GM Kills $10 Million Facebook Ad Campaign Because It Didn't Work
JCPenney's Ron Johnson: 'Customers Don't Get Our Pricing Strategy'Having posted all week about eBay and getting a tirade of in depth responses from sellers who feel mistreated, deceived, disrespected and financially punished, I feel that this issue will not go away. Not because of my continuous posts and not because sellers feel so passionate about the issues they raise.
The real reason the fire continues to burn is that eBay has not sent in the fire brigade and chooses to ignore the fire. It may be a small fire now but small fires turn into big fires if the fuel is not removed (objectionable business practices) or the fire is not overwhelmed by a fire retarding agent -- better communication, more transparency, more warning of changes and seeking seller input as to how improvements might be made for mutual benefit.
In the case of eBay they hope the fire will burn itself out. Will it? The problem is that they are bullying the "little guy", but absolute power corrupts absolutely and eventually they will meet their match. It may be Google, it may be the SEC or FTC, it may be a large law firm that identifies a class action opportunity or a foreign company. As a kid I always enjoyed Popeye the sailor man, who brought us true "everyman" perspective. One of my favorite sayings of his was "that's all I can stands and I can't stands no more!"
Well, this sums up what I have been hearing all week from sellers. I have learned a lot and I'm sure others have as well. There is some pettiness on the part of some sellers that were conveyed in the comments. And, as always is the case, a few rambled on beyond reason, but I will let readers sort that out for themselves. I am closing out the week with the following message to eBay.
EBay Clean-up Procedure:
1) Better communication: eBay must give all of their vendors proper and timely notice of changes in their policies and practices. They must also take into consideration the time it takes to make adjustments by the sellers so that if they choose to stay with eBay they are not devastated.
2) Transparency: eBay should play cards on top of the table face up. If there is anything that they feel might give competitors information that they do not want to reveal than they should state that clearly.
3) Take responsibility: eBay should change from the days of "we are just a facilitating platform" to "we are a business that provides a world wide service, and we will do everything in our power to uphold the highest standards of excellence." This includes policing the site, pursuing "evil wrong-doers" and closing down dysfunctional or corrupt activity on the site.
4) Listen and be responsive: treat sellers and buyers like business associates and customers. Be attentive and respectful.
5) Lead by example: Do the right thing. Although there is a marginal difference between deceitfulness and unethical behavior, why should this even be a question? Raise the bar, do not seek ways around it.
Readers: Please add more if you feel like it, but these things would be a great start.
I still believe eBay is a great company and financially sound from an investment perspective. It has the potential to be among the greatest (UPS and J&J come to mind), but it won't happen by chance. It can only happen if they make it so and that takes years of hard work and they need to make it their mission. Anything less will allow competition to take hold and why give up the monopoly and a market that they created by blindly pretending everything is fine.
Sellers should continue to conduct their business in the most ethical and forthright manner, be it on eBay or anywhere else, and set an example for others to follow. Continue to seek other avenues of opportunity and at the same time continue to communicate with eBay about your important issues.
If you missed the previous posts see: "eBay's message to sellers: Grow or die!" , "eBay was revolutionary - now "peasants" are revolting!" and Ebay - going, going, gone - NOT.
Wishing peace to all, and wisdom to eBay management. Have a great weekend!
Sheldon Liber is the CEO of a small private investment company and the vice president for Design and Research of an Architecture & Planning firm.
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Reader Comments (Page 2 of 2)
8-27-2006 @ 5:06PM
Rod said...
I think it simply comes down to the fact that Ebay has forgotten who their customers really are. Ebay's customers are the SELLERS not the buyers. If you do not communicate and cater to the sellers, then you lose $. I have paid Ebay as much as $10,000 a month. I would love to have a customers like myself that pay $10000 a month to use my service. Man, I think I would do just about anything to keep their business. Makes me tired that they are not trying to keep the people that keep them alive.
8-27-2006 @ 7:47PM
Randall said...
Sheldon, you do have a point in regards to eBayII. eBay, Inc. should be the one to create it. Break off eBay stores into their own site and market specifically to that site. If they don't do it someone else will. If Yahoo were smart they would be talking to disaffected storeowners right now about what they would like. (Both large and small)
Let eBayI keep Auctions, Fixed Price Listings and BIN. (My guess is eBay will not do this because that would reveal the cracks in eBay's auction biz).
The reason most sellers are complaining is the fee increases are punitive. They are a slap on the hand (more like the mouth) and they are an increase that brings the cost of listings in stores close to that of listing in CORE without providing anywhere near the same exposure.
After this fee increase shakes out eBay will have to mothball their “IT” campaign because they just knocked the “IT” out of eBay.