Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Feb 24 2019 20:35:13

eBay Sellers Are Not Better Off after PayPal Split

By: Ina Steiner

Sponsored Link

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.



Comments (35) | Leave Comment | Permalink

Readers Comments

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: Silver Ice King This user has validated their user name.

Sun Feb 24 22:55:57 2019

Most sellers are not better off after the split but that is not really due to the split of Ebay and Paypal but the useless CEO that Ebay put in place after Donohoe.  Wenig had a chance to really reinvigorate Ebay and try to reconnect with the smaller and OOAK sellers, but instead has absolutely destroyed the search engine and changed everything in favor of the Chinese who he thinks are Ebays future.  The way he has done everything on the cheap, just like most of the Chinese sellers, not worrying about what the effects are on the site or sellers makes me wonder if he studied under the Chinese Government during his time dealing so heavily with them.  

If he had run other parts of the marketplace better I think Ebay might have had a better reception with Managed Payments.  But since he has shown that all he cares about is digging deeper and deeper into the existing Sellers pockets rather than growing the site while reinventing the platform with his Seller Hub program that was done completely on the cheap while not worrying about whether it actually worked or not has destroyed everybody's faith in him.  Actually i think he is the only person remaining that has any confidence in his abilities to run Ebay let alone turn it around.  To turn Ebay around and make it anywhere near as successful as it used to be, Ebay has to win back the faith of the Sellers and that will never happen as long as the current CEO, Devin Wenig,  is running the company or even on the BOD as he is a total cancer in the company.  

He took a company that had a chance to reinvigorate the marketplace and the Sellers and instead did nothing but Lie, Cheat and Steal from them and pushed that same culture on down the company so that anybody who had any integrity left the company or was let go because he could not stand that quality in a person.  Between Donohoe and Wenig they have destroyed a company that a Monkey could have run and grown successfully.  Business schools will be using this as a case study for students going forward on what not to do when running a company.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

This user has validated their user name. by: DeathFromAbove

Mon Feb 25 00:11:35 2019

They didn't handle it right.  Ever since the split, it is true triple jeopardy.  ebay should have removed themselves from disputes entirely.  As it is, if you win a claim on ebay, they can just go to paypal, if paypal denies them, they do a chargeback.   3 chances to get screwed.

"Managed payments" will only be useful if they resolve disputes, and then handle chargebacks invisibly.  They will also have to boot buyers that do chargebacks after a resolved dispute, as part of the TOS.  Can we expect it to be done right?  Of course not.  eBay will try to pass chargebacks on to the seller, and provide no support other than facilitating yanking the money out of your account as fast as possible to invite a terrible buyer to come back and do it again.  

The idea of ebay having access to my bank account is quite terrifying.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: Dellthorpe This user has validated their user name.

Mon Feb 25 00:35:16 2019

EBay could not pour water out of their shoe if the instructions were on the heel. I was a seller twice but got scammed and will no longer sell on that snake pit. I buy a lot on eBay because I like what the sellers have to offer over ther sites. A lot of sellers know to move the merchandise on eBay they have to stack it deep and sell it cheap. I like to think when I buy on eBay I am helping put food on a sellers table - the heck with the EBay sewer scum like Pierre , board and the stooge Devin. If EBay shut down tomorrow I would celebrate. I can not believe someone that has deep pockets has not started a e-commerce site to take eBay’s sellers and buyers. Elliot will never turn that snake pit around. I now wonder if Elliot management is afraid to fly commercial - lmao!!!

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

This user has validated their user name. by: Lightning

Mon Feb 25 00:43:02 2019

Was there EVER any concern for the sellers in the eBay/PayPal split?  

Icahn pushed for the split to give PayPal unrestrained opportunities, not having to avoid partnerships and affiliations that might simultaneously adversely affect eBay.  Already a cash cow, PayPal was considered to have one hand tied behind its back.  The split was NEVER going to benefit eBay, or its sellers, just the stockholders in PayPal.  Letting PayPal eventually have total access to the financial services sandbox was a great thing for PayPal.  Or was it??

Now PayPal has its freedom, but soon it may be losing it's previously huge customer, eBay.  I'm not sure that the new opportunities it was able to take advantage of will outweigh that loss.  Maybe there was something magic about eBay and PayPal being linked, the whole greater than the sum of the parts.  I'm sure the Icahns of the world made money on the split, and probably again shorting each company if they head downward.  Nothing is better for Wall Street than change and volatility.  They make money when stock is sold OR acquired.  Keep it scrambled, and the money comes in.  Smooth sailing, no money.  Well, less money, because Wall Street brokers will always find a way to get their vig.

But back to the original question - is it better for the ebay sellers?  As opposed to Wall Street, sellers need stability, order, and access to markets and tools.  The more abstract things become, the harder it is for a seller to navigate.  The fee costs are rising much faster than the product prices, so that compression constantly erodes margins.  The eBay marketplace is struggling, so costs are being cut there, meaning less services to sellers, less support, more money grabs to increase marketplace revenue.  Every way you look at it, the sellers are in the middle, getting squeezed out.  Thanks, Carl.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: JWsax This user has validated their user name.

Mon Feb 25 00:47:21 2019

No other company treats its customers with the contempt ebay does.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: EyeFlipDaily This user has validated their user name.

Mon Feb 25 01:09:54 2019

does anyone have an issue with Amazon handling their payment info and paying out on a bi-weekly schedule?
what about Poshmark & Mercari as well?

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

This user has validated their user name. by: Marie

Mon Feb 25 02:08:57 2019

Well said Lightning.  It is important to keep in mind that Ebay will be allowing buyers to use PP as their form of payment later this year.  I would not imagine that Ebay will take it away for a long time as there are just too many buyers that use it exclusively.

And once this contract between the two companies it finished, PP will be just fine.  Their doors will swing wide open and they will be able to court other sites and places they currently can't.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: Disgusted This user has validated their user name.

Mon Feb 25 04:16:03 2019

Very few have any trust in ebay now.  So, how  much trust will they have when they have access to your checking acct.  There is no guarantee that ebay will continue to allow Paypal to be a player.  They are hiding the choice now??  
Etsy just had a big screw up taking way too much from sellers acct.  OOOOPPS??
I thought that was ebays playbook.  Looks like it is spreading.
When you list an item on ebay, you are agreeing to their terms like maybe it will be seen or maybe not.  Now they will include maybe they will pay you or not......

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: cvsharkey This user has validated their user name.

Mon Feb 25 04:48:26 2019

Disgusted is right, it feels like Etsy is using eBay's playbook to the letter. And as long as their stock climbs, they'll continue down that path.

As far as eBay's catering to Chinese, sure--go right ahead. Just remember that eBay is all about the price. If tariffs climb to 25%, first you will have lost your US sellers (by choice,) only to depend upon Chinese sellers who won't be able to discount further. And you'll have to depend upon your listing fees for earnings.  

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: hawk This user has validated their user name.

Mon Feb 25 05:51:29 2019

these are the scams that you are warned about , and not to fall for , every day. now these venues are taking control of your money , bank accounts, and your ability to run your own business. you are now giving them permission to scam you any time they want to , with your blessing.

what has happened to common sense ?? keep blessing the scammers , and they'll have it all.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

This user has validated their user name. by: Rexford

Mon Feb 25 06:29:14 2019

The problem is right here, within Lightning statement "The split was NEVER going to benefit eBay, or its sellers, just the stockholders in PayPal."

The day eBay went public was the big blow to small sellers.  It became all about the stockholders.  Wenig, and previously Donahoe, is beholden to Wall Street.  They don't give a flying fig about sellers except for the fees that they collect from them.

A smart CEO would see the importance of growing marketplaces.  Take a big guess where sellers would spend their money if they were actually making any? As it is, it is a rigged card came benefiting only those who eBay chooses to allow to play.  

Henry Ford knew that if he paid his workers good wages that they would buy Ford products.  And he didn't waste his time flying back and forth to the Hamptons to see and be seen with the art crowd.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

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

Mon Feb 25 07:09:49 2019

PayPal is NOT licensed to operate in my state.
And a few other states.
PayPal has a bad reputation.
A bad reputation That big should have put PayPal out of business.
We lived a thousand years without this aboration, we'll live another thousand without it.
Vaporize PayPal.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

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

Mon Feb 25 07:17:44 2019

After I began using PayPal, I was inundated with phishing emails generated from WITHIN PayPal, as evidenced by the use of information only known to PayPal.
To stop the ulcers, I destroyed my PayPal account.
NO MORE ULCERS.
PayPal is garbage.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: Windkissed This user has validated their user name.
Web Site

Mon Feb 25 07:27:43 2019

I use paypal all the time and on other sites as well on the web.  I love it.  It has worked very well for me in my ebay business and elsewhere.  I intend to keep using it.  It gives customers an added sense of security when paying ebay online.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: pace306 This user has validated their user name.

Mon Feb 25 09:23:10 2019

Lightning is/was %100 right - the split never had ANYTHING to do with sellers.

The truth is - even Ichan knew that eBay was an albatross around Paypals neck - and that for Paypal to ever break out and become a real company - it had to shed ebays bad reputation - it had to stand alone.

eBay pay is 1) about control over sellers and their funds 2) extra profit from saving the % it would have had to normally give to Paypal.

eBay refuses to upgrade/fix/repair its main selling platform - its always easier to find some other issue to tinker with .

Im not sure why ANYONE ever thought that sellers would be better off ........ on eBay they NEVER are.

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

by: Davina T This user has validated their user name.

Mon Feb 25 09:43:35 2019

I never had a problem with Paypal aside from their lengthy return policy. A scammers delight. I have to re verify my information shortly, despite having had my account for many years,and haven't moved.I won't be subscribing to their extra investments. Just the facts, ma'am. I stopped selling on ebay after 2 scammers in a row. I doubt that they will ever treat their sellers fairly in a dispute.I will use Paypal for purchases because I like supporting the ''little'' guys and girls and their unusual offerings. Managed payments frighten me because I don't want Ebay dipping into my bank account. I like to keep things simple.  

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

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

Mon Feb 25 10:02:26 2019

Soooooooo......
Cheerleading for a SUSpect entity......
PayPal must go.
https://www.consumeraffairs.com/online/paypal_02.html

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

This user has validated their user name. by: NoMoreEbay

Mon Feb 25 10:17:45 2019

This makes me smile

PayPal stock downgraded at Buckingham Research on Venmo, eBay concerns

https://www.marketwatch.com/story/paypal-stock-downgra
ded-at-buckingham-research-on-venmo-ebay-concerns-2019-02-25

As
far as benefiting sellers. PayPal stabbed sellers in the back when the started allowing these online scumbags to rent our hard earned items for 6 months and then send back a roll of toilet paper leaving sellers with nothing.

ebay and paypal both can go rot in h*ll.  

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

This user has validated their user name. by: toolguy

Mon Feb 25 10:25:15 2019

i LOVE paypal

It's my go to daily cash machine

I dread the day eBay takes over my payments

I need the "instant" cash to buy food and gasoline.

The 1st day eBay has money of mine that I cannot access and I'm hungry or the car needs gas, the world will hear about it on eBay's Facebook page. . . .

Perminate Link for eBay Sellers Are Not Better Off after PayPal Split   eBay Sellers Are Not Better Off after PayPal Split

This user has validated their user name. by: FEEbay

Mon Feb 25 11:17:30 2019

Paypal is fine until you have a problem........ Ebay and Paypal love to play the finger pointing game at the expense of the seller. My approach is don't sell International outside of Ebay Global Shipping Program, Have clear cut business policies, and make Ebay a very SMALL chunk of your business...This is how I mitigate risk

Click to view more comments
1 2  [Next Page]


Login is required to post comments.
To sign in to leave a comment, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.