eBay
Express Payout

Adoption improvements

Project Overview

BUSINESS PROBLEM

After launching eBay Debit Card Express Payout, adoption rates were lower than anticipated. Out of over 5 million sellers eligible for debit card express payouts, only 2.5% added a debit card, and just 1.84% used it to receive express payouts. Prior to the launch, our research and competitive analysis indicated a strong user demand for faster payouts. However, a significant gap emerged between users expressing interest in the feature and those actively using it. To address this, we needed to uncover the reasons behind this disconnect and identify user pain points.

GOALS

Increase Adoption: Drive higher engagement and usage of the debit card express payout feature among eligible sellers.
Understand User Barriers: Identify and address the pain points preventing users from adding a debit card and utilizing the express payout option.
Enhance User Experience: Improve the overall usability and accessibility of the feature to align with user expectations and needs.

MY ROLE

User flow
Wireframing
Design mocks

From Engagement To Actual Usage

Next, we revisited the seller’s journey to identify drop-off points. After sellers opt in to add a debit card and provide their card information, they must complete a verification process. This includes a one-time passcode and KYC ownership verification. Once verification is successful, the debit card is added and ready for use with express payouts.

The data revealed that a sizable number of sellers successfully completed the initial steps of adding their card information and verifying the one-time passcode.

However, many encountered issues during the KYC verification step or were reluctant to proceed, as it required them to temporarily leave eBay and return later. Of those who completed the one-time passcode verification, 20% dropped off at this stage, representing a significant loss in the seller journey.

80% of 22.5K

We observed another drop-off at the next stage: 23% of sellers who proceeded with KYC verification failed to pass the process. The overall funnel conversion rate is 56%, meaning that out of 100 sellers who attempt to add a debit card, only about half successfully complete the process.

77% of 18K

The primary challenge was the KYC verification process, which significantly contributed to the low success rate of adding a debit card. Reducing friction at these key drop-off points can improve the overall conversion rate.

With Numerous Potential Drop-off Points

Customer Pain Point

Using data, surveys, and research, we identified sellers' pain points and observed consistent themes across these sources. Customers have complained that express payout doesn't truly qualify as “faster" as we claim.

"I added a debit card as a payout method because the message says it would be faster. Once added, I got a message that it would be another 2 days."

Verification Simplication

To address this issue, a collaborative effort was undertaken, and the policy team simplified the verification process by removing micro-deposit verification for C2C sellers and raising the threshold to $10K. With this policy update, 70% of sellers now have instant access to debit card payouts.

Before Improvement

GMV < $5K

Micro-deposit verification required

GMV > $5K

Bank statement verification

After Improvement

GMV < $10K

No micro-deposit verification required

GMV > $10K

Bank statement verification

Provide 70% of sellers

with instant access to debit card!

With this improvement, we can anticipate increasing the overall funnel conversion rate.

An additional opportunity was to engage more sellers at the top of the funnel by presenting the right value propositions.

Opportunity Area

DRIVING ADOPTION AT THE TOP OF THE FUNNEL

By increasing adoption at the top of the funnel, we can drive a higher volume of successful debit card additions, ultimately boosting overall engagement and usage.

2023 IMPROVEMENTS

Before these improvements, all of our engagement points were user-driven. Sellers would see marketing banners, emails, or a "What's New" card on the payment summary page and decide to click on the CTA, leading them to the process of adding a debit card.

With this project, we had the opportunity to implement a more proactive approach to drive engagement and conversion. When sellers visit the payment summary page, we display a one-time-only bottom sheet highlighting the value propositions. If they engage, they are directed straight to the debit card addition flow.

Turn Up The Volume

Before Improvement

After Improvement

Highlighting Through Moments of Intent

Another crucial touchpoint occurs when sellers request a payout, offering an opportunity to make the interaction more contextual. Previously, for sellers without a debit card added, only the bank payout option was presented. This approach made sense, as adding a debit card typically required several days for approval—slower than a bank transfer. Now, with instant approval available, we leverage this moment to promote express payouts. By highlighting the option at the moment of intent, sellers can easily compare standard and express payouts, appreciating the speed advantages of the latter.

Before Improvement

After Improvement

Promote Express Payouts and provide the option to instantly add a debit card

The total number of sellers successfully adding debit cards for express payouts has increased by 13.3% since launch.
Revenue for June 2024 has grown to $930K, a significant increase from $480K in May 2023.

Key Enhancements

Key Insights and Learnings

Sellers find the fees (1.5% of the payout amount) to be both expensive and confusing.
Major competitors provide faster payouts with flat pricing.
Our study suggests that adopting a flat fee model could increase adoption by 2-4%.
Survey results indicate that a $2 flat fee is the optimal price point, balancing higher adoption rates with revenue potential.

Fees Experiment

Hypothesis

Flat pricing enhances predictability and simplifies comprehension compared to variable percentage-based pricing.
Sellers with lower payout amounts may accumulate funds and withdraw larger amounts, optimizing the fees paid for express payouts.

Experiment 1

Based on DCP internal pricing survey, we tested price points $2, $1.75, and $1.5.

Experiment 2

Based on VISA pricing study, we tested price points $2 and $0.99.

Results and Insights

Sellers shows higher confidence with flat pricing

Achieved a 7-10% higher adoption rate for $2 pricing compared to the variable pricing model.

Observed a 5-10% increase in seller usage rates for $2 flat pricing compared to the current model.

More economical for sellers

The average cost per payout is approximately 1% for sellers, assuming an average payout amount of $200.

Sellers made 10% fewer payouts, withdrawing larger amounts, resulting in optimized fees.

Additional revenue opportunity for eBay

Potential for a 10% increase in revenue with $2 flat pricing compared to variable pricing, with an average fee per payout of $1.8. This equates to an annualized revenue opportunity of $1-4M.

All financial models indicate that flat pricing is net revenue positive for eBay

2024 IMPROVEMENTS

Transitioning Express Payout Fees to Flat Pricing

We communicated the shift to a flat $2 fee for Express Payouts through various touchpoints, encouraging sellers to opt into express payouts or use debit cards for receiving their payouts.

Transit fees to flat pricing

Motivating More Sellers to Try Express Payouts

For sellers who hadn't opted into express payouts, offering their first three express payouts free of charge proved to be an effective incentive. This strategy encouraged sellers to experience the benefits of instant payouts without the barrier of fees, increasing the likelihood of adoption. By minimizing perceived risk, we enhanced engagement and highlighted the value of Express payouts, ultimately driving higher long-term adoption rates.

Exposing Express Payouts Option to New Sellers During Onboarding

Previously, eBay only offered sellers the option to add a bank account for receiving payouts during onboarding. To increase adoption of Debit Card Express Payouts, we integrated the express payout option directly into the onboarding flow.

To boost the adoption of debit cards for express payouts, we have achieved it from multiple angles.

Engagement to Conversions

Increase adoption

Increase the visibility and volume of debit card payout offerings at the top of the funnel to engage sellers more effectively. Emphasize the value propositions of express payouts to drive them to add debit cards.

Reduce frictions

Focus on streamlining the process to make it as effortless as possible for sellers. Simplifying the steps required, providing clear guidance throughout, and minimizing the amount of information needed can significantly improve user experience.

Remind and motivate

Through targeted messaging and reminders, we highlight the speed, convenience, and reliability of express payouts, encouraging sellers to take advantage of these benefits. Reinforce the value proposition and provide incentives to increase conversion rates.