UPDATE 3-EBay founder rejects Icahn's call for PayPal spinoff

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bigstrongs wrote:

Here is the fantasy of using Ebay: list your items quickly (sometimes for free), offer free shipping to attract customers (heavily endorsed by Ebay), get quick bids and make fast cash. Easy! The REALITY is quite different. Yes, list items quickly (this has been streamlined and is pretty user friendly). If you DON’T offer free shipping, your items sit there, in limbo, until they expire and you list them again. I’ll come back to why this is in a moment. Quick bids–sometimes yes, that happens. Fast cash–probably the biggest illusion that Ebay puts out there.

When someone purchases an item on Ebay, they use Paypal to pay quickly. On their end, they paid, they’re expecting their purchases to arrive soon. On the SELLER’S end, though, it’s totally different. PAYPAL has the buyer’s money. The seller doesn’t get it for up to 21 days. If you offer free shipping, which is the only way to compete with the stores that offer free shipping on Ebay, YOU, the seller, must pay for the shipping up front to get the item out into the mail. PAYPAL keeps the money UNTIL the buyer posts a positive review, which is the 21 day window. For all I know, Paypal has an interest bearing account that they deposit all these funds into to make even MORE money off of sellers. Before they get around to actually letting the seller have the money from the buyer, they take their cut. Ebay doesn’t take their 9% cut until the end of the month, and I’ve sometimes paid them hundreds of dollars in fees in one month. Right now I’ve sold about 11 items this week. Pretty good, eh? I haven’t gotten paid for a single one of them. They are not high ticket items, all between $18 and $24. I’ve “made” $218…I spent about $80 on shipping out of my own pocket…and I have not yet gotten paid for a single item. PAYPAL has gotten paid for these items.

Ebay has learned that they can do much more business with big stores on their sites. These stores sell their overstock and move things quickly, offering free shipping (because they can afford to) and offer easy returns (because they are a store!). I offer free shipping (so I can compete) and do not offer returns…because I am just a person selling my extra stuff on Ebay. I can’t offer returns! I am not a store. I think Ebay and Paypal collude to make more and more money from their users, specifically the sellers, by withholding monies and practicing draconian ways. I understand there have been sellers who lied or sent empty boxes…but *I* didn’t do that. It is the big business equivalent of a teacher punishing the whole class for the infractions of one or two students. Is it fair? Of course not. Is it legal? Apparently.

Don’t even get me started on how long it takes Paypal to transfer the money into my bank account….a week at least.

Feb 28, 2014 9:49am EST  --  Report as abuse
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