EBay and PayPal to Split into Separate Entities

What does the eBay PayPal split mean to small sellers on eBay?

Well, that depends who you’d ask.

Ina Steiner of ecommercebytes.com asked sellers on the “auction bytes blog” how the break is likely to affect their business. Many were wary of price increases by eBay and policy changes from PayPal that would further erode their profits.

This opinion stems partly from the fact that on September 30^th Moody's Investors Service, Inc. ("Moody's") placed the ratings of eBay under review following the disclosure that eBay will carry all the debt and PayPal will emerge debt-free. Further, it is assumed (by some) that a loss of revenue previously generated by PayPal will “have to be made up somewhere”.

Small sellers have been grumbling about PayPal’s policies (like freezing funds in a dispute) for some time and proclaim they’re only one move away from leaving eBay.

A problem exists for some sellers because they do not understand that though they have a “store on eBay” they do not own the platform and ultimately must implement whatever policies eBay insists on, whether they agree with it or not.

It’s a small price to pay to play on eBay.

Don’t believe me?

Try setting up a website with a payment cart, database, SEO, Marketing, and security. You’ll quickly realize that doing business on eBay relieves you of worries like site hacking, theft of customer information and the additional costs of doing business.

If you sense that a particular sale is going to be a major headache immediately “take the high road”.

Accept the return. Give them their money back.

There will always be a percentage of customers that will be unhappy. Those of you who have “brick-and-mortar” experience know what I’m saying.

Forward thinking sellers (and I include myself in this category), are of the opinion that things will continue on eBay pretty much the same if you maintain the following:

·         100% positive feedback (or as high as possible)

·         Power seller status

·         Follow eBay policies to the letter

I base that on the fact that eBay values the efforts of sellers who maintain these standards. The following is also true. EBay and PayPal have announced an “at-arms-length” agreement that will minimize any disruption for buyers and sellers alike.

With that said, my eyes are on Alibaba.