PayPal and eBay's Outage Proves Costly

November 4, 2015, Written By Lynn Oldshue
SAN JOSE CA/USA - MARCH 1 2014: Ebay Corporate Headquarters Sign. eBay Inc. is an American multinational internet consumer-to-consumer corporation headquartered in San Jose California.

Last Thursday, PayPal experienced an outage that has proven quite costly for eBay sellers and other online platforms using PayPal to process payments. The outage began at 8:50 pm central time and was not resolved until 12:35 am, according to the October 29th Live Site Status Update.

When the issue was first discovered, PayPal announced, “We are experiencing a system issue which may be affecting all products on the PayPal Live Site. Customer may experience slow response or time outs when accessing,, and other endpoints of”

During the PayPal outage, eBay experienced an outage of its own at one of its data centers. The issue began at 8:50 pm central time and ended at 10:54 pm, but eBay did not clear sellers to continue their operations until 11:51 pm. This, combined with the outage from PayPal, was a financial nightmare for sellers that had auctions ending during that time.

Most eBay auctions do not pick up in bids until the last few minutes of a sale. Buyers typically wait around until that time to make their big offers. For sellers who had auctions ending during the outage, many of the buyers were unable to put in their high, last minute bids. eBay offers extended auction times for situations like this, but there is no telling how many buyers lost interest because of the shutdown and never returned to make their bids.

There is no way to predict just how costly this may have been to eBay and other stores using PayPal last week. For some, the impact may not have been significant because they use other platforms to process their payments. Nevertheless, something as simple as two to three hours offline could have cost sellers and stores thousands of dollars.

The information contained within this article was accurate as of November 4, 2015. For up-to-date
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