Scary auctions: offshore bargains now safer, in theory
Zara Baxter
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Apr 11, 2008 1:15 PM
eBay puts up $20,000 protection for buyers, including overseas shipments sold via ebay.com.au. Here's what you need to know.
eBay yesterday announced that all purchases made through ebay.com.au would be covered by a new $20,000 buyer protection program.
Previously, eBay’s buyer protection scheme covered consumers for between $400 and $3000, with the higher amount only available on items from a seller with 98% reputation rating and over 50 sales to their name. The new scheme covers all purchases, with the exception of some services and intangibles.
Even though the new scheme is being trialled only in Australia, for now, Alastair McGibbon, eBay’s Trust and Safety director, said that it covers purchases of any item listed on eBay.com.au. “If a seller offers worldwide shipping, then on the Australian site they will need to accept payments in PayPal”, he said.
Mr McGibbon said that Australia had the most comprehensive seller protection, after changes made in late March that cover eligible sellers against unauthorised payments and “item not received” disputes, and that the $20,000 buyer protection is “a world first in consumer protection.”
Buyers won’t need to become PayPal members to pay by credit card, or if they pay when they pick up their purchase. Any purchases with credit card will use PayPal as the merchant – essentially making it the middleman for all transactions.
For sellers, the merging of auction and money transfer into a single entity for payment won’t mean a change to a single fee. Fees will still be levied by eBay and PayPal separately, and there are no planned changes to the fee structure. The dual fees are “so that sellers can find ways to minimise their spend onsite,” said McGibbon.
PC Authority asked Mr McGibbon whether eBay and PayPal would be adding staff to cope with the increased volume of disputes routed through PayPal, and was told that both would be “bolstering their customer service,” and that there would be increased integration of customer service between the two.
McGibbon dismissed our suggestions that moving all eBay mediated money transactions to PayPal could be seen as a misuse of eBay and PayPal’s market dominance, saying that “it’s about increasing the safety and confidence of consumers.” McGibbon also pointed to the high number of PayPal transactions and the increased safety when purchasing through PayPal as the main reasons for the change.
See Part 1 of PC Authority's massive eBay investigation.