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.











Reader Comments (Page 1 of 4)
2-20-2008 @ 6:56PM
bill said...
eBay sucks in more ways then one , you have no way of knowing if you even get what you bid on and I got scammed out of $13,000 on good old eBay. They won't even talk to me about it and no one knows what to do about it. You can't call them they don't have phone numbers for anyone but the police.
2-20-2008 @ 11:24PM
Jean said...
I was a power seller on eBay for about 4 years, and they have ruined me. This was my argument with them and is what I still believe is happening. If you read the papers, eBay lost millions of dollars in 2007, and this is why I think they did. They no longer care about the "little" seller who made them a "big" auction website. They cater to the big sellers, who also have brick & morter stores. These "big" sellers start their auctions at 1 penny with huge shipping costs. Face it, eBay gets zilch, what is 3.5 percent of 1 cent, and when the auctions close for a buck, so eBay pulls in a grand 3 1/2 cents. That is exactly why they keep going up on listing and final value fees, because they refuse to put an end to the sellers that are not paying anything to eBay (except a few cents) for using their web site for auctions. These sellers have real stores where people can buy their items, but they come to eBay to cut everyone else's prices. These sellers represent the BIG retail stores and eBay is allowing them to take control and are catering to them. If they EVER realize they can't pull in any money on their auctions, they may do something about it, but if they don't have the "smarts" to have already figured out what has killed their income, they never will. Trying to lauch the "store front" was a joke and cost them millions in TV advertising, and for what reason, only the sellers who had good feedback and would list as Buy It Now items, were even featured. Auction items did not pull into the store eBay tried to push. I know everyone has heard stories about getting ripped off by sellers---that is exactly what the feedback record is supposed to show you,,,it is very doubtful that a seller with high positive feedback, is all of a sudden going to start ripping people off. However, be aware of sellers with low feedback --selling high priced items, especially people who want payments by checks or money orders, and do not promote Paypal as a payment option,,,that most likely means Paypal has ripped them, or they can't open a bank account. When I sold on eBay, I can't even begin to tell you how many buyers sit & bid on items,,then refuse to pay. I do think most of them are kids who sign up for an eBay account, lie about the contact information, etc., they think costing sellers money, is funny. If you want to talk to eBay, go to the home page, and click on "Live Help", but they won't help you if you have a complaint. Also, go to "site map" and you can get eBay's corporate address. Their customer support phone number is 1-800-322-9266, but you will be told it is only for power sellers use.
2-21-2008 @ 12:14PM
robert said...
Bill you comment about not being able to get the sellers phone nuber is untrue - since you HAD? a transaction with the seller you can obtain their phone and information at anytime simple by requesting it ther the advance settings portal - If you paid 13,000.00 for an item eBay would certainly assist you since your claim is Grand Larceny. But my opinion is that this is a FAKE comment posted by eBay (mole) if I'm wrong please post transaction# - thank you
2-20-2008 @ 7:18PM
woodykid said...
It's amazing how many buyers get hosed, like Bill. Ebay is doing something finally because they realize that buyers are losing thousands like bill - but what does one irrelevant neg fb do to a seller with thousands of positives - or even a few hundred? Also how come nobody talks about the fact that the reason Ebay can raise it's prices is because there is no viable alternative. Why doesn't amazon allow for auction style listings? Where's google? Oh wait I can go to Ubid? -yeah I'll get a mass market of buyers there - no thanks. It sucks that no-body has been a real serious threat to Ebay - I think that has contributed to their laid-back approach in bringing changes, no doubt it makes it easy for them to raise prices. Perhaps it's a little too late - I doubt it - because...there is no real well-known alternative with auction style listings. None that can pass the "has the average baby-boomer generation mother heard of this site?" test. C'mmon Google - you're pwning paypal with your checkout - do the same and make some auction marketplace. Until then, this does give Ebay a chance to bring in a lot of new buyers and clear up their rep as place that makes it easy for fraudulent sellers to thrive. I can't wait to see all the new buyers coming in over the next year for all my auctions - ones that were previously afraid of getting hosed by Ebay fraud sellers. Hey Gary - let's have a look at the auction that had four deadbeat buyers. post the auction number so we can judge for ourselves. Not saying it's not true - but a lot of posts like to exaggerate the effect it will have on them.
2-20-2008 @ 7:30PM
Chris said...
# Few things: Buyer once he has paid money is automatically given his trust and his positive feedback to seller by choosing him rather than some other seller. Once he gives money he has the right to get the item in same condition he expected.
# What is the use of seller giving a negative feedback to a buyer who spent money and trusted him initially?
# Yes this will make sellers force to describe the items and clear those things like higher shipping fees
# For there categories the fees has been reduced already which come in under 25$ category or are cheap.
# With good buyers what will sellers do in market place? Its a nice move a will bring results by increasing the volume of sales of sellers
2-20-2008 @ 7:42PM
Chris said...
I agree with monekywrench. These moves are confidence building excerices for buyers and biggest gift to sellers are confident buyers and not fraud hit buyers who like to buy at 20% higher price rather than take risk at ebay
2-20-2008 @ 8:19PM
Dave said...
As An eBay Buyer..I Really Hate to see that eBay.com is ruining the lively hood of so many Honest and Disabled and Veteran Sellers!!!!... Many Of The Smaller Sellers Who Helped Build eBay Have No Other Way To Make A Living!!....I Think Sellers Are Right To Take Control!...And,This Strike Is Most Definitely In Order!!!!!...If most of the Sellers abandoned their listings for a Week or MORE!! and Buyers "Don't Bid Or Browse"..It May bring eBay Management to their Senses!!...My Favorite Business Management Professor at GA. TECH always said "If It Ain't Broke...Don't Try to Fix It" ...In My Humble Opinion....The Proposed Feedback Change and the 21 Day Paypal.com Holding Period may be "Unconstitutional" & "Very Illegal"...."One Sided Feedback" may be a violation of the "Equal Protection Clauses" in the the various State and the Federal Constitutions!!.....Additionally....Both The New "Unequal Feedback Policy" and the "21 Day Holding Period" may require that eBay act as a "Law Enforcement Agency" and a "Court Of Law " in order to settle contractual disputes between Buyers and Sellers!!..Both Of These Actions May Be Extremely Illegal!!.... We Need To Help Ebay Save Itself!!....If One Strike doesn't work, Sellers may need to do it Again and Again--->Until it Does Work!! .... Hopefully!!, Persistent Sellers Will Convince eBay Management to Withdraw these proposed changes and return to Business As Normal Before The Law Enforcement Agencies and The Federal/State Courts Bring Them DOWN!! I have heard that One Of The Best Civil Trial Lawyers in Atlanta imay be waiting until the proposed changes take place before filing a multi billion dollar Class Action Lawsuit (On Behalf Of "ALL" SELLERS) against eBay, Paypal and their new cohort General Motors for Violation of the "Equal Protection and Numerous Other Clauses" Of The US Constitution!....Additionally....He may be requesting that US Magistrates and the Attorney General issue Felony Criminal Warrants requesting immediate arrest of all eBay Management and all employees involved in making feedback decisions(in which they act as a Law Enforcement Agency...AND... A Court Of Law!!) I Am Afraid That "Good Attorneys" and the almost Trillion Dollor "Class Action Suit" may Bankrupt eBay, Paypal and General Motors!! It will be Interesting to see how much it may cost eBay, Paypal and Genral Motors to reimburse all of the Sellers that are being be forced to leave eBay and give up their only source of income because of these New Feedback and Paypal Rules!!!! .....Probably Trillions!! ....My Professor Also Said..."Nothing Is "Forever"...Except Death And Taxes!!....STRIKE VICTOROUSLY!!
2-21-2008 @ 1:11AM
woodykid said...
Wow - this comment is familiar. I think I'll go around a copy and paste all my comments from every other forum. I think the seller learned how to this with his listing in Ebay. But just like his listings - these comments get no attention.
2-20-2008 @ 8:28PM
Chris said...
Do not agree with Dave at all....
2-20-2008 @ 8:29PM
Rick Jones said...
I am a seller and buyer on eBay. I sell on eBay for a living. I buy on eBay for the savings. I have nothing to hide, my eBay ID is RickJonesSales. I sell quality leather furniture. I am a power seller and was invited to the eBay e-commerce forum in Jan. 08 With all the changes in listing fees, final value fees, and feedback the only one that is really going to hurt is the feedback. I have over 2700 @ 100 % with a DSR of 4.9-5.0 Not being abel to leave a buyer anything but a negative feedback is a liitle disturbing but, EBAY TAKING AWAY ALL THE FEEDBACK I HAVE WORKED VERY HARD TO GAIN IS VERY UNFAIR. My customers tell me time and time again that they purchased from me due to the many satisfied customers I sell to. With a rollback each year of feedback things will go south in a hurry. I sell on ebay only, no website, no brick and mortar store. For 6 years I have been a totally dedicated seller. Looks like eBay does not care 1 bit about me. Even after a total of over 380,000.00 in fees I have paid them. I'll have job resumes available soon. Let me know if interested. http://search.ebay.com/_W0QQsassZrickjonessales
2-20-2008 @ 8:56PM
monkeywrench said...
Oh come on... do you really think ebay want to "turn its users on themselves?" Do you really think that they want a mall with only a few "power sellers"? Do you think they want to limit the amount of traffic to the site? Do you really think that they want to leave users out in the cold?
if you answered yes to any of these you probably havent run a business. Its a business for crying out loud. They have expenses, overhead...etc. and they cant take the hit from all of the community for fraud.
2-20-2008 @ 9:14PM
Kim VanLandingham said...
eBay has already successfully turned users against themselves. Buyer vs. Sellers. We all know that there are many bad of each. But not near as many as the good. Ebay should have taken care of the problem along time ago when both sides were screaming about it. Remember sellers are buyers also and have been scammed just like those who are buyers only. THEY DID NOTHING!! They are now using this as a scapegoat for their agenda. They are pitting the buyers against the sellers and the sellers against the buyers. It really is the end if the magic that once was so unique to only eBay.
2-20-2008 @ 9:44PM
Bill K. said...
Okay, assume that's just what they want to do, drive away all the smaller sellers and transform into this online mall. What is the final purpose of doing this? It's not going to improve the stock price or make them more money. They do realize that for every seller that leaves, buyers go too, right? A lot of sellers are also buyers. Alienate them and that becomes millions of people who'd sooner eat a turd sandwich than even say the word eBay. Except to trash the place.
Just where do they intend to ever replace the revenue or grow the site after that? They won't, or if they do not for a long time. Even large sellers are unhappy with these changes. If it becomes as stated, a place where even the large sellers have no recourse when buyers don't pay, they won't stay either. Look at bargainland - they went to their own site and make far more money for far less hassle.
One thing is for sure, alienating most of your customers is no way to increase market share or increase profits.
2-20-2008 @ 10:11PM
N. Sinclair said...
Interesting article! I watched Sears Roebuck & Montgomery Ward reinvent themselves; went from the foremost retailers in the country to virtual irrelevance by abandoning their customer base. WalMart was grateful, took over their market.
This will be the story with eBay also, but this Donahoe fellow seems to have his head in the sand~ listening to their actual customers ~ the millions of SMALL seller of unique items~ would be the smart approach for eBay.
There are other auction sites waiting happily for the "flea market" business!
2-20-2008 @ 10:36PM
Debbie said...
To Chris,
What I can tell you as a seller about not wanting to leave positive feedback before the transaction is complete is this: Although I have never received a negative feedback, I have been threatened over 10 years by a few buyers who claimed something was not what they expected. I immediately offered them a full refund (including shipping both ways) and avoided negative feedback - even though one in particular let me know she was doing me a favor by not leaving me a negative. In every instance, I asked acquaintences in the antiques business to give me their opinions on my listings and the items, and they backed my descriptions and the items wholeheartedly. I relisted each time with confidence and found happy buyers. If I had not been willing to refund shipping both ways and had not given feedback until the transactions were complete, I 'm certain I would have negative feedbacks in my profile. Of course, that won't last much longer - I have every expectation that an unreasonable buyer will get a kick out of leaving me a negative knowing I will have no recourse.
2-20-2008 @ 11:00PM
eBay User said...
Everyone knows that eBay may be the World's
Largest Fence of Stolen and Forged Merchandise!!.
Operating as a
Purveyor of Stolen Goods
Usually results in a Quick Arrest!!
I think the recent decision to make
the eBay Feedback System "One-Sided" may be Their Downfall.
In order for eBay employees to mediate
the up-coming new Feedback Complaints...
They will have to act as a "Law Enforcement Agency",
"Court Of Law", "Judge" and "Jury"....Are These Acts are Illegal??..
I Think It's time for the FBI and
The US Attorney General to Begin An Investigation!!
Why do eBay Employees operate under False Names
unless They know that the decisions they are making may be against the law??...
eBay may be in deep trouble as the legitimate brick and mortar
Major Retailers like Sears, Target, and Walmart demand that eBay
be held accountable for selling merchandise that has been stolen from Their Stores!!
One Side Feedback May Test The
Laws Of Equity and Equal Protection!!!
Crooked Buyers Worldwide will have a Field Day...
While Sellers continue to Boycott, Strike and Go Elsewhere!!
Unless the one sided
feedback decision is reversed
(or feedback is totally removed) immediately the
decline and fall of eBay may only take a Short Time!!
http://www.medved.net/cgi-bin/cal.exe?ESHMm022008
In My mind eBay stock may soon be worthless!!
This Comment has been made
by an eBay User of almost 10 Years!!
http://www.ioffer.com/info/parody_feepay
2-21-2008 @ 1:41AM
woodykid said...
Amazing, I've seen a few references to this ioffer.com - what a joke. First thing I saw was an iphone going for more than you can get it at Apple plus $35 shipping! and if you pay by paypal - they charge extra to cover their fees. Yep, ioffer.com sounds like the way to go - LOL! Great advice you're giving to all these sellers. You really think ioffer is better for buyers - did you see how many obviously fake items are on the site? Wow - let's support the Chinese sweatshops with leather "gucci" wallets made by 10 year-olds. Great advice Ebay haters -
You know what I'd like..All these people bitching and screaming and threating to leave...first I'd like to see an admission that they'll make no difference in their weak strike. Check -already happened. Next - they need to admit that if Ebay didn't make changes, major ones, the stock would continue to languish - now I realize certain sellers don't care about the stock by their obvious comments, but hey THIS IS AN investing blog, so it seems to me bitching sellers, (not all sellers cause I myself am a powerseller and I'm not bitching - it's about time Ebay made major changes) would prefer things just stay the same. Instead of saying - "this sucks - I quit" why can't you propose some more "reasonable" alternatives. Suggest some way that will make the large untapped market of buyers that have never bid on ebay feel safer, less worried about the few crooked sellers that ruin it for everyone. Let's hear it - cause your ioffer.com is a joke! Ebay is gonna laugh all the way to the bank - hopefully stockholders will see the effects of this adjustment soon.
2-20-2008 @ 11:43PM
garland said...
Its like a Pawn shop, if you sell a stolen Item, your busted!!. I buy and sell on ocassion, a couple of examples, you can by many items such as tools etc. from harborfreight, northertool and other franchise business's for less or the same as ebay, They are the same products. I have studied ebay for a while and it turning in the nothing more that a retail mall for big business, Maw & pap stores are being run out again by big business. find a Maw & pap hamburger some where, Good luck finding it.
your will soon be regualated on what you can buy or sell if everyone does not stand up for what is right. Strike as long as you can, and while doing so find other means of selling out side of Ebay.
They are turing into nothing more than a Greed minded business for larger fee's and boot you in the butt while doing it.
2-21-2008 @ 12:02AM
Larry said...
as a buyer and seller on ebay watching the changes they`re trying to make really sucks most of the people on here are right ebay doesnt really care what you think they have a way that they want to go. They ask for fb and I figure every body voiced their oppinion but to no good ebay really dont care so I hope somebody can help change their minds (good luck)
2-21-2008 @ 1:26AM
Gary E. Sattler said...
In response to the comment from woodykid:
Rather than track down the item numbers for those unpaid items, let's do this;
Our eBay user ID is bearsvaluebaby. We have about 540 positive feedbacks on a 100% rating. In getting those 540 positive feedbacks we dealt with 2 or 3 non-paying bidders. After the seller's strike of 2006, we basically shut down operations while my wife experimented with alternative site options.
In the last month, my wife begrudgingly began to list items again on eBay, just to move the stuff. Activity has been fair to good but average selling price has dropped significantly.
However, within that short time span she's already had four non-paying bidders which she's ready to file as NPB so she can get her listing fees back. The problem is that the way things are to change, if she files those NPB declarations she'll get negative feedback almost for certain... and that, without recourse.
So, her best option at this point is to simply ignore the failed sales altogether and re-list the items.
Damn! that means eBay will get paid twice for the benefit of hanging my wife out to dry on unsold items!
How cool is that?
In the mean time, those careless buyers are out there bidding on the merchandise of other sellers without fear of being identified.
I honestly hope they stay away from you, but if they don't, you'll never see 'em coming because soon we will no longer be able to warn you about their sloppy shopping habits.