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What is eBay doing? Well, let me tell you...

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I'm actually finding the cries of anguish coming from eBay sellers a bit amusing these days. Yes, in my opinion they're getting what they deserve over on eBay (NASDAQ: EBAY).

Why do I say that with a cold-hearted grin you may ask? It's because I did my part so long ago. Yes, we had a seller's strike once before, and it was a pretty damn good one. It didn't work then either, or at least it didn't change any eBay corporate minds in reference to anything that matters.

So now eBay has raised fees again. I don't need to say I told you so, but I did. This time though there's a significant additional angle to the rift. Due to pending changes to eBay's feedback system, sellers could be left defenseless in the face of potential deadbeat buyers, four of which have struck my wife's eBay selling account in the last week. It's great service to eBay's vision and it's easy logic to grasp and accept if you have insight into eBay's plans.


I told you in August of 2006 what I believe eBay has up its sleeve. If it can be pulled off it should work out nicely. I believe eBay management seeks to control the flow of goods. By that I mean I believe they want to decide who will sell successfully on eBay. Unfortunately, I think they're going to end up shuttering the place before they reach their goal, but of course I haven't seen the risk assessments they've surely placed their bets on.

Based upon what I see, here's what I'm declaring is eBay's plan: eBay is to become an online retail outlet mall, home to about 1,200 high-volume retailers. eBay will become an auction marketplace in name only. eBay payroll will be slashed by two-thirds. eBay will play nanny to anyone who wishes to buy things, but small-time sellers with issues will be left in the cold. eBay will have no interest in the transactions which take place on its pages beyond fees for listing and fees for items sold. Once eBay has gotten its cut, you'll be on your own, even when the deal "goes south."

Once the pool of sellers has been decimated, new rules shall be employed for the protection of the remaining "elite" sellers and it'll be back to business as usual. That will be business without all those mom-and-pop sellers taking up data flow and asking stupid questions. Even as I write this, eBay members are chatting about the potentially devastating effects of pending changes to eBay's feedback system. The expected changes shall potentially leave sellers defenseless at the hands of whomever wishes to screw them. What better way is there to prune the marketplace than to turn the membership upon itself. It's a brilliant ploy and it has worked for third world despots for centuries.

Hats off to John Donahoe, he has grasped the vision.

God bless eBay. Its going to need it.

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Last updated: July 04, 2009: 02:45 PM

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