Does anyone else realize Paypal makes more money than Ebay?

seateddime · January 4, 2009 11:59AM

Even after Ebay raised fees and rebated them back, paypal is the real money maker.

pennyannie · January 4, 2009 3:13PM

Where is the rebate? cost me 18 dollar on ebay to sell 235 dollars. I am sure another 8 or so will get keep by the "host" at paypal.

Rob790 · January 4, 2009 4:07PM

Sorry but eBay OWNES PayPal. So there is no difference in "who" makes more money. You're getting it from both ends.

Rob

sonoranmonsoon · January 4, 2009 9:10PM

It is pretty common knowledge that Paypal is the fastest growing money maker for ebay. Most feel that is the reason ebay dropped mail payments, hoping to get even more volume from Paypal. Your statement is not actually accurate. Since Paypal is owned by ebay, it can not make more than ebay. (a slice of pie, is never bigger than the whole pie).

Outhaul · January 4, 2009 9:35PM

<< a slice of pie, is never bigger than the whole pie >>

Okay...how about Revenue generated by Paypal surpasses revenue generated by any other part eBay.

sonoranmonsoon · January 4, 2009 10:18PM

<< 

<< a slice of pie, is never bigger than the whole pie >>

Okay...how about Revenue generated by Paypal surpasses revenue generated by any other part eBay. >>

I am not sure if Paypal has passed ebays core listing revenue or not. If not, it must be getting very close. I read ebay reported revenue (not sure if from the most recent quarter report or the one previous) 1.45 billion, Paypal represented 350 million of that. (over 24% of ebay total revenue). Considering Paypal was the fastest growing segment of ebay before mail payments were prohibited, one could speculate Paypal will increase its percentage of revenue. Not to mention ebays auctions are not growing much, while paypal is being accepted more as payment beyond just ebay. Even Heritage is now accepting Paypal payments.

notwilight · January 4, 2009 10:23PM

<< 

<< a slice of pie, is never bigger than the whole pie >>

Okay...how about Revenue generated by Paypal surpasses revenue generated by any other part eBay. >>

No, ebay fees are still higher than paypal fees for all sales less than about $4500 IIRC so ebay generates more revenue from ebay sales. But my guess is that paypal has much lower operating costs so the bottom line is higher. OTOH, paypal generates revenue from non-ebay sales.

Yes, paypal is a huge money maker. --Jerry

sonoranmonsoon · January 4, 2009 10:26PM

<< 

<< 

<< a slice of pie, is never bigger than the whole pie >>

Okay...how about Revenue generated by Paypal surpasses revenue generated by any other part eBay. >>

No, ebay fees are still higher than paypal fees for all sales less than about $4500 IIRC so ebay generates more revenue from ebay sales. But my guess is that paypal has much lower operating costs so the bottom line is higher. OTOH, paypal generates revenue from non-ebay sales.

Yes, paypal is a huge money maker. --Jerry >>

Jerry, You must remember Paypal is accepted payment far beyond just ebay listings. Their revenue is not limited to just ebay listing transactions. Ebays survival and future growth probably will have nothing to do with their auction site down the road. They are shooting to be the main internet payment choice everywhere. I can easily invision Paypal representing 99% of the revenue someday.

thelawnet · January 4, 2009 11:17PM

<< 

<< 

<< a slice of pie, is never bigger than the whole pie >>

Okay...how about Revenue generated by Paypal surpasses revenue generated by any other part eBay. >>

No, ebay fees are still higher than paypal fees for all sales less than about $4500 IIRC so ebay generates more revenue from ebay sales. But my guess is that paypal has much lower operating costs so the bottom line is higher. OTOH, paypal generates revenue from non-ebay sales.

Yes, paypal is a huge money maker. --Jerry >>

Ebay will rebate most of their revenue to affiliates, or even to the buyer through cashback sites.

If you check usenet there are people that auto-post disguised links to ebay auctions to various newsgroups. If a person that clicks their link person later buys a $10,000 coin or similar, the spammer gets a good percentage.

Raufus · January 5, 2009 3:45AM

<< It is pretty common knowledge that Paypal is the fastest growing money maker for ebay. Most feel that is the reason ebay dropped mail payments, hoping to get even more volume from Paypal. Your statement is not actually accurate. Since Paypal is owned by ebay, it can not make more than ebay. (a slice of pie, is never bigger than the whole pie). >>

No question that the driving reason behing the no checks policy is to force payment to be via PayPal. First they double the seller fees, then no negs on any buyers no matter how horrible, now this. Unless you're a PowerSeller, Ebay really sucks. How much more can they hose the sellers. Forcing PayPal us just unreal. At least they could be honest and admit that this policy is strictly to make more money, they must think that we're just total fools. LONG LIVE THE BST!

LALASD4 · January 5, 2009 3:52AM

<< It is pretty common knowledge that Paypal is the fastest growing money maker for ebay. Most feel that is the reason ebay dropped mail payments, hoping to get even more volume from Paypal. Your statement is not actually accurate. Since Paypal is owned by ebay, it can not make more than ebay. (a slice of pie, is never bigger than the whole pie). >>

It could happen if one or more of the other divisions are losing more money than the Paypal division is making.

Does anyone else realize Paypal makes more money than Ebay?

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