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See Full StoryPayPal is the de facto market leader in the person-to-small business payment universe, but change is in the air. Since eBay purchased it in 2002, PayPal has become a revenue unit of the world's most successful e-commerce venture -- eBay's secret weapon, as it were. But is this weapon double-edged? PayPal may have to raise fees or enter the person-to-person payment market to protect eBay's margins and raise revenues. In fact, its next moves could make or break the auction giant's franchise.
I've been a heavy eBay seller and buyer since the late '90s. In that time I've seen eBay raise fees several times, and between eBay fees and PayPal fees, the total for a seller is sometimes 10% per item sold on eBay. That's way too much, they're not doing ANYTHING except provide a virtual sales place for 3-10 days. I cringed when they bought PayPal, I figured if anyone could screw up a good thing it's the money grubbers at eBay. I have two accounts with eBay, I'm a PowerSeller with both, having sold thousands of items. If they raise seller's fees in any way for PayPal I'll stop accepting those payments - it might hurt me in the short run but sooo many other sellers will follow suit that it won't hurt long term. I dream of the day when some company big enough provides eBay with real competition (Yahoo and Amazon are/were both jokes), I'd even settle for a company like Microsoft if it stops eBay out of their monopoly status.
I think we eBay sellers need to move to another auction site. I have been with ebay since 1998 and nothing compares but there comes an end to all good things, it has now turned bad. I have just signed up with the auction at Overstock.com . My thinking is they are doing the television ads and hopefully people will wise up and shop elsewere besides ebay. We ( 2 of us) are barely making a profit now the fee increase will hurt sellers and buyers. We need to band together and do something.
You may find some alternatives for eBay in the Internet. WebFreeTrade.com is one of them. It successfully combines the elements of the marketplace with some features of the payment system furnished with the escrow-like payment mechanism.
I know of a corporation supposed to launch in May of 2003 that may help with that dream. It's not a large corporation though but was paying attention to the commments from powersellers and consumers on ebay. I am a beta tester for them so that's about all I can say. :o)
can anyone reccommend an alternative to pay pal for receiving money for small amounts under 100 pounds from buyers in usa and europe. pay pal fees on items selling for a few pounds makes it unworthwhile adn lots of my sales are 2 or 3 pounds only
PayPal's horror stories continue to grow, and raising fees, combined with a severe lack of customer service, is going to put a crimp on their money making style. I am through with PayPal, both buying and selling. As for BidPay users, I skip those auctions!
I agree with Tiernan Ray. I believe that its next move will in fact make or break the auction giant's franchise. However, I am leaning more towards 'break'. Simply for this reason: PayPal is being used on the majority of eBay's auction and brings in a great revenue because of this. If the sellers and/or buyers see these fees increasing, the first instinct will be to stop using it. Many are small-time sellers and buyers, are the fees going to be worth the purchase of low-cost items? Once the sellers/buyers of eBay begin to turn their backs on PayPal and their fees, who will eBay turn to next? Billpoint went under, PayPal is keeping its head high above the water...for now.
I'm afraid to see the future of PayPal.
I'm afraid to see the future of PayPal.
