Ebay's short term gains for ditching Paypal

[carbideliquidator]

Is destroying Ebay's business IMO......Ebay lost sight of Sellers are Buyers, and Buyers are Sellers....which worked great under Paypal's Platform......change is not always good !

[zip-a-deedoodah]

eBay didn't have a choice in the matter of separating from PayPal. https://www.latimes.com/business/la-fi-ebay-paypal-20141001-story.html 

And the new eBay payments platform is better than PayPal, its much more flexible.

[richard1rst]

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@carbideliquidator wrote:

Is destroying Ebay's business IMO......Ebay lost sight of Sellers are Buyers, and Buyers are Sellers....which worked great under Paypal's Platform......change is not always good !

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Maybe you missed the notice, but eBay ditched Paypal years ago.

[dhbookds]

Ebay owned Paypal and then sold it off as a separate company..........buyers can still use paypal....... Sellers must use Managed Payments (managed by Ayden) to pay their fees and receive money from solds.

I sincerely doubt any of us can judge whether it was a plus or minus from the company  $$  standpoint.  We may not like it, but it's done and gone............

[maxine*j]

That was in 2015.  In the world of e-commerce, 8 years is ancient history. 

PayPal was tired of the deal as it stood, and eBay was tired of the deal for its own reasons.  The split was mutual. 

Most sellers prefer Managed Payments.  The total "take-out" is about the same as it was with PayPal, but transparency is much improved because all the fees are now shown in one place, not in separate statements / records as it was with PayPal.

Buyers can still use PayPal, so they are unaffected.

I know you're thrashing around trying to figure out why your sales have tanked, but long-ago the eBay - PayPal split isn't one of them.

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[sextons-sweet-deals]

I could be wrong, but wasn't' the split caused by the shareholders?

I miss PayPal. They would verify every person. They would tell sellers not to ship yet until they clear the buyer. 

Now it seems any new person can come on here and in minutes make a purchase with just a C.C. number. Seller is pushed to ship ASAP to keep their seller status. 

Then the seller has to deal with those who then claim damaged, never received, not as described. The odds of the buyer winning the case is in their favor. eBay lacks reviewing cases by a real person. 

If the buyer actually loses the case, then they open a claim with their C.C. There seems to be no communication between eBay and the C.C. companies to stop this abuse. I would think the C.C. companies keep count, but I don't think eBay does. 

This is why I continue reviewing my buyers especially if they just came on eBay and made their first purchase. 

[bennotbill]

As a buyer no real difference, still use PayPal.

As a seller it's no longer quick and easy to start selling. No more lets sell something on a whim. No more money from sales in PayPal to spend on eBay.

As for eBay well it's a sure thing they get more money from each sale, and owning a good part of Adyen is another plus.

But in the end did the change result in more sales and money for eBay...........................

[greatmidwestcoin]

Hmm, That was like 8 years ago.  Did you just wake up or something?

[zip-a-deedoodah]

"I could be wrong, but wasn't' the split caused by the shareholders?"  Yes, primarily Carl Icahn.

[greatmidwestcoin]

I would say the blame is competition, especially on eBay.  There are tons of sellers of your exact items on eBay that have them for less. Just an FYI.

[adkhighker]

I would take PayPal over eBay Money Management any day of the week despite any miniscule financial gains we're supposed to get.  It was a much simpler process of figuring things out than money management's combobulated way of doing things.

I would rather have my proceeds from sales go directly into PayPal, rather than into my bank, and I'd rather have eBay keep their hands out of my bank accounts, period.  Plus, now that my proceeds don't get deposited into PayPal, I have to refresh the funds in PayPal all the time because of how often I used PayPal to make purchases outside of eBay.  

[toomuchstuffagain35]

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@zip-a-deedoodah wrote:

eBay didn't have a choice in the matter of separating from PayPal. https://www.latimes.com/business/la-fi-ebay-paypal-20141001-story.html 

And the new eBay payments platform is better than PayPal, its much more flexible.

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Really? In what respect?

[toomuchstuffagain35]

There was no issue with fee "transparency" for those sellers who actually took note of what fees they were paying and for what.

[zip-a-deedoodah]

Selling on a a whim on eBay back in the days of PayPal assumes you already had a PayPal account, if you didn’t that took all the whim out of the whim.

[tobaccocardyahoo]

PayPal was always a seller's favorite. Billpoint run by Ebay and Wells Fargo was a superior product with rules which mirrored a Merchant Account with the credit card companies.

PayPal was untransparent and ran into issues with violations of Consumer Protection Laws and Mastercard and Visa rules by coercing buyers who were mistreated by sellers.

Eventually, the had to clean up their act or lose access to Mastercard and Visa.

The combination of Ebay and PayPal was always cumbersome, inefficient and more expensive to run.

Ebay took over payment processing when it was clear that the independent PayPal was no longer a good business fit with Ebay, and PayPal was growing at the expense of Ebay.

New seller complaints about holds would be complaints about PayPal if things were left as they used to be. PayPal and all other payment systems for marketplaces are using holds for untrusted sellers.

It is amazing how many sellers never bothered to add the fees charged by Ebay and the fees charged by PayPal.

As for Ebay sellers who want to use their Ebay revenue to shop, Ebay has implemented an ability to spend on Ebay the funds they earn, even before they clear. Something other sites do not allow.

Some Ebay sellers have always objected when Ebay has adopted procedures which represent normal business practices.

Ebay is implementing more and more of them as the government and the press shed light on sellers on Ebay who break the law. And greater controls of all Internet marketplaces are inevitable.

Yes, this means that some Ebay sellers will be departing. Whether that helps or hurts Ebay remains to be seen. I bet that if Ebay is viewed as a safe place to buy, that will help some sales, but nothing is going to help the sales of overpriced commodity products purchased from other retailers. Ebay is more tolerant of retail arb than any other marketplace, and Ebay's sales drops have been in product categories where retail arb is prevalent.

Seller issues with their Chinese imports, have other problems, usually competition from Chinese sellers who pay less and seek lower profits.