Question
eBay's latest move to counter Google Checkout has been the abolishment of eBay Buyer Protection from 17 January. It will be "replaced" by PayPal Buyer Protection (max. $2,000 coverage) for qualified transactions on eBay.com and eBay.ca.
eBay announcement
Press coverage
This latest move is seen by market analysts as yet more evidence that eBay is desperate to prevent Google Checkout from gaining a foothold in the lucrative auction payments processing market. eBay currently prohibits sellers from accepting Google Checkout on its site citing that the internet giant "lacks a substantial historical track record of providing safe and reliable financial and/or banking related services", despite Google having provided fraud-free domestic and international online payments through the banking system since 2001...
Answer
Qualified items will clearly indicate the amount of coverage available on the item page. This means that buyers will know – right at the time they are making their buying decisions – that they are covered if they pay with PayPal.
Wonder if they'll place a blurb on the item page that says "Seller doesn't accept PayPal - you have no protection if you pay with check/MO"?
IMO, this is just one more stepping stone to PP being required for all sellers.
Answer
You beat me to posting this.
I must be really jaded, or they are getting really predictable. First thought, they buried the lead under some stupid announcement hardly anyone cares about. Second, my first thought was, oh, I see we're trying to outlaw any fee payment where they can't get their percentage. Only since we can't legally outlaw it, we'll do everything we can to make any alternative as attractive as a dose of anthrax.
But they can do whatever they want, I suspect google checkout eventually will wipe the floor with them. More power to 'em (google).
New Paypal Slogan: Resistance is Futile!
Answer
It's not just a means of keeping Google effectively (& legally) away from ebay, but also a means of (legally, I SUPPOSE) encouraging even MORE buyers to use PayPal instead of other payment methods, once again increasing ebay's bottom line. I'd be surprised if the percentage of buyers using PayPAl doesn't take a BIG jump after this - as if it wasn't high enough already.
Answer
Many bidders appear to already feel that PayPal is free insurance.
===
"IMO, this is just one more stepping stone to PP being required for all sellers."
Just the North American ones, I don't know whether the way this is presented may deter international trade. I have never been convinced that Ebay likes international trade anyway.
Kevin (who was going to do a long and whiny post, but gave up on the idea for once)
Answer
Originally Posted by Kevin_T
Many bidders appear to already feel that PayPal is free insurance.
With PayPal, buyers not only get free insurance, but a bonus lotto/lottery card to get the item for free. If the seller didn't obtain online delivery confirmation, all a buyer has to do is complain to PayPal and they get to keep the item and get their money back (including S&H).