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EcommerceBytes-NewsFlash, Number 2823 - June 11, 2012 - ISSN 1539-5065    2 of 3

Could eBay Ever Bring PayPal to Amazon.com?

By Ina Steiner
June 11, 2012

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eBay is expanding its online payments service PayPal to mobile devices and to the offline world through new point-of-sale and card readers. But there's one place it may never be accepted, and that's on the number-one online retail website, Amazon.com.

There is a standoff between the two online marketplaces - Amazon doesn't allow PayPal on its marketplace, and likewise, eBay does not allow Amazon Payments on its marketplace. Despite the fact that Amazon.com thought enough of BillMeLater to invest in the company, when eBay acquired it outright, Amazon ceased offering BillMeLater as a payment method on its marketplace.

Is Amazon losing out by not offering PayPal as an option on its marketplace? Of the online sellers responding to a survey, 22% said they would be inclined to spend more on Amazon if it accepted PayPal, and 21% said they have been dissuaded from purchasing on Amazon because it did not accept PayPal (1.5% said they do not shop on Amazon at all).

Respondents Who've Ever Been Dissuaded from Purchasing on Amazon Because It Does not Accept PayPal

Yes 20.5%
No 78%
Don't shop on Amazon 1.5%

Respondents Who Would Be Inclined to Spend More on Amazon if It Accepted PayPal

Yes 22%
No 76.5%
Don't shop on Amazon 1.5%

EcommerceBytes surveyed sellers in May, asking them why the would or would not use PayPal if it were a payment option on Amazon.com.

Some said they trusted PayPal and did not want to enter their credit card information online, others said they did not trust PayPal and enjoyed the security of using credit cards for online purchases. And a number of respondents said they prefer using their credit card directly to take advantage of cashback and other rewards.

"I am happy with either," wrote one EcommerceBytes reader - "I would use PayPal if I had a balance (in my PayPal account)."

Comment on the EcommerceBytes Blog.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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