|Sun Feb 24 2019 20:35:13|
eBay Sellers Are Not Better Off after PayPal Split
By: Ina Steiner
Sellers are not better off after eBay's split with PayPal in 2015, and eBay's roll-out of Managed Payments is one major reason cited by sellers.
We surveyed sellers in January to gauge their reaction after activist investor Elliott Management approached the eBay Board of Directors. Since Elliott is recommending the Board consider selling two subsidiaries, we wanted to know what happened the last time eBay was confronted in this manner.
We asked sellers: "Activist investor Carl Icahn forced eBay to split with PayPal in July 2015. As a seller, are you better off today as a result of eBay's split with PayPal?" 14% said they were better off, while 65% said they were not better off.
Some eBay sellers said the split made claims and customer service more difficult - "they just toss you back and forth between each other when there is a problem," one seller said.
Some sellers were concerned about eBay Managed Payments, which is replacing PayPal as the processing platform on eBay. There were definite reservations about the program as it rolls out, including concerns that sellers would have to wait for their money instead of getting it instantly deposited into their PayPal accounts.
You can read more about the results of the survey in Sunday's Newsflash article
, including what sellers think of Elliott's recommendations that eBay consider selling StubHub and eBay Classifieds.
In the meantime, let us know what you think of the survey results that show a majority of sellers are not better off as a result of the 2015 eBay-PayPal split.