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Tue July 29 2008 12:16:11

Users on eBay Australia Buzzing over Failed PowerSeller

By: Ina Steiner

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eBay users in Australia are reeling after a PowerSeller has allegedly left many buyers in the lurch after its business failed. The Age newspaper said the seller, ebusiness_supplies, did over $15 million in revenue last year. It quotes PayPal Australia's managing director Andrew Pipolo as saying, "We're actually not liable for it but it's something that, because of the circumstances of this particular seller, the impact on such a large number of buyers, we've made the decision to make a fund available to cover the expense."

Sellers who had rallied against eBay Australia's failed attempt to move toward a PayPal-only marketplace say the incident proves PayPal fails to protect all users. In an open letter to reporters on the eBay discussion boards, they wrote, "Do not be fooled : the establishment of a special fund to refund those who used PayPal on this occasion is a public admission by ebay and PayPal that PayPal Buyer Protection is entirely illusory."

I can't help but think of BuySafe in cases like these. The fact is, eBay has not embraced a service that could help minimize the impact of large-seller bankruptcies.

Edited 7/30/08




Comments (39) | Permalink

Readers Comments

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: whirly

Tue Jul 29 13:32:38 2008

This is a cover up by eBay to hide the fact that they allowed EBS to flowt Paypal's pre-sale rules. Hardly any of the buyers who paid by Paypal had protection anyway. Paypal presale rules state the item must be delivered within 20 days, however ebusiness-supplies stated 30 days in there listings so would not have been covered by seller protection.

Furthmore a lot of the items purchased were in the vehicles catagory so again no protection under Paypals protection rules.

These buyers were ripped off before they used the buyitnow button and eBay are now trying to cover it up.

No wonder they offered to set up a fund for people who paid by paypal.!

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: exposingtheplayers

Tue Jul 29 13:48:32 2008

eBay and PayPal's Buyer Protection is more than illusory. It's a dirty, little joke. The same can be said for Seller Protection.

In the end, eBay and PayPal choose to protect only themselves. When will they understand that it's far too late to protect their reputation? It's already trash and their credibility is non-existent. Stunts like this 'special fund' fool nobody.

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: The Graduate

Tue Jul 29 13:52:12 2008

''We're actually not liable for it but it's something that, because of the circumstances of this particular seller, the impact on such a large number of buyers, we've made the decision to make a fund available to cover the expense.''

TRANSLATION:

We really don't care except that this may shatter the illusion that our service is safer than any other.
And since the sheer number of people who were ripped off could earn us some really nasty publicity and thereby negatively affect our bottom line, we're in a position where we feel forced to do the right thing.  Had the chumps who were ripped off been fewer in number, we could have swept this one under the rug.

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: awful ebay

Tue Jul 29 15:24:37 2008

SUE SUE and SUE again ebay & paypal. dirty rats.

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: Banned Ebay

Tue Jul 29 16:05:39 2008

One can only wonder if this stunt was used to actually get extra money to use and give back principle only. Make sure you ask for the interest on your money they ''borrowed'' from you, while you have to wait for your refund; it may take them 3-4 business days to get it back to your account. That about seals the deal on my boycott of ever going back to the crooks formerly known as Ebay / Paypal

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: Julia

Tue Jul 29 16:19:49 2008

This seller probably got sick of ebay's rules and is getting them back in a MAJOR way!
I don't think it's good what they did, but I am glad that Ebay IS on the other end of this debacle.

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: sickofebay

Tue Jul 29 16:28:16 2008

It's completely sickening to see that this seller was still allowed to sell when the negatives were adding up already.

I am a Seller, and over the past month, received TWO negs but because I was on a holiday, the ratio of positive sales was let's say low to none against my negatives, and the two negatives counted as a big no-no against my account, and eBay restricted my selling. Doesn't matter that I am a great seller, all fees paid on time, only 2 negs out of 700 sales!!!

TWO NEGS!

This seller has 666 negatives and rising, and as far as I know, this fella's account is STILL NOT NARU'ED YET!!

WTH???

Is it because he has over a million bucks in sales he gets ''exclusions''?

Is it because he raked in over $15mil last year that he gets special treatment?

A small little seller like me gets shafted big time, but big sellers like him gets TO SHAFT big time.

DO IT RIGHT EBAY!!

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: o.c.d.collectibles

Tue Jul 29 21:08:26 2008

This was the Karma that was coming to ebay. Now lets all watch the stock drop some more!

I wonder what the Board of Directors will be doing in order to do some damage control?

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

This user has validated their user name. by: Ming the Merciless

Tue Jul 29 23:35:31 2008

The next major policy change ebay will make will be to require some but not all sellers to take out "bankruptcy insurance" or general "non fulfillment" insurance policies or bonds sold, of course, by PayPal!

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: Patricia

Wed Jul 30 00:23:57 2008

At this point I don't care who sues Ebay/Paypal.  They deserve every lawsuit.  I want to rub their noses in the statement that powersellers were "trustworthy" and so got extra benefits and a 7 day cooling off period before they could be negged.  They need their noses rubbed in the dirt for saying that and insulting many long time honest sellers and making them feel like criminals.  So sue, sue, sue.  I don't care one whit what happens to Ebay/Paypal.  They deserve whatever comes to them!  Its just too bad they're too pompous and arrogant to see how many sellers hate them in just this way!

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: Keith

Wed Jul 30 06:37:46 2008

The part that cracks me up is the amount of NEG's they have and how eBay calculates it and its in the 90% range.  It's about time that eBay and PayPal take a major hit.  It would be nice to have this situation turn eBay around but it is likely just one more LARGE nail in their coffin.  

When you make an expensive purchase through PayPal be sure to use your ''alternate Funding'' source and be sure it's a credit card.  In this case you would get your money back for non receipt of your merchandise and guess who eats it...... yup, PayPal...

I hope all the buyers fair well in this ordeal and eBay/PayPal get the snot beat out of them...  This is just one more reason eBay should have left well enough alone.

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: careful buyers & sellers

Wed Jul 30 11:31:45 2008

paypal & sleezebay may be selling your email address & paypal info:
BBB WARNING - Mysterious Credit Card Charges Plague On-Line Shoppers
Thousands of Complaints Reported to the BBB


Better Business Bureau (BBB) is warning consumers to closely check their credit card statements for mysterious charges that are cropping up by the thousands across the country. Upset online shoppers have contacted BBB about unwanted credit card charges that are ultimately being traced back to Connecticut-based Affinion Group, an affinity-marketing company that recently changed its name from Trilegiant.

In the last 12 months alone, BBB has received nearly 1,800 complaints regarding Affinion Group. Most complainants state that they were shocked when they discovered unwanted charges on their credit card for membership services such as “Shoppers Advantage,” “Privacy Guard” or “Great Fun.” Charges ranged from $12 to as much as $59.99 every month. Some complainants had been charged by Affinion Group every month for several years, resulting in hundreds of dollars being paid for services they never took advantage of or even realized they had signed up for.

“Consumers who get signed up for Affinion’s programs never actually provide their credit card information and therefore don’t suspect that the company will immediately begin charging their credit card every month,” said David Polino, BBB President. “The large volume and pattern of complaints BBB has received indicates that Affinion is not taking enough steps to ensure consumers understand exactly what they’re getting into when they click on enticing pop-up ads – and that’s why they have a longstanding unsatisfactory record in BBB’s book.”

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: Killa Steve

Wed Jul 30 12:05:24 2008

Check this out

http://blogs.moneycentral.msn.com/topstocks/archive/2008/07
/28/ebay-exec-gets-1-million-to-buy-a-house.aspx

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: Hiding Behind Asbestos Shield

Wed Jul 30 12:47:43 2008

It amazes me how many people love to come here and bash eBay & PayPal or revel in the losses of so many users on eBay saying things like they, eBay & PayPal all got what they deserved.

Almost every poster here should be ashamed of themselves.  Especially any of those that are in business with eBay or PayPal.

How would all of you like it if eBay or PayPal staff came here pounding on each of you with similar comments if your business encountered a problem?  That is NOT how business partners treat one another.

I don't like many of the things eBay does but I rely on them for a good part of my income so I work WITH them to try to achieve change.

Coming here and constantly bashing eBay and PayPal accomplishes nothing.  Sure they make mistakes like all of us do from time to time.  And yes their mistakes can be far more impactful than yours or mine.  But constantly beating them over the head is NOT going to change or fix anything.

If you see a problem, which it appears a great many of you do, then offer solutions instead of reveling in the misfortune of eBay and PayPal users.

You all sicken me.....

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: coolbreeze

Wed Jul 30 13:23:08 2008

Sometimes the truth hurts .......

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: dan

Wed Jul 30 14:28:09 2008

Hiding is right...You cant beat a soon to be dead horse.

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: unknown

Wed Jul 30 14:50:57 2008

That is NOT how business partners treat one another.

Except that's exactly how ebay treats you. Ebay is NOT your business partner. That's some fantasy you have. Do they work with you or do you have to go through gyrations to attempt to work with them - when they change the rules on an almost daily basis, with no notifications, nothing.

Why is it that ebay does this stuff for Australia - and it's twice now that they've rescued buyers there - when they don't do anything anywhere else? What's the deal with Australia?

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: o.c.d.collectibles

Wed Jul 30 15:08:57 2008

"hiding behind": I am not sure who you are addressing here, as this is only a comment section related to the article that has been much publicized and now very well known in the news media of Australia and now here, in the US.

Many of the ebay members and past members have repeatedly offered suggestions to ebay staff, and in fact, are still offering thousands of suggestions as CAN be evidenced by the increased posts on the forum boards, and in the media comments sections of the news sources that have most recently taken notice of the failing Marketplaces sectors of ebay.

Unfortunately the suggestions fall on deaf ears.

The story above just illustrates the distortion of the business model that most of us have been around to see evolve over the last 10-12 years.

The "Power Seller" and the "titanium" sales numbers that have given ebay their  increased revenue, has taken hold of the entire site as it it were possessed by the ideals themselves, and not by what the original ebay business was all about when buyers and all sizes and shapes of sellers were on common EQUAL ground.

Ebay was in it's glory when it was a thriving business several years ago. It provided a great income for many folks who might have not been able to make an income any other way. (Working folks have money to spend in the economy, and are the backbone of the economy). Without these folks, the larger corporations have nothing.(That will play itself out in this comedy of ebay errors as well.... )These are not just small business owners, they are also large consumers of services and products EVERYWHERE.
 
The original ebay business model all changed when ebay began it's quest to differentiate the larger volume retail seller from the small auction seller as far as promoting and rewarding their efforts in ways that discriminated against the smaller seller. This could be felt and heard at all levels when the naming of the "power seller" was first coined.

It became obvious through time, that ebay was reaping more benefits from these larger sellers, so they decided to reward their income making "sales" and ignore their business practices, such as they did with the fellow who was just caught in Australia!(and they still do at this very moment)

Then, with all of their increased revenue, ebay CEOS decided that the sellers who are big retailers must be the best sellers on the auction block, so it would be a good idea to push more of the smaller sellers into performing the same way. So, in keeping with this strategy, ebay pushed these sellers downward in order to "motivate them" to move upwards. (search, fees, feedback, DSR's all assisted in sellers self elimination)

This was the biggest mistake they could ever make.(just my opinion) The people posting here have made their thoughts public, since it was they, who have been the beneficiary of the decision making that counted them out. It's commendable that they are able to voice their opinions in a place that holds the small business owner as still a valuable commodity.

In case you have forgotten, Mr Hiding, this site is called AUCTION BYTES because of it's interest in auctions and the evolution of that kind of business.

We are not all here to discuss Walmart or TJ MAX!


For obvious reasons, a company like ebay  cannot order folks running a small business to do business in ways that don't suit them,and placing their status in vicarious positions will only disadvantage them instead of motivate them to do business according to what the ebay model is attempting to force on them.

The point I am getting at, is that most of the posting here is from the average great seller and great customer of ebay, who, in many ways, has been thrown to the wayside of big corporate changes that do not benefit the corporation in any way. If anything, it has the opposite effect, it becomes an obstacle and a cause of financial loss for the ones who used the services and then in turn, will alienate the buyers who patronized these small business owners for years.Another episode like this Australian one will be the final blow, if it comes out again, which most likely, it will!

What matters to the particular person posting here, may not matter to you, Mr Hiding, but it does matter to the predominance of readers here. You happen to not be one of them. If you are sickened by comments that are offered in an open and fair media site such as this one, then I would suggest you just avoid sites like this until you are able to tolerate reading the comments made by posters whose lives have been seriously impacted by the fiasco created by the poor business decisions made by ebay CEOS.

Australia has one good thing going for them! They have a government who watches out for their citizens being taken advantage of by bully companies!We could all stand to learn something by THAT!

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

This user has validated their user name. by: Ming the Merciless

Wed Jul 30 16:58:41 2008

@ Hiding

If we make you that sick, then don't read these blogs or visit this website.  

You're like those people who complain about TV programs. Your TV has an off button or you can change channels. You can do the equivalent here.

You smell like an ebay employee to me.

Users on eBay Australia Buzzing over Failed PowerSeller   Users on eBay Australia Buzzing over Failed PowerSeller

by: someotherseller

Wed Jul 30 18:04:54 2008

@Ming

Ming states:

''If we make you that sick, then don't read these blogs or visit this website. You're like those people who complain about TV programs. Your TV has an off button or you can change channels. You can do the equivalent here''.

But by the same token, can't you just stop selling on ebay altogether if it sickens you that much? Are you being forced to continue to sell there? Can't you just quit?

Disclosure: I am not an ebay employee, ebay cheerleader/sheep, or the person who posted as ''Hiding''. I'm just another fee-gouged ebay seller who contiunes to sell there of his own volition...as do we all. We can all leave at anytime.

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