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Fri Oct 29 2010 03:51:52

eBay Plays Diminishing Role in PayPal's Future

By: Ina Steiner

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The opening keynote at this week's PayPal Developer's Conference featured companies who use PayPal in a wide variety of ways, including Ooyala (video), Financial Times (news content), Payvment (social commerce), Spotify (digital music), Layar (augmented reality), Fourthwall (tcommerce) and Facebook (digital goods).

 

At a press conference after the keynote, I asked PayPal's president Scott Thompson where eBay was in all of this. Payvment is doing some innovative things on Facebook, for example - why wasn't eBay, with its army of sellers and years of experience in ecommerce, doing more to get its listings seen on Facebook? Scott didn't want to handle the question for eBay, and he looked for someone from eBay to answer the question. As if to highlight my point, there wasn't anyone readily available from eBay at the press conference to field the question.

 

While eBay was virtually absent, Magento was front and center at the PayPal DevCon. Magento is gaining steam among small and medium sellers. Its open-source solution is attractive to small eBay sellers because it's free and powerful, and it offers larger sellers a full-functioned paid version. The developers I spoke to had nothing but good things to say about the company - and it is working closely with PayPal.

 

Payvment was also featured prominently at the conference, and I've seen a number of eBay sellers use the platform to list products on Facebook.

 

eBay actually has its own off-eBay platform - ProStores, but it too was absent from DevCon. Surely if Magento was exhibiting, ProStores should have been there?

 

Analysts are pumped about eBay Inc. this week because of PayPal and its off-eBay initiatives. But eBay marketplaces is still ambivalent about helping its sellers grow off of eBay, even on a platform it owns.

 

eBay's biggest competitors may not be alternative marketplaces (developers I spoke with at the conference told me it's too prohibitive to develop for other platforms unless they can get an immediate return on their investment). Instead, eBay's competitors may be platforms that allow sellers to launch their own websites - and PayPal is welcoming those companies with open arms.




Comments (18) | Permalink

Readers Comments

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

This user has validated their user name. by: Philip Cohen

Fri Oct 29 04:59:43 2010

What more can be said about PayPal? From the merchants’ point of view, it is demonstrably the most unprofessional, clunky, payments processor on the planet. While the PayPal system is a great idea in theory, in practice it is fatally flawed by not having the direct underlying risk-managing and effective transactions-mediation support of the financial institutions that are ultimately involved in any transaction (as does Visa/Mastercard). Not having that support means that PayPal’s risk management is primitive in the extreme, and their transaction mediation is simply non existent which results in a hard-wired bias towards the buyer so that, like eBay now, they effectively facilitate wire fraud by unscrupulous buyers on sellers.

Any off-eBay merchant thinking of offering PayPal would be wise to first peruse the very many PayPal horror stories that abound on the internet …

Much of PayPal’s success can be attributed to its mandated use on eBay; as eBay atrophies, so, ultimately, will PayPal. Anyone that thinks that the clunky, unprofessional PayPal can survive in the long term on its own is, I believe, simply delusional; sooner or later, the likes of the bank-supported Visa/Mastercard operations will get their acts together and their professionalism will then very quickly torpedo PayPal.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: fat frog

Fri Oct 29 06:39:42 2010

If Ebay allowed other forms of payments Paypal would folded like a government motors car.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: Jim S. This user has validated their user name.

Fri Oct 29 08:27:44 2010

eBay may be playing a diminishing role in PayPal's future, but PayPal has taken a page from eBay terrible customer service in that it's extremely difficult to contact a human in support. Help/contact pages take you in circles.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: Ludicrous

Fri Oct 29 08:53:20 2010

How can ebay be absent from the paypal developer conference?  They force people millions of people to use paypal and they aren't innovative enough to send executives capable of answering questions to the conference?  It reflects very poor leadership at the top.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: Rick1313

Fri Oct 29 09:18:00 2010

Why wasn't ther any non-PayPal eBay businesses represented at the conference?

For the exact reason that Mr. Thompson gave Ina.

To avoid answering any non-PayPal related issues/concerns.

If only PayPal reps are present, then the eBay,inc. employee can say, ''Sorry, I am not qualified to respond to non-PayPal related issues/concerns''.

eBay,inc. is very careful as to which employees they want to leave exposed outside the walls of Fort eBay San Jose.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: Mr. Obvious

Fri Oct 29 11:14:41 2010

Ask analysts what they think of PreyPal when they get a rock-in-a-box(TM).

PayPal SNAD policy will apply to all venues in 48 hours.

This will be the end of trustworthy ecommerce as we knew it.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: RicRoe

Fri Oct 29 11:32:49 2010

Of course eBay is playing an ever smaller role in PayPal.

The inept leadership of John Donahoe has all but assured eBay will soon become an internet has been.

As John Donahoe has proven he has neither the vision nor the skills to grow eBay, it is only natural that eBay will have a diminishing role in PayPal's future.

Now, don't be thinking PayPal is bullet proof either. Led by the same inept CEO, it will not be very long before he turns his attention to "improving" PayPal, the same way he "improved" eBay.

PayPal thus far has managed to skirt Federal Banking regulations, however that house of cards could fall at any time.

PayPal thus far has been fortunate there have been no serious players looking to compete.

The banking industry is looking for new sources of revenue. It will not be long before banks realize there is revenue to be made from the Internet segment.

Banks, along with the credit card companies will come after PayPal hard and fast.

Mr Donahoe's leadership skills at eBay enabled Amazon to swoop in and steal eBay's lunch and dinner.

Unless John Donahoe is replaced, it is easy to see how PayPal too will fall when the competition gets serious.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: Runcorn

Fri Oct 29 11:59:36 2010

I just went to print a shipping label and it advised I could not print at this time. Called Paypal and they advised that they are having some system update so are essentially down.  These tards are so unprofessional it's unbelievable. How does this operation survive?  I guess by thieving!

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: TekGems
Web Site

Fri Oct 29 12:02:10 2010

eBay has to play a diminishing role. eBay had giant liability for years for having a closed system with Paypal only. Credit cards are accepted online, but it is kludgy at best. They will support more credit card gateways next year which makes eBay less relevant for Paypal. It has to be so eBay is not sued for monopolistic behavior with Paypal.

We also know Paypal's growth has been outside of eBay for many quarters. So, for anyone that follows the earnings report for Paypal, this has not been news for several years now.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: buck efay

Fri Oct 29 12:33:00 2010

Sunday is the last day I accept Paypal off Ebay.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: anonymous

Sat Oct 30 06:42:17 2010

Paypal, with it's ''DEVCON'' conference is TRYING to DISTANCE ITSELF from the ANGER that is EXPLODING out of its user base, the Ebay sellers. They are DESPERATE to SHOOT OFF and start other streams of income off of Paypal (they got Etsy so nobody can go there) and the last thing they wanted at DEFCON (We are at Defcon 4 now I believe- LOL) is a buch of RIGHTFULLY ANGRY EBAY SELLERS- Myself included. It would be pretty hard to sell paypal to developers while Ebay sellers are running around calling them the THIEVES that they are. JD and Paypal are THIEVES.
This is why nobody from Ebay was there. Tsk, Tsk. Ebay.
Oh yeah, HOW COME when I am logged in and I do a ''Best Match'' search my item comes up but when I am unlogged or at somebody elses computer I cannot find my items ANYWHERE, THEY ARE NOT ANYWHERE?????????
This is not good...........

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

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

Sat Oct 30 14:39:39 2010

Anonymous wrote:

"HOW COME when I am logged in and I do a ''Best Match'' search my item comes up but when I am unlogged or at somebody elses computer I cannot find my items ANYWHERE, THEY ARE NOT ANYWHERE?????????"

Ebay artifically and illegally manipulates the Best Search and is deliberately attempting to deceive their customers.

When sellers list and pay fees, seller and ebay are entering into a contract.

Sellers are entitled to receive the service(s) we pay for which normally includes a listing fee, any bells and whistle fees, and a final value fee.

The key word here is LISTING fee, not a "hiding" fee. Manipulating search so that sellers' items are not always 100% visible 100% of the time is violation of contract that ebay has entered into when they accepted our money for listing.

This won't change until a class action is filed and then ebay will double, triple, or even quadruple the listing fee if a seller wants 100% visibility 100% of the time.

This is the kind a slime bucket corporate culture that potty mouth, hot tempered, non voting, not too bright, poor parent Meg Whitman created that Moms for Meg so adores.

Ebay lies. Ebay steals. Ebay defrauds. Ebay cheats. Ebay destroys. ALWAYS.

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: o.c.d.collectibles This user has validated their user name.
Web Site

Sat Oct 30 17:19:22 2010

I don't know..I always felt like I had more respect from paypal when I was using their services OFF ebay, than when I was using their services ON ebay.
When I used Paypal ON ebay, I felt like I was some kind of a criminal!!Totally RIDICULOUS! ANOTHER reason why I left Ebay!

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: Mimi

Sat Oct 30 23:13:46 2010

I do not accept PayPal off e-Bay.  I only accept Google checkout and have had no problems.  Did someone say e-Bay will offer other payment options next year?

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: buck efay

Sun Oct 31 14:30:27 2010

Ming don't forget in one of the 15,000 user updates in the past year Ebay said they cannot guarantee the duration/visibility of your listing, etc, basically saying if you're dumb enough to pay us to list stuff on ebay, then screw you pal!

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: Departing seller

Sun Oct 31 23:50:08 2010

"eBay Plays Diminishing Role in PayPal's Future"

or from any seller screwed by PayPal:

"PayPal Plays Role in eBay's Diminishing Future"

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: Departing seller

Sun Oct 31 23:52:37 2010

''eBay Plays Diminishing Role in PayPal's Future''

or from any seller screwed by PayPal:

''PayPal Plays Role in eBay's Diminishing Future''

eBay Plays Diminishing Role in PayPal's Future   eBay Plays Diminishing Role in PayPal's Future

by: Ebay No More This user has validated their user name.

Mon Nov 1 15:43:58 2010

This is not surprising news to anyone who has sold on Ebay for any time. I keep waiting for Alibaba to buy it.



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