For the past several years, eBay (NASDAQ: EBAY) has pretty much cornered the market for online auctions. It has created such large barriers of entry, that smaller sites have difficulty breaking into the market. But this week's seller boycott on eBay has opened the door for some smaller companies.We took a look earlier this week at the reasons behind the current eBay strike. We made note at that time, that some of your bigger name competitors, such as Overstock.com (NASDAQ: OSTK) were going to be capitalizing on the sellers' strike, but now we are also starting to hear about gains made in some smaller companies that you may have never heard of before.
In a recent article from Seattle Post-Intelligencer, two Washington-based companies said they have been loving all the negative attention that eBay has been receiving as of late.
The first company that the article mentions is CozyBug.com. Never heard of it? Don't worry, most people have not. This small online site is very similar to eBay, but it focuses on selling items that are too big to ship, or items that people usually want to see first hand before making their purchase. The site, while being nationwide in its reach, has been trying to establish itself as the web's "local online flea market and garage sale".Sounds like a great concept, but there has been one problem... luring in eBay users and convincing them to switch to CozyBug. Well, this week eBay's new policies have become CozyBug's best marketing campaign ever.
Just how much of a difference can a week make? The numbers don't lie. Before this week, CozyBug has been getting about 10,000 visitors per month. This week traffic has ballooned. Its per day traffic has jumped to 15,000 visitors! In case you were wondering, that is more than a 4,400% daily increase. Not too shabby.
According to the company's founder and CEO, David Cantu, "EBay is too big... this was bound to happen..." But how has the increased site traffic translated into members? The site has gained 100 newly registered members so far. OK, I know what you are thinking, 100 new members doesn't sound like such a big change. Fair enough, but consider that in the previous 10 months that the site has been up and running it had gained a total of 700 members, so this week has seen over a 14% jump in members. Yes, that is a material increase for the site to say the least.
Enough about CozyBug, let's take a look at the next company, MommyAuctions.com. The eBay strike has boosted the number of items listed for sale on the site from 2,500 to 4,000 this week alone. As far as traffic, the site has seen an increase from 3,630 average visitors in January to a current average of 4,650, a 28% increase.
The real question is, what is going to happen next week? Will eBay users go back to what they know best, or can we expect to see some of these migrating sellers staying away from eBay permanently?
If you are an eBay seller that is currently involved in this week's boycott, I would love to hear your thoughts on this matter. Are you basically planning to just boycott the site this week, and return to business as usual next Monday? What options have you been exploring this week for the selling of your goods, or have you basically just taken the week off and not selling on other sites?
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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Reader Comments (Page 3 of 3)
3-02-2008 @ 1:45AM
chachacha said...
you're an idiot and your idiot web site crashed my browser--get some help with your site and your grammar, fool.
2-25-2008 @ 8:31PM
nooloo said...
I am a powerseller for 3 years and the last year when they first came out with the DSR's I was very opposed to it, I fill out ebays questionnaires thinking I have a say, lol..what a joke, I got over it, but I believe it was a mistake then and even more so now,
the DSR's are put completely on sellers, and just the statements they stand for bugged me, put the item description on me, put the sellers communication on me, but shipping time I was never TOTALLY responsible for that! thats part of the postal units RESPONSIBILITY, the price for shipping, again part of the postal responsibility heck that's going to increase again in April, buyers don't know this, so they will go ahead and leave low dsrs, most dsrs are already lacking in shipping time and shipping fees, so Its not even fair to build anything on top of that, So to make it short, they are ADDING insult to injury, Now ebays feedback system has almost ALL to do with the Dsrs and nothing to do with positive feedback, ( as far as rewards) totally unfair practices, they tried to fix something that wasnt broke, and just making it unworkable, they should have been more concerned with the scammers, and the repeated reported listings, I sent them of honk kong, Thailand and other people calling fake gold real gold, scamming 1,000;s everyday!
I am also a trading assistant, thats going to kill that business as well, as its not worth my time to list, and I am not greedy and haven't increased my fees to my clients, as its their item, but I cant handle postal fee increases, paypal increases, ebay increases, and still keep everything up to make it work, I closed my store, and have been looking into other options, as I also want to ween myself off of ebay, its been "home for many of us, as we have all met GREAT people, and grew as beings, but now, this is like others have said a giant wal-mart, and no longer fun, so I think thats part of any reason sticks with the ebay sight, even lightly for now. When I see other posters say they started with ebay, and seen ebay loose their way that made them great, I see it too, His wife, has the emotions he said mr. Pierre (ebay owner) and he had the intellectual side, She must be hating this, I know I do. Google please open up a site for us:) So our buyers can find us:)
2-27-2008 @ 10:54AM
mike said...
all good things come to an end at some point in time. and it's time for ebay to go down. this past year i've spent a small fortune on ebay buying and selling. with paypal and ebay fees i think i just about gave everything away free. i've been a powerseller for 9 years and the fee increases steadily forced me out.
nobody cares about the little guys and not many people will see the outrage on these message boards. we need OPRAH - BILLY-O - FOX NEWS, MSNBC TO DO MAJOR STORIES ON THE EXTORTIONISTS THAT ARE EBAY AND PAYPAL CARTEL. instead of posting here send them emails!!!
2-27-2008 @ 12:16PM
mike said...
stockholders sell sell sell the only way ebay is ever going from here on out is down i guarantee it!!
something like this can't be reversed even if it's reversed.
2-28-2008 @ 2:19AM
Janet said...
I have had nothing but problems with ebay and paypal.
What's going on, this is the first I've heard of a boycott
2-28-2008 @ 10:46PM
Dave said...
As An eBayer Of Many Years!!..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!!
3-10-2008 @ 7:52PM
regan peppers said...
thank you ebay for not allowing people who collect bottles and cans to sell pepsi codes under pepsi bottle caps. collecting bottles and cans is lousy pay and the pepsi codes really adds to the pay.
3-12-2008 @ 1:20AM
Luis said...
I’m was also a starting seller on ebay I really can’t stand those high fees that’s really not for me since I’m just starting out … so why sell on ebay when there are so many websites that do the same thing eBay is doing ---- providing a place to sell your stuff online... For what I have been researching I found a couple of websites that we can all be using. I saw a site that caught my eye they have no listing fees no final value fees, so I figured why not join since I had nothing to lose, it is a new site but if it’s free I figure it will eventually catch on. For what I see they do get lots of hits. But still I think they should promote some more but for the meantime I will sell my stuff there since it is free… so far they are not bad….www.ldBidz.com
4-03-2008 @ 4:48PM
Joshua Edwards said...
Hey! If you hate Ebay, email me at mrauctionexper@yahoo.com, I'd love to hear more about your negative experience with them. I'm doing some research on Ebay's recent "changes" and how they effect you as a seller.