posted on February 24, 2008 05:32:21 AM new
We heard from lots of angry eBay sellers yesterday who passionately argued that the boycott --which began on Feb. 18 -- is delivering a serious blow to the online auction site.
Many commenters pointed to listings data from third-party sites that illustrate a significant decline in activity on eBay over the last four days. We've also heard a variety of arguments as to why listings aren't down more dramatically -- including several sellers' theory that listings are being artificially inflated by eBay with test bids. (An eBay spokesman refused to comment, calling the notion "absurd."
Still, it's not clear that a migration of sellers -- even if there are thousands of them -- will lead eBay to reverse the changes made to the fee structure and feedback system.
eBay is already anticipating a modest hit as a result of the changes -- management warned during last quarter's earnings conference call that it expects its margins -- as well as its take from transactions -- to drop as a result of the fee structure change.
"[We] believe the modest take rate reduction will more than pay for itself over time as we stimulate long-term growth in our marketplace," said CFO Bob Swan, during a conference call on Jan. 23.
And as the company grows its business in new directions -- and increases emphasis on fixed-price sales -- it's reasonable to assume that eBay made the conscious choice to scale back on the part of its business it couldn't control, especially since it hopes to replicate the level of customer service provided at Amazon.com.
"My [eBay] account manager told me to evaluate Amazon as an alternative," one seller told us a couple weeks ago.
posted on February 24, 2008 05:38:30 AM new
"My [eBay] account manager told me to evaluate Amazon as an alternative," one seller told us a couple weeks ago.
Whoa, as in 'don't let the screen door hit your backside on the way out'.
posted on February 24, 2008 09:20:40 AM new
There is no place on Amazon for ephemera really. If ebay is moving to a "fixed price Amazon model" could it have some niche areas that it would support?
Beth
posted on February 24, 2008 10:09:39 AM new
Ebay could possibly have "niche" areas for open auctions but I seriously believe that the "niche" areas would most likely be neglected and discouraged by ebay to their eventual demise.
Ebay is totally prepared for the auction sellers to depart. They most likely have figured this into their game plan and are willing to take the hit for the short term. I believe the change in fvf"s and the feedback change has been structured to do exactly that - drive the auction sellers out.
We, as auctions sellers, do not own ebay. Therefore we have no say in how the company should be run nor should we. We, as small business owners have the choice to either continue to hawk our wares on ebay under their sturcture or go somewhere else. Building your own website would be the optimal situation as quite a few people (myself included) are now doing. However, having your own website takes more time - more money and is a larger risk. On the other hand you have more control of the content and layout of your own site than you do with ebay.
Regardless of whether you build your own site or stay with ebay the auction style listing is becoming a thing of the past. Unless a biggie like Google comes up with a site that can give ebay a run for their money we will continue to see a decline in auctions style sites. It's called "change". Learn to adapt to the changing marketplace or get out of the selling venue altogether.
Continuous griping and attempting to hurt ebay will accomplish nothing other than giving everyone a venue to vent their anger. Venting is good but making a profit is better. Learn to adapt or move on!!!
posted on February 25, 2008 03:42:22 PM new
Cantwin
You make a lot of sense. I wish it was the 1960's POWER TO THE PEOPLE!!!!! We had more balls then we have in the present time. Everything is Sick and getting Sicker!!!!
posted on February 25, 2008 04:08:07 PM new
One thing you can bet on: this time next year, the kids at eBay will decide what people really want is auctions and drive the fees for stores back up.
