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by Franki

In a move that has many people shaking their heads in wonder, Ebay are about to make offering Paypal payments on auctions compulsory in Australia. The ACCC has indicated they may well take action over it, but Ebay then issued a statement to their users that they are going to push ahead anyway and only delayed the action for a month because of the ACCC statement (Which said essentially that they think the action to potentially be anti-competitive.)

Ebay claims that the measure is for user security, but were that true and they really wanted to “help” users, they’d want to lower the price of Paypal transactions related to Ebay auctions so they are not double dipping on the fee charges, (ie getting paid for the auction listing, and then again to accept payment for it.)

They have not done this and as a result people are leaving Ebay in droves from the message boards we’ve read. Ebay perhaps consider Australia a good test market because in the grand scheme of things they haven’t really lost much if it falls apart because of this, or perhaps they think the extra payment money will make up for the drop in sellers and consumers. Who knows?

One thing that is for certain. The recent opening of the Tradingpost could not have been timed better. Telstra/Sensis must be absolutely delighted to discover Ebay driving business their way.

If Ebay had instead specified that payments could only be accepted by any method that can be easily reversed or by systems with similar security constraints to Paypal, it would probably have happened without ACCC interference. I find myself somewhat surprised that they did not expect the fuss that has resulted to be honest.








4 Responses to “Ebay driving users away in Australia by forcing the Paypal issue.”

  1. Brad Peterson Says:

    If eBay/PayPal was genuinely interested in security, PayPal would sign the Electronic Funcs Transfer Code of Conduct. But they won’t because they would have to accept responsibility for losses caused by unauthorized transactions and equipment failure.

  2. Meredith Says:

    Most of this boils down to the fact that eBay’s PayPal unit makes an additional 2%-10% out of the Sellers Total Profit.

    This eBay/PayPal Profit Calculator will show you this much more clearly.

    http://pheebay.com/1/?eBayALTERNATIVESPheeCalculator

    Ozzies are doubly being targeted because they are much more adverse to PayPal than their American/British cousins (like 50% don’t use or want to use PayPal) where as in the States and British Isles it is like 85% and maybe 80% usage. Also since AU is smaller, it is easier to roll out, then test out the bigger country markets.

    Give the Calculator a go with some test samples and you will see why it is very profitable for eBay to have you also use it’s payment system.

    The American owned eBay AU though is riskily gambling that Ozzies will not use the much less expensive home grown OZtion (or Trading Post)…

  3. Ebay driving users away in Australia by forcing the Paypal issue. | apBizz : Selected News Says:

    […] Ebay driving users away in Australia by forcing the Paypal issue.HTML FixIT – Grand Rapids,MI,USAby Franki In a move that has many people shaking their heads in wonder, Ebay are about to make Paypal payments on auctions compulsory in Australia. … […]

  4. BIG CHRIS Says:

    NEW AUCTION SITE OPENING IN AUSTRALIA
    (smartbid.com.au
    SMART BIDS WILL BE OPEN FOR BUSINESS APPROX 1ST JULY
    http://www.smartbid.com.au/index.php?

    Recommend all ebayers jump ship and sign up early
    http://www.smartbid.com.au/index.php?

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