interesting post about ebay from
http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2008/5/1210344350.html
Critical Test for eBay's PayPal-Only Policy Critical Test for eBay's PayPal-Only Policy
by: susie198000
Mon May 12 2008 18:58:25
".......we will take what we learn in Australia with PayPal-only and apply it accordingly. What perhaps didn't’ come across as well is that we will apply those lessons differently in different markets."
Umm....As shocking as it may be, eBay isn't being altogether honest about the US market and PayPal.
eBay has gotten around the PayPal only question in the US by slowly instituting new rules over time to effectively force Sellers to accept PayPal.
When eBay bought PayPal, eBay "encouraged" Sellers to offer it as a payment method. A lot did using their existing Personal account, (no fees). eBay listings weren't integrated with PayPal accounts so in the beginning it was a true option.
In short order eBay embarked on its long range plan to have all US transactions be PayPal only.
The first step was to was to "strongly encourage" buyers to open a PayPal account and use PayPal as an easy and safe payment method. There were not so subtle hints that any other payment method wasn't safe. eBay did a good job with buyers. Buyers mostly "assumed" that all Sellers offered PayPal. As eBay planned Sellers who didn't offer PayPal were having problems with Buyers.
It is worth noting that eBay made no effort to tell Buyers that Sellers had the choice of *not* accepting PayPal. eBay also made no effort to let buyers know that Sellers who didn't accept PayPal weren't by definition dishonest.
In response to buyer complaints, (see above) eBay added a PayPal icon next to a listing along with the ability to Search for "PayPal Only" listings. Reinforcing to buyers that Sellers who accepted PayPal were "honest", and putting more pressure on Sellers to accept PayPal.
The move to present Buyers with PayPal Only Search results gave eBay the excuse to integrate and link eBay account info with PayPal account info. (eBay was planning ahead for later moves).
Then came eBay Checkout with PayPal as the first payment option. Giving the Buyer the impression that if the Seller didn't accept PayPal, use it anyway. The Seller could claim the payment by opening a PayPal account. Indeed, a lot of buyers assumed that Sellers would open accounts, and sent PayPal payments. It was a mess with Sellers rejecting PayPal payments with the offer to open an account creating more eBay instigated Buyer problems for Sellers.
The beauty of PayPal from eBay's perspective is that anyone can send a payment to anyone and if the person receiving the payment doesn't have an account they have to create one to accept the payment.
This was a huge move by eBay to get to PayPal only. Because to this point a Seller could still opt out of offering PayPal, and opt out of eBay Checkout altogether and communicate with a buyer directly about payment.
This big move didn't go unnoticed. Sellers who used third party checkout out most often with their own Merchant accounts were in an uproar, as were small Sellers who saw eBay Checkout as trying to force PayPal on them. eBay backed off using eBay Checkout and Sellers could opt out, (only if you didn't offer PayPal). eBay learned that they couldn't be so direct to get to get to PayPal only.
So about this time eBay rolled Stores with the requirement that Stores accept PayPal and use eBay checkout. Maybe they didn't get all listing using PayPal and checkout, but they got a big chunk with Stores.
Now that eBay had its foot in the door getting Sellers to accept PayPal they then went onto making sure Sellers were going to start paying eBay fees to accept PayPal.
Up until this time Sellers had Personal accounts to accept PayPal, (no fees). When PayPal was started it was advertised as "free for life". PayPal would make money on the "float". eBay would have none of that nonsense. What was the point of buying PayPal if not to soak the Sellers for more fees ?
So eBay mandated that a Seller who accepted PayPal had a dollar amount limit on payments they could recieve in their Personal account. Above that limit a Seller had to "upgrade" from their Personal account, (no fees), to a Premier account, (fees).
Since the eBay and PayPal account info was integrated, (see above), a Seller would get a message that in order to accept payment they had to upgrade to Premier on the spot, that very moment. If the Seller didn't know about the upgrade mandate, the Seller had no choice but to upgrade and pay fees. If they didn't they risked being suspended or NARUed.
eBay didn't waste a lot of time with the dollar limit and upgrade rule to PayPal Premier, (and fees).
After being frog marched to the Premier upgrade, eBay eliminated the dollar amount rule to upgrade from a Personal account and required all Sellers to upgrade to a Premier or Merchant account, (with fees on even the shipping costs too).
In conjunction with the all Sellers must upgrade to Premier or Merchant account announcement was that that if a Seller had a PayPal account, and wanted to sell on eBay, then PayPal was required to be offered as a payment method, upgraded to a Premier or merchant account, of course.
Next up was forcing eBay sellers with PayPal listing to accept credit card payments. Sellers still had the choice of accepting only cash transfer, or e-checks, (fees, but not as high as credit card fees). As usual eBay claimed Buyers were complaining that some Sellers wouldn't accept credit card payments through PayPal.
So eBay told Sellers that to keep buyers happy all Sellers who accepted PayPal were required to accept credit card payments, (and pay higher fees than cash transfers or e-checks).
eBay's plan was going well. eBay had gotten from buying PayPal to integrating it with eBay Sellers accounts, requiring Sellers to have a Premier or Merchant account if they offer PayPal, forcing Sellers to accept all forms of PayPal payments including credit cards, and finally forcing all Sellers with PayPal accounts to offer it as a payment option.
The next logical step was to was to require all new Sellers to accept PayPal.
eBay wasted no time. Without fanfare, anyone who registered to open and account on eBay, as either a Buyer or Seller, was required to have a PayPal account. If they didn't have a PayPal account they had to register with PayPal at the same time as creating an eBay account.
What eBay didn't say was this required that all new Sellers to accept PayPal. They didn't find out until after registration that if they tried to list to sell that the rule was that if you had a PayPal account you had to accept PayPal for payment, and, if you opened a Personal account at registration you had to upgrade to Premier or Merchant, (with fees) to list and sell.
eBay reached most of its goal of PayPal only in the US. To reach its final goal would take a little longer. this mostly by Seller attrition.
eBay tweaked the PayPal requirements over time so that you can have a Personal account and a Premier account, although each account must have separate e-mail addresses and separate bank account information.
eBay tweaked Checkout so that it is required but can be by-passed for a Sellers own Merchant account, (although with the message that eBay safe buying doesn't apply since it isn't PayPal).
As it is now the only Sellers who list on eBay US without PayPal are the old timers from before about 1999 who were grandfathered in to the changes and held out with no PayPal.
But eBay has been picking them off at a steady clip. Either forcing them to accept PayPal or to leave eBay by instituting thee Best Match "finding experience". Best Match is a convoluted eBay criteria that includes offering PayPal as a payment option. Listings without PayPal get very little, if any, exposure in Search results. You can't sell what a buyer can't find.
There is also another new convoluted eBay criteria that allows eBay to hold PayPal payments to certain Sellers for 21 days, (at the discretion of eBay/PayPal). (It is complicated and no one really understands how it will or does works, or what the consequences will be to Sellers. The only thing known for sure is that eBay still gets the fees).
PayPal only has little to do with "safe buying and selling". It is about profits. Never forget the Prime Directive: Follow the Money.
So don't think for a nanosecond that eBay hasn't been or isn't continuing to try to force US Sellers to accept PayPal to get to PayPal Only.
What eBay is doing in the US is to get to "PayPal only" by draconian requirements causing Seller attrition, without risking legal action by stating that US eBay listings must be PayPal only.
PS: I am an old timer. I sold on eBay from 1997 through 2007. 100% positive feedback. A honest small seller who gave good service to buyers who appreciated personal service.
By 2007 I had enough of eBay crap. It was the best decision I ever made. I wouldn't sell on eBay again if eBay paid me.