Last week I wrote a couple pieces on the current seller strike over at e-commerce giant eBay (NASDAQ: EBAY). The strike was supposed to last until today, but now it has been extended another week. Initial data is showing that the current eBay strike has lowered the items listed for sale on the site by an impressive 13%, so you can be sure that eBay is paying attention.As most of you are already aware, the current strike is the result of frustrations by eBay users over a couple new changes that the site has introduced. While the site lowered its initial listing fees for items, it raised its completion fees. This has been seen by power sellers as a direct attack on the more successful eBay sellers. In addition, eBay has decided to keep sellers from leaving negative feedback on buyers, a move that has infuriated sellers who claim that feedback is their best defense in avoiding dead-beat bidders. The final straw came in the decision to hold certain PayPal payments for up to 21 days.
The strike, which started last week, has had a couple of impacts on the e-commerce world. One result that I examined last week, was the increase in traffic and users to some smaller e-commerce sites that historically have had a hard time breaking into some of eBay coveted traffic. Now we are starting to see just how hard the strike has been hitting eBay itself. According to reports, the site has seen a 13% drop in its auction listings.
Data that has been compiled by medved.net and dealscart.com indicate that there are now "only" 13 million items available on the site. eBay users have started to smell the blood in the water apparently and have decided to extend the current strike in hopes eBay will start to give in to some of their demands. After what they considered to be an effective first week, sellers are now extending the strike by one more week, stretching it out until March 3.
We had some great reader feedback on our posts last week over the current strike, and it seems like most of our BloggingStocks readers agree that the current changes eBay is imposing are unfair. Several of our readers are avid eBay users, and let us know that they had indeed joined in the sellers strike and were looking for new alternatives for their online auction business. I'm curious to hear if these eBay users will continue to boycott the site for another week, or slowly return to business as usual on the site. Let us know your intentions, and what alternatives to eBay you have found (if any).
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.











Reader Comments (Page 1 of 3)
2-25-2008 @ 12:41PM
Debi said...
I have opted to BOYCOTT EBAY FOREVER!! They didn't even respond to the sellers during this boycott except for calling us "noise"...
The increased fees, then feedback issues, and the continual lies will be the fall of Ebay...
Thankyou for reporting on this very volitile issue...
They have padded their listings, allowed schill bidding to promote better sales, and then the 3 mill record deal that didn't pan out, which cost the seller plenty because ebay allows deadbeat bidders and then has the seller pay the fees...
Notice, they didn't jump to the news to tell everyone that it was a deadbeat bidder...
The whole thing sounded a little fishy to me... They were trying to build back their image which totally backfired...
NO, this BOYCOTT is far from over!!
2-26-2008 @ 1:10AM
vstar-heaven said...
Hello...I am a Silver Power Seller...Ive been on with the strike from the 1st week...One of the 1st to be sanctioned from the Ebay Disscussion Boards for trying to get the word out and promoting my Fiancees' 2 Ebay Strike YouTube videos...
Ebay execs think we are just a bunch of Noise??? They will see as their listings continue to fall, as well as the stock price...I know it has risen just a tad bit in the last few days, but I am confident it will go into a downward spiral!!! The word is spreading fast...And they know it!!! Its all over the blogs and forums and local and national news!!! Ebay, as I have said many times...the many little tiny raindrops by themselves dont add up to much, but when they all start to gather together, they can turn into a FLOOD!!!
I WILL CONTINUE TO BOYCOTT FOR AS LONG AS IT TAKES FOR FEEBAY TO WAKE UP AND SEE THE WHOLE PICTURE...THIS WILL COST YOU EBAY!!! SELLERS ARE MORE THAN JUST SELLERS...WE ARE ALSO JUST AS MANY BUYERS, TOO, THAT YOU WILL LOSE EVENTUALLY...
WE NEED A GOOGLEBAY!!
OH, I FORGOT, EBAY OWNS THE LETTER "e" IN EBAY IF IT COMES BEFORE THE WORD "bay"....
2-25-2008 @ 1:00PM
karin R said...
I will continue the boycott of ebay until March 3rd 2008 and beyond unless something drastic changes at the site. I was primarially a buyer and occassional seller on ebay with 100%+ feedback as both. I have relocated all the items that I intended to list on ebay this coming spring to ecrater.com. I am still in the process of stocking my (FREE) store with items (it should end up being almost 1000 items when I am done.) These are all items ebay is losing money on, because not only do they get no listing fee, no final valuation fee and no paypal fees off the items I am selling, they are also losing my business as an addicted buyer, and that was mostly what I did! Oh well, ebay's loss is my gain. I have found a site that appreciates my business, treats me well, unlike ebay and has no FEES to list or sell or to set up a store unless you want premium advertising. So LONG Ebay! Hello Ecrater.com :)
2-25-2008 @ 1:15PM
Jennifer Knight said...
I would give at least a nickle to hear what the REAL overall loss has been to Ebay~the loss of listing fees, my store is closed now so that's another $20.00 X how big is your store? and all the final value fees they are losing? One can only imagine the monetary loss they are having at this time-well, more to the point. I will never go back-hard feelings are hard to overcome!
2-25-2008 @ 1:45PM
Beth said...
I wish I had seen this sooner - I just listed a few things on the site! I'll gladly not list anything else though, and participate in the boycott that way.
I really believe the sellers DO have more power this time around. Last big boycott in 2006, the alternate sites were still in the beginning stages, hadn't found their niche, and were still works in progress (no matter how long they'd been there!).
This time around, there are plenty of other very viable venues who actually appreciate your business, and want you there! Image that.
While the eCrater stores are free, you can't do any customization of listings, so it vanilla works for you, this is a good alternative. If you need some color and pizazz though, then I hope you'll consider Wagglepop.
The much-maligned site has grown in leaps and bounds, and has gone to an all-stores format. Yup - it is only for store owners. There is a flat monthly fee for unlimited listings - no nickle and diming you to pieces for each listing.
I hope that many sellers will at least check out Wagglepop. There are many opportunities for sellers to be the only one in their category, or offer some competition to the old timers! ; )
Thanks for letting us know about the extended boycott....
2-25-2008 @ 1:49PM
wildwoods said...
After buying and selling on Ebay and using Paypal for over 7 years, I've finally grew up. My boycott will last the rest of my natural lifetime and I will not go back to selling or buying on Ebay, or using their Paypal site either.
You would think that we lived in a communist country and had no say over what these businesses due to disrupt our lives. We are not million dollar businesses - we are small business owners and internet sales associates who know when it's time to move on.
Tell us we have no voice and we'll just get louder!
Noise? It's going to get pretty quiet in the hall's of Ebay after the new rules take place in May.
2-25-2008 @ 1:50PM
Becky said...
I depend on the meager income I make from my ebay store but I am now interested in diversifying and maybe ending some categories of items entirely from my ebay store. I'm happy with free gallery and reduced listing fees, unhappy with not being able to give deadbeats a negative after making all efforts to get paid, unhppy with ebay's pressure to get me to ship for free when I make so little per item anyway (most things I sell are $9.95 each) and unhappy with how they are punishing us with holding paypal payments for 21 days if we are dinged with a negative by a bad buyer or new sellers who have under 100 feedbacks. I do understand the need to get rid of crooked sellers. I don't understand how much they seem to despise us, their faithful worker bees with 100% positive feeback (I have over 1030 now). I have worked hard for the pittance I make and i feel that the message to me an other small sellers is that we should just go away. WE ARE THE PEOPLE WHO PAY EBAY LOTS OF MONEY!! WE ARE THEIR CUSTOMERS!! I pay Ebay $250 - $350 in monthly fees per month and have had months where I sold about $400 gross. Why is it so hard to communicate with the powerful people there? They need to have open ears and open hearts and they don't. When I get my bill it is too complicated for me to see if Igot a refund for the listing fee when an item sold to a deadbeat buyer and i went through the unpaid item dispute process to get my final value fee back. Someone posted here that they do not give those backt to us but they told me I was getting it credited back to me. Do you mean to tell me they are liars and thieves just like the people they are trying to drive out of eBay? I'd like to know more about this. I have over 2000 listings in my store so the monthly invoice is about a ream of paper if I print it out and i just don't go through it. I'll admit, boring, tedious activites make me want to jump off a bridge so I don't look through it. I'm interested in improving how ebay treats us not killing it. How can we change this corporate giant without starving ourselves and cutting off our own noses to spite our faces. I'm not currently buying and i have allowed my auction/buy it nows to end without relisting but my store is alive and I'm not interested in shutting it down. Blessings on all those who suffer at the hands of greedy corporate monsters, Becky
2-25-2008 @ 1:50PM
Cmccune04 said...
Grievences:
1. FINAL VALUE FEES increases up to 66%
2. FEEDBACK POLICY changes allow seller to be held hostage and extorted.
3. RATING SYSTEM allows for unfair listing rankings.
4. Paypal Reserves the right to hold payments for 21 days against sellers will.
5. "LEVEL PLAYING FIELD" of ebay will allow discounts up to 15% for only a select top powersellers.
EBAY'S ESTIMATED FEES 30% TO NOW 66% OF SUCCESFUL AUCTION PROFIT
SOOOO, WHERE DOES THIS LEAVE SELLERS PROFIT AFTER PURCHASING PRODUCTS?
2-25-2008 @ 1:50PM
Julie said...
I am an eBay power seller that has taken part in the boycot this week. I have moved all my items to eCrater and OnlineAuctions (OLA). I will list a few things at eBay, but will probably pull totally out, especially as buyers learn we (former sellers) are at the new sites.
These new places are treating the eBay refugees with so much courtesy and respect. I am really wondering why a seller would stay at eBay, which treats the sellers with contempt, lies, and disdain (eBay said the boycot did not have any impact, that is totally untrue). As I said, I am going to have a few items there, to give eBay a few more days to admit that it made a very bad decision and fix it. If they don't, well, I will be gone...and my $350-$500 dollars in fees each month.
2-25-2008 @ 1:59PM
Becky said...
Is ecrater a good place to sell? The stores are free but is it user friendly? and what about accepting credit card payments? What alternatives are there to paypal? and what do they charge? I'd like to hear from some ebay refugees that are learning the ropes of life ouside of ebay.
2-25-2008 @ 8:34PM
Dan said...
Becky, you asked if eCrater is a good place to sell? The Community forum is open so you can read the posts without signing up. I did and liked what I saw, so much in fact I just moved my whole ebay store there. As in most software, there is a small learning curve, but it was easy to learn. The few times I got stumped and had to post a question in the forum, I had the problem figured out before I got my answer. There are plenty of great people there that are patient and will help you get your store opened up. As far as payment, you can choose to use Google checkout which is integrated into the stores if you choose to accept it, you can also accept PayPal, cash, check or money order. The stores are absolutely free! No fee for the store, no listing fees, no selling fees, no charges whatsoever. I'm not sure how they make their money, but I'm thinking they may have a partnership with Google?? Pure speculation though. I do know I like it there and will be emailing my old ebay customers and sending them there along with promoting my store in other ways.
I also opened a store and listed on iOffer.com, another very friendly place where the store is free, it's free to list, and the selling fee is only 5%! They are #2 on the auction list at http://www.powersellersunite.com/auctionsitewatch.php
Good luck
2-25-2008 @ 2:31PM
West Coast Distributors said...
I am a ebay powerseller that started in 2005 and since then I have received nothing but harrasment for bad buyers and ebay restricting me. I have over 1000 transactions with 1 negative feedback on record from a non-paying disgruntled bidder that ended up having me restricted by ebay from selling for one month. I decided after Christmas to boycott ebay and turn my attention to www.buyitsellit.com which is free and the best estore out there. I tried my own paying website but didnt like all the upgrad fees. Thank You
2-25-2008 @ 2:33PM
Don said...
Called the sellers "NOISE". This sums up ebay's attitude towards the people who bring them the $$$.
2-25-2008 @ 3:09PM
C said...
I too will hop on the E-train to boycott. Like many others, Ebay will not be getting my $300-$400 monthly fees.
I will be moving my store to:
http://www.buyitsellit.com. (owned by Inkfrog). They are FREE!! Plenty of nice basic store fronts to choose from! They will allow you to customize your store for a small fee. I can't wait to get things up and running
The whole "feedback" issue really get my blood boiling. What's "fair" about only being allowed to only leave postive for a buyer? I've been blessed wil only a handful of non-payers. But now Ebay is holding the door wide open for those who choose to be dishonest. What a headache that's going to be!
When will Ebay realize they ARE biting the hand that is feeding them????
Money! Money! Money! Greed! Greed! Greed! Making millions a year isn't enough? When is enough, enough?
As they say: "WHAT GOES AROUND, COMES AROUND" :)
2-25-2008 @ 3:25PM
C Cory said...
The Top 20 Richest Forbes 400 Immigrants
#4 Pierre M. Omidyar
Country Of Birth: France
Years On List: 8
Peak Value: $10.4
Peak Year: 2004
The Forbes 400
#18 Pierre M Omidyar
Net Worth: $10.2 billion
Source: Technology, Ebay
Self made
Age: 38
Marital Status: Married, 2 children
Hometown: Henderson, NV
Education: Tufts University, Bachelor of Arts / Science
As the world wide web caught fire in the mid-1990s, a long-haired programmer named Pierre M. Omidyar fretted that big businesses would take over. "I wanted to give the power of the market back to individuals," he said. So he spent Labor Day weekend in 1995 furiously coding a bare-bones site he called Auction Web. Omidyar, still working full-time at onetime Silicon Valley star General Magic, sought to create a perfect online market -- one that would let real folks compete on a level playing field with the big boys.
What happened to that level playing field?
Henderson NV. suburb of Las Vegas?
Boycott on.
2-25-2008 @ 4:22PM
Sandy said...
Strike-Schmike! I quit! At this point there is absolutely nothing ebay can do to ever get my business again. I am an original ebay member, the seller/buyer who was a power seller, had a 99.98% feedback, DSR's in the 4.7-4.8 range, was honest and fair both as a seller and as a buyer. My buying dollars are never again going to fund ebay's corporate greed again, to the tune of a thousand dollars or more a month. I don't need ebay and ebay doesn't need me. I've taken my little $2000 a month hobby store elsewhere. Maybe the entire economy will implode, maybe I'll scrape by with only $1000 a month on my hobby sales, but I'll work a heck of alot less. I also used to help other people learn how to buy or sell safely on Ebay. I've been shutting them down via word-of-mouth for a few months now. I saw the writing on the wall when the DSR's first came out. Ebay forgot one very important sales rule. It is cheaper to keep a customer than to try to find a new one. They could have put in a system to prevent retaliatory feedback, they could have made their system post feedbacks received matched to feedbacks left with a big red flag to warn people of potential retaliatory feedback. They could have made their system easier to use, easier to understand, and harder for thieves to hack. And then they could have earned their increased fee legitimately instead of looking like hackers themselves!
2-25-2008 @ 5:16PM
swl said...
I have been selling and buying on Ebay for over 8 years. The fees and things were bad enough but this new feedback decision of Ebay Powers is more than I will tolerate. And especially with the condition of the also new policy to with hold Paypal funds for 21 days. Are they crazy? Don't they realize there are just as many unscrupulous buyers as there are seller. Right now the policy protects both. But the new change will only protect the buyers and allow the unscrupulous buyers to get away with our products with no adverse consequences and they will also keep our funds in Ebays purchased Paypal company. I am done with Ebay if they do this and I have already closed my store. Thanks Ebay...I send you thousands of dollars each year, but you will no longer be getting them.
2-25-2008 @ 5:27PM
CEP said...
I'll continue while using other sites. ebay/paypal should/will be sued over forced paypal and the 21 day hold without interest. Much has been posted around the web regarding the ebay boycott. The story many are missing is many sellers have also pulled all money from paypal and are no longer accepting it. The cash cow is now also feeling the pinch. 6-12 months from now ebay will be a shadow of it's former self. For many years I was sorry I passed on the IPO, now im glad I did. Even if they would have made me money I have principles, ebay has none other than bleed the users every year and give nothing in return. No customer service, buggy software. No end to all the problems they had this past with with new sear ches, problems with text bubbles blocking DSR's, and then we have that $3mill record collection bogus auction. Now how can it be a bad buyer when ebay announced it had the deposit required and checked the users account to make sure they could pay?????? Sounds real fishy to me, like a publicity stunt. listing specials in Canada and the US to coincide with the boycott, bringing in all the cars from GM, hundreds of test auctions by ebay employees, adding foreign ebay sites listings numbers to boost the graphs, after months of seeing no ebay tv adverts we see numerous ones all over the channels. Big bucks spent and no real rise in listings.How many stores have closed we wont know but it is many. ebays eating up that capitol. Yep, i'll continue untill I see a change in corporate attitude and a realization that SELLERS are eabys customers NOT THE BUYERS.
2-25-2008 @ 5:47PM
Becky said...
Yes, CEP, We the sellers are the customers. I'm so depressed right now. I've spent so many hours building up my ebay business and weathering the last horrible sale & high fees year plus the diaster of the post office restructuring their system and every listing (over 200) having to be individually ended and revised. I have ADHD. I just don't know what would be the best choice for me. Chaos breeds chaos. I work hard to keep on top of everything without suddenly having to start all over from scratch.
2-26-2008 @ 10:13AM
CEP said...
Becky, it will be slow going at first but you can look here for a new place to sell. Keep a few auctions on ebay and use them to direct traffic to your new home. Let ebay pay for your advertising while building a new place. Check the forums here
http://www.powersellersunite.com/