PayPal + Wal-Mart + eBay= BIG BOX Takeover
Wal-Mart To Accept PayPal For Online Purchases
On the PayPal blog today Mary Anne Gillespie, Vice President of Sales for PayPal’s Merchant Services Division announced that Wal-Mart now accepts PayPal as a payment option for it’s online buyers. Several large companies such as OfficeMax, Continetal Airlines, NWA, and American Eagle Outfitters have begun allowing their customers to pay for their online purchases using PayPal. This brings up some interesting questions.
Will PayPal Place A Hold On Payments
One has to wonder if PayPal will place a hold on payments made to Wal-Mart? What about Continental or
NWA? I just did a quick google search on Wal-Mart customer satisfaction and found several articles on the LOW customer satisfaction rating of the Bentonville based Wal-Mart. Doing the same type of search for NWA and Continental Airlines found the same sort of results.
eBay will be instituting a policy in the next 2 weeks that forces sellers on the eBay site to accept payment for their items by PayPal or the sellers own eBay approved credit card merchant account or one of the eBay APPROVED third party credit card processors who by the way all happen to use PayPal’s PayFlow portal. So unless you happen to be a seller on the site who has your own merchant account, eBay will make money on the transaction on top of the insertion or final value fees.
New PayPal Policies
Back in January eBay announced new steps that would be implemented to protect buyers in certain categories on the site. These protections included the ability for PayPal to place a hold on payments received for up to 21 days for purchases in certain “High Risk” categories or for those sellers that have lower than desired customer satisfaction ratings called DSR’s.
As these policies affect eBay sellers, I have to wonder if the same customer satisfaction ratings will apply to the 3rd party companies now accepting PayPal? Will PayPal place a 21 day hold on purchases made on the Wal-Mart site for low CSR’s (Customer Satisfaction Rating)? If you believe that will happen I have some swampland in Florida I want to sell you!
eBay sellers are seeing a significant decline in sales, fewer views on their items and fewer buyers. The eBay marketplace is experiencing drastic drops in revenue, while PayPal continues to be a bright spot in eBay financials. So while sellers and buyers are finding other venues, eBay and PayPal continue to give Big Box retailers. These advantages will never been seen by the rank and file eBay sellers and that is why they are leaving!
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October 3rd, 2008 at 5:51 pm
http://onlyebay.blogspot.com/2006/08/ebay-downgraded-by-piper-jaffray.html
With this new deal with Walmart, will this help eBay bounce back from the latest downgrades? I think this opens doors for up and comers [such as Wigix] to really make a change.
October 7th, 2008 at 12:11 am
LOL…this is funny
Please, of course PayPal / eBay will not EVER impose their Policies to such companies. I would like to know can we request an audit?? I msut say eBay is a great place to start. eBay is a true reality check. Keep this article coming. 
Laura