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EcommerceBytes Letters to the Editor Letters to the Editor
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Wed Nov 9 2011 15:53:16

Sellers Object to eBay Takeover of PayPal Shipping-Labels

By: Ina Steiner
Sponsored Link
Note from the Editor: We've been receiving letters from sellers up set about eBay taking over shipping label processing from PayPal - see this October 27th letter, which includes a response from eBay spokesperson Johnna Hoff. Today, we're printing two more letters about eBay's new practice.

Dear Ina,
I'm not sure if this has been covered by I realized this a few week ago. Recently, eBay started handling ALL the payments to the USPS for the postage labels. Before, when we printed the labels on ebay, WE paid the post office directly via paypal.

As a top rated seller, eBay is now offering 20% discount for priority postage.

That's when it hit me. eBay is getting A DISCOUNT for volume postage from the post office while they charge most sellers normal postage rates. That is why they decided to take it over. They pass on the discount to Top Rated Sellers only, pocketing the rest.

Ridiculous and immoral and should be illegal.
Food for thought.

********

To the Editor,
When processing an eBay order this morning I was surprised to find that PayPal is now forcing its shipping service through eBay. After processing the label I contacted PayPal and was informed that PayPal is in the process of transitioning all shipping over to eBay's system.

The change will allow eBay to report higher revenue volume levels when the transition completes and all shipping is eventually forced through eBay.

This is more of the same smoke and mirrors that is synonymous with eBay under its current mismanagement, and is part of eBay's ongoing deceptions aimed at impressing investors through revenue shifting as opposed to genuine sales growth.

As a seller this unannounced change is painful on several levels.

First, eBay permits buyers to rate sellers on communication as part of the DSR process, yet for some reason, eBay allows fewer characters for messaging buyers when processing labels than did PayPal.

The significantly smaller character limit in eBay shipping messages was a primary reason why we refused to use eBay shipping when it was first introduced. Shorter message space serves to significantly reduce the amount of information sellers can communicate to buyers as part of the shipping process.

The abbreviated communication space allotment illustrates how eBay intentionally imposes limits on the ability of sellers to communicate with buyers, thus reducing the effectiveness of seller to buyer messaging. This amounts to another restriction eBay imposes knowing full well that it can negatively impact seller ratings.

If eBay is going to force sellers to process labels through eBay shipping, then eBay's shipping flow should allow sellers to include a longer message to buyers that is equal to what sellers were able to send through PayPal and thus offer a consistent experience for both buyers and sellers.

Second, there is an obligatory glitch resulting from this change. After processing the label on eBay because I had no choice, PayPal did not automatically pick up the tracking information and it had to be manually inserted. This may not be a major concern for a single transaction, but with the holidays coming and sales expected to increase, the need to manually insert tracking information into PayPal will be extremely frustrating, painful and time consuming.

As usual, eBay's forced and unannounced change is obviously not fully tested and is not ready to perform as expected - nothing new there, sellers know full well eBay does not care how policy and system changes negatively impact the sellers efficiency.

Third, with PayPal shipping retired, as a multi platform seller we have zero interest in processing shipping labels through eBay for non eBay transactions.

In the past, we did not mind using PayPal to process labels for non eBay transactions (even though they are the same company), but the concept of eBay getting revenue flow out of non eBay transactions is a non starter.

As of today, we will remove PayPal as a payment option from our non eBay listings and will exclusively offer Google Checkout, checks, money orders etc..
 
Additionally, we are now looking at other shipping label services for all of our shipping needs both on and off eBay. We formerly processed 100% of our shipping labels through PayPal so we could keep our expenses all in one place to make bookkeeping easier. Since this edict from eBay/PayPal is forcing us to sign up for a third party shipping label service, then we might as well get our moneys worth and process both eBay and non eBay shipping labels through the new service provider.

By their actions, eBay has assured that neither eBay nor PayPal will benefit from the revenue volume generated by this seller with regard to shipping. PayPal will also now lose transactional revenue from our non eBay sales due to the company's attempts to shift revenues and deceive investors.

Sign me,
"Tired of being handcuffed by eBay and beaten with their stick"
 
Reading EcommerceBytes Letters Blog: Sellers Object to eBay Takeover of PayPal Shipping-Labels
Comments (42) | Leave Comment | Permalink
Readers Comments

Sellers Object to eBay Takeover of PayPal Shipping   Sellers Object to eBay Takeover of PayPal Shipping
by: Carl
       Web Site
Thu Nov 17 20:15:47 2011
The other aspect of this change for non eBay users of PayPal, is that we are now forced to provide ALL employees access to our administrative PayPal account with this new migration to eBay. This is totally unacceptable as we cannot risk all employees knowing this password.
In conversations with supervisors, they were typically condescending and arrogant.
Worse they informed me if we took our USPS shipping elsewhere we would not be fully covered under their already terrible and fraud ridden seller protection program.
We had already moved much of our international and packages over 2# elsewhere.
We are now shipping via Stamps.com and FedEx (including Smart Post), the total monthly loss to eBay/PayPal corp. is $4000 in shipping ($48,000 per year); while this is likely small potatoes to eBay/PayPal, hopefully along with the mass migration of other businesses out of this terribly dishonest and immoral company will result in either improvement of collapse of eBay/PayPal
Sellers Object to eBay Takeover of PayPal Shipping   Sellers Object to eBay Takeover of PayPal Shipping
by: imisstheoldebay
       
Fri Dec 2 17:46:15 2011
I suspect the sellers who actually read these posts sell way more than I do. But, for the small sellers like me(a couple hundred listings a year), I print my labels from usps.com. All my return address info is pre-filled, the discount ranges from 5%-15% depending on postage amount. DC is free. Most of the time the discount will allow me to insure for less than half the actual cost to me. Just a thought...
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