Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue May 21 2019 14:53:55

Why PayPal Is Eager to Be Freed from eBay Shackles

By: Ina Steiner

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PayPal Chief Financial Officer John Rainey told Business Insider that eBay is not as relevant as it was 10 years ago and said PayPal is looking forward to July 2020 when it will be released from eBay's shackles, a reference to the 5-year operating agreements entered into between the companies when they split in 2015.

Three weeks ago, PayPal executive Bill Ready revealed that the payments portion of Facebook Marketplace's new checkout was built on PayPal's marketplace platform. Rainey went further, telling Business Insider that Facebook's potential for PayPal could be far greater than that of eBay.

The opportunity goes beyond Facebook and Instagram - the operating agreement with eBay prohibits PayPal from working with a number of major marketplaces. Last year, PayPal CEO Dan Schulman explained why he chose not to extend the existing Operating Agreement (OA) with eBay beyond 2020 but entered into an additional agreement that extends into 2023 instead: so that PayPal could officially court other marketplaces in 2020.

That could include Amazon - that's the billion-dollar question. But it wouldn't mean third-party Amazon sellers could offer PayPal directly. In today's world, PayPal is just another payment method on marketplaces like a credit or debit card, with payments going to the marketplaces' own PayPal accounts - similar to the way payments are handled on Etsy now, where it then disburses payments directly into sellers' bank accounts.

The full Business Insider article is available here to paying subscribers.

Do you think Facebook Marketplace is a threat to eBay? And will Amazon offer buyers the choice to pay for orders with PayPal next year? If so, would Amazon shoppers choose to?



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Perminate Link for Why PayPal Is Eager to Be Freed from eBay Shackles   Why PayPal Is Eager to Be Freed from eBay Shackles

by: buffalochick This user has validated their user name.

Tue May 21 15:35:41 2019

Paypal will flourish when the anchor known as ebay is removed from it. Paypal will have to evolve to a more simple system than it has now tho. People do not appreciate MORE clicks, as ebay implements everyday, they like KISS.  Ebay just doesn't seem to grasp that. Ebay will fail, is circling the bowl. Can't wait to hear the flush.  Ebay treats sellers like dirt. Ebay sellers make up at least half of ebay's buyers. Ebay just cannot grasp that either. That is why ebay is failing. They think that it is acceptable to make more money in fees than sales. Nowhere is that a successful business model. Paypal should be ecstatic to get out from under the dead horse. Ebay will fall hard and fast the moment they make it mandatory that they look after our cash. They cannot be trusted to get minor site changes right, they cannot ever get an update right. Who in their right mind would trust them with their income???? Give your head a shake. Will be enjoyable watching them fall after witnessing how they have treated their members over the years. EVERYONE should be working to get away from ebay. If you are smart...

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by: sasikat9 This user has validated their user name.

Tue May 21 15:50:26 2019

Ebay will be lucky to even be around in 2 years.

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by: pace306 This user has validated their user name.

Tue May 21 15:55:54 2019

Chick said :)

"Paypal will flourish when the anchor known as ebay is removed from it. " - %1000 correct - eBay is an albatross on everyone it does business with!

eBay wants to let go of its successful past - the REST of us (PayPal included) want to continue to have a successful future!

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

Tue May 21 16:38:01 2019

It's All Backwards.
It is WE who need to be freed from PayPal chains.
PayPal was good before corporate RUINED IT.
OUTLAW PREDATORY PAYPAL and All Predatory CORPORATIONS !

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

Tue May 21 16:40:41 2019

I've also had a HUGE (and pleasant)  uptick in Check and Money Order customers.

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This user has validated their user name. by: RKTOYS

Tue May 21 18:10:12 2019

I only established a PayPal account to sell toys on eBay and do not see using it very much once that link is severed.  If I ever launch the online store, it'll be with Stripe or a Windows-compatible card processor.

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This user has validated their user name. by: iheartjacksparrow

Tue May 21 19:20:55 2019

eBay is becoming less and less relevant every day. Years ago, everyone was talking about eBay, either with regard to selling there, or finding great things to buy. I don't hear anyone talking about eBay nowadays. What I do hear people talking about is Amazon.

I'm also not a fan of PayPal, and only use Stripe on eCrater. Maybe once a year I'll get a message from someone asking if I take PayPal, and I explain the reasons why I don't. The only reason I still have a PayPal account is I buy a lot of anime collectibles from Japan and deputy services will only take PayPal.  

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by: Ebay Little Shop of Horrors This user has validated their user name.

Tue May 21 19:26:21 2019

For years, I've watched sellers so upset with how a PayPal rep treated them. I always wanted to say something, but didnt. This has been going on before wenig. I'm not kidding when I say PayPal hates Ebay. The board does. The shareholders do, and the reps can barely contain themselves when they hear that word.

The next time you call PayPal, from a different phone, do not mention Ebay. Do not allude to Ebay. Not until you have to, and wait for the silence on their end.

I once called and asked for a list of online sites that used PayPal, besides Ebay. They came back with a list of about fifty and we talked for at least an hour.

And by the way, PayPal hires mostly graduate students. They dont spend their money on ridiculous ventures meant to distract shareholders from realizing that they have no idea what they're doing.

PayPal spends its money on employees, all of them with all the perks and benefits, and they speak English better than most Americans. PayPal loves us. It just doesn't love Ebay, for the same reasons we don't.

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

Tue May 21 20:38:46 2019

PayPal loves us ?
Uh....No.

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This user has validated their user name. by: toolguy

Tue May 21 20:57:42 2019

@sasikat9

Seriously?

I could give 1000 to 1 odds and I would feel guilty taking your $1

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by: purpleiris This user has validated their user name.
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Tue May 21 22:10:24 2019

I don't know about you, but I know PayPal loves me. LOL Maybe that's because I've never sold on eBay -- not to mention the fact that I've been a business account holder since shortly after they opened for business and still have a perfect record with them.

So, naturally, I love PayPal. I sure as heck do not trust these marketplace sites with my money. I sell on Etsy, but am working towards getting away from that place as soon as my stand alone starts making headway. Like others reported about eBay, Etsy can't do anything right.

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by: SANT1N1 This user has validated their user name.

Tue May 21 22:16:58 2019

So the pot wants to get away from the kettle, lol. That's rich.

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by: WhatsUp2656 This user has validated their user name.

Wed May 22 08:07:58 2019

@buffalochick-I think you said it all.

@Sasikat-I believe that is true. I’ve been on eBay, left eBay and went back to eBay. The difference is staggering. You can list something that would have been off the shelves in no time at all, but now you will be lucky to sell it at all.

I saw eBay sales go the rest of the way down since last fall. Interestingly some of the smaller platforms are alive and thriving when comparing eBay sales.

For PayPal, I have never had a problem with them and when you need to talk to them it’s refreshing to hear an American voice. @The End-it appears we have an eBay cheerleader.

I predict eBay will be no more in the very near future. I do not hear anyone say anything nice about eBay over the last couple of years.

It is no wonder Pathetic Wenig had to come up with (possibly illegally extorting) taking more money from sellers. It appears that is all he has left to do.

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by: mcposty This user has validated their user name.

Wed May 22 12:00:05 2019

Paypal loves you so much they block right wing political peopel from using their site.

Paypal loves you so much they will freeze your funds and never tell you why

Paypal loves you so much they allowed donahoe to move from ebay to payal ceo LOL

paypal loves you so much they give buyers 6 months return window DESPITE what your return policy says.

to the abyss with paypal

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by: b86fiero This user has validated their user name.

Wed May 22 12:51:23 2019

I look for Paypal to expand into as many market places as it can in the very near future.  And why not?  Ecommerce generates billions in sales each month.  Those payments have to be processed.  The float interest earned on holding funds even overnight can be huge.  Look at the number of players in the area.  Will we see payment processing fees go down?    

Heck, even my local grocery stores accept Paypal payments.  

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by: Ebay Little Shop of Horrors This user has validated their user name.

Wed May 22 13:04:23 2019

They will go down, those processing fees. I'm guessing that they'll go down to zero.

Too many other cards are offering no fees. Too many sales sites drop your money on those cards with no fees. PayPal can afford to sit back for the time being. If they have to work with Ebay, they won't make it easy.

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by: Ebay Little Shop of Horrors This user has validated their user name.

Wed May 22 13:07:25 2019

That 180 day return policy, who do you think that was defined for and to what end?

A PayPal rep might tell you if you dont like it, maybe you shouldn't sell on ebay.

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This user has validated their user name. by: NoMoreEbay

Wed May 22 15:53:08 2019

My takeaway from this is FB marketplace is gaining ground and buzz and getting the attention of a big CEO. With any luck it will soon leave Ebay in the slime pit where it belongs.

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by: mcposty This user has validated their user name.

Wed May 22 16:01:50 2019

Facebook will not be any better than ebay. They are even more aggressive with idiotic policies. This is a company h ell bent on knowing everything about you to sell everything about you.






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by: maxmad This user has validated their user name.

Thu May 23 04:47:46 2019

"Rainey told Business Insider that eBay is not as relevant as it was 10 years ago"

so true,,,, and they continue to be less relevant every day,

and so will be paypal, without ebay

these two obsolete companies, are equivalent to wagon wheels, no one needs them anymore

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