April Fool’s Day: In a surprising development, eBay is ditching its much maligned eBay Managed Payments solution and return to using PayPal for processing payments on its platform exclusively.
In an internal memo, the company acknowledged that more in its customer service unit is at an all-time low as they actually have to work and try to find answers to the many reported problems instead of relying on flowcharts with pre-written scripts.
After much debate, the company concluded there was no end in sight with the volume of complaints about the program’s problems and it would have to hire more agents to efficiently handle the eBay Managed Payments customer service requests.
eBay even talked to vendors that provide AI-powered customer service solutions, hoping to ease the stress on its overworked agents. However, with the myriad of issues and complexity of problems, the vendors told eBay it would be expensive to implement and maintain a workable AI-based solution and many cases would still require human intervention.
In addition, Twitter reportedly notified eBay that the volume of mentions by users complaining about eBay Managed Payments (tagging its @AskeBay account) was excessive and it may have to suspend the account for overuse.
In the end, it seems the move away from eBay Managed Payments was a financial decision as the cost of adequately supporting the ongoing issues with the program would be higher than the expected profit from it. The company launched eBay Managed Payments to develop another revenue stream, but if that costs too much to maintain and support, it won’t create the shareholder value its investors desire.
eBay concluded to announce the end of eBay Managed Payments now before rolling it out to Chinese sellers. There was a great fear the volume of complaints would increase dramatically afterward and potentially harm its investment in China, which supports Chinese-based eBay sellers shipping products all over the world.
Sellers should expect to see an email from eBay in the coming days with the subject line ‘We Screwed Up’, providing more details about the transition back to PayPal, which will become effective October 1, 2021. The October date gives sellers a full six months from today, April 1, to adjust their business and payments flow on eBay.
Note: This story is a April Fool’s Day story and satire, not real news.
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