Media is buzzing with news regarding the recent announcement about eBay Australia going PayPal only. Effective 17 June 2008, this policy stipulates that all items sold on eBay.com.au are permitted to have only either PayPal or Pay On Pick Up payment option. Of course, credit cards also are allowed – and they’ll be processed by PayPal.

So what is really behind this all? Many express speculations that eBay are using their Australian website as a lab rat to see how going PayPal only affects the sellers and buyers community. First Australia – then the rest of the world – this is what people fear from. One thing is for sure – it’s already caused a huge wave of dissatisfaction and the Australia Competition and Consumer Commission (ACCC) have received over 700 complains from individuals and organizations.

Amidst them even Google have filed an anonymous complaint. It leaked out on the Internet because the public PDF document on ACCC website had originating filename with a word ‘Google’ in it, and it was quickly replaced with a new one.

Apparently Google didn’t want to create any speculations about their plans to launch Google Checkout in Australia. However, it doesn’t make the whole picture clearer as their payment system had been longed banned from eBay and eBay going PayPal only doesn’t directly affect Google’s plans.

Whatever happens behind the curtains of these giant monopolies, the only question for you as an ordinary eBay seller is – how going “PayPal only” can affect my auction sales?

The truth is – and we can’t deny it – PayPal is easy, handy, doesn’t reveal our bank details and the overwhelming majority of eBay use it. Yes, there will always be someone who’s had issues with PayPal and can’t use this or other payment processor.

But, as stated on eBay.com.au website – people paying by PayPal are four times less likely to enter a dispute over the purchase. Sellers accepting PayPal payments are nearly half less likely to have an unpaid item. PayPal is speedy and more convenient for buyers. And since PayPal is owned by eBay and you’re doing your business on eBay website – you feel much safer knowing that the selling and payment processing is being dealt by the same people.

The old saying not to keep all the eggs in one basket doesn’t really apply here. For you as a seller the only thing that should be of concern is – may going PayPal only affect my sales volume?

Theoretically, the more options the buyers have – the better it is. There will always be people who can’t use PayPal for some reason. However, we have to look at the general buyers’ category and admit that PayPal is the most convenient payment processor and virtually everyone uses it. So losing those few buyers preferring checks over electronic money transfer shouldn’t actually affect your auction business.

But – just in case – don’t forget to withdraw your funds from PayPal regularly. PayPal is notorious having frozen some customers’ accounts and you may have to chase them for months to get your money back.