The uprising against eBay (NASDAQ: EBAY) by its sellers is now scheduled to last an entire week from February 19 to February 25. According to CNNMoney, "Sellers say eBay's new policies are likely to cost them more money, but what's really inspired an outpouring of wrath is an adjustment to eBay's feedback system: sellers will no longer be able to leave negative commentary about their buyers."

Under the new system, egregiously bad behavior by buyers will not be shown to other customers coming to the auction site.

The action does not come at a particularly good time for the big online auction company. Its shares have fallen from a 52-week high of $40.73 to under $28, fairly near their period low. Investors do not need another reason to be tempted to sell the stock.

Why management made the move is still something of a mystery. Obviously the company believes that over time it will make more money with the new system, but the bad PR and loss of some business from sellers may offset that.

A company that is already in the dog house with Wall Street would be better off waiting for good news and a recovery in its shares before making a move that risks harming its top line.

Douglas A. McIntyre is an editor at 247wallst.com.

Oh no, here we go again. Melly covered the recent news from this morning about eBay Inc.'s (NASDAQ:EBAY) new fee increases, but I had to chime in with a perspective since the last time this happened, some eBay sellers seemed to go off the deep end.

Bill Cobb, President of eBay, has just sent out a mass email to eBay sellers with the information that more fee increases are coming. The last time this happened at the end of the summer in 2006, Sheldon Liber and I had quite a time with posts about eBay and some of the most salient reader comments I've yet seen came in about the various posts.

Well, here are now, with yet another set of fees about to hit eBay sellers at the end of January (details here). Will this cause another complete and utter outpouring of madness, disgust, and 'seller revolt' like what appeared to happen the last time around?

While that is not clear, expect the blogosphere, message boards, and just about every other interactive medium on the 'net to light up this week regarding the new fee increases. When is enough enough? I am not sure how to answer that, but the brand power eBay has apparently has given the company the confidence to know it can jack up fees regularly and still say in business quite well. That is, unless, sellers revolt -- and strongly.

Sheldon Liber with BloggingStocks has written with great precision over the last few weeks on the situation eBay has with its recent raising of fees for sellers along with all the standard backlash that comes along when eBay increases its fees. But this time, something was different.

I agree with Sheldon that the most intelligent, well-versed comments we've seen in quite some time came from eBay sellers who formed cohesive and logical thoughts and responses to recent eBay posts. In fact, Meg Whitman and other eBay execs should be listening to their customers more often., or they'll find themselves being figuratively fired in the middle of the town square. They appear to know what is needed to survive as a seller on eBay more than the company itself.

In this article from theinquirer.net, the recent eBay fee increase may be leading to a slow but sure death of eBay, the world's largest online auction sire. For a company that recently made the best profits in its history (PDF link) in the first quarter of the year, that's quite a statement, let alone a prediction of doom.

But with fees everywhere from the initiation and completion of listed auctions to all the fees for the PayPal payment service, listing an auction and completing an eBay transaction has gotten quite costly lately. eBay's refusal to let Google's Checkout payment service be used at the auction site just fans the flames of unfair competition in the guise of "consumer safety" nonsense.

As an EBAY investor, what do you think of all the different fees that the eBay/PayPal system of selling presents and demands to sellers? Could this cause an exodus of sellers from eBay to, well, some other alternative (if there is one)? If so, sellers will take their fees with them and eBay will be left with less and less seller revenue -- a huge problem that it faces if it continues to alienate some of its core base of sellers.

Yesterday's heartfelt comments from readers to my post, "eBay's message to sellers: Grow or die!" were incredible. I was amazed at the quantity I received (and continue to receive). Even more impressive was the quality of the responses. No peasants here.

MEG, ARE YOU LISTENING?

The thoughtfulness, understanding of the issues and real concern from knowledgeable people went way beyond the usual whining that I see from some quarters. Many people even made good suggestions on how eBay could accomplish its financial goals and still accommodate the disenfranchised sellers.

Another thing that surprised me was that ALL of the comments were similar in their disdain for eBay. Not one person, seller or shareholder (of course nothing from eBay) supported eBay's rate increases, business strategy, or future as a company. I found that bewildering, but perhaps this post will give any supporters another chance to express their views.

Points of consensus:

• EBay does not care to directly address the concerns of many of their sellers. They treat this subject like so many others where they choose to "play innocent bystander" like they were not involved. I do not know why eBay chooses not to be more accommodating and pretend all is well. Pretending is not usually a good thing.
• There is real market pressure for an alternative to eBay so Google or any other entity that can gain traction in this space will be gloriously welcomed. To date this has not happened and there are only meager signs, at the fringe, that might be chipping away. Despite portrayals of seller options, nothing I read was convincing.
• I noted that; "if they raise rates for sellers by any percentage you choose, say 25% then they will make more money as long as something less than 25% of the sellers don't run off to do something else." This most certainly is the way eBay looks at it and, given that the facts will speak for themselves in the marketplace, eBay to date has calculated correctly -- BUT ONLY FOR NOW. Strange as it seems eBay could lose a high percentage of sellers and be fine. WHY shouldn't they do this?
• EBay is perceived as a monopoly and if it is not thwarted in the marketplace there could come a day (under a different Federal administration) when it comes under closer scrutiny. They are not Baseball, they have no exemption.