I spoke for some two hours with another seller I'd met at the post office about two months ago who sell's at both here and Amazon, books, dvd's, records and such. It was a very interesting talk, he told me Amazon is the big guy on the block and the managed payments thing here is not well thought out in comparison. I'll try and remember and explain.
First, many many sellers he he said are different than from Amazon, smaller and that Amazon itself is a retailer. Subjecting the small sellers he said to a sort of system designed for businesses (Amazon sellers) leaves those smaller sellers in a lurch for several reasons. One, there is the delayed payment, how many "garage sale" (what he called them) sellers are going to trust giving eBay direct bank access more or less be waiting for payments to deposit? He said it limits their ability immediately to operate. I myself have had sales and immediately went shopping as PayPal is like instant transaction. The ability to do that instantly stops. He told me lots and lots of sellers do that.
He told me giving his selling eBay/Paypal sales help foot his shipping bill at Amazon because he has to wait two weeks for Amazon to deposit. He said people selling as "cash flow" type sales are going to end up making eBay considerably less money as they'll need balance how much they sell vs the ship bill with the net result being less sales, less money eBay will make especially on low ticket high volume items like videos, games, books, collectibles and that stuff.
He told me that disputes is another thing. He said PayPal is part of dispute process here as is eBay. At Amazon, its Amazon and the buyers bankcard people in process. He said at Amazon if they see no fault in a sellers sale yet its disputed they may well grant the dispute (customer gets money back) yet the seller is not out their money and they may flag or limit that customer as they are a retailer as well. Here, you'll have the cardholders bank and eBay but eBay is not a retailer and sellers have no transactional access to the place processing cards. In other words, you cant interact with the merchant account provider(s) where-as Amazon does just that via their representation as a retailer. They are in a way consigning where as eBay offers a service is what he said. The net result according to him is a seller will hardly ever win a dispute. Amazon he said also does not grant access to direct communications post sale, cant do that where-as here you can. He said lets say he sells a book, theirs a dispute on it where he says it arrived damaged. He told me right now PayPal sits in the midst of the processing, the actual transaction. With say Amazon however, Amazon is the "Seller" per se, when one gets a card statement it says Amazon not "Joe/sephines books." With PayPal the seller is working with the processor, with Amazon there is no access to the processor. Importantly, he said, there can be no access to the customer in dispute post sale, it becomes an issue between Amazon and the Customers bank, same would be the case here if eBay stands as the merchant account holder. In other words the moment a dispute were to occur a seller cannot communicate with the buyer. With PayPal they can he said because PayPal is the transaction processor.
So he said its sorta like going to Walmart buying something. Disputing the charges to your card and then Walmart working with your bank whereby Walmart makes the determination of if they honor it. Didn't quite make sense to me, maybe it does to you more experienced sellers?
He told me the beneficiary of eBay's new payment deal will be Amazon, Etsy, Craigslist and Facebook. Small sellers are not going to ship things out without seeing a balance they can access and manipulate instantly. He told me Amazon used to have it where there was a button you click and it'd initiate your day's sales transfer long ago. So, if that were the case here you could click to transfer todays sales and whatever the schedule is, 4 days or two weeks you'd see that days deposit take place. Instead, now he said its they do it on a schedule so like the 10th and the 24th, so the seller incurs two weeks ship expense, deposit made and then that gets eaten away over the next two. For small sellers or "cash flow" goods sellers he said its extremely hard to stay ahead of it. He told me every year he has to limit his holiday sales because otherwise he has to start saving in August just to cover the shipping for the holidays, it hits his cash flow so hard he just cant do it. So instead he uses eBay to supplement shipping costs of Amazon, he told me he's done here the moment they put him on it, that it only make his situation worse so he's moving it all to Etsy.
He said more but all and all he said it may be good for buyers because now they dont need the buyer hassles that can come via PayPal which he said makes sense for eBay. But he said eBay did not consider a huge share of the more casual sellers and their going to loose them he said to Etsy. At the sametime he said the system becomes similar to Amazon's gifting Amazon the ability to pull merchants away for two reasons: 1. Amazon is a retailer. 2. The company is the giant on the block, so they can be more price/final value aggressive to woo merchants away vs eBay who cant afford go head to head with Amazon. That is to say the fact that eBay currently allows sellers to instantly use, re-use or transfer money via PayPal is why many sellers like him use the platform. He told me that an Amazon rep told him that Amazon is waiting for it, all sellers over to managed payments and then eBay will see Amazon take advantage of it and he said Etsy is going to be the beneficiary of all those smaller sellers and the casuals as they'll still be able to get paid quick via PayPal. He told me expect Etsy to take what eBay is doing here and run with it becoming more like eBay is right now. Then eBay will end up muscled between what this place was and what Amazon is.
It all sorta made sense. He told me the proper way in his opinion was allow USERS to express how they wish to pay. So a buyer and seller can choose if they want use PayPal or use managed payments or both. He told me with that now eBay has the advantage of best of both worlds. That they could leverage the big business sellers into managed payments whilst the small business or casual sellers still have the ability to use money to in essence make money. Now there'd me a mousetrap that Amazon, eBays #1 competitor cannot match. Instead eBay is walking right into the hands of the giant giving away one of the biggest advantages to sellers of selling at eBay, rapid use of their sales money. The result is the sellers get limited and that limitation results in them unable to "flip things" (as he put it) ultimately costing eBay more revenues. Told me he does it during summer, goes here/there, comic books, all that kinda stuff, toys, slot cars, flips them here and since he gets his money quick he can be back out buying more to resell. Having to wait two weeks completely stops that as he doesnt have access to the funds fast enough.
Lastly, he told me Amazon and eBay co-exist because of these types of differences the main three being fast payout, auctions which Amazon doesn't have (albeit he said changing how payments happen here might just draw Amazon to running auctions) and lastly Best Offers which he said that Amazon will surely do as the closer the sites become in how sellers are managed the larger the advantage to the retailer, Amazon.
He told me flat out, there's tons of fleamarketers, casual sellers, "Flippers" who use eBay because the payments happen fast, instant like. Take that away then their sales end up limited to when they actually see money they can use thus their ability to sell most efficient and effective is limited resulting in less selling ability. That results in eBay making less money too. That's why he said the right solution in his opinion was to allow both, let the sellers and buyers choose which they wish to use. For high ticket items where say like Amazon eBay could use that window of two weeks to make sure transactions are smooth the service could force items over a certain amount to use managed payments. So say anything over $100 must use managed payments. Anything under $100 a seller can offer PayPal, Managed Payments or both.
Makes sense to me but your all more experienced sellers.
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