The Sydney Morning Herald blog adds a final word about eBay’s attempt to make PayPal the only payment service available to eBay buyers and sellers in the down under. The author – Simon Tsang reports the Australian Competition and Consumer Commission plainly determined eBay’s PayPal only plan as a monopolistic play.
It seems from our end of the World that the Australian governmental agency ruled in favor of it’s citizens and merchants. I understand eBay’s position in wanting to make PayPal the only payment service available on eBay but I do not think the plan will work as long as eBay charges final value fees on listings. In an article I wrote late in 2007 I made the proposal that eBay could look at a fee free based service with a PayPal only option for payment processing.
Do I really think would ever happen? No, but the days of double & triple dipping at eBay with the pre-sale charges, post sale charges (final value fee) and payment processing charges seem to be causing the selling public to re-evaluate the venue.
Free listing services like CraigsList and now Walmart’s free classifieds will take an ever increasing portion of eBay’s market share. Would a Free eBay make more sense to consumers if PayPal were the only option?
We may never know….