
eBay has encouraged it’s buyers and sellers to use its subsidiary pay service, PayPal for quite some time. PayPal is fast, easy, integrated nicely with eBay and even includes some dispute-resolution channels. It has a lot of plusses, but some folks still prefer money orders or other payment methods.
The trouble is that now eBay is forcing Australian users to use PayPal for all eBay transactions. The key word here is forcing. Considering our entire economy is based on choice, this is terrible news for an otherwise well-respect brand. An article from Newsvine has more detail.
This issue isn’t about the merits of PayPal itself. Aside from the hefty fees (especially for cross-currency and credit card transactions), most eBayers would welcome PayPal, but when their choice is removed, they feel threatened. Thus a brand that once offered itself as a clever peer and quirky friend, suddenly becomes a greedy oppressor.
When brands become forceful, the end is not too far off. This happened to IBM in the 80s when everything became IBM-compatible. It’s been happening to Microsoft since the late 90s when Internet Explorer landed them in court on multiple continents. And now it’s happening to eBay. Becoming a standard is the goal of any brand, but these days the consuming public isn’t so willing to take what big brother is dishing out — rebellion, as it were, is a new weapon in the consumers’ toolbelt. Threaten our choice and you’re going down. (the glorious exception is telecoms, which generally enjoy lots of protection from government because of the expensive infrastructure required and because of decades, if not centuries, of Political red tape. It sucks that even in the most densely populated areas consumers rarely have more than two choices for cable, phone, or internet. Don’t even get me started.)
I profess that this move is a symbolic peak for the eBay/PayPal brand. While their numbers may do funny things, that their brand is on the way out. With the constant flux of the economy, and the empowered consumer more web-savvy than ever, the place of online auctions remains questionable even in the near future. eBay’s new role as dictator only helps them gain speed on the downward slope.
I’ve written previously about the inevitable downfall of eBay, powered in part by their crappy logo.
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// a tale of brands & branding, computers & gadgets, the internet