'How to Buy and Sell on eBay' hits CNBC -- another recession sign?

It should be clear, I am a wholesaler and not a good writer or a stock expert, but I have a first hand inside look having been a powerseller almost from e bay start, for over 10 years, 1.7 million per year sales and account for $156,000 paid to e bay per year for seller fees, this is the bases in which e bay shows profit or loss in a great way for there core business, this does not account for paypal fees charged, seller manager pro, e bay stores. Buyers and sellers are leaving e bay, this can be proved by http://www.sellerdome.com/
It is interesting how the 1500 employee lay off received so much attention, however, OVER 10% of total powersellers were laid off/suspended because of flawed aggressive policy poorly implemented has not had a placement. This is proved by http://blog.sellerdome.com/?p=16 between 15k-30K e bay powersellers who account for $3000-$20,000 in seller fees paid each month for each of those sellers. This seems a larger story than a simple layoff of e bay employees. Ebay saves money by laying off paid employees, but e bays profit takes a hit by getting rid of partners who contribute to e bay profit. For example: 20,000 powersellers/partners laid off/suspended that account for an average of $5,000 per month seller fees = $100,000,000 each month in seller fees not received by e bay. That is $1,200,000,000 per year in revenue given up for aggressively flawed policy by current management. The idea current ebay management had was by getting rid of 10% of its selling partners was going drive back 32% of its buyers, however, that has clearly not been the case, because the policy change was flawed and implemented with such aggression over a short period of time, 6 months total, 3 months aggressively. Ebay seems to have driven away buyers by this and the new search method that sellers or buyers don't like with no concern of management. The company has managed to drive its investors away in the same motion as stock prices show a drop since new management put in place 6 months ago, before market crash. Ebay management charged its sellers/partners for decline in its core business and seems not to have taken into account the increased competition of walmart, best buy, circuit city and many others putting marketing dollars into the online sector of business. Ebay pushing away its partners, sellers and buyers, is only going to make profit softer and push away investors. With 70% more competitors in the market e bay only dropped 30% seems a strong market hold for e bay and a reason to support its partners in a currently working policy rather than place blame partners and will prove to decline its future market share which is pointed out by many market analysis.

Ebay, through the wild west style new management, took a look at itself and realized it had a drop in the number of sellers buying on its site. It decided it was because of bad "buyer experience" and immediately, it seems without full thought of backfire, decided it was the sellers fault. In some cases, this may be true, but it is most likely because of the additions to online retailers such as walmart, bestbuy, circuit city and the lis t goes on that were not competitors before and had not sunk the marketing dollars into the Internet sector of there business plan before. The more big sellers the less customers for ebay. It is widely known that e bay has blamed sellers rather than external forces for the slow in sales. Instead of working within the community, that once believed that people are basically good, took on a policy that made its community fell like criminals and strong feelings of dislike for the symbol that was once regarded. Ebay has aggressively pushed away its partners will prove to decline its future market share and a relationship that may go un repaired when new management is called upon.
Ebay has withstood the .com storm because of a superior system and its ability to hold steady to the working core business policy. Its customers fell that is no longer the case and many companies like bonanzle.com and OLA.COM (onlineauction.com) are rushing to try to meet seller and buyer demands that ebay seems unwilling to meet. Many small auction sites have tried to compete in the past but been successful in driving traffic. Now a once complacent audience of e bay buyers and sellers are seeing the changes and the likely hood they are being driven away through aggressive, unfair, flawed policy changes and are taking note to change to someone with the old values that made ebay a community that worked. You can see from the chart below the demand that is being driven to for example.
http://www.quantcast.com/bonanzle.com
This is a small amount of buyers and sellers compared to e bay, but it does show a market who is hungry to meet the demand of current buyers and sellers, and what is maybe most important that buyers and sellers are finding the ability for change.

When e bay was a "venue", now it is felt by many of its sellers that it acts as an employer or landlord by design of new policy, it was profitable for sellers and a great value for buyers. Sellers drove traffic to the site because buyers knew they could get many of the items for a large percentage below retail, at or below wholesale. E bay is a follower now and is trying to make itself like Amazon and other .com retailers. Ebay sellers who use Amazon report little to no sales. E bay has a niche (wholesale products) and Amazon has a niche (books, CDs with unmatched distribution etc) and both worked independently of each other, this is why Ebay sellers are not successful on Amazon and Amazon sellers are not successful using ebay. New ebay management has had a hard time realizing Amazon is a different market plan. Many e bay sellers are leaving to do Amazon but it is feared this will not prove successful for them. The e bay system worked and most were satisfied, buyers and sellers could realize other bad buyers or sellers.
Buyers and sellers are not happy anymore and the numbers will continue to show as long as this management stays. Economy will play a roll, that is why ebay can't afford to gamble with management that has proven to drive its partners, sellers and buyers, away. The company is large enough it will be around for a long time, maybe not in the online auction sector effectively as it was before, but it is still a mystery to many who use or used to use the site why this management has been allowed to make this aggressive of a change. If this is where they wanted to go, it would takes years to change a company this size effectively, it can't be done in 6 months times and certainty not given a slow in the economy.
Things are not happy under new management/John Donahoe management has made no one happy, sellers or buyers or its investors. It has been a 6 month meltdown since new management fumbled a working system.
I talked to the owner of onlineauction.com 1-800-900-2828, Rowen Grisham, a previous e bay powerseller who seen improper change coming long before many sellers and buyers realized. He said he had seen a flood of sellers and buyers calling to learn about the site in the last 4 months. Rowen Grishamw says they are about to roll out a goggle search program that will make it more visible. This is just one example of where e bay buyer and seller base is going. Grisham seems to want to supply its sellers and buyers with a fair service, as when the ebay site was born and acted as a venue rather than an employer. Small companies that are hungry and taking advantage of a situation where ebay is not satisfying its demand.
Anyone considering investing or putting time into future sales may want to take a look at the aggressive, flawed policy’s they have put in place, there are little to no direct policy as there has been. Sellers, buyers and investors wouldn't be leaving if there was any good reason to stay.
E bay has done a poor job or emplaning the new changes to its buyers, sellers only after a few months of effect, some loosing there e bay business because of improper, unmonitored data, is still learning and it seems no one knows the answers even at the top account managers level. Its buyers do not realize that the DSR DETAILED SELLER RATING, the 5 stars under the feedback rating is not based on a 100 point scale like every other system in the free world. For example, from 1 to 5, 1 is poor, 3 is average and 5 is excellent. With e bay, 4,5 is average and 5 is good, I am glad they didn't have my math teachers in Collage. So many times buyers rate a 3 when they don't realize they are giving the seller a unacceptable rating that could potentially suspend his/her account from e bay as so many has been suspended in the last 3 months because of improper data that has been now used as the bible of e bay to rate seller performance. It should also be noted that a flaw in the data of the 5 star DSR is that if a customer is happy, they fell that leaving positive feedback served its purpose and they have caused a positive vote to the seller, e bay has not educated the buyer, so they do not leave a star rating at all, and are not required to and a large % do not, but leave a positive feedback as it is not required. But the buyer who is mad and is leaving hasty feedback will be more than motivated to leave a 1 or 2 for all stars. For this reason, good sellers offering great service and products are being suspended from e bay by record numbers, this cuts the life cord of the seller as well as core business at e bay and the reason buyers come to the site and investors invest in the company.

Ebay may have ruined their market flair for both buyers and sellers forever. Too many restricting rule changes, increased charges, paypal demands, seller ratings. This has ultimately destroyed their bottom line.
Don't think eBay and its payment system engage in unfair, at the very least unethical or even illegal business practices? Retailers are asking for congress to crack down on organized computer crimes, but eBay, said "they would be unfairly targeted in the proposed legislation" Read article from link below:

http://news.moneycentral.msn.com/ticker/article.aspx?Feed=3 DAP&Date=20080922&ID=9174700&Symbol=EBAY
http://www.ronpaulwarroom.com/?p=1751

Many sellers, buyers and investors alike have a dedicated special interest and hope they turn themselves around, but it is going to take some quick and correct policy change back to the system that worked to undo what has been done in what would be considered by many as well as a powerseller account manager in a telephone conversation said that this is "the most aggressive change e bay has ever done" it is costing sellers there business and driving buyers away from the site. The Best Match search is fatally flawed and $0.35 listings are not going to fix that.

Sellers of the unique items that made eBay famous (and who paid listing fees) are leaving in droves, while eBay brokers deals with corporate sellers of new stuff you can get anywhere who don't pay listing fees deteriorate the profits. And their buyers are following them. Watch the Q4 and Q1 figures. A company of this size can keep up appearances for some time, but its customers, its customers customers, that is sellers and buyers, are speaking up and cannot be ignored in the long term, the leader of these policy's are and continue to drive away the core business of e bay and investors are taking notice.

E bay bought Bill Me Later, I would have been surprised just 6 months ago, but I am unhappy to report that I am not at this time, the reason is this management has taken down the tread that holds e bay together as can be seen by its buyers and sellers everywhere complaining about the flawed aggressive policies that have taken place over the last few months, maybe you have heard some of them or are one of them. Every comment citing that the previous system was not broken. E bay has had community and trust, this 13 year trust has been violated and has failed both sellers and buyers in just a few months of unfair, faulty policy change that has taken a ship this size and turned it so fast that it is out of control and is facing a challenge to bring the ship back to course as it was before in the core business, although still ignored by management at this time, this is just in the core business, this shows the danger of a lateral move like credit right now. Take into account there could't be worse timing as the world economy will not view this favorably given recent events. This policy change was over a short aggressive period, but the negative impact will make it difficult to navigate back in position, if this venture is not successful, it will be even worse for ebay, its investors, and20the management that follows. The core business has taken a great hit world wide, now it is committed to a market that is new. A new market during the time when its core business is in jeopardy due to flawed policy and a slowed economy with management proven only to drive away customers. This will prove a challenge that may take years to repair relationships of its sellers and buyers when it has been realized by investors concerned on top of unpopular credit service. Migration back to the system with effective proven 12-15 record, built by previous management over 12-15 years, seems to be the only way to save the future profits and stability the company once enjoyed.

So, e bay wants its investors to trust it in a huge risk buy, when the investors are clearly concerned and most can see that e bay can not run its core business in a way that is satisfying to its customers, causing them to leave, look for other suppliers that will eventually be able to meet demands of the once complacent sellers and buyers. Sorry, it would be hard for anyone with basic knowledge of the problems with recent policy of the core business to buy this, having been a seller and buyer for 10 years, it makes it even harder to buy. I can say, I am happy to report my family, who bought stock when they=2 0seen my success on e bay, sold there stock when I explained the new managements flawed, unfair, and aggressive policy handed down. The stock has followed since this and many are betting with there dollars fell it will continue to fall. Maybe Jim Cramer, hyper as he is, has a point when he said he could not get behind the company, and that someone should buy the company "and put them out of their misery." It is hard to argue with him, stock sold back in march, when these policies were being talked about, not yet implemented agressively, sold ebay seems to be the smart move. Stock was $30-$32 per share at that time, March 2008, it dropped every since as can be tracked from any stock quote chart. Yes, the economy took the abrupt hit, stock price had already plummeted by 1/3, $19-$22 per share, before it happened that our country was in trouble from bad credit/debt. Some say they wouldn't want to touch this a credit market at this time. I would also not want to answer to shareholders when they learn what long time sellers and buyers have seen in the past few months. Good thing for golden parachutes I guess, maybe that will soften the fall?
I think this report on NYtimes has some good in site of the problems facing the company with the current buy:
http://bits.blogs.nytimes.com/2008/10/06/ebay-plays-warren-buffett-buys-online-lender/#comment-55807


Maybe enough people will sign to make it worthwhile?
http://www.petitiononline.com/jdonohoe/petition.html

http://www.petitiononline.com/jdonohoe/petition.html

tim, why did you have to make your comment so long?

I'll make mine a lot shorter. Ebay pushed a LOT of sellers out of the nest. I'm a perfect example. I have a 10 year 100 percent reputation of over 3,000 feedbacks - never had a negative and I have DSR's of 5.0 across the board. Still, Ebay saw fit to lower my standing in the listings - I'm buried if I list there! Why? Ebay's excuse is that I didn't have enough feedbacks within a 30 day period! Didn't matter that I had almost 300 for the year! So, for whatever crazy reason Donahoe has he is slowly ridding the site of sellers. He wants only sellers who sell large quantities. I'm a painter and make everything I list - I'm not an assemblyline worker. Far as I know, none of the artists are - yet we have to fit in Donahoe's stupid best match search. What a disservice that is not only to Ebay in lost sales but in buyers in lost items that they just won't get to see! Usher Lieberman said Ebay loves small sellers of unique and collectible items. That's a bald faced lie!

All the comments are an interesting read about E-Bay, although Tim's is quite long; but nevertheless informative. I read too that E-Bay is rating their subscribers on the basis of DSR ratings and have aggressively taken steps to de-list those who fell below 4.5 or whatever it was. In truth, this is all Greek to me, but nevertheless edifying.

Time To Go Donahoe!!!

Search the internet for:

"Ebay Stockholders and Sellers Calling For Immediate Termination of John Donohoe CEO"

(at petitiononline.com) to read the comments from other ebay/Paypal users and to SIGNTHE PETITION.

Please share this information with others!

I second Patricia's post. I too am a 100% feedback seller. I hadn't listed on ebay for a couple of months (increasingly fed up with the ad hoc changes ) Anyway I decided to list again. After Ebay had taken my listing fee my visibility was lowered - with a rather sniffy missive of what I should do to raise my standard of my behaviour!

Soon as my listings ended my standing was returned to good! Lowered visibility meant no visitors and only one purchase from listings of 10 and that at the opening auction bid.

I paid for something i.e visibility, and did not receive it. Mr Donahoe's Ebay is not the place for honest people to come together.

Tim

You need to stop referring to yourself or any other person who sells on the eBay marketplace as eBay's sellers or their partner. You are neither and never have been you are and always have been eBay's customer! You are not employed by eBay and they don't match the pot in either investment or effort in the success of your company. You purchase a service and some cyberspace to sell your products, and these days they provide a piss poor service with piss poor programming along with their piss poor customer service.

Also, eBay does not have buyers of merchandise - eBay does not sell merchandise, eBay does not carry inventory, eBay does not package, ship, list, communicate, or any of the other tasks involved in selling merchandise.

eBay has been taken hostage by a psychopath people trying to sell their products within the eBay marketplace may as well save themselves the time and trouble in listing and just send money to eBay for the hell of it, because those who come to eBay can't find you in a search or are led away from the marketplace by way of a ppc ad.

eBay is dead and CEO John Donahoe killed the eBay brand in spirit and has taken the marketplace down.

John Donahoe is no one's friend, partner, or service provider he is simply a very very disturbed demented man who has cast merciless, reckless, and unconscionable policies that actually have caused many of eBay's customers to contemplate suicide.

Please hear this

John Donahoe's policies have resulted in eBay customers feeling so hopeless that they have or are considering suicide. John Donahoe is on the brink of taking lives - yes he could very easily be the direct cause for people to kill themselves. Or maybe he already has caused death, but none of us no yet. He is a sick, demented, vile, and demonic individual that really should be locked up in an asylum to the day he dies.

I'm sure that ebay will be going down in price to $5 a share by the time we elect a new Pres. I am also reasonably sure that Mr Donahoe will be gone by next summer.
The core will eventually be restored, but it will never be the same. Yes, the ebay site is now polluted with the likes of a greedy corporate egotist exec, who has no idea what he is doing.
The sellers are finding new ways to make money, and they have been as resourceful now as they were when they sold well on ebay. The successful sellers really don't need ebay. They can still do well if they work hard and use the tools that so many other auction sellers are now using.
There will be a new site developing and is worthy of taking the entire collectibles and antiques market away from ebay. The new owner is also a powerseller on ebay, as well as a CEO himself that rescued a number of failing companies. He's a real maverick, and it won't be long when we will all be able to find a place to be auction sellers with high visibility again.
Too bad for ebay..it will be too late for them...

To make up for slower growth in auctions, which comprise the bulk of its business, they have lowered listing fees and issued coupons to lure buyers who have settled to competitors like Amazon and Craigslist.

BTW, I found this survey about the current economic downturn and I think it’s helpful to get involved.
http://spreadsheets.google.com/viewform?key=p-XlwgJysoV-gV-D6-1d_XQ
Thanks!

Well Folks,
Here's to a Prosperous 2009.
Disconnected from Paypal in Time.
My Business Ebay Snuffed
'Cause they thought it wasn't Big Enough
Now I'm on the Unemployment Line.
BUT WAIT !
What's that Noise I Hear ?
The Answer to ALL our Fears
Well Wouldn't You Know,
The Board of Directors
with it's Statistics and Vectors
Will Finally Remove DONAHOE.
AMEN

Some great comments here. I was a PowerSeller several years back and have gradually disengaged myself as it became clear that eBay was skewed to the buyer at the extreme expense of the seller. I signed the petition for the removal of Donahoe, but , frankly, I think that Meg Whitman contributed mightily to eBay's downfall. This company could have gone from good to great over the years - instead they chose to dwell on a very short-term "squeeze every last cent of profit out now and to hell with the future" strategy ... that same strategy that has taken down a number of American businesses.

It's not called GreedBay for nothing.

I hope so, O.C.D.Collectibles ... I hope so ...

"There will be a new site developing and is worthy of taking the entire collectibles and antiques market away from ebay. The new owner is also a powerseller on ebay, as well as a CEO himself that rescued a number of failing companies. He's a real maverick, and it won't be long when we will all be able to find a place to be auction sellers with high visibility again."

I too have been selling on Ebay for older people who are in need of a few extra dollars, since living cost have gone up and they are strapped for money.

Ebay is no longer helpful to them, due to the increase in all the fees.
a fee to list,
a fee to sell
a fee to paypal so winnner can use credit cards.
by the time the fees are done, the return is has been reduced by almost 25%.
Ebay has become greedy, and money driven.
They neither care about the sellers or having a community, only $$$$$

Training classes on how to scalp an auction is taught by Ebay to new bidders.

Ebay then has advised sellers to list items low.

The results no bidding just wait and bid at the last min, the clock runs out, and no one else can make a bid.
The Seller is the looser.

New members to Ebay, expect to get brand new items and when they receive your old neighbors tin cookie cutters, with a dent in the handle, (of course they did not fully read the information) the bidder becomes upset and gives the seller negative or a 3 on the star scale.

The feedback rating is skewed and this lowers or ends the sellers business

Four negatives out of six hundred sales, in one year will take you off the search engine.

In the beginning Ebay was a community with fair minded folks who knew that Ebay was a means to an end and were happy to pay for listing.

Ebay knew they were only a vehicle to provide a service.

Bidders usually knew they would be winning something that they had been looking for, for many years, or something they needed and had not been able to find.

What does everyone know today?

Ebay is not fun any more.
Ebay is glutted with junk, like the dollar store
Ebay is no longer inviting

Please do read the sited information above.

I think this report on NYtimes has some good in site of the problems facing the company with the current buy:
http://bits.blogs.nytimes.com/2008/10/06/ebay-plays-warren-buffett-buys-online-lender/#comment-55807


Maybe enough people will sign to make it worthwhile?
http://www.petitiononline.com/jdonohoe/petition.html