posted on January 10, 2007 01:41:55 PM
eBay's latest move to counter Google Checkout has been the abolishment of eBay Buyer Protection from 17 January. It will be "replaced" by PayPal Buyer Protection (max. $2,000 coverage) for qualified transactions on eBay.com and eBay.ca.
This latest move is seen by market analysts as yet more evidence that eBay is desperate to prevent Google Checkout from gaining a foothold in the lucrative auction payments processing market. eBay currently prohibits sellers from accepting Google Checkout on its site citing that the internet giant "lacks a substantial historical track record of providing safe and reliable financial and/or banking related services", despite Google having provided fraud-free domestic and international online payments through the banking system since 2001...
posted on January 10, 2007 03:17:12 PM
I wonder if this move can be construed as Ebay turning itself into a conglomerate in the auction business. What do you think agit? They are trying to push out all other payment methods other than Paypal, which as we all know, it owns.
posted on January 10, 2007 04:51:00 PM
eBay derives a significant part of their profit from PayPal. Also given their recent costly setback in China (not to mention wholesale routing in Japan, HK or NZ), huge investment in Skype that's unlikely to turn a profit - eBay needs to keep showing a profit*. Google Checkout is cheaper (it's currently free) for sellers than PayPal so it represents a real threat. I'd expect Google Checkout to announce their own Buyer Protection scheme soon...
*otherwise eBay executives will not be able to exercise their stock options.
posted on January 10, 2007 07:53:44 PM
Uhmmm... is it just me... or is this just a load of... well.... you know...
Basically, they are saying that you will only get protection on eBay purchases if you make your purchases using Paypal. Well... correct me if I'm wrong, but if you make a purchase using Paypal now... and you don't get your item... and the seller can't provide tracking information... you get your money back.
Or... if you don't want to go through the Paypal dispute process, you can always file a chargeback with your credit card.
Either way... the Buyer has ALWAYS had this protection (and with chargebacks, it goes higher than their $2000 stated limit). I don't see how this is providing the buyers with ANY safer bidding environment... except for taking away protection for items between $25-200 that had been previously paid for with checks and money orders.
Sorry... but I just don't buy the "spin" that they're putting on this one. And... I think they are getting closer and closer to some anti-trade issues. Google could have a field day with this one...
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posted on January 10, 2007 10:26:10 PM
Maybe it has something to do with fact they just spent $310 Million smackers we sellers contribute everyday to buy StubHub (sells tickets) news article
I know nothing to do with buyer protection but still they don't seem to be hurting too bad if they spend that much for another company.
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