Just four days short of eight years ago [! Ed.] I wrote "Fed up with eBay? There IS an alternative!" (WWW 12/11/13). It was the third or fourth in a series detailing the frustrations and pitfalls of buying/selling on eBay and dealing with its then partner, PayPal. One might think that the self-proclaimed leader in the online auction/sales market would try to raise its customer satisfaction level, but empirical and anecdotal evidence suggests the opposite.
This is what I've heard from a long-time follower who didn't heed my advice but continued selling on eBay until this spring when he finally weaned himself off that addiction. I should point out that the complainant [This sounds like a legal document! Ed.] is not running a business, trying to make a lot of money. He's jus an old guy who's got a houseful of junk which he's trying to dispose of to eke out his retirement income.
Here, from our disgruntled reader and other sources, are 5 good reasons to close your eBay account and find another place to buy and sell online.
1. eBay's new(ish) "managed payments system"
eBay used to own PayPal, which meant that money paid by purchasers through PayPal went straight into the seller's PayPal account. PayPal deducted a service charge immediately, and eBay billed the seller for their commission as well as insertion and other fees. So sellers lost up to 20% of the money they expected to get.
Now eBay has divested itself of PayPal and is forcing sellers into their managed payments sytem. That means giving eBay access to the seller's bank account, so that payments can be deposited directly, after deduction of eBay's ever-increasing fees. And payments will no longer be transferred immediately, but after a delay of, typically, a week.
2. Buyers now have to deal with eBay (only) to get their money back
Under the old payments system, if you bought something on eBay and didn't get what you paid for, or were dissatisfied, you could get your money back after going through a long and tortuous "customer service" process with eBay.
If eBay found your complaint was justified, they would direct PayPal (which they owned, remember) to give your money back. You could also start the process by filing a dispute through your PayPal account. PayPal would buck it over to eBay, so it still took time.
Now that eBay has cut PayPal out of its "system", you have no choice but to complain to eBay and allow weeks for their system to deal with it. Your refund will come out of money they haven't yet paid to the vendor.
The only good news in that, for buyers, is that eBay almost always takes the buyer's side, even where the seller can make a good argument that they're being scammed by a buyer who says they never got the goods. How can you prove that? That's why a lot of sellers refuse to ship to south Asia or Africa.
3. eBay are now acting as tax collectors
American and Canadian governments -- federal, state and provincial -- have been itching for years to grab a chunk of all that money that's changing hands through online transactions, especially those that cross borders. eBay has caved under political pressure, and now charges sales tax, rated according to the residence of the buyer.
For example, suppose you live in New York state and buy something from a vendor in Ontario, Canada. The applicable tax in Ontario would be 13%, but the tax rate on foreign sales is 0.00% -- no tax. All the same, eBay will add the NY tax to your invoice.
4. And they snitch on you to your government
There are a lot of people and corporations doing business -- big business -- on the Internet. And yes, it's only fair that they should pay taxes on their profits, just like the bricks-and-mortar stores. But, there are also 1000s of people like the old guy described in the second paragraph above, trying to turn their junk into cash. Should they have to give Uncle Sam (or Mr Socks) a cut of the pittance they get for collectibles, craft items and suchlike, on which they make next to nothing after they pay eBay's commission and other fees?
Put it another way... Suppose you cleaned out your attic and held a garage sale or a yard sale. Would you be happy if, at the end of the day, an agent of the IRS or CRA came to your door to collect the sales and income taxes -- part of the money you got for selling your "treasures" -- which they would then give to such needy folks as illegal immigrants?
Under its managed payments system, eBay now has access to not just your sales records, but your banking information. They can and will give that information to the government on request, and if you think the government won't ask, LOL.
5. eBay's customer service sucks
See that meme above? eBay's customer service is actually worse than that! The chances of your having a phone conversation with a real person are slim and none. If you have a question or complaint and click on any of the "help" links, you will be directed to a list of possible problems, then to page after page of "solutions", which you've likely already tried or aren't relevant.
You can go around in circles like that for hours. If you look hard enough, you might find an e-mail form which you can submit, but good luck with finding a phone number, and if you do somehow find a contact number, be prepared to be "on hold forever".
Before "managed payments", if you were dealing with PayPal, you could (with slightly less difficulty) contact their payment resolution centre or help desk, and you eventually got an answer. PayPal's bias is also towards buyers, but at least sellers get a chance to tell their side of the story.
6. There are alternatives
Our assiduous reader has looked at and tried a number of alternatives and has come up with four that can be recommended. None of them has as big a "reach" as eBay, but all of them are better than dealing with the Big Tech monster.
Etsy Inc. - American e-commerce company focused on handmade or vintage items and craft supplies. These items fall under a wide range of categories, including jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools. Not so strong on collectibles (stamps. coins, comics etc). Has its own managed payments system, with the same drawbacks as eBay's.
Webstore - US-based FREE online marketplace. Free, how? Webstore is currently supported by donations and ad revenues. They say they are "operated as a free public service so that our members may benefit from a professional, feature filled, FREE community in which to buy and sell goods and services without all the common fees of most auction sites and online marketplaces." Website cluttered and clunky, but user support is very good (according to our reader), with text exchanges with a real named person.
Delcampe - European website launched in 2000, "to provide a suitable environment for collectors to buy and sell their collectibles." More than 180 nationalities are present on the site, 1000s of new collectibles are being listed every day. Claims over a million active users, but little-known in USA. Easy-to-use site. Has its own managed payment method, but doesn't insist you use it.
eBid - British company created in 1998. It markets itself as an eBay competitor with the main difference being the vast difference in fees charged to sellers. If you sign up for a lifetime membership fees are minimal or even free if you settle for limited options. Very user-friendly site. They leave it up to you if you want to charge sales tax, and let you receive payment through PayPal (or whatever). They claim a monthly average of 8 million page impressions, and a daily traffic volume of around 60,000 visitors, but that's still just a fraction of the business eBay does in a single day.
No comments:
Post a Comment