The uprising against eBay (NASDAQ: EBAY) by its sellers is now scheduled to last an entire week from February 19 to February 25. According to CNNMoney, "Sellers say eBay's new policies are likely to cost them more money, but what's really inspired an outpouring of wrath is an adjustment to eBay's feedback system: sellers will no longer be able to leave negative commentary about their buyers."
Under the new system, egregiously bad behavior by buyers will not be shown to other customers coming to the auction site.
The action does not come at a particularly good time for the big online auction company. Its shares have fallen from a 52-week high of $40.73 to under $28, fairly near their period low. Investors do not need another reason to be tempted to sell the stock.
Why management made the move is still something of a mystery. Obviously the company believes that over time it will make more money with the new system, but the bad PR and loss of some business from sellers may offset that.
A company that is already in the dog house with Wall Street would be better off waiting for good news and a recovery in its shares before making a move that risks harming its top line.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 2 of 2)
2-18-2008 @ 12:58PM
Lynne said...
Amen to those last 2 posts!! Bless Ebay for forcing me out of my own complacency at this time.
I am so motivated, out of disgust, and yes, I too was a victim of ebay several times in the past. For 2 removed auctions (not high end).
In multiple responses, I emailed their trust and safety and FORCED my OWN documentation down their tight little throats until they finally HAD to apologize to me and place my 2 little auction listings back up on the auction board, (at no cost to me, other than losing the bidders who had moved on) after removing my 2 auction listings inappropriately.
I did not back down!! For the most part, (I'm a Nurse) my documentation was perfect, and theirs wasn't even close! Their skills in appraising the auction contents in millions of their seller's listings is below any conceivable level of competency, coupled with their shortage of staff in handling their problem auctions, the canned email response has become the automatic way of handling their TRUE clients, the ones who are QUALITY sellers.
Ebay's quality, in general, has plummeted with their choices of newly hired CEO's.
I was about to become a power seller with all 4.9's and one 4.8 on shipping costs, but today my ID is quiet and I emptied my paypal account to $30. If ebay wants to freeze it for whatever new reason they might have, I could care less. I have a job already. This was extra for me, and it was supposed to be enjoyable and rewarding to empty out my MANY collections. I also have a "live" venue where all I need to do is a round trip drive of 1 hr each way. At least I won't have to worry about staining my excellent 20 yr selling history there.I can wait and watch, AND I can be very busy now learning the ins and outs of other venues! I already put together 2 lenses on squidoo which will be chronologically following my learning curve as I venture out into other avenues of selling. And my linking strategies have just begun!
2-18-2008 @ 2:04PM
Paul said...
I am an eBay customer for over 10 years. eBay has evolved into a system where only eBay makes profit (of course that includes PAYPAL), the company doesn't give a damn about any of their users (obvious by their current attempt to stop freedom of speech- That's totally un-American), the exorbitant fee increase. They don't even care about stockholders (STOCK is plumetting). BOYCOTT may be the only way unless the mighty Microsoft/Yahoo/GOOGLE, etc. could start a competitive auction site. I'd join immediately.
2-26-2008 @ 11:54AM
Jayson Walker said...
Yahoo has one, but is not as popular
2-18-2008 @ 3:19PM
ACE said...
EVERYONE PLEASE BOYCOTT eBAY! LET'S STOP THEM IN THEIR TRACKS and either make our own site big or everyone goes independent and STOPS USING EBAY AND PAYPAL.
LETS STRIKE AGAINST eBAY & PayPal
2-18-2008 @ 5:36PM
gumby said...
I thought Fed Express or Cisco or Oracle would be the logical choice, but Chevron?? Big Oil was responsible for our current economic mess!! We fill up tanks everyday and we are paying thorugh our noses for that and we chose Chevron as if we will still keep on doing it for the forseeable future... $6 gas any one?? That will help with DJIA average, sure, but do we really want to REFUSE TO CONSERVE ??? We are perfectly capab le of pushing gasoline prices back down to where they belongs ... under $2... We are DINOSAURS AND INCAPABLE OF ADAPTING TO NEW REALITIES... WE ARE DOOMED TO FILLING UP TAN KS EVERY WEEK!!! OR MORE OFTEN... IT IS STILL THE STUPID ECONOMY AS USUAL!!
2-19-2008 @ 10:05AM
Delectably Yours Decor said...
woodykid Good Luck in Life! You'll need it with that judgemental attitude and lack of comprehending the portion you read.
I'll make a few points clear for anyone questioning my reason for the post:
- I have no qualm with ebay executive salaries.
- I have no qualm that their contract's include stock options and that they excercise these options and trade within legal bounds
- We all know everyone working for eBay, with eBay, involved in eBay, and utilizing eBay's service to sell their wares is there for one purpose; an income.
The Real Issue:
- Did eBay's executives bring about the recent changes to create an uproar of such a large magnitude to divert attention from what is truly going on behind the scenes?
- Why would anyone be party to any online platform that promotes extortion and fraud through a one sided feedback policy?
- Is the new feedback policy within the bounds of the law?
- Is eBay opperating outside the bounds of the US Anti Trust Laws?
- The trade of eBay executive's stock appears suspicious
2-19-2008 @ 11:18AM
John said...
Delectably Yours Decor,
Thank you for your comments. I, for one, appreciate the length to which you explained your feelings and your personal experience using Ebay for business purposes.
I am about to launch an online business. For weeks I've been preparing to make Ebay my primary online presence. But I discovered the price increase from an email from Ebay themselves touting it as a reduction in the fee structure. I was not suprised to see the uproar this caused here, on their own forums, and elsewhere.
I have decided now to not use Ebay or Paypal entirely because of their ethics and behavior toward their sellers - and their greed.
2-20-2008 @ 12:53PM
auction seller said...
If you want to send a message to ebay, just stop buying on ebay also. They dont understand how many sellers are also buyers on ebay. Buy from sellers on other websites. They are the same sellers in most cases. Anything you look for can be found elsewhere on the internet nowdays. Solidarity against the nanny state nightmare that is ebay.
2-21-2008 @ 12:16AM
Jo said...
deletcably yours decor , I too appreciate all the info & your hearfelt attitude of standing up. woody old boy has a rude awakening in life must be a bebe. I had a dog named woody when I was kid he howled constantly must have been reincarnated. In any case the point is we are all here to make money woody & in defense of Miss decor ????????? We buy & pay for the stuff we sell dummy !!! we are not just punching a clock & having lunch & playing soccer on the new field that ebay corporate headquarters just built for their employees use. we are working & working like laborers to make them money dummy. Since when did you ever work a job where you paid for the materials to make the items, paid the shppg expenses & the gas to drive it to the post & then your boss handed you a portion of your paycheck & no reimbursement for your materials or any of the rest of it ??????? Thehn when half the parcels you paid to mail went missing the boss charged you the full value of every single thing in the packages & dedcucted it from you even though the customer wanted no insurance ? Geez WAKE UP BUDDY!!! We are at home working, raising our kids, making it work in this rotted economy of a war gone bad country we have here now. We pay our fees on ebay , we make our own decisions as to what is best to suit our lifestyle . until the Nazi's come marching in & decide it is time for us to work for them & tell us what & when we are going to do it. Well buddy I don't want to work for anyone else , I want to work for me ! GIT IT NOW!!!! P.S. I am a SAHM to 3 toddlers so do not use your snotty little tween attitude with me ,until you live our lives. not all sellers on ebay are all sitting pawning stolen electronics a dime a dozen & burned illegal dvds to capitolize so save your judgment & have some respect for the lady. It is a public forum & she can voice her opinion & as long as she likes, if you don't like it don't read it, works both ways. woody kid how is that for retalitory feedback ? good luck & Have a great life with your attitude I agree you will need it.
2-21-2008 @ 3:53PM
woodykid said...
I want to thank you all so much for setting me straight. I've taken a deep hard look at my life and I realize that I have a horrible attitude. I'm so sorry. I am like you're old dog. Man, what an a$$ I've been. If it wasn't for you saving me at this very moment...I think I'd OD on Zoloft. God I'm glad for comment boards, it's amazing the education and wisdom I get here. I used to have to visit truck stops and read the graffiti in the stalls but now...I have these comment boards. You guys are lifesavers. I mean it's like I found a school made out of fortune cookies. And finally you've totally changed my thinking about Ebay employees and execs. I didn't realize that they relied on disabled home-makers to pay their salaries and bloated soccer fields. As a shareholder who's complained that they've done nothing to reach the untapped market of fearful buyers scared of the bad rep created by allowing 4x as many fraudulent sellers than buyers, I realize I'm wrong for asking them to make changes to help their stock by providing better buyer protection to attract the many that won't buy on Ebay. What I really should have been doing is forgetting about their lagging stock price - I should forget that sellers have flocked here brining down final auction prices significantly along with cluttering the searches with auctions that have no bids and offer no bargain over retail. I should say their policies that are very seller oriented and not so buyer friendly should stay the same - or get even more seller friendly and less buyer friendly - because it's obviously been working. So thank you - I stand corrected - You guys are swell. I appreciate your personal interest, I feel like I have met honest people that really care about others more than themselves. That's an accurate description of everyone here, and I hope you'll let me join your ranks.
2-21-2008 @ 3:45PM
Tracy said...
Instead of listing items this week, I'm going into my store each day and ENDING the listings due to renew for the next month ... then transferring them to another site; eCrater, which is very reminiscent of eBay in the "old days" before they got their god complex. In 30 days, my listings will ALL be gone ... will eBay be gone as well ?
2-21-2008 @ 12:37AM
Jo said...
By the way I wonder Miss decor if they shared the same financial advisor as martha stewart , before too long they may all be wearing orange jumpsuits & picking up trash along the sides of the road.
2-24-2008 @ 6:25PM
Linilla said...
I have bought and sold on eBay. Twice sellers have left me negative feedback after I left them well-deserved criticism. This makes me reluctant to leave honest feedback.
eBay is correctly responding to complaints from buyers like me who have been unfairly treated by malicious sellers.
2-21-2008 @ 6:17PM
Joejames11222 said...
boycott ebay everybody!!!
2-21-2008 @ 6:25PM
Mike said...
I guess with the new feedback system, Someone can go into ebay and create 20-30 different user names, with the purpose to interefere with the site, and bid away on thousands of items, then turn around and leave thousands of negative feedbacks for everyone! However the seller then cant do anything about it. Way to go Ebay, you worthless piece of crap money greed idiots. Lets all join in and put these jerks out of business. Wow I see stock has plunged, Wow I see 2 million less auctions listed. Lets keep it up!!!!
2-22-2008 @ 7:55PM
Yurtdisi Egitim said...
does anyone knows if there is any other information about this subject in other languages?
10-15-2008 @ 8:10PM
Paul said...
The BIGGEST problem of all time that eBay NEVER pushes/stresses/makes crystal clear is the fact that each transaction is a 'binding contract to purchase' as eBay calls it. But buyers look at it like they're a "customer." No, they're a contractor. The seller sets the terms of the contract -price, shipping and handling, etc. The buyer reads the terms of the contract and agrees to it by placing a bid.
THEN they complain about the terms of what they just agreed to. I just don't get that.
3-02-2008 @ 8:23AM
Duvar Kagidi said...
est il availible en Francais, my English not good
3-04-2008 @ 9:08PM
cploonker said...
I say eBay should stop wasting money in buying companies like skype at irrational price rather than keep increasing fees every year.