EBAY leveraging its near monopoly with new PayPal fee increases

greghansen

EBAY announces a new 'multi-tier' fee schedule which will increase fees for most Paypal merchant accounts from 2.2% + $.30 up to 2.9
% +$.30. Of course, if you receive more than $100,000 a month, your fee is only 1.9%. Guess I'm going to have to beef up my EBAY sales $98,000 or $99,000 a month to take advantage of that lowest tier of fees!

They attempt to dampen immediate howling and prostests by delaying the implementation until Aug. 2005.

So much for 'economies of scale' by buying up PayPal. I guess we all knew that aquisition was never intended to benefit the consumer or user of EBAY/PayPal.

numonebuyer

eBay certainly has not lost money with the PayPal acquisition. I find it hard to justify those rate increases.

RYK

eBay certainly has not lost money with the PayPal acquisition. I find it hard to justify those rate increases.

Like any business, they want to grow profits.

relayer

I recently got the merchant rate of 2.2% and you only need $1,000 a month to qualify now

291fifth

We will see if the market will bear it. My gut feeling is that it may not.

BillJones

Pay Pal should be renamed "Ebay Pal." It sure isn't a pal to people who want to sell coins through Ebay. Maybe the jewelry and antique guys who get 40% mark-ups and more can put up with these ebay charges, but I can't.

Pay Pal S*cks

No other words are necessary.

beartracks42

This move is very similar to the Casinos when they raise the table limits. They may have 7 or 8 folks playing a table game at $10 minimum and then they come along and raise the minimum to $15 and everyone gets up and leaves. Makes me wonder who is thinking.

DMWJR

Not "Ebay Pal" . . . . . but . . . . . PayBay . . . .

numonebuyer

It is time for Microsoft to enter the market to compete with PayPal. I can see it now... Microsoft ePal

hookooekoo

Gary's notes about Casinos reminds me of an incident in a casino along the MS coast.

It was a Saturday Night, and all the BlackJack tables had a $10 minimum. One or two tables were getting some action, but the other eight or so just had dealers standing there either shuffling cards or twiddling their thumbs. We approached one of the dealers and inquired about getting the limit lowered to $5. After a brief discussion with the pit boss, the limit was lowered and we started buying chips. Before we even finished the exchange of cash for chips with the deal, the table filled up with additional players. Within 15 minutes, every empty table became a $5 and each one was either full or 3/4 full.

bearcave

If we all closed our accounts at the same time, do you think that would help? I would be willing to try but;

It's very easy to take paypal when selling as a lot of buyers like to use it. Even I have become so accustomed to it that I usually will pass an auction up if the seller does not take paypal, it's so easy.

Neptune

Just like the real world - it appears that they will be pushing the little guy out of biz - eventually. It used to be you could make a little pocket change, but it's getting too expensive to sell lower priced items. It just isn't worth it anymore. I used to sell a LOT on eBay, but the fees have just gotten higher and higher .........I won't put anything on eBay now unless I can make a few bucks - or else why bother ..... I wonder why/how a lot of those folks sell that cheap stuff and make money.

Once you calculate the eBay fees, Paypal fees, shipping supplies - it adds up real quick.

eScrew and ScrewPal would be better names these dayze -or how about "Stick-It-2-U,Pal".

Aren't there some other sites similar to Paypal on the 'net with lower fees - or are they comparably priced/higher? etc.?

I don't think that a 'few' folks cancelling accounts would phase those folks - it would take a lot more ppl. than are here on this forum. Problem is, everyone wants to complain, but nobody wants to really do anything - someday it will all catch up with us. I would be willing to cancel my ScrewPal account if I can find another one online that works just as good.

ElectricEye

numonebuyer has it right ~ as soon as Microsoft or some other biggie decides to throw 30 million at a new site and advertising, EBay will be hurting. Their rates are too high to justify $5 and under auctions and there is a need for someone who can do the auction thing better.

jeffnpcb

Does Capital Enterprise and free market ring a bell! No one is forcing any of us to use their service and if you do, you have got to pay for it! There are other venues that most people have chose to ignore and ended up dumping your eggs in one basket. Now that basket has grown, the stock holders want their share. So stop your whining you big babies!

Dave99B

Can't fight em? Join 'em!

Buy eBay stock and kick back.... and stop the dang whining!

Don't like it? Go sell on Yahoo!!! It's a free world (oh, I forgot, there are no buyers over there.......details, details.)

eBay - Is there a better business model? No! Get on board!


Dave

Sphinx357

At $87.45 a share, I'll pass on that deal.

100proof1957

Just an EWAG here,
they charge us to list,they charge us to sell,they charge us to accept payments,they charge the other guy to accept our payments.
sounds like they get about OH 8 points on every transaction ?
im guessing a Federal anti-trust lawsuit cant be far behind if not a RICO complaint.
them coinstar machines @ 8.9 % dont look so bad after all !
on the other hand,what other choice do we have ?

Proof

100proof1957

RE: Casinos
for what its worth.
lets say you are playing a 2 dollar table on a Friday night,8 pm rolls around and they change the minium limits to 5 bucks,whether it be Craps or Black Jack,any decent casino (insert oxymoron here) will let you stay at the lower limit.
Just came back from the Orleans in vegas playing Craps,Friday night mins were 10.00 and SAT nite mins
were 5.00,guess they get more locals on SAT.
I did win a couple hunnys and got all my meals comped !

Proof

Dave99B

im guessing a Federal anti-trust lawsuit cant be far behind...


Actually, you are probably right. The government hates a success story.......makes em look bad.


Dave

Bustman

mrearlygold

<< <i>im guessing a Federal anti-trust lawsuit cant be far behind...


Actually, you are probably right. The government hates a success story.......makes em look bad.


Dave >>



True but with all the fraud that goes on at ebay the government might actually be pleased.

Tom

keets

.............and if you don't like PayPal you can always just not use the service.

al h.

291fifth

<< <i>.............and if you don't like PayPal you can always just not use the service.

al h. >>



The best idea of all.

BAJJERFAN

Agreed!!