pay via credit card?

Beginning in late March, all eBay selling fees and expenses, including those that may be invoiced, will be netted from the seller’s earnings before they are paid out. However, if eBay is not able to deduct these amounts or if the available funds are not sufficient to cover the outstanding amount owed to eBay (e.g. as a result of fees, refunds, or chargebacks, or other expenses), sellers may make a one-time partial or full payment through My eBay using a payment method on file (debit or credit card, and or linked bank account).

How will store subscription fees be handled? In the past they were billed monthly. 

Beginning in late March, Store subscription fees will be netted from funds available for payout either at the start or middle of each month, depending on a seller’s current billing cycle. If available funds are not sufficient to cover the Store subscription fees, eBay will charge the payment method on file (debit or credit card, and/or linked bank account). Sellers can learn more about how eBay recoups outstanding amounts owed here.

Do sellers have to change APIs?

Sellers who are already directly integrated with the eBay Finances API will be able to continue to use their existing API contract. No immediate updates will be required on how sellers pay eBay selling costs. For more information on the Finances API and other APIs supporting managed payments on eBay, sellers should visit the eBay Developer Program site. 

Do sellers need to make any changes to eBay partner integrations?

If sellers use third-party tools that integrate with eBay APIs to manage listings, inventory, and order management activities, reconcile finances or issue refunds, there should be no change in how sellers use those tools when eBay manages the seller’s payments (eBay Managed Payments). Sellers should contact their individual third-party providers regarding questions specific to their service offerings.

What is changing in seller reports, how do sellers read them?

When sellers switch to the new fee payment model, fees will be netted from available funds before they are paid out. The fees will appear in the seller’s transaction report, financial statement, and tax invoices in Seller Hub. If sellers use My eBay, they will have access to financial statements and a tax invoice.

Eventually, sellers will no longer receive a monthly billing invoice, but depending on the seller’s monthly invoice date, sellers may continue to receive invoices for the two months their account is activated. Sellers must still pay any outstanding amounts that are reflected on billing invoices that are received during this time.  Charges will not be duplicated.

Source: Seller notice to U.S. sellers