When changes happen at eBay, Inc. (NASDAQ: EBAY), it's usually sellers who become angry at, well, anything. From fee changes to feedback changes to anything that affects their business, eBay sellers can be a finicky lot. And, that discontent doesn't stew -- that "vocal majority" definitely lets those opinions be heard.Again, many eBay sellers are becoming hostile in the wake of recent selling fee changes implemented just as new CEO John Donahoe steps into his role. Donahoe surprised sellers when he cut some seller fees, but then raised others. While Donahoe argued that the deletion of "flat fees" for sold items with a "minimal fee" will lower the risk to eBay sellers, many disputed this argument, and some even threatened to "strike." Seeing as though eBay sellers aren't employees, that made me laugh a little. "Taking a week off" would be more appropriate, but you get the picture.
But, if some angry sellers do "strike" for a week, eBay's coffers will notice the revenue difference. This is a prime opportunity for a company like Amazon.com (NASDAQ: AMZN) to really punch up its auction business and really begin to recruit former eBay sellers to an alternative auction platform in the wake of so many disappointments in the last 18 months. That, or just go ahead and buy eBay already.










Reader Comments (Page 1 of 2)
2-04-2008 @ 2:10PM
Karl said...
As usual some media reports and bases a commentary on the information eBay provides.
It has little to do with just the fee hike,it's the whole package ebay dumped on most sellers.
It's a combination of fee hikes for most sellers,search placement,DSR restrictions,feedback changes for sellers and PayPals new mandatory escrow feature.
2-11-2008 @ 11:11AM
Mary said...
There are other alternatives, I think Craig's List is wonderful. They don't charge a thing. And you can find local buyers for those large heavy items. Tired of ebay try craigslist.com.
2-04-2008 @ 2:32PM
AM said...
www.littleguyauctions.com
Brian White:
I appreciate your post. One thing you said hit the nail on the head, sellers are NOT ebay employees. Sellers pay ebay for a service, and we should expect something that benefits us in return.
Let me use an example of a cell phone provider. What if there was only one provider that covered the entire US with good signal. You pay this cell phone company for service, but whenever you had a problem with ANYTHING, be it a bill, service, your phone hardware, etc, there is no phone number to call into, only email support. They only promise to get back to you within 48 hours. After waiting and hoping for a solution, they send you a form letter email saying they were sorry for your trouble but there's nothing they could do, or they're looking into it and they'll get back to you (but they never do).
Say a scammer cloned your phone and ran up a bill of $1000 on a regular basis. Not only would they hold you responsible for that, but they would suspend your service and not allow you back as a customer. Since (in this fictitious example) there's no real competition to jump into, if you wanted cell phone service that worked you've got a problem.
Oh, and on top of all the above, say at the same time they raised their rates by 66% (but called it a fee reduction).
My question is, how would wall street rate that company?
Ebay is no different. They provide a service to SELLERS, since the buyers pay nothing. They are shooting themselves in the foot with these changes, and as you say are only helping their competition. I am motivated now more than ever to get my own auction site, littleguyauctions.com up and running. If ebay is going to change their entire business model and shut out the small sellers that built them into what they are today, I hope the sellers shut them out and give them some stiff competition.
It's about time.
-AM
2-04-2008 @ 2:35PM
Farris said...
"some even threatened to "strike." Seeing as though eBay sellers aren't employees, that made me laugh a little. "
This statement made me laugh.
Definition per dictionary.com:
#66. a temporary stoppage of something.
Sellers are also calling it a "boycott" is that more appropriate for you. I am one of many who have pulled their listings and moved to Wagglepop. Wagglepops sales are not very strong, but it's worth a try.
2-04-2008 @ 2:46PM
TX CHL Instructor said...
There is nothing wrong with eBay...that would not be cured in a heartbeat with some credible competition. I hope that materializes soon, but I've been hoping that for a long time.
For a long time, eBay's strategy has been to find out just how badly they can screw the sellers around without enabling any credible competition. Maybe this time, they will actually find out. I wouldn't put my money on "littleguy", but Amazon is looking attractive these days. Too bad Yahoo! couldn't make a go of it.
I definitely don't want Amazon to buy eBay! Then the problem would simply move to a new URL. I want to see 3 or more viable competitors in that business.
Please check out www.powersellersunite.com for a discussion on this topic that has been going on for years. You are welcome to join us there.
2-04-2008 @ 7:22PM
Lin11051 said...
I sell vehicles on Ebay, and between Ebay and PayPal fees, I spend about $1000 a month in fees. I've just closed my Ebay account.
The new feedback rules were the straw that broke the camels back. My account has been ruined by deadbeat bidders, who win my auctions, then never pay, and then leave retaliatory negative feedback when I leave nmeg feedback for them/report them to Ebay for non-payment.
This problem is only going to get worse with the new rules. In addition, since sellers will not be allowed to leave anything buy positive feedback for buyers, all those who buy on Ebay but never sell, will have 100% positive feedback- since it is impossible for them to receive nuetrals or negs, now, as buyers. A buyers feedback will thus be meaningless- as all will have 100%+.
Then they want to punish us further by holding our money in PayPal...
Enough! See ya, Ebay!
2-04-2008 @ 7:27PM
Paul said...
This is a little more than "just sellers being irritated by increasing fees". Its about lack of customer service. the facts that funds in a paypal account could be on hold for 21 days and the seller is expected to ship the item anyway! As well as teh requirement that new sellers have a Paypal account. Many sellers, including power sellers have already left, and gone to other sites. Power Sellers Unite's Auctionwatch shows that the total number of auctions on EBAY has been down by almost 250000 auctions for the last three days and the "boycott" hasn't even started. While other sites are showing increases in listings. Given average listing fees between 2-3.00 per auction (not including final value fees and the paypal servicing fees), that represents substancial loss of income and if it continues for a few weeks, It will significantly affect Ebays bottom line for the 1st quarter of the year.
2-05-2008 @ 12:50AM
firemeg said...
Helen is right on for the most part.
Whining will get you nowhere. Nor will rants about boycotts. Actually boycotting collectively will have some repercussions for eBay Inc., but it is unlikely that it will ever amount to a true collective effort.
On thing to keep in mind for all you would be internet merchants.....Google recently changed their search algorithm to put a higher rank on sites that have an older age. This means the longer you wait to get your own eCommerce site, the lower your search rank will be.
Your competitors that are not speaking up and ranting and raving on forums are setting up shop. Sure, they will be behind those that left eBay at the last fee hike, and further behind those that left a couple fee hikes ago - but they will be miles ahead of you.
This isn't 1994 anymore. The internet seems to have sorted itself out a bit and the pets.com companies have been replaced in many cases by sites operated by former eBay sellers. Ground floor opportunities are gone. You need to make sure you are getting in soon, or you will be going down with the eBay ship. If you decide to finally jump when that ship has submerged, it will be too late to fulfill your web 2.0 dreams.
2-13-2008 @ 7:36AM
woodkid said...
I can't wait to list a bunch of stuff for sell on the 18th when these strikers make themselves look like idiots. Helen nailed it - ditto X 10. you whiney babys need to consider how a real market place works - buyer does have advantage - customer comes first. for the longest time i've been getting hosed by fake brand name sellers - and if I left a negative - they'd do the same right back. It's about time Ebay helped those that really make Ebay work - the buyers! Buyers know ebay, not all these other no-name auction start-ups and certainly not your little private online store. We like Ebay - The changes they're making make us like them more! We won't miss you when you're gone - someone will fill your shoes within seconds and you'll need to find a new way to hose people with your overpriced goods.
2-05-2008 @ 2:01PM
Paul said...
I agree and will strike! I've had enough of eBay and PAYPAL taking exorbitant profits without giving customer service. The ridiculous fee increase was enough. But then there was the lack of mutual feedback. I support freedom of speech and think its absolutely necessary for all to leave feedback, NEGATIVE, POSITIVE or neutral. The are too many fraudulent bidders and sellers too. All deserve feedback to be judged by the eBay community, no world community. STRIKE. STRIKE, STRIKE. eBay you're out. Microsoft/Yahoo, please develop a new auction site.
2-05-2008 @ 3:48PM
beakmur said...
Donohoe will go, probably taking eBay down with him. He insists the "latest" uprising is mostly merely emotional ....over feedback issues. This sort of imperial phraseology assumes eBay will last forever. Pfftht. He just shot it in the head with a horse pistol. In a tap dance worthy of Dick Cheney, Donohoe has misdirected under-informed media and ultimately insulted to the people who pay eBay's bills..by dredging up a false issue...seller discontent at being forced to be nice to buyers. It's really about FINAL VALUE FEES. It's about the money, stupid.... it's about profit and loss.
Sell something minus sellers Donohoe, see how far you get. Darmouth thinking at its most imperious. We are what is called your income stream. Look it up.
Several layers from the reporters, who only pretend to know what they're talking about, are the deeper layers of media ownership, those people who prefer old-fashioned business models. The kind are the models where people buy and sell from brick and mortar stores and spend their advertising dollars on wood pulp and ink newspapers. Those people, and their allies are happy as hell that Donohoe is @#$-ing up eBay.
2-06-2008 @ 3:16AM
Debi said...
I'm joining in on the "strike"... It's the only way we have as a group to have them "maybe listen"... They have nickel and dimed us down to almost no profit what so ever, and to add insult to injury, they say we can't complain about a non paying customer??? Amazing...
Ebay violating it's own policies
http://pages.ebay.com/securitycenter/rules_policies.html
To promote a safe trading environment for all members, eBay has rules and policies that are enforced. eBay's policies are intended to:
Support government laws and regulations
***Minimize risks to both buyers and sellers - Feb. 20th will be increasing a sellers risk while eliminating buyers risk.
***Provide equal opportunity to all buyers and sellers - Will be changing this on Feb. 20th - we sellers will no longer have the opportunity to leave neg. feedback for buyers.
Protect intellectual property rights
Provide an enjoyable buying experience
Support the values of the eBay Community
2-06-2008 @ 3:35AM
Kathleen said...
Ebay is violating it's own policies
http://pages.ebay.com/securitycenter/rules_policies.html
To promote a safe trading environment for all members, eBay has rules and policies that are enforced. eBay's policies are intended to:
Support government laws and regulations - RISDIC anyone?
***Minimize risks to both buyers and sellers - Feb. 20th will be increasing a sellers risk while eliminating buyers risk.
***Provide equal opportunity to all buyers and sellers - Will be changing this on Feb. 20th - we sellers will no longer have the opportunity to leave neg. feedback for buyers. Where is our opportunity?
Protect intellectual property rights
Provide an enjoyable buying experience - Sellers not entitled to an enjoyable selling experience?
Support the values of the eBay Community - What are these values? Greed? Discrimination? Buyer bias?
2-06-2008 @ 4:11PM
In Mourning said...
eBay may have killed itself - whether by design or stupidity-and-arrogance is the question.
Feedback is the least of the issues change-wise; it's mainly a smokescreen for people to focus their enraged emotions on ... the real issues are the overall fee increases (http://www.auctionbytes.com/cab/pages/feecalc), the fact that small sellers will be pushed lower in search results, and that whole nasty forced escrow issue with eBayPal transactions that have been deemed "risky."
This last issue is where the feedback change comes into play as more than a smokescreen; a seller's DSR (star) ratings will have a bigger impact as they will soon show only the last month's ratings. The lower your ratings (or none if you haven't sold in over a month) the more at risk you are to have your payment funds as a seller held in escrow - however, you still need to ship the item and will have nearly zero recourse if buyer claims not to have rec'd. Many are already questioning the legality of this as eBay owns PayPal and many understand that forced escrow is only supposed to be held by a neutral party.
eBay is *the* place to go for the odd/unique/antique/one-of-a-kind/hard-to-find "It" items. The place. Yet eBay is trying to do away with those kind of sales by driving away the small and sporadic sellers that fill eBay with these goods. Yes, the heads of eBay have said they want to be rid of the online flea market. Yes, many people go to eBay for mass-produced/readily-available goods, but only because they started going there first for the odd/unique/etc "It" items that eBay has long marketed itself as having.
What eBay is conveniently forgetting is that the bulk of it's good buyers are also small/sporadic sellers; drive them away you drive a lot of the buyers away (personally, I know of no one that buys on eBay that hasn't also occasionally sold on eBay.)
eBay might be "ok" as another Amazon clone, but it won't be able to top Amazon, it will be second place at best. eBay needs to go back to being an inexpensive, fun, FAIR community of buyers and sellers specializing in odd goods that aren't easily found elsewhere.
eBay needs to embrace this niche it has made for itself, recognize that it has saturated it's market, and be happy in it's success. Because if eBay continues to be solely profit-driven (to appease it's stock-holders?) then eBay will soon completely cease to be.
It may be too late; smaller eBay sellers aren't sitting on their thumbs hoping eBay will come to their senses this time - eBay never came to it's senses before - so we are leaving (in droves!) and looking for venues that will be better for the small seller.
2-08-2008 @ 2:40PM
Tony P. said...
The moaning and complaining is done by a small segment of sellers, yet their postings are into the tens-of-thousands across the 'net. They are quite vocal and will prolly hold true to their word come the 18th.
There is another group of sellers; a group that says very little. They are currently busy conducting business and listing product on the ebay site. They will also speak on the 18th. The cancellations will start in the morning and by the end of that day, even the most starry-eyed financial analyst will have doubts about ebay's future.
2-08-2008 @ 11:05PM
KEITH said...
Buyers and sellers, Ebay DOES NOT care about you! You would think a company so large could put at least a tiny bit of effort into keeping happy the people that keep it legitimate.
Please strike and help to send a message to this monopoly!
2-10-2008 @ 2:54PM
Debi said...
The boycott is going strong with new member joining each second..... If ebay doesn't wake up soon, it may just be it's demise...
2-11-2008 @ 2:11PM
Anthony said...
I'm moving from eBay, yes we do have other marketplace alternatives...come see us at realbigsource com/forum
2-11-2008 @ 2:53PM
roiBert said...
I agree with Mary... there are plenty of alternatives around the net to sell and buy. Sites like http://www.ClassifiedAds.com a free classifieds site that lets you sell your stuff for NO FEES.
A good marketer should be using alternatives like this to begin with to increase their ROI.
Lead the change... Change the lead.
2-12-2008 @ 11:51AM
sheyner said...
Add me to the list of (bronze)power sellers moving their store listings to Amazon. When I joined ebay in 1999, they were very affordable and yet also very pofitable . Now they're just greedy. Unlike Amazon that started with private investors taking hugh risks and receive the fruits of their labor and dollars, Ebay wouldn't have existed at all without its sellers. We were ebay's investors, and now they treat us like garbage. Those bastards can go to hell - I am done with them.