Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sat May 27 2017 22:41:14

PayPal Deal with Amazon Spells Bad News for eBay

By: Ina Steiner

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Amazon has figured out a way to allow PayPal balances to be used to fund purchases on its marketplace without actually accepting PayPal as a payment method. And that presents a major challenge for eBay.

PayPal CEO Dan Schulman provided a hint in January when he told Bloomberg he had been in conversations with Amazon. Now PayPal is offering Amazon gift cards - something that was unthinkable when eBay owned the payments company.

PayPal sent users an email this week with the following subject line: "Amazon.com Gift Cards are here," and an image of Amazon's logo on a gift card. 

"Amazon.com gift cards now available on PayPal Digital Gifts," the email stated. "Purchase $25, $50 and $100 cards through the PayPal Digital Gifts Store. Terms Apply."

Not surprisingly, PayPal's Digital Gifts Store on eBay does not offer the Amazon.com gift cards for sale.

Amazon doesn't have anything to lose and only gains by letting people use PayPal to purchase a gift card that must be used on the Amazon Marketplace. With Amazon getting more deeply into payments with Amazon Pay, it's less clear if this is a good move for PayPal in the long term.

It certainly isn't great news for eBay. Previously its sellers couldn't use their PayPal balances to purchase items on Amazon, but this move makes it far easier for them to do so. 

If you sell on eBay, chances are you will be paid via PayPal. Now you can use the funds in your PayPal account to buy an Amazon gift card (easy), use it directly or apply it to your Amazon account (both easy), and spend, spend, spend - on Amazon.com.




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Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: Robbin This user has validated their user name.
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Sun May 28 00:01:44 2017

I don't get it. All you ever needed was a paypal branded debit card. Use it anytime you have a balance in paypal AND you get 1.5% back every month.  

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

This user has validated their user name. by: eXtinctBay

Sun May 28 00:57:24 2017

This means arbitragers who sell on eBay can use the proceeds to buy their Amazon Prime drop shipped merchandise with a PayPal funded gift card.

It really is a good move for PP, and also the River. Time will tell how much profit both companies make on this. PayPal will get a chunk of some of the eBay dropshipping action, and Amazon can accept direct gift card payments instead of paying debit / credit card bank fees.


No, this is not good news for eBay. Sellers can now comparison shop between the two sites with their eBay sales proceeds if they choose to convert it to Amazon gift card balances.

NEW EBAY MARKETING SLOGAN: Don't Need It? Sell It! Then Buy Merchandise You Really Need Shipped Free With Amazon Prime!!

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: pace306 This user has validated their user name.

Sun May 28 08:14:16 2017

Even PayPal knows eBay isn't a reliable source of income as a business partner.

JD whose running the PayPal show knows how flakey eBay is in realty since he was in charge there last.

PayPal simply saw eBays GMV drop and get worse month after month and wanted to expand.

Ina, what you DIDNT say is if PayPal can be trusted. With so many ex eBay employees, the dollar amounts of Amazon cards can and will be reported right back to Wenig since he's JDs boy - something Amazon has to be careful of!

NEVER TRUST EBAY/PAYPAL

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: Snapped This user has validated their user name.

Sun May 28 11:06:40 2017

What I'd like to know is why anyone would WANT to keep any significant PP 'balance' in any account that has proven it's proclivity to suspending or 'holding' access to funds on a whim (aka. 'Glitch').

Nevertheless, it would seem as if PP's five year 'eBay exclusivity restriction' wasn't made reciprocal.  Imagine that.

Who's yer daddy now, Mr. W?

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

This user has validated their user name. by: iheartjacksparrow

Sun May 28 12:21:53 2017

My question: If you buy an Amazon gift card with PayPal funds, does PayPal's 180-day SNAD claim attach to said card?  

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

This user has validated their user name. by: Marie

Sun May 28 13:03:43 2017

Smart move by PP.  Ebay has never been their only customer.  Now that they are a separate company they need to look toward building for the future.  I'm not sure, but I think their contract with Ebay was for 5 years beyond the split.  

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

This user has validated their user name. by: Ina

Sun May 28 13:35:41 2017

PayPal protection is very different when it applies to digital goods. From the PayPal website:

"Your sale is not eligible for coverage under PayPal's Seller Protection program if:

"It involves intangible, non-physical, items, including digital goods, and services. Digital goods are delivered and used in an electronic format, like a song delivered online or through a mobile application."

I spoke too soon - that's for the seller.

Since only PayPal itself is selling the Amazon gift cards, the issue of SNAD doesn't really apply.

If I use PayPal to buy an Amazon gift card, PayPal knows I received the gift card, so no dispute there. And once I use the gift card on Amazon, it's Amazon's policies that apply.

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

This user has validated their user name. by: eXtinctBay

Sun May 28 13:51:32 2017

@Jack, Ina

FROM THE PAYPAL DIGITAL GIFTS AMAZON GIFT CARD DETAILS:

PayPal makes no warranties, express or implied, with respect to the Digital Gifts and disclaims any warranty to the fullest extent available. No returns or refunds accepted. You may only send Digital Gifts using this Store to someone in the U.S. For a dispute with any Digital Gift retailer, you release PayPal (and its affiliates and subsidiaries, officers, directors, employees and agents) from any and all claims connected with such dispute.

So, no, you cannot file a SNAD claim on this (or any other) gift cards.

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: mcposty This user has validated their user name.

Sun May 28 17:29:35 2017

Amazon still requires a credit or debit card to use gift cards thus the whole ordeal is pointless

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: Ebay Seller-Ebay Buyer This user has validated their user name.

Sun May 28 23:51:13 2017

Some sellers might do this but I think the real threat is what lies ahead.  This might only be the start of Paypal and Amazon working together

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

This user has validated their user name. by: toolguy

Mon May 29 10:39:05 2017

Great News for eBay Sellers!

Now if eBay can see the light they will offer more payment options.

I sure would like to see the return of Money Orders.

When someone is new to eBay or I get a gut feeling I would ask for a US Postal Money Order.

That way I controlled the deal from beginning to end. . .

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: grumpwell This user has validated their user name.

Mon May 29 13:08:22 2017

This is not really new. I have been purchasing Amazon gift cards with PayPal for a couple years now.

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: 27tcle This user has validated their user name.

Mon May 29 13:30:09 2017

Paypal finally realized that you can make a lot more money being the middle man than owning the market place. Nearly 100% profit, zero liability. Rumor has it that ebay will soon be scuttled and sold off.

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: Moonwishes This user has validated their user name.
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Mon May 29 22:17:53 2017

>>What I'd like to know is why anyone would WANT to keep any significant PP 'balance' in any account that has proven it's proclivity to suspending or 'holding' access to funds on a whim (aka. 'Glitch').<<  I never leave money in PP. My account gets emptied on a schedule, but if I go over a certain amount, that is enough for me and the money comes to mama. I don't trust PP. I may have to use them, but that doesn't mean I want to have hundreds in that account.

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: NutriActiva This user has validated their user name.
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Tue May 30 01:11:53 2017

I don't get it; I transfer my PP balance to my checking account, and then pay with a credit card (2% cash back, 30 days or so to pay off the balance).  How does a seller benefit from buying Amazon gift cards, rather than paying with a credit card?  

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: Chicago48 This user has validated their user name.

Tue May 30 07:02:24 2017

The boat has left the dock and it doesn't have Ebay on it.  I have a Chase credit card and with points & rewards can get an Amaz. gift card.  But nowhere on that list is Ebay as a gift card.

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: Sierra This user has validated their user name.

Tue May 30 08:39:42 2017

I've used my PP debit card to shop on Amazon for as long as I've had the debit card.

I wish PP would go back to when they let us pay bills (utility, credit card, etc,) directly from our PP account, though I can now do that with the debit card too.

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: pebbles This user has validated their user name.

Wed May 31 11:43:03 2017

"eBay
Your eBay listing was edited to avoid its removal: Brand Name Misuse - S&B


Hello pebbles3sandi,
One or more of your listings didn't follow our guidelines. Because you're a valued member of our community, your listing was edited so that it now meets our guidelines. It's still live on our site. You can find a list of what was edited further down in this email.

Please use only terms that describe your item accurately.

Adding brand, celebrity, or manufacturer names to a listing that was not made by that company, person, or manufacturer isn't allowed.

Making comparisons or including unrelated terms in your listing may confuse buyers who may not understand what's actually being offered. This can result in an unsuccessful transaction and may also lead to a buyer claim being filed.

For more information on our search and browse manipulation policy, go to:
http://pages.ebay.com/help/policies/search-manipulation.html

Please understand you listed "Billabong" item and also mentioned unrelated brand names "Roxy Quiksilver" in the title and description. Hence, we removed "Roxy Quiksilver" from your listing title and description. As you may list other items on our site, please be sure that only the brand name of the company that manufactured or produced the item for sale is included in the listing. Including unrelated brand names in the listing affects the search result and lead to a poor buying and searching experience on eBay.

We want you to be successful. Please be sure your future listings follow our guidelines. If they don't, they'll be removed.

You can learn more about our guidelines for sellers and listings at:
- http://pages.ebay.com/help/policies/seller-rules-overview.html
- http://pages.ebay.com/help/policies/listing-ov.html

If you have any concerns or questions, click "Help & Contact" at the top of most eBay pages.

Here's a list of the item(s) we edited:
311883356782 - BILLABONG Wrist Watch womens Blue Purple Surfer Girl LeatherBand


We appreciate your understanding and cooperation.

Thanks,

eBay

Please don't reply to this message. It was sent from an address that doesn't accept incoming email.



eBay Document ID: 44698817009
eBay is committed to your privacy. Read our user agreement and privacy notice. Learn how to recognize fake (spoof) emails.

Copyright © 2017 eBay Inc. All Rights Reserved. Designated trademarks and brands are the property of their respective owners. eBay and the eBay logo are trademarks of eBay Inc., 2145 Hamilton Avenue, San Jose, CA 95125."

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: Docinmd This user has validated their user name.

Wed May 31 22:25:36 2017

Surprise! eBay doesn't care as long as the next corporate quarter is still in the black.  

Perminate Link for PayPal Deal with Amazon Spells Bad News for eBay   PayPal Deal with Amazon Spells Bad News for eBay

by: Ebsy This user has validated their user name.

Wed Jun 7 21:46:24 2017

Hopefully eBay will get rid of Paypal as its only payment processor.  If there is one company that annoys me more than eBay its Paypal.  



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