PayPal plans buying spree after the divorce from eBay
In an interview with the FT, PayPal CEO Dan Schulman has revealed that PayPal will be on the look out for acquisitions after the divorce from eBay scheduled for 17th July.
Apparently, under the terms of the split, the independent PayPal will have $6bn of wedge to splash about. Schulman says: “The balance sheet affords us the opportunity to look opportunistically where it makes sense to acquire. I think there is a tremendous opportunity to look across the world.”
On Monday pricing began on PayPal’s shares. As it stands, eBay Inc. shareholders will receive one independent eBay share and one PayPal share for each that they currently hold. According to analysts, the newly independent PayPal could be worth about $40bn. That’s roughly 2/3 of eBay Inc’s current valuation.
That PayPal is potentially so valuable is no surprise. It has huge potential and has also had a great year. In 2014, revenues increased by 19% and there was a user increase of 13% and a great deal of that was off-eBay.
In the dating scene, post divorce, PayPal certainly isn’t going to want for suitors.
and the truth of how under-performing ebay marketplaces have been will no longer be hidden; when compared to Amazon they have not faired well and can no longer hide behind paypals performance; JD’s golden parachute seems really fair eh?
Why do people rave on about Amazon???
Its worst than Ebay, Fees are higher and more red tape than a application form for a government grant???
Amazon confirms what we already know, you can sell a lot of stock if you do it at breakeven or less. The future of retail, stuff that!
Agreed entirely. Better the devil you know, eBay is a breeze compared.
Amazon product ad’s are proving good though, might be an alternative for you to try. £50 voucher for new sign ups.
Its all dependent on your product and business set up.
I ‘rave’ about Amazon because I get 5000% more sales per month than eBay. There was a time when that was the other way round and at that time I would ‘rave’ about eBay
Barring clearing dead stock or avoiding long term storage fees I never sell items at break even or a loss ;-)
I guess this depends on what you sell, and or your personal preference, and or your ability to adapt from one marketplace to another.
Personally we find Amazon easier and it outperforms ebay massively, ebay returns management and ebay resolution centers are rubbish compared to the simplicity of Amazon and handling it with regular email and a simple return system.
There are no complications with having to login to multiple Amazon sites like ebay in order to deal with a case etc, we find ebays site is broken alot of time, not just in the search like many have said on tamebay but on seller stuff like refunding etc, it is far harder on ebay in our experience.
Fees wise there is a small difference which does add up but the difference in volume on Amazon makes up for this, also we do not just break even to sell lots more on Amazon, we are profitable on all the channels we sell on, we just find Amazon is the best return on investment for us.
We tend to find just as much red tape on ebay such as, no refunds of fees after 30 days, defects, and no appeal processes on failing to meet the defect rates on a specific country.
Finally, we find that many ebay buyers are a different breed of buyer, with more fraudulent buyers, more who mess us about buying and then cancelling, more who provide incomplete addresses etc etc, some of these issues could well be ebay’s own doing if they do not validate an address for example or provide postcode lookup for the buyer to correctly set their address on their account.
Each marketplace has their pros and cons, some products work better on some marketplaces that others etc, they are still both worth a go, but each to their own, you should in theory know your business and what site works for your products better than anyone else.
From my experience Amazon has a higher barrier to entry, and higher up front expectations of a seller; but if you can meet this and their requirements the systems are a lot smoother than ebay which frankly is a shambles.
We’re a transactional company so Amazon works very well for us with customers that want a convenient purchase at the price shown, whereas ebayers tend to be frustrating at times with how much they’ll push for a lower price.
Oh and I’ve heard of no less than 3 autistic children today, one of which is supposedly below 2 years old.