Wednesday, May 16, 2007

Why Don't eBay's Half.com and StubHub.com Accept PayPal?

I just went to Half.com to check on some items and found that the site does not accept PayPal. This seems very odd to me. Is the cost of adding PayPal to Half.com greater then the transaction revenue that Half sales would generate? Or, does eBay's data show that most shoppers outside of eBay.com prefer credit cards?

Interestingly, StubHub.com does not accept PayPal either. Is PayPal strictly an eBay marketplace phenomenon? Therefore, as eBay's Marketplace business goes (slowing down) there goes PayPal. I would sure like to see non-eBay PayPal transactions broken out in eBay's financial reports. The data might be eye-opening.

Perhaps Half and StubHub should offer Google Checkout :-).

4 comments:

Anonymous said...

Non-eBay PayPal transactions are broken out in the eBay quarterly earnings releases, at least to the extent of disclosing the percentage of PayPal transactions that are "off-eBay." The percentage used to be in the low 30s, in Q1 it was up to 39%.

Randy Smythe said...

That is good to know. My experience with PayPal outside of eBay is with content sites (As payment for articles) and service businesses rather than traditional ecommerce.

I believe in the power of PayPal but my point is that eBay doesn't even use it on their own verticals.

That speaks volumes to me.

Anonymous said...

It's actually sorta used on Half and Stubhub currently.

The buyer pays for their books or tickets to half or stubhub, and then half/stubhub pays the seller through their choice of check or PayPal.

I can't be sure why half doesn't let the buyer pay through PayPal, Stubhub could have the "still too new" excuse.

One thing you've probably learned is that you NEVER want to rush a major billing change as there are extremely painful issues whenever a major company switches anything related to billing (see comments about Sprint's customer service for this). So it may be in the works but not implemented yet.

I remember there was about a year where eBay UK sellers couldn't even pay their seller fees through PayPal. It's a no brainer to allow them to do that, but it took a while to implement it smoothly

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