Going after Amazon is bad enough. Amazon has been the number one site for eCommerce, while eBay has been trying to catch up. Earlier it has been discussed about how eBay could possibly catch up and compete with Amazon once again. However, Amazon striking a deal with PayPal just might make things that little bit harder for eBay.

PayPal is still not a payment method for Amazon customers. However, the eCommerce site may have found a way around it. PayPal is now offering Amazon gift cards on its site. This has been hinted at by PayPal CEO Dan Schulman as early as January this year.

Where he said:

“We have been in conversations with Amazon…We’re closing in on 200 million users on our platform right now. At that scale, it’s hard for any retailer to think about not accepting PayPal.”

PayPal Chief Executive Officer Dan Schulman

PayPal has announced this to its users this week. In the email, it said that Amazon gift cards are now available for PayPal users. The gift cards are available in $25, $50 and $100 card denominations.

For Amazon, this is of course good news. For eBay…well, it will only make the competition tougher for them, and must be a bitter pill to swallow to see their old buddies now conversing with the enemy.

Having Amazon gift cards available on PayPal will have people spending even more time on Amazon than on eBay. That would give Amazon a big advantage over eBay, something which eBay right now doesn’t need at all.

So, could eBay still compete? Earlier we discussed how it could, and it goes back to those points we discussed then. For a refresher about it, see the discussion made on how eBay can compete with Amazon here: https://eseller365.com/3-ways-ebay-competes-with-amazon/

Let us know what you think in the comments down below, is this really such bad news for eBay and can they still compete with Amazon in the long run?

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