Is it a sign of things to come?
April 23, 2008 by Bob
Did you know that eBay is starting an experiment or a test on eBay Australia? Beginning on June 1, all eBay buyers in Australia must pay for their purchase with Paypal!
That’s right, there will be no option for cash payment, a check in the mail or any other online payment system, the buyer MUST use Paypal.
Did you know that Paypal is owned by eBay? So, it would seem that eBay is using this method to increase their take on the items that you sell! I mean, they get a percentage from virtually every payment that goes through Paypal, so this is a money making decision for them.
I don’t begrudge anybody making money, after all that is what this blog is all about. But, in this day and age, the goal for any company should be to give their customers choices. The more choices the better. This move, though, is limiting choices.
eBay has been making a lot of moves lately that are wrong, in my opinion. Are they hurting for cash? It would not seem so, but the moves they have been making seem to indicate that they are. Why?
This is eerily similar to what Amazon is doing now with Lightning Source in attempting to force people to use Amazon’s BookSurge print-on-demand instead. While initially they are only going after the big fish, the rest may come soon enough.
Hi Tom - Nice analagy, I had not thought of that before, but you are exactly right.
Hi Bob,Update:Ebay are now trialing Paypal only here in the UK.Regards Chas.
Hi Chas - They are talking about doing it in the USA too! I wonder a bit if that might be considered monopolistic, since eBay owns Paypal.
Hi Bob.You are right in your assumption that it could be monopolistic.I just read today,the consumer and competition authority in Aus has blocked Ebays actions scheduled for June17th as they feel its anti competitive.Ebay have said they will appeal the decision on grounds it offers greater security for ebayers.Im sure other countries authorities will now follow suit.I fully understand their concerns,although personally i always prefer my buyers to pay by paypal,less hassle even though it does cost for the privilege.
Hi Chas - Interesting that the Australian govt has stopped eBay’s auctions, it’s something that I had not heard about yet. It would seem that eBay would pull back on their plans in other countries at least until they sort this out and come up with a strategy on how to combat such actions.