eBay Abandons Australian PayPal Escapade

eBay Inc.

I read with interest that eBay’s attempts to force Australian users to exclusively use their PayPal payments system for all transactions has now been abandoned following protests and an investigation by the Australian competition commission.

Back in the mists of time when I actually used eBay, Paypal was an available payments system and was not owned by eBay itself. Sellers & buyers could process transactions by a variety of mutually agreeable means including Bidpay, cheques, money orders etc. eBay have claimed that restricting payments to an approved method reduces the prospect of rip off auctions.

In May eBay removed the ability for sellers to leave nagative feedback for buyers who did not pay for purchased items which left the balance of power with buyers. In addition money paid via PayPal is held for 21 days or until a positive feedback is left by the buyer.

In the UK users of eBay has declined significantly and there have been tentative signs that eBay wishes to restrict payment methods in a similar way here too.

I have a feeling that should that happen then such a move may sadly not receive as much of an official backed protest as in Australia.

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3 thoughts on “eBay Abandons Australian PayPal Escapade

  1. We used to use eBay quite a lot, especially Tigger who bought and sold DVDs there.

    We inevitably had a couple of disappointments when the other party did not perform as promised. We then had recourse to the much vaunted arbitration service. It failed us completely. eBay and PayPal played us off against one another like tennis balls: eBay said it was a PayPal problem and PayPal said it was an eBay problem. Neither party would take responsibility and lift a finger.

    It was this managerial bad faith rather than occasional encounters with crooks that put me off eBay or PayPal.

    Even before eBay owned PayPal I had a low opinion of it and this has not improved. I avoid using it wherever possible. The fact that I have a PayPal account (from my eBay days) means that whenever I buy a product online with the listed credit card, if PayPal is one of the payment options, then even if I try to by another method, PayPal jumps up and grabs hold of the transaction.

    I solved that particular problem by changing the credit card number in my PayPal account to one that I use rarely, thus making myself “invisible” to it.

    PayPal is obvious bidding for the status of Greedy Monopoly and such companies are bad for consumers and ultimately bad for business. They need to be periodically smacked down and put in their place as the Australians have done. Good for them.

  2. My experience with Ebay and PayPal, USA has generally has not been a good one.

    Buyers and sellers either fail to read product information, condition, refund policy, shipping method and shipping cost information. This causes miss understandings and dissatisfied buyers and sellers.

    I no longer use either eBay or PayPal. I sell and buy at other sites with less hassle better service and save most of the time more that using eBay.

  3. What I have noticed about eBay UK, since the new feedback changes and seller fee increases etc, is that items on eBay are no longer cheaper than anywhere else now.

    Many times I have been able to find a product online cheaper than what eBay sellers are charging.

    Could it be that eBay charges such high fees has caused sellers to hike their prices which will eventually lead to lost sales which will in turn lead to sellers packing up and going home.

    Maybe eBay has peaked and is now facing slippy slope which the eBay fat cats will survive by selling parts of eBay to Google.

    After all, when all is said and done, the most important to eBay are the share holders who are the real ones making money with eBay!!!

    Shame isn’t it.

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