Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Fri Apr 10 2015 00:24:20

Can You Picture Amazon Allowing PayPal Payments?

By: Ina Steiner

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eBay CEO John Donahoe told reporters Thursday that once PayPal splits off from eBay, it will be allowed to pursue joint ventures with Amazon without getting eBay's approval. We wondered about that statement, as it seems to imply Amazon has been hankering to add PayPal as a payment method, something that seems highly unlikely. Some might say Donahoe is trying to ride on Amazon's coattails.

We raised this issue with readers in 2011 - most said it would be highly unlikely that Amazon would accept an eBay-owned PayPal. One made a very interesting point: Amazon subsidiary Quidsi does allow shoppers to pay with PayPal on sites like Diapers.com, for example.

For those trying to get a sense of the chances of Amazon working with PayPal, please think about how that would affect you. As a buyer, would you welcome the ability to pay for Amazon purchases with PayPal?

And more importantly, as a seller, would you welcome PayPal payments? What if Amazon allowed shoppers to use PayPal as just another funding source and you continued to get paid from Amazon the way you do now - would that make a difference to how you view PayPal payments on Amazon?

Here's a link to Friday's EcommerceBytes Newsflash article, let us know what you think!




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Readers Comments

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This user has validated their user name. by: Philip Cohen
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Fri Apr 10 00:34:14 2015

The simple fact is Johnny Ho is utterly delusional ...

“eBay is prohibited from creating its own payments system during this time, and PayPal from creating a marketplace.”—Obviously, to be assured of at least 80% of eBay’s marketplace payments business—at least for the next five years—is of great advantage to “PreyPal” as “PreyPal” would be virtually dead in the water without that eBay marketplace business. Conversely, this arrangement will be a distinct disadvantage to eBay shareholders because eBay could just as easily create its own “merchant” payment system for its marketplace, as Amazon has done; further, whereas eBay could easily create a payments system, as has done Amazon, it is unlikely that “PreyPal” could ever create another marketplace of any value. …

“PayPal will be free to strike payments deals with eBay rivals such as Amazon and Alibaba”—Seriously, what competitor would want to strike a deal with the clunky “PreyPal”, which is effectively still joined at the hip to eBay for the next five years, when that competitor may already have their own functioning payment system, as Amazon does?—LOL …

“Alibaba has said it's open to working with PayPal internationally.”—Alibaba’s Joseph Tsai would have to have been joking, of course …

“John Donahoe says he'll serve as PayPal chairman following the spinoff,”—Well, if MasterCard’s “MasterPass” and Visa’s “Visa Checkout” can’t soon enough bury “PreyPal” (outside of its effectively mandated place on the ever-atrophying eBay marketplace) this cretinous fool, Johnny Ho, undoubtedly will do so …

“Meanwhile, director/former Bain CEO Tom Tierney will replace founder Pierre Omidyar as eBay's chairman.”—Ah, another of Johnny Ho’s mates from the “demolisher of businesses”, Bain & Co; should be fun to watch all that Bain “workbook” learning continue to atrophy both these commercial entities …

Ultimately, it appears that, having effectively stagnated the eBay marketplace for the past eight years, Johnny Ho has at least recognised that the possibility of eBay ever regaining it mojo is zero, and so he has decided to transfer his destructive skills to “PreyPal”; one can only assume that Dan Schulman will not be pleased, and David Marcus undoubtedly will be pleased that, having seen the writing on the wall, he decided to move on to Facebook …

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas  

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by: Saintsteven This user has validated their user name.
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Fri Apr 10 00:52:43 2015

I'd be fine with PP at Amazon, either as a buyer OR a seller, but I can also say (particularly as a buyer-I'm not much of a seller there usually), that I'd pretty ambivalent.  I'm completely comfortable with their present system, and not totally anxious to add PP fees to the little bit of stuff that I do sell there.  I tend to agree with the ''delusional'' assessment.

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This user has validated their user name. by: The End

Fri Apr 10 02:19:38 2015

Can You Picture Amazon Allowing PayPal Payments?

That's a GIANT step backward.
I would stop buying there.

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by: sasikat9 This user has validated their user name.

Fri Apr 10 06:31:47 2015

We were one of the original sellers that beta tested Paypal back in the 90's. We have never had a problem with paypal.

On the other hand the problems with fleecebay are daily.

As we don't buy on Fleecebay anymore and usually do Amazon we wouldn't have a problem using paypal for our sales or as a buyer.

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This user has validated their user name. by: Rexford

Fri Apr 10 07:02:16 2015

I see John has had another thinking day.

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by: Mark4 This user has validated their user name.

Fri Apr 10 08:03:32 2015

Ebay will be finished anyway after ebay is on it's own as ebay can't survive without paypal. amazon would not sink that low to use paypal, amazon is a professional company.

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by: Enough Is Enough! This user has validated their user name.

Fri Apr 10 09:13:55 2015

If there was a "focus group" which asked opinions of consumers, this is what they would likely find:

(1) Amazon- World-class customer service (for buyer and seller), top quality goods.

(2) Ebay- Horrendous customer service (especially for sellers), second quality goods & Chinese junk. Inept management team.

(3) PayPal- Used to make payments to (2). Silly rules and policies that are akin to (2). Has very close association to (2), even though they have "split" from (2).

WHY WOULD NUMBER (1) WANT TO STEP INTO ANYTHING ASSOCIATED WITH NUMBER (2)??

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by: Volvo351 This user has validated their user name.

Fri Apr 10 09:15:37 2015

Go ahead, River, 'Baba, or any other on-line "marketplace" - make yourself a Two-Headed Monster by teaming up with this despicable bank-that's-not-a-bank, exposing your sellers to its abusive practices. What seller doesn't know that you can't sell high-dollar items via PayPig - your money could very well be Here Today, GONE tomorrow!

As for eBay and the spin-off, I'm all for imposing as few restrictions on PayPig's future operations - that will loosen the Pig's grip on eBay transactions! The Hoe will have ZERO incentive to allow PayPig to void/cancel sales on the "platform." Of course, the Big Scam is that when buyer commits FRAUD via a phony SNAD dispute, The Hoe KEEPS your FVF!  

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by: Volvo351 This user has validated their user name.

Fri Apr 10 09:24:22 2015

@Philip Cohen

I'm not surprised that, after destroying eBay, The Hoe will, like the rat he is, jump the sinking ship for the PayPig liferaft. After all, he's stocked it with lots of Survival Goodies including that all-important $6B in cash so his hand-picked BoD can continue cutting obscene paychecks for the insane Capt. Queeg! eBay will continue on the course that The Hoe has plotted - straight toward the rocks. Small sellers stay with this sinking "platform" at their own peril.

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by: bb6 This user has validated their user name.

Fri Apr 10 09:45:58 2015

I don't understand all the negativity towards paypal on these comments. Do you remember before paypal? Think hard. How the hell did you get money? Cash..which magically vanished in the mail. Money orders or personal checks which bounced all the time and then the bank charged you a fee for them not having the money, usually $30-50 depending on the bank. How about money transfers like western union. 99.9% of the time they were scams. I guess everyone forgot about those days. Yah PayPal has had some issues but really, someone buys something from you, they pay, and you can move that money right into your bank account. You don't have to leave the house!!!! With some of the new changes at PayPal I can have that money deposited into my bank by the next day.  

What I wish would happen would be that lazy buyers and sellers look outside the box and get familiar with a payment called Dwolla! Anyone heard of Dwolla? Payments under $10 are free to receive. Over $10 only $.25. Why isn't everyone using that on their websites? You wouldn't have to pay the 2.2 to 2.9%+$.30 on every transaction. Why? Because people are not forced to use it. They don't want to learn another payment system even though it would save us all MILLIONS of dollars a year.

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by: gizmo This user has validated their user name.

Fri Apr 10 10:20:20 2015

Whatever they do , we are stuck with. I may not like the way paypal or ebay do business , I can, go elsewhere. What a mess coming our way. I cannot even imagine whats next.

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This user has validated their user name. by: Al G

Fri Apr 10 10:26:00 2015

It is interesting that eBay got the short end of the shaft on the split: No cash, all the debt and now the 80% PayPal requirement.

These "business people" are sure giving the business to eBay.

Apparently Bain & Co works of the zero-sum principle - I win, you lose. Sell eBay short over the next year - the stock is going for a roller coaster ride.

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This user has validated their user name. by: Al G

Fri Apr 10 10:29:37 2015

For whatever reasons - PayPal & eBay will still be joined at the hip.

Bad, good or indifferent, the system works for the most part.

But why would I use PayPal on Amazon when I already have my credit card on file there? I just go with the method that maximizes my return with frequent floater miles, barter-back schemes or whatever the lords of finance deem attractive/lucrative to the foolish unwashed masses.

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This user has validated their user name. by: iheartjacksparrow

Fri Apr 10 10:45:16 2015

To answer the question, I can't picture Amazon allowing PayPal on their site. I'm sure Amazon knows that eBay is their main competitor (at least in the eyes of most online shoppers), so why would they want to be associated with a company that everyone knows was a part of eBay? Also, would Amazon want to subject their sellers to a 180-day SNAD claim process?

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by: Lamprey This user has validated their user name.

Fri Apr 10 13:13:00 2015

Pre-IPO spin - neither Amazon nor Alibaba needs or wants PayPal in the mix.  More BS from the BS master.

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by: Santini This user has validated their user name.

Fri Apr 10 13:49:09 2015

Not only subject sellers to 180 day returns but pp fees, endless holds on funds, e-check scams and still the potential for cc chargebacks. Sounds like a plan.

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by: RCL This user has validated their user name.

Fri Apr 10 14:14:10 2015

In any online transaction, I am always delighted if the vendor takes Pay Pal. Much easier than setting up accounts everywhere. I can see a benefit to Amazon to offer Pay Pal to customers so long as it doesn't offer Amazon's own credit card.

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This user has validated their user name. by: Rexford

Fri Apr 10 14:45:54 2015

Al G says "It is interesting that eBay got the short end of the shaft on the split: No cash, all the debt and now the 80% PayPal requirement."

It was all orchestrated Al.  Don't forget that JD is ex Bain.  

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by: Volvo351 This user has validated their user name.

Fri Apr 10 20:06:49 2015

@Al G

So, I take it you're not surprised that The Hoe is going where the CASH, not the debt, is! You see, this egomaniac believes he's worth millions just for passing gas and he wants to make sure those fat paychecks are gonna clear!

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by: Opalie This user has validated their user name.

Fri Apr 10 23:22:02 2015

So PreyPal would like to 'pursue agreements with Amazon" while effectively stopping eBay from pursuing their own payments system as per the split agreement?

Some things never change.

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