Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Jan 26 2016 17:16:45

Should eBay Accept Amazon Payments?

By: Ina Steiner

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This week Amazon quashed the idea of accepting PayPal on its marketplace after its breakup with eBay. But the breakup also means eBay could accept additional payment methods on its site.

We'll have more on the Amazon news in Wednesday's newsletter (available now), but we'd like to know what marketplace sellers think.

Would you consider offering Amazon Payments on your eBay listings, if allowed? And are there other payment methods you think eBay should begin offering?

A former PayPal exec who moved to Amazon last year said adding PayPal to Amazon would complicate things. When it comes to Amazon customer service reps having to answer questions from shoppers about PayPal issues, one could see that could well be the case. 

What do you think - would you appreciate being able to make purchases on Amazon using the funds in your PayPal account? Would you like the idea of accepting PayPal for your Amazon sales?

We're interested not only in what you think of these various payment methods, but also in the likelihood of any of these scenarios actually playing out.




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Readers Comments

Perminate Link for Should eBay Accept Amazon Payments?   Should eBay Accept Amazon Payments?

by: Mog This user has validated their user name.

Tue Jan 26 18:05:56 2016

I only use Paypal to buy online and if a site does not offer it I don't go there. Never had a problem all the time I've used it.
It's also the payment method my customers use on my site around 96% of the time.
So I think yes the more choices out there the better for the customer.
I have lots of payment choices on my sites but still find paypal is the preferred method by far.
I'd use Amazon if they offered Paypal.

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by: pace306 This user has validated their user name.

Tue Jan 26 18:11:57 2016

Ina, I love you (sorry Dave :P) but the question makes less then ZERO sence ... unless you're one of maybe 10 people on the planet who actually believe .. that eBay and Paypal are separate companies.

OK so they are on PAPER, but its ONLY on paper and nothing more.

The relationship is still the same (or worse) then it was BEFORE the "break up".

Call Paypal and they can tell you ALL ABOUT whats going on in your eBay account. If they were really separate - could that happen IRL ?

Does VISA know what I buy with my AMEX? NO. Even the merchant processors dont know - most times you just sign for the amount.

eBay uses Paypal to FORCE sellers to do or not do things - Amazon has no need for that. Paypal is eBays "bad cop" - who here doesnt know that?

So, no - Amazon has no need to have Paypal (who could/would EASILY tell eBay what Amazon is up to) be part of their system - they gain NOTHING by it.

eBay (one of the worlds WORST run companies)(Im looking at JD and DW .. and of course that old fart GRIFF) would NEVER let Amazon payments in .... Amazon could in theory see behind the eBay magic curtain and tell regulators all the rotten dirty nasty things eBay does.

At least thats how I see it :)

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by: FeelingFroggy This user has validated their user name.

Tue Jan 26 18:23:10 2016

It would be a cold day in that hot place before Fleecebay would allow any payment other than paypal.

As far as other sites we use our visa card. Screw paypal and everything that they think they stand for.

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This user has validated their user name. by: Ric

Wed Jan 27 00:14:12 2016

If memory serves me, when eBay and PayPal split, part of the separation agreement included a clause that PayPal would get a large percentage of eBay payment transactions for a number of years.

This was done to assure PayPal would have a steady stream of payment volume, and also to assure eBay would not accept any other payment method.

Part of the split up agreement reads as follows:

"The online marketplace has agreed to route 80 percent of gross merchandise sales through PayPal for the next five years, according to a securities filing. EBay will pay PayPal $13 million per year for each percentage point below the 80 percent threshold that PayPal’s share of payments falls. The reverse is true if PayPal brings in more than its 80 percent — the company will pay $13 million to eBay for each percentage point it rises above the 80 percent mark. If PayPal’s share drops below 75 percent, eBay will pay $50 million per year for each additional percentage point."

Link: http://www.bizjournals.com/sanjose/news/2015/06/29/ebay-and-paypal-set
-the-date-for-their-split.html

IF
eBay were to accept Amazon payments, it would be next to impossible for eBay to meet that part of the separation agreement, and the penalties would  kick in.

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by: Etsy Seller This user has validated their user name.

Wed Jan 27 00:20:27 2016

I am confused. I have paid for items on Amazon with PayPal since I started buying them on Amazon, and that has been for at least eight years.
These companies are screwing with our brains and we will stop buying online until they learn to get along.

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by: tb This user has validated their user name.

Wed Jan 27 00:23:14 2016

@Mog PayPal is used 96% of the time on your site? Either you're not telling us the truth, or your website is in need of a redesign. We offer the 4 major CCs and PP and in 2015, PayPal accounted for exactly 27% of our sales. I realize all sites are different, but 96% is hard to believe. What are you selling?

Also, I'd say that my shopping is the reverse of yours. Not for PayPal reasons though. I'll use Amazon over eBay in a heartbeat when it comes down to either one. In fact I go out of my way to find it anywhere else rather than eBay. I pay eBay tons more than they deserve. Why on earth would I voluntarily give them more business? eBay is a bug ridden mess.

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

Wed Jan 27 00:59:12 2016

Frankly, it’s ludicrous to posit that Amazon might ever allow the clunky “PreyPal” on their site; notwithstanding that “PreyPal” and eBay are still effectively joined at the hip, Amazon wants to maintain control, and if they allowed “PreyPal” they would not have that control; let’s face it, the clunky “PreyPal” does not even have control over its eBay operations: poor customer support and unprofessional dispute mediation. Amazon allow “PreyPal” payments? I can’t stop laughing …

“Should eBay Accept Amazon Payments?” An equally ludicrous suggestion: eBay has to maintain 80% of its payments via “PreyPal”; to allow Amazon Payments would likely throttle that flow of business to “PreyPal” and put eBay in breach of their phony “spin off” agreement, and decimate the clunky “PreyPal” at an even faster pace than it is undoubtedly going to be decimated in the off-eBay area as professional online merchants switch to MasterPass or Visa Checkout …

eBay allow Amazon Payments?: utterly impracticable given eBay’s 80% deal with “PreyPal”
Amazon allow “PreyPal” payments? Please, I’m going to die laughing …

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This user has validated their user name. by: toolguy

Wed Jan 27 01:01:54 2016

I only buy online with Paypal.

If a website doesn't take Paypal I shop somewhere else.

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by: comments This user has validated their user name.

Wed Jan 27 01:04:28 2016

Paypal has shown a clear disregard for the needs of their customers and for customer service as a whole. I stopped using paypal in off ebay sales because it attracted a lot of buyer fraud in off ebay transactions. Paypal is only safe on ebay because ebay takes care of the bad eggs before they can make a paypal payment.

Now with 180 day returns, poor customer service, higher fees (no more volume discount), and no more seller protection I refuse to let them hand out anymore of my money and refuse to use or accept paypal outside of ebay. If anyone demands paypal I tell them to pick another option or refuse the sale. I hope to see paypal fizzle out as time progresses in favor of more customer friendly processors that offer some sort of seller protection. For anyone that thinks paypal does offer protection I was told point blank by them that seller protection is now just a provisional credit. If in the end you lose a chargeback you lose your credit...regardless of the reason.

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This user has validated their user name. by: tanzi

Wed Jan 27 01:35:08 2016

I win amazon cards on different sites and store them on Amazon in my account till i am ready to use them....like around Christmas, birthdays, etc. So that is the only way I purchase anything on Amazon.  

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This user has validated their user name. by: tanzi

Wed Jan 27 01:35:47 2016

I should say Amazon gift cards.  

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by: val2525 This user has validated their user name.

Wed Jan 27 02:16:52 2016

Apple Pay, maybe.  Amazon Pay -I would not use it.  Amazon has too many fingers in too many sellers business - they can stay off of ebay.

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by: Chicago48 This user has validated their user name.

Wed Jan 27 04:35:40 2016

No I wouldn't accept AMZ payments.  EB and PP now allow the buyer to use their credit card to buy so I think that's enough.

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

Wed Jan 27 04:57:11 2016

Apparently the Lawyers run Ebay.
STRIPE is the gateway of choice.

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by: shut1968 This user has validated their user name.

Wed Jan 27 05:14:16 2016

Same as many others, I don't buy online unless they take PayPal, I spend about $2,000+ a month online either for business or personal use, a lot of that comes from eBay and yes.. I could probably buy a good bit of it from Amazon but while I will sell there I don't spend a dime there.. we've sold well over 100k on Amazon this year and not one penny of that has gone back into purchasing anything on the river... what gets me is everyone still bitching with the whole "fleecebay" when all things considered Amazon's fee percentage is quite a bit higher... I hate paying fees just as much as anybody else.. but c'mon.. quit acting like Amazon is the cheapest place to sell out of the two!!  Amazon sales are way down, profit is cut to the bone, and I expect when we get all our data together for last year eBay is gonna have surpassed Amazon by a good bit.. and definitely better profit wise.. Fees and all.

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by: MADandCracked This user has validated their user name.

Wed Jan 27 06:29:02 2016

It wouldn't matter to me. I never ever get on eBay anymore. Amazon is my go-to online store.

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by: simerivergun This user has validated their user name.

Wed Jan 27 06:44:52 2016

Ebay needs to offer an alternative pay.  Paypal takes money from Ebay sellers for up to 6 months after purchase.  It sides with the Ebay Scammer Buyer Liar, returns the money and offers no real Appeal.  Bots are doing the appeal and not humans.  Paypal needs to be investigated.
Don't use my name because Ebay punishes its members for making remarks detrimental to Paypal or Ebay.  Freedom of Speech.  Thanks

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This user has validated their user name. by: White Rabbit

Wed Jan 27 06:55:49 2016

I think Stripe is a nice choice. Ecrater uses it. I would like to see stripe expand its functions and allow users to store funds on stripe.

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by: salesrep1 This user has validated their user name.

Wed Jan 27 07:23:15 2016

I'm kind of curious am I doing something wrong or have I forgot to sign up for something? I sell on both Ebay and Amazon takes up to a month to get a check(deposit) from Amazon . While I can withdraw my sales from Paypal almost instantly. To imagine adding more red tape to either would be crazy.Amazon uses my funds if not in reality it probably stays in an interest bearing account til released so why would they want to take Paypal?

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This user has validated their user name. by: toolguy

Wed Jan 27 10:03:30 2016

I was looking at Key statistics of both Amazon & eBay.

eBay has about $5 billion in cash

Amazon has about $14 billion in cash

I wondered how this could be since eBay makes more profit then Amazon does.

I wonder if Amazon counts cash on hand with everyone's money they HOLD from Amazon Pay.

And people complained about Paypal's 20 day holds, looks like Amazon pay holds money even longer but heck I have no idea what I'm talking about because I don't buy or sell on Amazon. . .

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