Skip to Content

EBay changes turning off more customers?

More
Text SizeAAA

Filed under: Shopping, Technology

Chalk up another public relations problem for eBay, the uber-successful company that can't seem to get it right anymore. Oh sure, eBay is still raking in money hand over fist, but who knows how long that will continue if the company keeps alienating its bread and butter.

Last week eBay announced a fee change that could likely entice more sellers to the site: Sellers will now pay 35 cents to list as many of the same fixed price items as they want, instead of charging a fee to list each item separately. This sounds good, although critics say that this new move favors larger sellers and puts very small sellers at an economic disadvantage.

This change was paired with a nother controversial change that may turn off some sellers and buyers. Starting in mid-October, eBay will only allow sellers to accept electronic payments, including credit card, PayPal, or ProPay. Sellers will not be able to accept cash, check, or money orders.

Although eBay says those non-electronic transactions account for less than 10% of the sales made on eBay, it's still a shift that may upset some buyers and sellers. Why not offer the customers the choice? It's clear that not many users want that choice, yet it shouldn't matter to eBay if that's how they want to do business.

I suspect that this change may be an attempt to push more people toward using eBay-owned PayPal. Earlier this year the suggestion that eBay might go "PayPal only" brought consumers out in droves against the change. Maybe this is a not-so-subtle move in that direction, without technically "requiring" sellers to accept PayPal. After all, how many non-business owners do you know who have credit card processing capabilities? Those individual sellers will be all but forced to use PayPal since they don't have access to another electronic method of payment.

I've been a pretty big eBay fan in the past, but I'm afraid some of the recent changes aren't really going to endear the company to their existing customers... the ones who made eBay what it is. I'm waiting for someone to come up with the next big idea that will really challenge eBay's position as the dominant force in online consumer-to-consumer sales.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
Subscribe to Walletpop

Reader Comments (Page 1 of 1)

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

What are the Next Hot-Spots in the Luxury Resort Scene?
Luxist Awards asked three of our Expert Panelists, all veterans of the travel industry, about the ...
The Luxist Awards for Best Accessories
Do you know of a magnificent jewelry line with pieces that are to die for? Which is the finest ...

Janean Chun
Janean Chun Filed under: Credit, Wealth, 101 credit&debt

Best platinum cards for status spenders and rewards seekers

Remember the days when gold credit cards were the gold standard? Then platinum credit cards became the new mark of exclusivity. Since then, the platinum of platinum credit cards have morphed into ...
Bob Cesca
Bob Cesca Filed under: Food, Shopping

Fighting for a free turkey as consumer confidence improves slightly

My wife and I occasionally shop for groceries at a supermarket that allows customers to collect points towards coupons, giveaways and other discounts. This year, we collected enough points to get a ...
Josh Smith
Josh Smith Filed under: Shopping, Black Friday, Cyber Monday

Cyber Monday: Expect it to come several times this year

Cyber Monday deals traditionally come once a year, the Monday after Thanksgiving, when online retailers cut prices to lure in workers who have returned to work but still need to get some shopping ...
Sarah Gilbert
Sarah Gilbert Filed under: Food, Kids and Money

NBC nixes PETA ad on Macy's Thanksgiving Day Parade broadcast

When you settle in to watch the annual spectacular of the Macy's Thanksgiving Day Parade this year, your viewing experience will be missing something. No, it's not just the cast of Glee (banished due ...

Headlines from WalletPop Partners