Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Fri June 26 2015 22:39:19

eBay Break with PayPal to Be Complete in Three Weeks

By: Ina Steiner

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eBay announced today that its split with PayPal will be complete 3 weeks from today on July 17th. The day before the split becomes final, eBay will release second-quarter earnings - the last as a united company.

eBay issued a press release today explaining the details with regard to eBay and PayPal stock. Interestingly the company said the distribution remains subject to satisfaction of certain conditions, including regulatory approval from the European Central Bank and others.

eBay CEO John Donahoe issued a statement on the company blog - also published on LinkedIn - about today's news. "Going forward, eBay and PayPal will each have a sharper focus and greater flexibility to pursue future success in their respective markets."

He also said eBay and PayPal were well positioned to capitalize on their respective growth opportunities. "At the same time, we have put in place an operating agreement focused on preserving the benefits of their existing relationship and ensuring that separation is seamless for customers of both companies."

Donahoe will be stepping down as CEO of eBay as soon as the split is finalized, and he will become Chairman of the Board for PayPal. He will not sit on eBay's board after the split - the new eBay Board will be chaired by current eBay Inc. director Thomas Tierney. See more information about the new boards here.

Devin Wenig will take over as CEO of the new, smaller eBay consisting of Marketplaces, and Dan Schulman will take over as CEO of PayPal. eBay has said it would sell eBay Enterprise prior to the split, but it didn't mention it in today's announcement.




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Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: Philip Cohen
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Fri Jun 26 23:44:42 2015

Neither of these two clunky operators have any future; certainly not once the sham “spin-off” arrangements eventually expire; regardless, even without the destructive guiding hand of the ex Bain cretin, Johnny Ho, undoubtedly the eBay marketplace will continue on its journey down the toilet …

PayPal may presently be number one in the eyes of the many naïve “buyers” but not so in the eyes of small business payees that invariably bear the brunt of PayPal’s clunky, unregulated, intermediary retail payments operations. …

Apple Pay, Samsung Pay, Android Pay, et al, will soon enough overwhelm PayPal’s petty, clunky, contribution to mobile payments (next time you visit Home Depot, ask the cashier how “Pay Here With PayPal” is going—LOL); facebook payments will soon enough bury PayPal in the P2P payments sphere (David Marcus certainly made the right decision); and the new online retail payments offerings direct from MasterCard (“MasterPass”) and Visa (“Visa Checkout”) will eventually bury PayPal’s online payments operations also, except on the eBay marketplace where PayPal’s “split” from Ebay will go down as the greatest commercial confidence trick of the twenty-first century …

Having said that, it should be noted that, having spent the past eight years bringing the eBay marketplace virtually to its knees, the ex Bain & Co. cretin, Johnny Ho, is scheduled to remove his destructive capabilities from eBay to the spun-off PayPal (a “spin-off” in name only), and that being the case, potential long term investors should understand that they invest in either eBay’s or PayPal’s future at their very great peril …

Goodbye PayPal, it’s not been nice knowing you … http://bit.ly/1nSA1Zl

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

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

by: veron This user has validated their user name.

Sat Jun 27 02:03:21 2015

Johnny Ho One of the worst so called CEO's in modern day era. His 3 year plan to turn around ebay turned into 7 years of continued incompetence and your dismal performance record speaks volumes. You single handed destroyed what a gem ebay once was.
You alienated the golden goose which were your sellers that brought buyers in.. Your incomprehensible seller DSR ratings, limitations of items and amounts, low search items, paypal holds, unbelievable final value fees on items sold,  the ability of buyers to simple manipulate policies and destroy seller reputations is completely  incomprehensible.  Based on data in 2006, you have about 146 million registered users and about 1.3 million sellers (according to AC Neilson). Fast track your 3 year plan (really 7 years of your steering the titanic ) and your uncanny ability to alienated your revenue base of sellers, i would estimate now about less than a millions sellers left on ebay.  

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

by: ajeweler This user has validated their user name.

Sat Jun 27 09:33:01 2015

these companies are not truly breaking up its a paper move please not the following email received from paypal and do note the terms and note that ebay still can hold your money and paypal backs up ebay in disputes, the only difference I see is that ebay seller protection in every aspect is complexly gone now in addition to a ebay dispute paypal by what I understand gives buyers an additional 6 months to open complaints in addition to e bay 90 days

PayPal is starting a new journey as an independent company, and in the second half of 2015, we’ll once again be publicly traded on the NASDAQ with our original stock ticker symbol of PYPL. This is a meaningful symbol for the company because it represents our commitment to the spirit of the original vision that sparked the launch of PayPal 17 years ago.

We also have a commitment to the important people who have helped us on this journey: you, our customers. You’ve trusted us to help you grow your business, so we want to ensure you’re aware of a few upcoming updates to our processes and services as we separate from eBay. To help you understand these changes, we’ve outlined two of the most common questions below, and captured the rest of our frequently asked questions in this message.

Once PayPal is an independent company, buyers will have the opportunity to raise a claim with PayPal after they’ve opened a claim with eBay. They can do this before a decision has been made by eBay or if they aren’t satisfied with a decision made on an eBay claim. This is similar to what happens with a chargeback today. If this occurs, we’ll follow our normal claims process and will reach out to you for additional information regarding the claim. If a decision was not yet made by eBay, the claim will close out and continue on PayPal. A buyer won’t be able to go to eBay to file a claim if they first came to PayPal.

Also, our purchase protection is now being extended to intangible items and services. You should be prepared to provide "compelling evidence" that you provided the intangible or virtual item or service, should a buyer dispute a transaction. Compelling evidence includes any evidence available to prove the buyer received the goods or services, or benefitted from the transaction. Examples include proof the buyer accessed your site or downloaded a file, and/or relevant portions of terms and conditions to which the buyer agreed. Although Purchase Protection will now extend coverage to buyers for intangible items, Seller Protection won’t apply to intangible items. However, having proper proof of delivery can help a seller win a buyer’s purchase protection claim.

For more information on these issues and many more, please refer to our frequently asked questions below and at PayPal.com.

As an independent PayPal, we’ll be singularly focused on continuing our vision to be the open platform for digital commerce. That focus will allow us to accelerate our innovation so that we can deliver even better experiences to you and your customers ­ whether in store, online, or on mobile.

We know that your trust and partnership has gotten us to where we are today and look forward to a bright future together.



FAQ
Why are eBay and PayPal separating?
Creating two standalone businesses best positions eBay and PayPal to capitalize on their respective growth opportunities in the rapidly changing global commerce and payments landscape, and it’s the best path for allowing us to focus on becoming an even better payments partner to our merchant customers.

What does this mean for me?
The only change you should experience is that you’ll now contact eBay and PayPal separately regarding your respective accounts.

When will this be happening?
The companies plan to separate in Q3 2015.

How do I get support from PayPal if I need help?
Please continue to contact PayPal as you always have. If you have any questions, you can click the Contact link once you are logged into your PayPal account for the phone number and hours of operation.

How do I get support from eBay if I get help?
For eBay-related questions, please contact eBay.

Do I need to do anything to prepare for this change?
No. The separation of eBay and PayPal will have minimal impact to your experience with us.

If there is an eBay dispute on my transaction, will this payment be held in PayPal?
Our process in this area won’t change. PayPal and eBay each have buyer protection programs and in certain circumstances, we hold payments while the disputes are resolved.

Are there any PayPal protection policy changes after the eBay and PayPal separation?
You can find the latest PayPal protection policy here: https://www.paypal.com/us/webapps/mpp/ua/upcoming-policies-full One major change that will happen after separation is buyers will now have the opportunity to raise a claim with PayPal after they have opened a claim with eBay. They can do this before a decision has been made by eBay or if they are not happy with a decision made on an eBay claim. This is similar to what happens with a chargeback today. If this occurs, we’ll follow our normal claims process and will reach out to you for additional information regarding the claim. If a decision was not yet made by eBay, the claim will close out and continue on PayPal. A buyer won’t be able to go to eBay to file a claim if they first came to PayPal.

Does this mean the buyer will be able to lose a case on eBay, and then come to us to file a separate claim where our buyer protection rules are more apt to find in the buyer’s favor? (ie, eBay will make decisions based on the return policy spelled out in the listing, PayPal does not).
PayPal will adjudicate according to PayPal policies. Since buyers have always had the ability to file a claim on either platform, sellers should follow the most stringent requirements.

Changes to micropayment fees: will accounts be grandfathered in?
Accounts that are currently under micro pricing are not changing at this time.

If my eBay account gets limited, will this affect my PayPal account?
No, there is nothing that exists today that places limitations automatically between our two companies as we have different processes that determine limitations. Should you have this experience where both accounts are limited, you will need to work with each respective company to resolve the issue.

Can you clarify your policy on purchase protection being extended to intangibles?
Proof of delivery for intangible or virtual items or services is documentation satisfactory to PayPal that the item or service was provided to the buyer such as proof of download including the date of fulfillment.

Will my eBay behavior (eBay performance) still trigger my PayPal hold, such as Ship to Fund or New Seller Holds?
These holds will still continue as they are today.

Will PayPal still be a payment method on eBay to send and receive money?
Yes, you will still be able to use PayPal as a payment method on eBay to send and receive money after the companies separate.

What shall I do if I have questions on eBay? Can I still contact PayPal?
For eBay-related questions, please contact eBay.


Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: Basset

Sat Jun 27 09:47:38 2015

Tick...Tock...Tick...Tock...

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: toolguy

Sat Jun 27 10:04:35 2015

eBay share holders are about to be rewarded for many years of suppression.
I think eBay will go to $70 before the split.
After the split I expect eBay to be at $30 and Paypal at $75.

I due short time we shall see.  

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: iheartjacksparrow

Sat Jun 27 10:53:43 2015

It will be interesting to see what happens to eBay stock.

There was an interesting article in Seeking Alpha yesterday where the analyst thought that eBay's product identifier requirement, which goes into effect on Monday, will make it more like Amazon and make it easier to find the products people want. Instead of searching for a 1995 Purple Widget, and eBay returning 20 pages of that item sold by various sellers, the analyst sales that will enable buyers to get one result which will list all sellers selling that Widget.  

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

by: Santini This user has validated their user name.

Sat Jun 27 10:58:22 2015

How is it I have not seen one tear or heard one lament for the imminent departure of Ace Donahoe, from either the apologists or financial analysts? Have I missed something? eBay is losing it's savior and there's no weeping or gnashing of teeth? Even the cheerleaders silence is deafening.

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

by: ebay refugee camp This user has validated their user name.

Sat Jun 27 11:20:39 2015

Right now there is no faith at all that ebay will change it's direction.
Sellers have been completely maligned by a CEO whose policies are just plain wrong.
The present CEO has ignored seller's objections, a man who is unable to admit his mistakes and change them.
Sellers presently are blamed for things beyond a seller's control and punished for it. His one size fits all is completely absurd.
Instead of punishing the actual scoundrels everyone was punished.
Instead of addressing the US Postal service lack of scanning packages the day they arrive at the post office, instead of addressing his buyer protection that has brought in every shoplifter in the US he ignored it. Instead of addressing the problem with Google he dismissed it, still there is a huge problem.
Instead of addressing a TRS system that is completely unfair and is guided by false accusations, theft and plain ignorance because of the US Postal service.
The customer service at ebay is the by far the worst I have ever encountered and this man's response was to lay off workers at ebay, he made it worse.
Neutrals are negatives only in his mind, his vendetta against sellers is profound.
The lack of a search engine on ebay that is fair and correct is quite telling, ebay needed people who were able to deliver that , instead money was spent for acquisitions which now are being sold. This man received well over 100 million dollars in stock and bonus' money , all of his stock has been sold, insider trading? Of course it is.
This CEO is a coward and was in it for personal gain and completely ruined lives of honest sellers.
Ebay is dead in the water right now sales are horrible.
Ebay recently had another technical blunder which brought the site down, where is the statement from the CEO? He needed to address that is was a technical problem and NOT a hack but nothing,he is not doing his job he is just doing things to gain personal wealth.
We hear from from Devin Wenig once in a great while he has been president of ebay. Very little communication is he involved with this mess, did he orchestrate any of this mess? Did he have any say at all?
It will take immediate changes that I do not believe will come.
If you have a ebay store above the basic level the recommendation would be to close that store, you are paying for nothing, no advertising no effort from ebay at all. That money could be funding a website and advertising on your own.
Google is also not helping small businesses, there are as bad as ebay and lawsuits have begun against google who is monoloplizing the search world and only showing items that get paid for, ebay could have used the money it has given John Donahoe to advertise but chose not to.
Ebay's board is a joke and wrought with cowards.

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: toolguy

Sat Jun 27 11:41:51 2015

No one liked Meg Whitman

No one likes John Donahoe

No one will like Devin Wenig

If Ina Steiner was CEO you wouldn't like her either!

Let's face it, no matter who's CEO of eBay they will be un-liked.

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: Rexford

Sat Jun 27 11:58:48 2015

iheartjacksparrow, further evidence that analysts are idiots. :)

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: Rexford

Sat Jun 27 12:02:25 2015

ebayregugee camps says "Right now there is no faith at all that ebay will change it's direction."

I agree.  NEVER listen to what eBay say that they will do for small sellers.  DO look at what eBay actually do.  Every implementation that I see and every change that I see is a benefit to the enterprise sellers and the Chinese.

RIP eBay.

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: toolguy

Sat Jun 27 12:14:44 2015

I'm a small seller

eBay has worked well for us for over 15 years. (John sent us a Thank You note for our 15 years of eBay selling ~ LOL)

PS: I'm NOT chinese!

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: Rexford

Sat Jun 27 12:29:55 2015

I'm reminded of the little kid I saw in the grocery store today who kept screaming "look at me, look at me", and the louder and more frequently he screamed, people just looked away.

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: toolguy

Sat Jun 27 12:36:46 2015

You're miserable with ebay so everyone else should be too.

That's not the way it is. . .

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

by: XebayX This user has validated their user name.

Sat Jun 27 12:54:35 2015

LOL,
I believe that most people either make their judgements of others based on their own interpretations of that person or entity's quality of  actions, wisdom, helpfulness, and contribution to the positive, OR by the ignorance, self serving, imposing, or all inclusive assumption, and defiance of contribution to the furthering of positive progress that that person or entity displays. I'm pretty sure that is what most open minded, free thinking individual do, but to each his own.
''Nobody does this, everybody does that. I'll tell you what you are thinking and what motivates you''. Huh?? Baaaaa...(sheep noise)LOL

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

by: XebayX This user has validated their user name.

Sat Jun 27 13:20:54 2015

@ iheartjacksparrow
Interesting. I would hope that display will include sellers of that widget who sell the item from bulk packaging with no UPC code available for the item (who have entered eBay's only alternative option of Does not apply, which, by the way, is not acceptable to Google), and that those sellers get equal placement on the page.
My guess is that they will be excluded completely (by nature of the search being primarily based on UPC).
If there is enough forethought to add a primary routine to include items that match the brand and item name, but have ''Does not apply'' for the UPC, I wonder whether those sellers will be penalized in placement or if they will be judged equally for placement on more tenable criteria such as customer satisfaction, experience, etc?

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

by: moto-science This user has validated their user name.

Sat Jun 27 13:23:27 2015

"Ebay is dead in the water right now sales are horrible....."

Yes, and sellers are not growing their business there, so they are looking elsewhere.  Put a UPC code on that .....morons.

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

by: XebayX This user has validated their user name.

Sat Jun 27 13:36:42 2015

@moto-science
We would if one was available.

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

by: sasikat9 This user has validated their user name.

Sat Jun 27 14:20:40 2015

@moto-science

Your sales may be dead in the water but ours are still great.

We have over 15000 items ALL WITH UPC codes.  All the codes were put in when we originally listed them as it was only common sense to do it.

As for "Does anyone search by UPC code" we had a lady who recently purchased from us and said that she had googled the UPC code and found us.  So maybe it works.

Perminate Link for eBay Break with PayPal to Be Complete in Three Weeks   eBay Break with PayPal to Be Complete in Three Weeks

This user has validated their user name. by: toolguy

Sat Jun 27 14:37:12 2015

@XebayX

Best Search will never be equal, that's the way it was designed.

There's too many items on eBay for everyone to get on page 1 of a search. The only way that is possible is if search is by ending soonest ONLY! Only then would everyone be on top for a split second. eBay has that option if you want to search that way. I would say most people don't search by ending soonest.

And speaking of Google, I have items that Google search finds that are listed on eBay with no UPC.

I guess everyone's experience on eBay & Google is different.

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