eBay Australia Users Riot Over Forced PayPal System
by RT on 05/11/2008 in Consumer Tips
eBay, Inc. is testing the waters, according to the Associated Press, with Australian users being forced to either use PayPal as their payment system, or to exchange payment in person.
This decision has, of course, upset thousands of online merchants that utilize the site for their livelihoods. Over the years, the PayPal online financial institution has had many road blocks to being trusted by the community at large. Years later and after several lawsuits, they were purchased by the eBay corporation, and integrated tightly into the site’s function. However, buyers and sellers were still completely free to use third-party payment systems of their choice. PayPal competed by being the simplest and easiest choice, since it was built right into the web site.
eBay hopes to bring trust and a better reputation to their payment system by forcing users to use it, hoping that enough users will stick around and eventually learn to love them. If this works to some degree in Australia, we could be seeing this change go worldwide.
Those of you who use eBay, would you stick around if you were forced to use PayPal, or would you consider moving to another online auction site, such as Amazon or Yahoo or uBid? Let us know in the comments.
-The Raging Tech
Digital Camera Auctions
May 11th, 2008
Hi there,
This is only one of the changes made by eBay in the last couple of months, and these changes are not really welcomed by sellers or buyers.
Most likely this change will increase prices because of the PayPal charges.
Answering your question about moving to other auction sites.
I do not think so.
First of all you speak about changes effecting Australian merchants. As far as I know Australians cannot sell on Amazon yet. (I’m not sure about Yahoo)
The other aspect what need to consider: Traffic
At this moment eBay the leader. So it’s clear to them they can do whatever they want to…
Spindoctor
May 11th, 2008
Fortunately there are other options – the most viable is Oztion.com.au, which has been growing at an incredible rate since eBay’s announcement. eBay’s arrogance cost them any traction in New Zealand and may erode their market hold in Australia.
RT
May 12th, 2008
@Digital Camera Auctions: I think you’re right. eBay has become the Microsoft of the online auction kingdom, and they will lose pretty much all but the people who make their livelihood on eBay, the rest will all be buyers but not sellers.
@Spindoctor: That’s great. We need to get the word out in any situation where people think they’ve only got one option – there *are* alternatives. Tell your friends to use these other sites and bring eBay some competition. Write to eBay executives, and keep commenting on blogs that put these issues in the spotlight. Then they’ll start to listen, maybe.
Bethany
May 13th, 2008
I have used eBay for years. I do not use PayPal even though I have an account. Granted, I live in the US so what eBay is trying to force doesn’t effect me….well yet anyway. However, I am of the opinion that if eBay is going to force consumers to use PayPal, I will NOT be using eBay. I can swallow making PayPal the easiest ( and better yet cheapest) route to use with Ebay but not to the exclusion of other systems. It’s obvious to me that they now realize they have bought a failing business and they haven’t done much to fix it. They are just trying to recoup losses. I, for one, have never trusted PayPal. It’s not a bank and is not accountable for loss of my money.
what sells on ebay
Sep 4th, 2008
what sells on ebay…
Sellers who are aware of the problem competition poses may be put off, believing that there is no room to make money. But Pat Davenport, Auction Inspector’ s representative, says that there is still a wealth of opportunities to be had in niche markets-…
Tatiana
Feb 4th, 2009
Very useful post. where can i find more articles about this issue?
Frank J
Feb 4th, 2009
Thank you and glad you enjoyed the read.