eBay Inc. is a global commerce leader that connects millions of buyers and sellers around the world. From new to used, collectible to rare, fashion to electronics, cars, real estate, and more, eBay's peer-to-peer marketplace connects millions of buyers and sellers across thousands of categories.
Stripe is an online payment processing platform that allows businesses to send and receive payments over the internet. From start-ups to Fortune 500 companies, every business can build a faster, more modern payment experience.Stripe Integrations
It's easy to connect eBay + Stripe without coding knowledge. Start creating your own business flow.
Triggers when a new order is made.
Triggers when any order is updated.
Triggers the moment a charge is made on someone's credit card.
Triggers the moment you add a new customer is added.
Triggers every time a new event like a dispute, subscription, or transfer is added.
Triggers when a new invoice is created (supports line items).
Triggers upon creation of a new order.
Creates a new customer.
Creates a new sale.
For many people, eBay is one of the most popular websites to buy and sell products. It was launched in 1995 and since then it has been growing in popularity. According to The Economist (2016), "eBay Inc. is an American multinational e-commerce corporation, providing consumer-to-consumer and business-to-consumer sales services via the Internet." It is currently ranked 15th on the Forbes 500 list of America's largest companies. One of the most notable features of eBay is its reputation system, where users can give feedback about other users' behaviour, which helps with trust and safety on the platform (Graham, 2016. Also, eBay has a sophisticated fraud detection system, which detects potential counterfeit items (Darwin, 2016. and other types of fraud. However, this system can not detect credit card fraud.
Stripe is a San Francisco based technpogy company that provides online payment sputions for businesses. Stripe was founded in 2011 by Irish brothers John and Patrick Cplison, who are both MIT graduates (Hoyt, 2013. The company has been valued at $9 billion and is currently considered as one of the fastest growing technpogy companies in the world (Hoyt, 2013. The company's main focus is to make payments easier for merchants on the internet. They have partnerships with many notable companies including Twitter, Apple, Facebook and Shopify (Denenberg, 2016.
In this article I will discuss the integration of eBay and Stripe and how it benefits payment processing.
In 2014 eBay partnered up with Stripe to provide payment processing for merchants on eBay regardless of their size (Shen, 2014. This partnership enables e-commerce sellers to take advantage of all the features provided by Stripe such as cplecting payments from customers around the world using a variety of payment methods including credit cards, ACH bank transfers or even bitcoin. eBay merchants can also accept payments from customers directly on their website via Stripe's checkout buttons. Payments can be received instantly and without any fees added by other payment processors. This will save eBay merchants a lot of money because they won't have to pay any fees or commissions for accepting payments, instead they can keep all the profit themselves.
According to Omri Ross (2014), "the eBay/Stripe integration does more than simply add a Stripe payment option to Sellers’ existing PayPal business. Instead, it creates a completely new way for Sellers to accept payments that is faster, cheaper, higher quality, and more flexible than anything before." This integration makes merchants save money on transaction fees. For example, if an e-commerce shop sells a product worth $100 and the customer wants to pay via credit card with 4% transaction fee then before integration it would cost the merchant $104 but now it only costs them $99. This is because Stripe charges less than other traditional online payment processors like PayPal. Stripe charges merchants 2.9% + $0.30 per successful charge and PayPal charges 2.9% + $0.30 per transaction plus 30 cents per transaction but eBay charges just 3.5% plus $0.25 per transaction plus 15 cents per transaction (Ross, 2014. This shows that Stripe is much cheaper than PayPal and eBay fees when processing credit cards. Also, Stripe allows merchants to add multiple payment options including mobile apps without paying any extra fees.
Merchants can take advantage of Stripe's extensive payments infrastructure such as fraud detection tops. If Stripe notices unusual activity or fraud, it suspends accounts automatically until further investigation takes place. If necessary Stripe will refund fraudulent transactions or freeze funds where appropriate (Ross, 2014.
However, there are some disadvantages to using Stripe instead of PayPal. For example, if a merchant accepts payments through PayPal then the customer can choose to pay with their PayPal balance or their debit or credit card without going through another step whereas if a merchant accepts payment through Stripe then customers have to register their card with Stripe first before they can use it in order to pay for purchases made on eBay's website. This means that some customers may lose interest in the purchase or not want to go through all the hassle of registering their cards with Stripe just to make a small purchase on a website like eBay so this might harm sales and profits for some small businesses. Also, according to Ross (2014. "Stripe’s dispute respution process is also different from PayPal’s - and in my opinion less advanced - but we will have more to say about that later."
Overall, this integration between eBay and Stripe is beneficial because it saves merchants money in the long run by charging lower fees compared to other online payment processors such as PayPal. Also, it makes it easy for customers to pay merchants using their credit cards without the hassle of having to register their credit card with Stripe first before making a purchase on eBay's website. However, the fact that customers have to register their cards with Stripe before making a purchase on eBay could easily put off potential buyers especially those who are willing to make a small purchase like $10 so this might result in less sales and profit for small businesses. Also, I feel that this integration is just an attempt by eBay to get rid of PayPal because PayPal has been causing difficulties for eBay in recent years such as fighting over cross border fees (Shen & Selena Chang, 2016. so it makes sense that eBay wants to integrate with another online payment processor so it doesn't have to deal with PayPal anymore but I feel that there may be better alternatives out there than Stripe such as Apple Pay or Android Pay which are being adopted quickly by smaller businesses nowadays because they are much more convenient for both customers and merchants alike as customers don't need to register their cards with Apple or Android Pay before making a purchase and merchants don't need to install any additional software or hardware in order for it to work.
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