Why NO eBay Credit, WHY, WHY, WHY

[change-your-username]

How Pathetic as sellers on eBay Australia we still have no option to offer BUYERS a truly hassle free buying experience by offering credit to Buyers so they can BUY NOW and pay off in installments.

It will be the downfall of eBay Australia as the US has had it via PayPal Credit for years and now every Online Australian Retailer has it via AFTERPAY or one of the DOZEN other providers that have popped up over the last couple of years.

WHAT A DISGRACE

WAKE UP eBay, seriously, we are coming up to the busiest time of the year for a lot of sellers and BUYERS ONLINE are avoiding eBay like the plague because this option has not been put into place as yet.

I'm not sure there is anything more pathetic, charge commissions on postage, yeah, not a problem, but to lift sales across the whole eBay community moving forward, and all you get is crickets.

Not sure it gets any worse, something so simple, yet eBay fail to act, that my friends unfortunately is the main reason why eBay Australia is going down the sinkhole quicker than it can open

Zipay

Afterpay

[digital*ghost]

Interestingly, much of the article talks about the working capital loans, but while they (PayPal) released figures for the loans they've provided in the US throught WC, they refused to release the figures for Aus. I wonder if that has anything to do with them not moving forward with credit for buyers here (eg maybe low take-up rates, or perhaps even high default rates in Aus). I have used working capital a number of times (despite initially refusing to), but I always do a fraction of what's available, usually the lowest they'll let me borrow just to get a bit of extra stock during a sale, and pick one of the higher repayment percentages so the fee is lower, and it's usually paid off in about a month or so. 

I'd be interested in seeing return / dispute rates for items bought on PayPal's credit in the US compared to other payment methods, but that's highly unlikely. 

[busygirlie]

And the majority of us who use zip pay or afterpay  (and I'm sorry if u don't but then u are the minority or have you not seen the growth in the market place of afterpay and zippay and their worth now?) use those platform for those items we could pay off in instalments that we would rather pay that way then in full. Example I don't normally pay $400 for sheets but the retailer got a much higher sake from me because they offered afterpay. The discount I garnered buying all my sheets for the household at once made it worth the while or me to use afterpay. Shock horror! Commerce in action!  Another example, the gamesman got a huge sale off me through zippay for Christmas last yr over Target, Kmart, EB games why? I could bundle the whole lot of what I wanted adding a big deal and could afford it through zippay. What did I buy for Christmas off eBay? The cheap stuff. The stuff that I had no other choice because I couldn't find better elsewhere.

are u losing sales? Yeah u are. Not an eBay retailer just a Mother with four kids and take it to the bank the majority of families are like mine. Afford better and bigger for your kids through places like zippay and afterpay, definitely will win hands down at the times when dollars really count.

My thousand dollar purchase last year at Christmas proves that and from the many, many mothers groups I am part of we are the norm.

sad for eBay retailers though.

[dontmissthese]

Perhaps something new has happened in the past month but
PayPal credit ( in Australia ) is simply not on their horizon.

[davewil1964]

Given the question was asked 23 months ago, I don't think the last month comes into it.

[davewil1964]

I very much doubt I am in the minority by not using Zip or Afterpay.

Their stock values, like most startups, have nothing to do with their revenue. Afterpay had revenues of $250m last financial year, profit undisclosed. Commbank had $26 billion, a hundred times more.

Afterpay had 4.6 million users, from a potential market of 8 billion. Hardly a majority.

If I was in your position, I would have saved the money over 8 weeks, then been able to pay upfront, and had a bigger potential pool of suppliers to choose from.

In June 2019, Afterpay disclosed that it was under probe by AUSTRAC for potential breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF regulations).

[countessalmirena]

       in comparison with

       ... because I believe, like you, in saving for items where the price is higher than I can comfortably pay at the moment. Afterpay or Zip or anything of that sort makes its money by the many who use it and end up paying for it. If Afterpay and similar didn't have a good proportion of its users paying fees and interest, it wouldn't work as a concept, let alone as a business.

@busygirlie, you will always run an appreciable risk in using Afterpay or its ilk. Would saving for those expensive purchases not make better sense? While you're saving, you'll be earning interest on the saved amount (at the moment - and admittedly interest has been doing the limbo recently), and you will also be giving yourself extra time to look around. If you are tempted by a particular sale, perhaps keep in mind that sales will always pop up and that the "once in a lifetime sale" rhetoric is just that - a lie.

Once you've the amount, you can buy on the spot, and possibly even negotiate a cash payment discount in-store. You won't have a sinking feeling that you still have to actually pay for the purchased goods... you won't get yourself in trouble if something disastrous happens after the purchase (such as losing your job, unexpected medical/financial emergency, etc.), so that the purchase is made with a wonderful peace of mind unalloyed by any concern about payments coming out.

Once one's saved the , one can spend the  (while still keeping enough in reserve to save for the future).

[springyzone]

I sometimes think the old 'Layby' had a lot to recommend it.

The shop held the goods but allowed a person to pay them off over a period of several months.

That way, the person didn't lose motivation because if they stopped, they wouldn't get the goods.

With easy credit, the problem is people either get behind on payments or else fall into the trap of just paying the minimum & that way, they end up paying crippling interest.

I wonder if any of the big stores could offer a sort of internet layby scheme, where people could pay off the items over a period of time and only receive them after full payment was made? Problems of course could be storage & companies going into receivership, but they are the same problems that have always existed anyway.

[digital*ghost]

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@countessalmirena wrote:

Afterpay or Zip or anything of that sort makes its money by the many who use it and end up paying for it. If Afterpay and similar didn't have a good proportion of its users paying fees and interest, it wouldn't work as a concept, let alone as a business.

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Charging people money because they can't pay money (and relying on that as a primary source of income as a business), is less likely to be sustainable, though. I'd say the bulk of their revenue comes from seller fees (which appear to be 30c flagfall, and then 2-6%, depending on the seller's volume - they also don't refund any fees if the buyer gets refunded). 

Not that I have any particular insterest in defending them, so I hope that's not what my post appears to be doing as I do still find their loan system a bit on the predatory side. 

I'm sure there are plenty of people who used a loan shark, or even Cash Converters, for a quick bit of cash to get them out of a tight spot, paid it back quickly and then moved on with their lives....and there are plenty of people who were not able to do that, and so they are my concern and not all the people who are totally fine with paying X amount every week once committed, but not saving that over the same period instead (and by "my concern", I mostly mean as a general, social and economic issue, though I'm not without empathy for individuals). 

[gec2002]

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@davewil1964 wrote:

I very much doubt I am in the minority by not using Zip or Afterpay.

Their stock values, like most startups, have nothing to do with their revenue. Afterpay had revenues of $250m last financial year, profit undisclosed. Commbank had $26 billion, a hundred times more.

Afterpay had 4.6 million users, from a potential market of 8 billion. Hardly a majority.

If I was in your position, I would have saved the money over 8 weeks, then been able to pay upfront, and had a bigger potential pool of suppliers to choose from.

In June 2019, Afterpay disclosed that it was under probe by AUSTRAC for potential breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF regulations).

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While you infer that these companies are connected with Breaches of Anti-Money Laundering, in fact it was an investigation into multiple banks, and lenders and in particular Pay Day Lenders.  Afterpay in their interim report to AUSTRAC state "As previously stated, Afterpay has not identified any money laundering or terrorism financing activity via our systems to date. Afterpay’s systems include several features that help to control our money laundering and terrorism financing risk, including the implementation of strict spending limits. Afterpay is used by our customers for discrete, small value (around $150 average), non-cash transactions and does not allow for international funds transfers."

Also as Afterpay started 2015 and is now in the  S&P/ASX 200 index its hardly a Startup.

You may not be in the minority but 27% of AU millennials and 16% of entire AU purchasing population have transacted with Afterpay.

Just to cover a couple other misconceptions:  Majority of Afterpay's income is earned from merchant fees.  Its not a line of credit – only for discrete purchases.

[dontmissthese]

The sooner these BNPL schemes crash and burn the better.
I had to move from a great ecommerce store to Shopify.
Why ? Because AfterPay hadn't built a plug in for my old site
and the wife felt BNPL systems would be some pot of gold.
Increase in turnover ? Yes ?
Enough to cover the extra costs of add on features that we
had for free before ? Not yet.
My biggest mistake was not polling our registered members
and asking THEM if they wanted AfterPay.

Early days I suppose but I miss my old store that was faster and
had all the bells and whistles that we are paying through the nose

for now 😞