Safe and Secure Online Shopping~Ebay myths revealed

After selling on ebay for nearly two years, I have learned quite a few things.  Don’t get me wrong, I have made some money from selling on ebay.  However, with the rising fees, it is ebay who is reaping the benefits of my hard work. But, this article is about more than just fees.  Rather, my intent is to delve into some of the paradoxes of ebay and how they remain one of the main online marketplaces despite rising fees and horrible customer service.   

One of the few possible answers that I am able to come to is this: People are easily fooled by marketing.  One thing that ebay does deserve credit for is their ability to create the perception that they are the safest place to shop and find bargains.  For many, ebay gives them a secure feeling that they won’t be ripped off due to ebay/pay pals touted buyer protection.  Ebay has also been synonymous with bargains and great deals for many years.  But, as one looks a bit deeper beyond Ebay’s “puffy cloud” marketing, a quite different picture is presented.  Let us examine some seemingly long held “truths” which Ebay has masterfully made us believe over the years.

1.  Ebay is safer than other sites because of their insistence on Pay Pal, which is safer than using a credit card

Fact:  Most of us know that Ebay owns Pay Pal, hence their insistence on its use.  However, at issue here is Pay Pal’s Security vs. Credit Cards.  The truth is that you are far safer using your credit card while paying online, no question.  And I can prove it.

The truth is that banks and credit cards are governed by Federal Laws-namely the Truth in Lending Act, and Electronic Funds Transfer Act.   Pay pal is NOT a bank and does not have to adhere to any law but their own.  As a corporation, their bottom line is money.  So, as far as buyer/seller protection, if they are not able to recover funds, their policies don’t apply.  Thus, if someone runs off w/ your payment and disappears, (either buyer or seller) you will not get your money back more than likely.  Banks, and the other hand, must adhere to the Truth in Lending Act and other federal laws.  This means that if your credit card is used fraudulently, you are only liable for a MAX $50.00.  If the fraud occurs online, then you are liable for….. NOTHING.   I do have to hand it to ebay/pay pal for their scare tactics and voo doo marketing-they have created a culture of people who are like my mother (in her 60s) who swears that everyone who buys on line will have their credit card numbers stolen by every cyber criminal in the country.

2.   Items are much cheaper on ebay than other sites

Fact:     As a vendor who sells on ebay as well as other sites as a second income , I can honestly say that my computers and technology items are on average 5-15% more expensive on ebay than on my regular ecommerce site and on ebid.  The reason is simple:  when I sell an item on ebay, it costs me 14-19% of my profit between ebay and pay pal fees.  On my regular site, I pay a monthly hosting fee.  On ebid, I pay a small 2% final selling fee.  I typically roll about 10% of that savings  back to customers, knowing that when I make a sale I will have an extra few bucks, plus a happy customer who saved a substantial amount of money.  I know several ebay sellers who have began selling on other sites with the same philosophy of giving back to customers and enjoying a few more dollars for their sales.

3.  The quality of items are better on ebay

Fact:  With ebay, anyone can pretty much be a seller-anyone.  Yes, there are a lot of legitimate businesses, but there are a lot of other people as well.  And, with the economy being the way it is, more people are becoming somewhat desperate to make money.   With an independent business site, chances are the owners have gone through the steps of becoming a legitimate business in their state, obtaining the appropriate licenses and credentials.  Consumer Advocacy groups, and protection agencies make it very difficult for such businesses to operate very long if they are the least bit fraudulent.  A little research into a companies history can make buying from them as secure as if you were walking in to their brick an mortar store.  Look up their name in sites like Rip Off Report, or check them out @ whois.com to see who they really are.  As far as ebid, yes, anyone can sell there just like ebay.  However, ebid has a neat business feature in which buyers can see whether or not they are an actual business.  As a consumer, you generally have more protection when buying from a business than buying from someone’s crazy uncle Joe Bob who, among other things, sells deer urine to hunters online

More and more with ebay, all kinds of sellers are getting into the mix.

4.  Ebay has better customer service than a stand alone site or other auction sites

Fact:  Ebay’s customer service is, in a word, horrible—or, in another word, non-existent.  If you feel the need to add an expletive or two in front, feel free to do so. However, this is a family article.

The majority of ebay’s customer service is automated.  Send them an email, and you will get a canned response based on the topic chosen in the heading section.  Don’t believe me?  Try this.  Go into the customer service section, click on a help topic—say relating to unpaid items.  Then, in the message section, ask a question that is unrelated—like say regarding contacting buyers/sellers.  I would bet that you will get an answer that re-states ebay’s unpaid item policy.   If you call it is worse.  You will get some 19 year old boy or girl who’s only redeeming quality is the ability to repeat the three lines they were taught to memorize that frustrate you into hanging up. 

So, then, why is ebay still one of the leading on-line e-commerce marketplace?   No clue.  Perhaps it is because people like to purchase inferior goods at higher prices and like to live dangerously in terms of the consumer protection offered by pay pal.  Perhaps they just feel sorry for ebay CEO  John Donahue who recently saw his 20+ million a year salary cut in half.  Or, maybe they want to contribute to Meg Whitman and her campaign, as she continues to take a few million a year for doing pretty much nothing.   But, it is more probable to believe that the majority have simply been fooled by very clever marketing and good old fashioned scare tactics from Ebay.  1950’s Red Scare master politician Senator McCarthy would be proud.