PayPal to EBay payments

[tdpawn3]

eBay is going to Fall. We do 1.2 million in sales and they forced us to switch from PayPal to eBay payments. Terrible someone behind a desk that doesn’t understand. We are considering amazon like never before.

[twnpopcards]

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@tdpawn3 wrote:

eBay is going to Fall. We do 1.2 million in sales and they forced us to switch from PayPal to eBay payments. Terrible someone behind a desk that doesn’t understand. We are considering amazon like never before.

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Unfortunately they completely understand what they are doing and just do not care what effect it might have on your business, which is nothing new for Ebay.  This is nothing more but a money grab by Ebay so they can somehow show Wall Street some growth and also please their shareholders.  They watched Etsy do it and decided that it would also work for them.  They also received around $70 million to help offset the costs for the programming on the change and then stock warrants for approximately 5% of Adyen if they meet certain requirements. The main difference for some reason seems to be that the other site pulled it off rather seamlessly while Ebay so far has not shown that has achieved that goal as of yet.  

But i would not hold my breath waiting for Ebay to make this change  optional as their is just to much money involved to care about the sellers on their site.

[greg5000]

I think eBay's Managed Payments will be what drives away many Sellers here.

eBay's Interim CEO (and the next Leadership Team) need to reverse this decision and renegotiate with PayPal, to keep the ship from sinking.

[southern*sweet*tea]

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@tdpawn3 wrote:

eBay is going to Fall. We do 1.2 million in sales and they forced us to switch from PayPal to eBay payments. Terrible someone behind a desk that doesn’t understand. We are considering amazon like never before.

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You realize Amazon doesn't use Paypal, right? They do in-house processing like Ebay will be going to.

[greg5000]

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@southern*sweet*tea wrote:

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@tdpawn3 wrote:

eBay is going to Fall. We do 1.2 million in sales and they forced us to switch from PayPal to eBay payments. Terrible someone behind a desk that doesn’t understand. We are considering amazon like never before.

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You realize Amazon doesn't use Paypal, right? They do in-house processing like Ebay will be going to.

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I think the concern is, if eBay can't even run the site without daily technical issues and glitches, how will they ever handle processing the many millions of payment transactions that will flow through the system? 

[mam98031]

@tdpawn3 

I'm not in MP yet.  From your point of view, what are the draw backs of the program now that you are in it?

[mam98031]

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@southern*sweet*tea wrote:

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@tdpawn3 wrote:

eBay is going to Fall. We do 1.2 million in sales and they forced us to switch from PayPal to eBay payments. Terrible someone behind a desk that doesn’t understand. We are considering amazon like never before.

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You realize Amazon doesn't use Paypal, right? They do in-house processing like Ebay will be going to.

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MP offers more payment options for buyers than Amazon of Etsy.  Which is an advantage.  But we all know of some draw backs of MP.  I hope the OP comes back and shares with us what they see as issues.

[thehonorabletrader]

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@tdpawn3 wrote:

eBay is going to Fall. We do 1.2 million in sales and they forced us to switch from PayPal to eBay payments. Terrible someone behind a desk that doesn’t understand. We are considering amazon like never before.

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I thought I would provide some perspective from my point of view. First and foremost, eBay is not "kicking" PayPal out. EBay and PayPal have made this decision. The Operating Agreement they signed in 2015 is on File with the SEC, so anybody can find it and read it if they want to verify and if this information. 

PayPal was restricted while processing eBay Payments

I am not sure if you knew this, but the exclusivity agreement required eBay to only allow PayPal as the processor payments, but in turn, PayPal could not process payments for other online market places without getting approve from eBay and so long as it was not too competitive to eBay. 

Here is an article about why PayPal made the decision to move away from eBay from their side.

Since PayPal is now free of the agreement they can integrate with Facebook Marketplace and other market places outside of Etsy. I wouldn't be surprised if PayPal was able to get on at Amazon in the future. 

Money Grab?

I see this word a lot, but essentially this is a business decision. I am sure you make changes to your business to increase your profits. Essentially that is a money grab. eBay is a business, their goal is the same as any other business, make as much money as possible with as little cost/expense as possible. eBay is no different than any of it's sellers. It too wants to make more money. Not every decision you make in your business benefits your buyers the same way not every decisions eBay makes in it's business benefits it's sellers. 

Seller Protection

eBay is now able to see WHO is charging back. This is information PayPal didn't pass along. Now eBay can restrict buyers in the future (and based on this forum, that's already begun happening) from being able to purchase items, or from being able to return items, or from being able to use a specific card if the buyer has had too many disputes ruled in their favor. This is part of a new "Abusive Buyer Policy" eBay announced in its latest seller release. 

Bugs

Yes, annoying. These do need to be fixed. But that's why eBay is rolling this out over a two year period and not over a two month period. It's the first time in history a major billion dollar company is completely re-working it's underlying payment process. Nothing like this has ever been done on a 20 year old company. That doesn't make the bugs okay, just understandable. They need to work as quickly as possible to resolve any issues. 

Buyers are LOVING it

While I have only seen a few upset sellers, I have seen mostly happy sellers based on forums and more importantly the buyers are loving it, and that should be what a seller cares about the most. What is best for their buyer and how can I work within what is best for my buyer to be successful? As a buyer I used my Credit Card, but if there was a tech issue with the payment I had to call PayPal, a site I didn't use and a form of payment I didn't use to rectify it. This is frustrating and confusing because buyers aren't always sure who to call. Not to mention buyers would often get told by PayPal "we aren't sure what is happening, call eBay" while eBay would say "the issue is with PayPal you'll have to call them". That is gone. eBay has the entire process from start to finish, so now they are the only call and they can resolve it for your buyers or for you. 

I am not saying you should be happy about changing to Managed Payments. But I do know these exact same conversations were common place when eBay "Forced" sellers to start using PayPal a decade ago. Back then it was "eBay is going to fail" and "eBay is forcing us to accept payments a specific way" and "PayPal's buyer protection is going to bankrupt eBay and the sellers". Yet nearly 10 years later people are not wanting to leave PayPal after having been forced to join. I think over time as members provide feedback that eBay will make and improve the service to the point where everyone is happy with it. 

[ersatz_sobriquet]

I do not like paypal's new policy of keeping the 2.9% fee on refunds and cancellations. That I do think is a "money grab". 

What I can say about paypal is that they never made a calculation error on my fees, sales, or any other monetary transaction. 

Ebay however, is notorious for errors. Writing code for handling our money before it ever hits Ayden? Scary. 

[mansons2005]

General reply:
After last night's news report on the security of on-line payments processors announced that Apple Pay and Google Pay are the most secure and sites such as PayPal are the least secure, I imagine that an entire generation of buyers will be using Apple Pay and Google Pay in the future.......something eBay is now set up to accept. For once, a bit of forward thinking................................

[thehonorabletrader]

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@mansons2005 wrote:
General reply:
After last night's news report on the security of on-line payments processors announced that Apple Pay and Google Pay are the most secure and sites such as PayPal are the least secure, I imagine that an entire generation of buyers will be using Apple Pay and Google Pay in the future.......something eBay is now set up to accept. For once, a bit of forward thinking................................

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This is true. Many under the age of 25 don't have a PayPal account and don't want to create PayPal accounts. Impulse purchases are faster when you just have to tap your phone instead of enter information. 

[mam98031]

@thehonorabletrader 

Great post.  I would just adjust one thing.  MP isn't a 2 year roll out.  It is a 4 year roll out.  They launched it in 2018 and it is suppose to be site wide by 2021.  When their contract with PP ends.

[mam98031]

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@ersatz_sobriquet wrote:

I do not like paypal's new policy of keeping the 2.9% fee on refunds and cancellations. That I do think is a "money grab". 

What I can say about paypal is that they never made a calculation error on my fees, sales, or any other monetary transaction. 

Ebay however, is notorious for errors. Writing code for handling our money before it ever hits Ayden? Scary. 

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They are a business for profit.  Because a problem arises between a buyer and seller for whatever reason it may be, it is not PP's fault.  They provided a service and they have the right to be paid for that service.

Don't get me wrong, I don't like this change any better than anyone else.  But I understand it and it is not a "money grab".  It is a business that is being paid for services rendered.

Speaking for myself only, anytime Ebay has made an error on any fee they have charged me over the years, Ebay has always stepped forward and refunded my account.

[thehonorabletrader]

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@mam98031 wrote:

@thehonorabletrader 

Great post.  I would just adjust one thing.  MP isn't a 2 year roll out.  It is a 4 year roll out.  They launched it in 2018 and it is suppose to be site wide by 2021.  When their contract with PP ends.

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They announced it in 2018 (February) and it went live to Customers in September of 2018. The operating agreement actually ends in July of 2020 based on the document filed with the SEC. I have been told eBay will have North American Sellers all in by 2020 and then the rest of the world by 2021. Just an FYI 🙂

[mam98031]

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@thehonorabletrader wrote:

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@mam98031 wrote:

@thehonorabletrader 

Great post.  I would just adjust one thing.  MP isn't a 2 year roll out.  It is a 4 year roll out.  They launched it in 2018 and it is suppose to be site wide by 2021.  When their contract with PP ends.

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They announced it in 2018 (February) and it went live to Customers in September of 2018. The operating agreement actually ends in July of 2020 based on the document filed with the SEC. I have been told eBay will have North American Sellers all in by 2020 and then the rest of the world by 2021. Just an FYI 🙂

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Dang you are absolutely right.  I've always known it was a 5 year contract.  Guess I can't count.  LOL  More coffee please!!!

Told by whom?  When they launched the program they said site wide by 2021.  So you are saying they have moved up that timeline?