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Sun May 25 2008 09:04:54

eBay Pushes PayPal on Users Worldwide

By: Ina Steiner

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I noticed the eBay UK website uses a new graphic to promote PayPal on the View Item pages. Currently most sites use a light green background with the text, "Up to $200 in buyer Protection. See eligibility." (The amount depends on each site's policy, in the US, it's $200 for most sellers, and $2,000 for certain PowerSellers who meet criteria for extra protection.)

I'm not sure when the new graphic was introduced, but on the UK site, there's now a different design with a bold blue background and the words, "Free protection up to 150 pounds when you pay with PayPal. See terms." The graphic is found on the "Buy Safely" section of the Item pages.

eBay is heavily promoting the use of PayPal by both buyers and sellers. This in my inbox from a reader this morning:

Subject: PayPal Only? Apparently so... (Link) Mandatory PayPal?

While eBay is requiring buyers and sellers to use PayPal only in Australia, it's doing all it can to require sellers to accept PayPal in the US, and in my opinion, it's likely it will soon ban buyers from using "paper forms of payment such as personal checks, cashier's checks and money orders" (see here).

When the DO J allowed eBay to acquire PayPal in 2002, eBay may have assured regulators it would allow other online payment services on its site. However, it's now forcing sellers to accept PayPal (it requires UK users to do so), and it bans many competing services, such as Google Checkout. So while the direction eBay is taking may not violate the letter of any such agreement, it seems to violate the spirit of any such anti-monopoly promise.

The Justice Department had evaluated the acquisition to determine whether consumers would be hurt by the acquisition. Government regulators use various methods to make such determinations, including what is called the 5% test. Government investigators tried to guess what would happen if PayPal raised its prices by 5%. Would customers shift to a different payment service? If so, then there is competition in the marketplace.

Would eBay pass that test today?

Update 5/26/08: A reader points out that the $2000 buyer protection is not limited to transactions involving PowerSellers, see full eligibility requirements in Section 13.9 of the PayPal terms here.

 




Comments (26) | Permalink

Readers Comments

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: sargi

Sun May 25 11:10:39 2008

Does this mean that sellers should stop all forms of payment other than PayPal immediately so you don't get suspended even before they decide to drop another bomb?. If they start suspending for that reason, that would get rid of thousands of more sellers. This is what the goal must be. Keep hammering away at the sellers until they are gone! Why can't they just announce their plans? Does anybody have ideas what the ultimate goal of ebay is (online advertising, shopping mall, amazon II, bankruptcy protection, take over plans???)

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Laura

Sun May 25 11:24:47 2008

Some of you say that you wouldn't mind Paypal being the only option for payments. Really? You must like all the changes eBay forces on the seller too.

Look back at all the reasons why you think you would like paypal only. Why can't that be offered to those that choose Paypal only freely, while still allowing the freedom of choice for other sellers? IT DOESN'T HAVE TO BE ONE OR THE OTHER.

But as soon as there is no competition, there is no say in what they do. Have you not seen how eBay has been misusing this power, you think Paypal won't. They already want to hold your money for 21 days, can you imagine what would happen if there was no competition? I can.

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Mary

Sun May 25 11:56:32 2008

I think people are getting a little upset about PayPal only plan.
Honestly once the auction is won.
You can offer your buyer any payment you want.
Once you get the buyer’s email, you can do what ever you want.
Offer any deals and payment options. Trust me, payment options is the one policy that is very easy to circumvent on eBay.
I violate every policy on eBay about payment, listing and others to many to mention. So you know what eBay did? They made me a power seller.
I know my example if for PayPal. But, the point is you can offer a payment that is not allowed and eBay cannot do anything about it.
If you are careless and get caught, just open a new account. I have 14 accounts and trust me eBay wants to make me a power seller on most.
Honestly, you are getting upset over nothing.
Instead of getting upset, figure out a way to screw eBay out of Money, like I do everyday.
Trust me you will love selling on eBay when you know you screw them every time you list.
That dinner you buy with the money you made by screwing eBay will taste a lot better.

Thank you eBay

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: mark

Sun May 25 12:55:06 2008

It is understandable that Auctionbytes is very much focused on the English spoken part of eBay (com, co.uk, com.au). But please do not forget mainland Europe! eBay Germany is the second largest eBay community after the US. The coming years SEPA will be rolled out in Europe (SEPA= Single Euro Payments Area). This will heavily streamline the bank transfer system in European countries that already is the most important way of making payments in Europe. I am convinced that this factor is an important part of eBay's decision making in pushing Paypal as the ONLY payment option worldwide.

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: d amson

Sun May 25 13:21:37 2008

the answer is easy use ebid instead no restrictions whatso ever and they have a customer service to be proud of

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Tired

Sun May 25 21:16:23 2008

All of this is BS! eBay is full of it and will do whatever they want when they want!  I just try to stay below the radar and hope for the best.  @ Mary 14 accounts and you deal with each customer and you don't use PayPal????  I find that hard to believe and if you sell 10 items a month on each of your 14 ID'S you couldn't handle all other payment types let alone keep track of them!  Ebay is looking for people like you and they will find you and they will suspend you, all 14 of you.  

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Ruth

Sun May 25 21:44:24 2008

Paypal should never have the power to decide who can or cannot sell on eBay. That's way too much power for a company as unethical as Paypal to have.

And eBay telling ANY seller they must offer Paypal is a violation of antitrust laws. Tying arrangements are illegal, period. And what eBay is trying to pull with Paypal is a tying arrangement, plain and simple.

How low will eBay go to force all sellers to accept Paypal? Veteran sellers know how sleazy and corrupt Paypal is and refuse to accept it. Now eBay is making up new policies every day to try and force more sellers into accepting Paypal. That's not something a reputable company would do or NEED to do. Tells me all I need to know about Paypal and eBay.

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Mary

Mon May 26 01:31:33 2008

Not only has eBay not caught on, they offer almost all my accounts power seller status. My 14 accounts do not have anything to do with each other. I keep them so different from each other that you would think they are different sellers. Each account sells about 10-30 items a month. With each account having different emails it easy to keep track. Also, I sell on other auction sites and seller sites.
I sell in some categories that do not allow PayPal, but if the buyer wants it I know how to get around eBay’s policy and buyer is happy.
I allow cash payment and bank transfers and western union payments. Whatever the clients want, I will offer it to them. No matter what EBay tells me. So eBay can put any policy they want into affect. Once you won my auction and I have your email. We can do anything we want.
Most of my accounts have been set up since 2000 and eBay has not caught on. I even say in my auctions any payment you want.
I send a none eBay invoice to my buyer and there is so many options. With each choice there is a link and once they click on a choice it directs them to the proper web site and checkout.
Easy and simple and no issues for me. Each payment option sends me an email saying I received a payment and I ship it out once payment clears. If you are organized it won’t be difficult. I do it all with no one’s help, and that includes packing. All items are packed and ready to ship when the auction is won.
I have templates for every type of item I sell. So all I do is fill in the blanks and take cool picks. Crop, add gallery, description and post. Takes about 10 minutes per new item. I even do some things at work and my boss gave me a raise because I work thru lunch a lot. He thinks I’m working for him, but in reality it for my auctions. I mean I must be the luckiest woman in the world or everyone around me stupid.
No, eBay and PayPal is not going to catch on. They want my money, so they will let me do anything I want. No one is going to suspend me. Almost 10 years and I have not heard a thing from eBay or PayPal. They will suspend the most honest people. Cheaters and liars like me who manipulate the system and break every rule and steal money from corporations get away with murder. Honest people who follow the rules get the shaft. It’s the American way.

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: David

Mon May 26 01:54:35 2008

I already took the survey on paypal only and I clearly got the impression that they've already decided that ebay is going to be going paypal only. I predict in January 2009 they are going to announce the new "View Item" page, as well as going paypal only.

The positive about going paypal only is that there will be a paper trail with any transaction.

I've had buyers say they sent a money order and either it got lost in the mail, or the buyer is lying. Now we will have a paper trail.

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: kohathi

Mon May 26 08:08:13 2008

It's not too hard to figure out what ebay wants. Fewer sellers. Just 25 the size of buy.com (510360 items found today) and they make more money. Even better they don't have to mess around trying to herd millions of cats.

Do the maths. Ain't large numbers fun!

The only thing ebay could do to help smaller sellers is spin off something just for them. Call it AuctionWeb?

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Drew11

Mon May 26 09:52:30 2008

No ebay will make less money because there will only be 25 buyers left for those 25 sellers. I have no confidence in a company that can't figure out how to add a shopping cart to their site.  

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Henrietta

Mon May 26 14:22:31 2008

@ Mark in Germany

I do not think we ignore you in Germany, it is more that very few of you come to this site, also we are not as clever with languages as you are!

If you are concerned that eBay will try to enforce a PayPal only policy in Germany you must prepare NOW. You need to join a seller group or make a new one if there is none. You must research laws, write letters to the politicians and government departments which regulate such things. Publicity is essential.

Please believe me when I tell you that eBay/PayPal is already prepared with plans. If you study the process in Australia and the signs here and in the UK you will see this.

My personal opinion is that PayPal can be a useful seller tool, however, it is not the only one and I prefer not only to have a choice myself but to offer my customers a choice too.

I am an adult businesswoman. I dislike intensely being treated as a bad child who must be forced to behave in a certain way, especially when the reason for such forcing is dishonest.

This is not about buyer protection, in America buyers have more protection from their credit card companies and equal protection from Google Checkout, which is banned because it is competition for PayPal. This is all about keeping more profit for eBay and PayPal.

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Lily

Mon May 26 21:58:07 2008

I have as a buyr been mistreated by sellers who think nothing of going totoally outragious on shipping or get abusive.

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Joyful

Mon May 26 22:44:12 2008

The eBay-PayPal tying arrangement is just one more thing to bring to the attention of Attorney General John Edwards in January.

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: Seashell

Mon May 26 22:53:47 2008

I AGREE with most of what is being said, it is Greedy Ebay that is trying to monopolize our money.  It is there web site, but So is Walmart & Circuit City & Home Depot there own company, or shareholders.  BUT THEY DO NOT SAY.. You have to have our Credit Card to buy here.  That is plain outrageous that Pay Pal even has this attitude.. I am selling on other sites, and hope everyone else is too, or will be.. There is no reason for us to put all our eggs into Ebays Basket..

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: SeaShell

Mon May 26 22:58:34 2008

LILY, if you are being way overcharged, you need to be more conscience of shipping charges before you bid on the item.. and/or Report them to Ebay, they said that is one thing they will not tolerate.. People who sell things at low unreal prices and charge over the top shipping costs, should be the ones Ebay is cracking down on.. Just think all the money they make they do not pay fees on.. Not Right!... I charge usually .50 cents over, 1.00 for International. covers my ink, packing, etc.. And we won't even mention gas if we have to go to the PO..

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: John

Mon May 26 23:06:41 2008

All we need to do is boycott ebay. Each time we have a boycott planned, Greedy sellers won't boycott. I would guess that 95% of people posting on this blog never joined a boycott. If you want to get action from ebay,Don't whine...BOYCOTT. Thanks

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: donnellwells

Mon May 26 23:16:18 2008

Merci Henrietta from Germany-

You are exactly correct - we must think globally about how ebay is running roughshod over the contract that we all have with them as Sellers.
They can change the rules without blinking, yet we are threatened with nebulous punishment of a 21 day hold on our money etc.  from the combined bullying of ebay and paypal at this point.
Where are the government controls on this type of unscrupulous business behaviour?

Merci to Henrietta from Dallas, Texas!

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: brenda

Mon May 26 23:49:22 2008

Instead of venting in the various blog opportunities, wouldn't you all be better served communicating with each other and coming up with a strategy to fight back?

I have 'visited' the UK and Australian AC centers and posted suggestions.

STOP WHINING!! Get together formulate a plan and do something.

I do not sell on Ebay. I know better.

eBay Pushes PayPal on Users Worldwide   eBay Pushes PayPal on Users Worldwide

by: George

Tue May 27 08:14:00 2008

And why should you wait til January to bring the duplicitious relationship between ebay and Paypal to the attorney General's attention? why not file a complaint now?  why not go to the stockholders' meeting in chicago and bring the corruption out and admit you've filed the DOJ complaint?  Then ebay can get rid of you before Jan.   ME? I'm off working on my new website. Where I don't have to pay ebay fees or Paypal fees or listen to the carp from the cheapest buyers in the world.

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