Paypal feeling the crunch of losing Ebay? They are raising their fees!
amwldcoin
Posts: 11,269 ✭✭✭✭✭
I haven't taken the time to read it thoroughly. But it looks like they are going up to 3.49% + 30c for paypal invoices which is the only thing I use now. Wonder if they will still have friends and family? I skimmed it quickly and didn't see any mention.
https://paypalobjects.com/marketing/ua/pdf/US/en/feepages-080221.pdf
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thanks for the update. half a point is enough to take notice.
look for ebay managed payments to follow suite.
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Ebay is not the only one who has dumped them over the past year or two. I know of at least one more that used to use them as a payment system for members that has moved to a new (I'm sure) cheaper site. One would think losing business to competition would force them to trim prices but it appears Paypal thinks raising fees makes sense.
Mark
Has nothing to do with Paypal. With Ebay you either pay to play or quit since they force you to use their payment system. I fully expect ebay to raise their fees in less than a year.
Like I said, look for ebay managed payments to follow suite. I didn't say it has anything to do with paypal. It has everything to do with perception.
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No reason for them to. Has Visa followed suit?
We are in the introductory phase of managed payments.
And they could have established whatever rate they wanted when they instituted it. There is no reason for them to opt for a lower introductory rate followed by an increase. You couldn't opt out at the transition.
Well, as evident here, they did loose some sellers. Jack the fees and they would have lost more. What odds will you give me if I say they will raise the fees in the next year and you say they will not???
Could be the frog in a pot scenario. If you make sellers switch and charge a lot all at once, some may just say it’s not worth it and leave eBay. Make the switch attractive so sellers get used to the system, then raise the fees, and you have sellers that may find it harder to go. Not saying that’s what happened, but it’s certainly a possibility.
Lots of things are up. I still tip my waitresses and waiters 20%.
If you're so sure, why do you need odds?
PayPal is doing great biggest error when ebay cut PayPal loose. PayPal has totally grown into many more markets and doing better than ever. Ebay not so much
ebay had to initially come in cheaper on fees than paypal to "sell" their new managed payments system without losing too many sellers. Look for an ebay fee increase shortly.
I don't need any odds. LOL
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No point arguing now. Thread marked for future mocking
Ebay didn't cut paypal loose. Ebay intentionally divested paypal so it could grow into different markets. Ebay made the smart decision.
I really hate PayPal don't refund the fee when buyer cancel the order. 10K from international order will be $500 lost when buyer changed his mind and cancel the order. Nowadays cancelling order is pretty common and seller should allow that. I just has a buyer cancelled 25K order. Good thing he did not pay so eBay did not charge me fee for that. I got my final fee refunded.
You missed in my mind what was the biggest benefit to managed payments. At the moment ebay does refund the transaction fees less the 30c. I think that will probably be the 1st thing to go.
I love that a thread about PAYPAL RAISING FEES has somehow become a negative thread speculating about eBay.
PayPal sucks.
eBay rules.
Speculators drool.
I don’t use PayPal
I don’t use eBay
I do drool.
PayPal is the market leader in payments. They are doing great as is ebay.
Just leveraging positioning. There is competition so it could backfire but they obviously don't think it will hurt growth as much as add margin.
It's all about margin these days.
You, and possibly others, got fooled by their psychological choice of the new price. It had been 2.9% + .30. A half a point increase would only have brought it to 3.40% + 30 cents, but instead, according to the OP, they went to 3.49% + 30 cents, an increase of .59% (virtually .6%, not .5%). Agree?
Steve
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It's ebay loss by the sound of it
I believe it , i am one single ol lonely person in a vast many who ran a lot thru ebay, my (just paypal) fees yearly for many years has been between 7-9K year.
The problem is that paypal is not without competition. Beyond traditional credit cards, there is Google pay and apple pay and the like. Now, maybe they are all raising fees, but it is a little perplexing to be raising fees when you are losing market share
PayPal is going to lose market share to competitors and once they do, it will never regain it especially given its history of not refunding fees for cancelled items. PayPal has name, convenience, and widespread acceptance. Once a new competitor gets on solid footing, PayPal will lose millions.
Paypal dominates in payment processing, I think its around 55%. Growth is steady.
Just a good business decision. Perfect time to increase margin.
I could see them raising their fees in the 4-5% range...but almost 9% in 1 swoop will IMHO cost them a fair bit of their market share. I still use Paypal to pay for my ebay purchases, but because of this I think I will just use my CC through ebay managed payments. The irony is I use my CC to pay through Paypal. I'll feed who does me best. Right now it is ebay!
0.6% increase on 2.9% fees is 20% not 9!!!!
Yeap...just realized my mistake trying to figure in the 30 cents. On a $100 transaction the increase is 15.556729%.
Just seems like one hell of a big jump.
That's an understatement!