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eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 8:14 am
by Raphael
After receiving some fairly incomprehensible emails from eBay yesterday evening, I started to understand the matter after doing some research on ADYEN, the company mentioned in eBay's emails.
Basically, eBay is terminating it's somewhat exclusive arrangement with PayPal. I say "somewhat exclusive" because even though they are separate companies, they share proprietary information and try to control the entire money chain generated by eBay sales. Woe to the seller who dares to mention that he will accept checks, wire transfers or cash, whereby PayPal does not rake in a nice commission. This arrangement, apparently, has been so successful for PayPal that their market value is twice that of eBay.
Never to be satisfied, and I suppose never happy with their friendly divorce from PayPal a few years ago, eBay now wants to retake total control of the money chain. ADYEN will process all sorts of back-room transactions, but the front-room will be eBay, who promise "substantial savings to both buyers and sellers". Really.
I remain fully convinced that eBay truly wants to eliminate small-time sellers (especially of used goods) in lieu of volume sellers of everything new, from cupcakes to condoms. They want to become an Amazon with no inventory, warehouses or distribution centers.
If you are an eBay seller, keep tuned because I think your world is about to be shaken up big-time.
Raphael
Re: eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 9:07 am
by Curt A
I never heard of ADYEN until reading your post, but I am wary of any move toward a one world currency. I realize that this is not how it's portrayed at present, since it just seems like a universal payment exchange, but who knows where this leads in the future. I guess I'm old fashioned, but don't see any reason to move away from PayPal... if it's not broke, don't try to screw it up. This appears to be a way for some group of nerds to try to take over all payment methods and funnel them through their new creation for their own benefit... I won't be signing up.
Re: eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 9:16 am
by HisMastersVoice
My understanding of the email sent by eBay was that after the multi-year transition, the end result would be that people could still pay for items using PayPal, but all sellers would have to receive funds through Ayden. It seems pretty sketchy to me, and I'm just about fed up with selling on eBay as it is. It sounds to me they are trying to become more Amazon-like, as Raphael said. I will likely not continue to sell there.
Here is the email sent by eBay for those who did not receive it:
eBay is happy to announce plans to further improve the customer experience by intermediating payments on our Marketplace platform. In doing so, eBay will manage the payments flow, simplifying the end-to-end experience for both buyers and sellers. We have signed an agreement with Adyen, a leading global payments processor, to become our primary payments processing partner. PayPal, a long-time eBay partner, will be a payments option at checkout for eBay buyers.
You do not need to take any action at this time. The transition to full payments intermediation will be a multi-year journey.
Over the past three years, eBay has transformed its business to drive the best choice, most relevance and most powerful selling platform. Building out our payments capabilities is the next step in that strategy.
Payments intermediation will bring significant benefits for eBay sellers. You can expect a simplified pricing structure, more predictable access to funds, and most sellers can expect their costs of payments processing to be reduced. We’re also working on ways to provide sellers a central place to track and manage their business, which can soon include payments information.
By offering buyers more choice in how they pay and expanding payment options into more geographies, eBay believes sellers will be able to reach more buyers and improve conversion.
The transition to full payments intermediation will be a multi-year journey. eBay will begin intermediation on a small scale in North America starting in the second half of 2018, expanding in 2019 under the terms of the Operating Agreement with PayPal. In 2021, we expect to have transitioned a majority of Marketplace customers to the new payments experience.
Again, you do not need to take any action at this time. As eBay gets closer to the initial phase of its intermediation efforts, we will share more details about this process and next steps for sellers. In the meantime, please read the eBay Inc announcement for further information. For any immediate questions or to share feedback, please email
paymentsinfo@ebay.com.
We’re looking forward to what’s next, and to getting there with you.
As always, thank you for selling on eBay.
Bob Kupbens
VP, B2C Selling
Laura Chambers
VP, C2C Selling
Re: eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 9:41 am
by Curt A
I think some new alternative to eBay needs to be found. Their initial idea was good, but they have continued to micro-manage it into a crappy experience for both buyers and sellers.
Apparently greed is the main motivation for these decisions, along with taking advice from a bunch of control freaks who have no actual experience dealing with real people in the real world.
Amazon is great for finding new items AND we don't need another clone. Ebay was started as a marketplace for used or vintage type items and has evolved into an online version of a junk store full of cheap new crap and uneducated sellers... like some "antique malls" that are crammed with yard sale rejects and Chinese tools.
Re: eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 10:14 am
by briankeith
I'm having much better luck lately with Facebook Marketplace and also with Letgo. (selling that is)
Re: eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 10:41 am
by rgordon939
I was just looking at the ADYEN website listing of there fees. It says that ACH DEBIT transactions are 25 cents plus a 12cent processing fee. Other types of transactions are up to 3.5% plus a transaction fee. So depending on the type of payment made you may pay more or less. I’m sure ebay is doing this becaus it’s more cost effective for THEM not the customer.
Kudos to Raphael for bringing the subject to everyone’s attention
Rich Gordon
Re: eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 11:21 am
by Valecnik
All of the above comments reaffirm my belief that here is the best place to buy/sell. Screw eBAY and their opaque confusing pricing schedule.
Re: eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 12:00 pm
by JerryVan
I got the same message and sent a "nasty gram" to them this morning. Maybe PayPal will start their own auction service, HA!
Re: eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 12:19 pm
by HisMastersVoice
JerryVan wrote:I got the same message and sent a "nasty gram" to them this morning. Maybe PayPal will start their own auction service, HA!
If eBay doesn't have a non-compete in perpetuity with PayPal, I'll eat a Diamond Disc.
Re: eBay-PayPal-ADYEN
Posted: Thu Feb 01, 2018 12:20 pm
by audiophile102
I just want to echo Rich and say thanks to Raphael. Clearly Ebay is not changing for the better.