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Overstock (OSTK) looks to capitalize on eBay (EBAY) seller's strike

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If you are one of the upset eBay (NASDAQ: EBAY) sellers who has decided to boycott the popular e-commerce site this week, don't think that you have to lose a whole week's worth of business. eBay's competitor Overstock.com (NASDAQ: OSTK) is looking to reel in your business.

In case you missed it, eBay has definitely been ruffling the feathers of its users with the company's newly announced rate changes, and its sellers have decided to join forces and boycott the site all this week. Well, one site's misfortune could be another site's gain, as Overstock.com is trying to lure in disgruntled eBay users by offering them up to 50% off initial listing fees all this week.

While Overstock is officially claiming that the promotion falling during the eBay strike was just a coincidence, you really have to wonder how much truth there is in that. With eBay users showing their disgust over the new fee schedule this wekk, it seems like perfect timing for competitor Overstock.com to jump in and offer such a hefty discount. You can find more of the promotional offer details as laid out on the overstock website.


What has eBay users so worked up are the new changes that the company is putting into place regarding listing fees, and PayPal payments. Initial listing fees for products will be reduced, but the final selling fees are going to increase. This is being seen as the site "punishing" its more successful power sellers. In addition to the change in its fees, sellers may now also be subject to a 21 day waiting period before receiving payments via PayPal. While the site is instituting this PayPal restriction on some items in a way to combat possible fraud, it's not sitting well at all with eBay sellers.

A final slap in the face to sellers was the decision that will prevent eBay sellers from leaving negative feedback on buyers. All together, these changes have prompted widespread outrage against the site, which has led to this week's current boycott.

I admit, I am not an eBay user. I have, on occasion, bought and sold a few things for my guitars through the years, but on average I would probably only use the site two or three times a year, at the most. Therefor, I do not personally have first hand knowledge of just how hard of an impact the new rate schedule will have on the site's regular sellers.

If you are a regular eBay user, please, let us know just what your thoughts are on the current changes being made. How will the changes mentioned above impact your business? Are there other changes that we did not mention that you would like to express your opinions on? Please let us hear what you are thinking regarding all the changes taking place with eBay, and how you plan to react to the changes.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

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Last updated: July 05, 2009: 01:38 PM

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