Just got an email from paypal, saying they are removing the tiered fees for merchants, meaning fees will go up for some (including me). I figured it would not be long after the ebay paypal split that this happened, but man, that was fast.
Classic business case study of a corporation failing because they caved in to short term return oriented activist investors. The long term business plan for Ebay or Paypal is weaker apart than together. I have already had he said/she said issues between Ebay and Paypal, and am actively starting to buy less on Ebay and use Paypal less as a result. It was an unbeatable team together, since you could rely on them collectively making something right. Now they are separate, each tries to throw the other under the bus if anything goes wrong. Horrible business decision IMHO. Now Paypal has to raise fees as a result, and will risk alienating customers exactly when they need to be fighting for customers in the face of the new threat of Ipay.
Guess they figured it wasn't tough enough to make a living and used the old corporate motto , when in doubt make them pay more .
Just a matter of time before PayPal gets there "Ashley Madison Moment" - much like so many other "impenetrable" institutions that came before it claiming they were secure only to end-up hacked anyway. PayPal, Amazon, Visa, MasterCard, would all seem to be nearly irresistible targets for hackers ---I would say the entire electronic payment system is about one "hack" away from totally imploding once one of the big players get handed their lunch. I don't think it is a matter of "if" but simply of when and who.
I'm not sure it's the governments responsibility, though you can be sure they'll be standing by ready to roll the printing presses as their standard solution to any crisis once it arrives.
That's pretty much it.... pray to God China never wants their money back, what country will be borrow from them to make those printing presses roll?
I'm sure if ebay's fees go up any more than it is now, many sellers will stop selling and they will probably be hurting. Not a smart move on their end.
China is already selling TBonds to try and get some money for their own economy. I'm pretty sure the article was over on zerohedge. Not only that but think of the differnt places people can go to sell their stuff now. It's not just ebay like it use to be. You have garage sale sites on facebook where you can buy and sell all your crap you don't want to sell. There's dozens of coin groups where people are actively buying and selling coins with only the fees from PayPal. I use to love ebay but I honestly think it will be a way of the past as more people are able to join local garage sale sites and sell their things locally without shipping fees and ebay fees and PayPal fees.
Just sold a couple of things on Ebay and found that Paypal's fees have gone up from 2.9% to 3.9%. Thanks Paypal.
