eBay all but gives up on compulsory PayPal

Angus Kidman
27 June 2008, 1:38 PM


eBay appears to have worked out what everyone else has been saying for months: plans to force people to use PayPal are the dumbest idea ever.


Plans to make eBay compulsory in Australia have now delayed "until further notice", suggesting that eBay has almost worked out what everyone else has been saying for months: this was possibly the dumbest idea ever.

Since the ACCC told eBay that its plans would probably see it dragged to court faster than you can say "half-price listing sale", the big question has been what would happen next. eBay had originally intended to implement the plan on July 15, and effectively suggested to users that there probably wasn't much point in offering other payment methods in the interim.

However, it seems to have had a change of heart, doubtless influenced by ongoing discussions with the ACCC (and perhaps some sticker shock at its growing legal bills, despite our helpful offer of some free advice). In a notice posted on its discussion forums yesterday, the company made the big admission:

Payment methods that are currently permitted will continue to be allowed on eBay.com.au until further notice.

This is likely to be as close to "we got it wrong" as eBay ever gets. While this isn't a total reversal — PayPal still has to be offered as an option on listings — it should ensure that users who complain that their buyers aren't interested in PayPal, like the specialist cake tin seller who berated eBay bosses at its Melbourne public meeting to explain the changes, now have other alternatives.

Along with the back-pedalling there was also a minor degree of arse-covering, with eBay noting that changes to the site reflecting this policy might take a while to kick in. Presumably, the company doesn't want more reports of how it failed to originally implement the ACCC's suggestions.

"eBay regrets any ongoing uncertainty that this further delay may cause and will advise you of any future plans for implementation following the ACCC process," it continues. Frankly, the only uncertainty now is whether the annoyed sellers who have planned to move into other forums such as the Trading Post can be persuaded to come back, and how eBay can repair its damaged brand.


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Me In Oz (Advanced Forumologist):

Let's not bag them too much now that some common sense has prevailed.
Kudos to a megacorporation listening to the common man for a change !
...... And also because they would have lost a crapload of revenue !

27 June 2008, 1:50 PM (3 years ago)report abuse Send to a friend reply

Potoroo (User):

Quoting Me In Oz:
Kudos to a megacorporation listening to the common man for a change !


That is not what happened. Had eBay listened to "the common man" it would have backed down on this outrageous policy long before the ACCC got involved.

27 June 2008, 3:54 PM (3 years ago)report abuse Send to a friend reply

McBanjo (New user):

Pretty sure they're not listening to the common man. They're listening to the guys who would sock them with a massive fine for breaking competition law.

27 June 2008, 2:37 PM (3 years ago)report abuse Send to a friend reply

Chris (New user):

Quote:
Plans to make eBay compulsory in Australia have now delayed "until further notice"

Under such a system what would be the punishment for those who don't use eBay? A fine or Jail Time?

27 June 2008, 3:05 PM (3 years ago)report abuse Send to a friend reply

Tin (Regular user):

Nice pickup. I didn't notice that, but it's hilarious.

27 June 2008, 3:38 PM (3 years ago)report abuse Send to a friend reply

Tin (Regular user):

I wouldn't trust this announcement as far as I could throw it... And since it came via email, that's not very far at all.

27 June 2008, 3:39 PM (3 years ago)report abuse Send to a friend reply

Captain Koala (New user):

Once a mongrel always a mongrel , this lepoard will not change its spots, their disruptive propaganda and extortion departments will be working overtime to screw us even more.
Expect some rises in fees to pay for the legal bills

27 June 2008, 4:29 PM (3 years ago)report abuse Send to a friend reply

Tin (Regular user):

Disruptive propaganda is a good description... Anyone else read the email eBay sent out today? It pretty much blames ACCC for the disruptions and confusion, when in reality only eBay are to blame for this situation.

27 June 2008, 6:15 PM (3 years ago)report abuse Send to a friend reply

Dan Warne (Regular user):

Gawd, startling similarity between eBay and Telstra's tactics. What a surprise... both dominators in their market sector; both abusing their power in the market to force customers to pay more.

27 June 2008, 6:51 PM (3 years ago)report abuse Send to a friend reply

Percul (New user):

eBay in part have achieved their goal, that is to have all sellers offer PayPal as one of the payment options, many still are not interested in this, where they will not open an account with PayPal hence will not be returning to eBay.
If the ACCC also finds this mandatory requirement to be in breach of the trade practices act where it limits choice of the customer, in this case the seller.
Both buyers and sellers are customers to eBay, this was clear in the draft from the ACCC, thus forcing buyers to offer PayPal as an option is also anticompetitive and choice restrictive behaviour .

27 June 2008, 6:51 PM (3 years ago)report abuse Send to a friend reply

K (User):

The mandatory listing of PayPal as a payment option bugs me to no end. I recently sold a few things in eBay recently and the buyer paid for it with PayPal even before I had a PayPal account.

I'm not sure what the terms & conditions say (I'll have to find the time to read them one day), but do you get your listing cancelled if you put in big bold letters "DO NOT PAY WITH PAYPAL"?

28 June 2008, 5:37 PM (3 years ago)report abuse Send to a friend reply

coconut (New user):

its too late for ebay - ive already moved to Smart Bid Auctions - www.smartbid.com.au and theres no way im going back to ebay!

02 July 2008, 12:04 PM (3 years ago)report abuse Send to a friend reply

coconut (New user):

i've already moved to Smart Bid Auctions - and theres no way im going back to ebay - not after all they have done!

02 July 2008, 12:04 PM (3 years ago)report abuse Send to a friend reply

Xoobie (New user):

About time they felt some empathy for their customers

Online auctions for Australians, Xoobie

07 July 2008, 7:37 AM (3 years ago)report abuse Send to a friend reply

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