Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Nov 30 2017 09:02:57

Change Could Mean Buyers Pay eBay Instead of Sellers

By: Ina Steiner

Sponsored Link

eBay struck a 5-year operating agreement with PayPal when the board broke up the companies in 2015, but a provision in the contract allows eBay more leeway beginning next year - and the biggest losers may be eBay sellers.

Speaking at a Wall Street conference on Tuesday, eBay Chief Financial Officer Scott Schenkel addressed a question about the provision which a Credit Suisse analyst described as giving eBay the ability to experiment with payments and become the merchant of record at the three-year mark, which would be July 2018.

Explaining the concept of merchant of record, he said, "eBay would start to be the seller and in doing so would aggregate that volume and be able to get lower PayPal or other payment operator rates."

Becoming the merchant of record has huge ramifications, as Etsy sellers found out when that marketplace forced Etsy Direct Checkout (now called Etsy Payments) on sellers. When a buyer pays for a seller's item through PayPal, the money goes to Etsy, not the seller.

Sellers didn't like it in principle - and it meant waiting longer to get their funds from Etsy. 

One can imagine how eBay sellers would feel about it if eBay became the intermediary for PayPal payments. Additional concerns would likely center around eBay's history of glitches and poor customer service.

Schenkel said eBay was considering its options. It would mean more revenue for eBay, but it would also entail more costs - and eBay would take on risk. And, he said, "We would have to do trust, we would have to have some degree of additional customer service, all of which PayPal does for us today."

It seems it wouldn't happen at once - eBay would be limited to 5%, and then could scale to 10% over the next 2 years. Currently PayPal is over 85% of its business, he said. "So we could start to use other payment providers, or have PayPal be the payment provider for (eBay being) the merchant of record."

"And you know, again, the lens we're going to take is, do sellers want alternatives? Do buyers want alternatives? Can we make it more frictionless? Can we make it a better user experience? And along the way who's the best payment provider partner? Today it's been PayPal and we certainly can and will open it up to others."

Knowing now that eBay may be planning to insert itself into payments between buyers and sellers, it seems it could be the reason for eBay's rush to roll out a new selling platform called Seller Hub.

Comments (74) | Leave Comment | Permalink
Readers Comments

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: ebayout This user has validated their user name.

Thu Nov 30 13:08:41 2017

Sure wish they'd publish seller account closings....the total just after the Spring Update would draw a good betting line.
The slim hope is for a bad 4th qtr...
...might bring the demise of Wenig and his mind-reading Structured Data.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: gutspiller This user has validated their user name.

Thu Nov 30 13:14:45 2017

Ebay tried the very same thing several years ago in Germany. The government got involved and forbid Ebay to do it.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: eBay Shill Buster This user has validated their user name.

Thu Nov 30 13:14:48 2017

Wenig and his mind-reading Structured Data

LOL, search is like Seller Hub now, a lot of wasted space and the morons asking buyers if they 'want to see actual search results' instead of the New eBay shopping experience.

Devin should have been fired a year ago, the dude is a monumental flop.....

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: smallstuff This user has validated their user name.

Thu Nov 30 13:15:09 2017

Isn't this just one more attempt to be more like Amazon?  Amazon collects all the payments on their orders.  And their fees are higher.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: papergoy This user has validated their user name.

Thu Nov 30 13:16:04 2017

Very confused- volume discounts?  A couple of years ago, Paypal took away my discount (I was paying 2.5 percent plus thirty cents due to volume of sales and they moved me to 2.9 percent plus thirty cents per sale)) and said they were streamlining in order to make things easier for everyone- in other words, no discounts and more money out of my pocket.  Now I find out that (gasp) they lied- and there indeed are different tiers of fees....I am stunned that a company would lie to its customers (I especially liked the justification- it was simplifying things-  I can handle complicated if it saves me money- don't do me any favors...and how exactly did simplification add up to a fee increase for anyone high volume?  Funny how that works...)

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: Scott98 This user has validated their user name.

Thu Nov 30 13:17:51 2017

Horrible idea.

Just like eBay can email you about payment, but you cannot email them. Call them and they say they cannot do anything.

Get out while you can now!

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: ebayout This user has validated their user name.

Thu Nov 30 13:39:46 2017

Speaking of Structured Data...here's ebay's blurb in a recruit ad on Glassdoor for a Structured Manager...
...imagine if even half of this were true.

eBay (NASDAQ: EBAY) is the worlds most vibrant marketplace for discovering great value and unique selection. eBay connects millions of buyers and sellers around the globe, empowering people and creating opportunity through Connected Commerce. Our vision for commerce is one that is enabled by people, powered by technology and open to everyone. We partner but never compete with our sellers and create stronger connections between buyers and sellers with product experiences that are fast, mobile and secure. eBay is passionately committed to re-inventing commerce and making it simpler, more accessible and more rewarding. To do this, eBay is developing innovative experiences aimed at simplifying shopping thanks to structured data.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: eBay Shill Buster This user has validated their user name.

Thu Nov 30 15:29:14 2017

ebayout

That is straight out of Devin's 'investor relations buzzword department' intended to fool Wall Street into thinking eBay, a company that can hardly serve a web page, that they are a competent technology company.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: maxmad This user has validated their user name.

Thu Nov 30 15:50:18 2017

I kind of expected ebay would need to find new ways to take more from sellers, ebay payments will certainly do that, if not from higher process fees, to holding money longer to make more from interest, to doing loans.

ebay is a Desperate non creative company, that has only one option to make more money and that is to take more from sellers, they have absolutely nothing else.

Etsy did the same, sellers made a lot of noise, and about 2 million were removed , the desperate ones stayed on, and new sellers don't know any different., no big deal, it's just going to cost more .

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: ebayout This user has validated their user name.

Thu Nov 30 15:58:54 2017

ebay is a pixel leasing company with 2 assets...
1) Cash
2) Bad ideas
Can you spell Enron?

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

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

Thu Nov 30 18:09:57 2017

https://www.cnet.com/news/billpoint-failure-a-lesson-for-ebay/



Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

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

Thu Nov 30 18:46:46 2017

Here's where this RICO bait corporation is going: continually raise existing fees (except on their beloveds and the Chinese) and add as many new ones as they can get away with like FBE and payments.

Two more moves that will cause seller hemorrhaging and ebay's march into self inflicted oblivion.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

This user has validated their user name. by: toolguy

Thu Nov 30 19:04:13 2017

"eBay will shut down Billpoint later this year as part of its agreement to acquire PayPal for about $1.5 billion in stock. "

As of today Paypal is worth $91 Billion, when eBay spun them off they were worth $44 Billion.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: ebayout This user has validated their user name.

Thu Nov 30 19:27:23 2017

If the stock falls another couple bucks, hopefully the bay will become a buy out candidate.
Wenig will be free to peddle Structured Data in Upper Mongolia.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

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

Thu Nov 30 21:14:00 2017

@ Tool

I thin you missed the entire point of the article!

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: Studiolines This user has validated their user name.

Thu Nov 30 21:45:55 2017

Paypal sold off paypal credit to Sychcrony and I think Ebay is pursuing a PLANNED OBSOLESCENCE scenario. Think thats why the lack of attention to vintage. If they can get everything has be new going, (most new stuff is crap that doesn't last long) they can create an endless stream for more crap. JMO  

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: Studiolines This user has validated their user name.

Thu Nov 30 21:47:50 2017

Tariff on everything that exceeds trade deficit. Hopefully they won't call our treasury bonds in if we force it.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: Studiolines This user has validated their user name.

Thu Nov 30 21:50:35 2017

@ebayout
Sounds like the same mission statement that's on the website. Bet don't compete with ours sellers Ebay valet never has visibility problems.

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: Bsmoman This user has validated their user name.
Web Site

Thu Nov 30 21:51:51 2017

That's why I'm pushing BuySellMakeOffer.com 9.95 a month no fees! keep the money, it's yours anyway! Sell as much as you want!

Perminate Link for Change Could Mean Buyers Pay eBay Instead of Sellers   Change Could Mean Buyers Pay eBay Instead of Sellers

by: Bsmoman This user has validated their user name.
Web Site

Thu Nov 30 21:55:02 2017

Don't worry guys, we have this for you! Sell as much as you want only 9,95 a month! no fees, no hoops , No hassle. It's very Bert and Ernie user-friendly!

Click to view more comments
1 2 3 4  [Next Page]


Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.