eBay Management and Sellers Need Relationship Advice 26 comments
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I'm a divorced dad, so I have some personal experience with what happens to a marriage that is failing. In my case, I tried to make the marriage work until we had a “Come to Jesus” moment when she said she didn't want to. I wasn't going to stay in a marriage that didn't work. Many of my friends, going through the same thing, have not left for various reasons (kids, financial, fear, etc.)
Why do I bring up divorce in a financial blog? Because, marital problems are exactly like what is happening between eBay (EBAY) management and eBay's sellers. They are in the middle of a bad marriage and looking at their options.
I'll try not to take the analogy too far, but somebody in the field of Psychology should do an in-depth research piece on this situation; the relationship between eBay and its seller community. The parallels to a bad marriage are as clear as a bell.
For many sellers, eBay was their first love, but they have taken so much crap, for so long they've lost any hope that the relationship can be saved.
- eBay brings in a counselor (Corporate Blogger) to improve communication and sellers just scoff at the idea.
- A great many eBay sellers stay on eBay because they have no other option, much like staying in a bad marriage because the fear of the unknown is greater than the pain of the marriage.
- A great number of sellers have families that depend on their eBay income, so they can't just walk away.
- Many eBay sellers have had affairs with other marketplaces (sorry I couldn't resist)
- The communication between sellers in non-existent and eBay management is oblivious to the pain sellers are feeling.
So what is the result? Sellers basically have heard "eBay Speak" for so long that they no longer believe anything that eBay says and are not likely to ever again.
In my marriage, when the problems started to become evident, my wife and I would have these deep discussions about every 3 months. I would say, "I'll change" (because of course it was all my fault) we would get through the pain of the moment and then three months later it would happen again. Soon I was calling these little get togethers "The Quarterlies". By the way, not a very good idea if you want to have peace in the household. I got tired of the complaints; she got tired of the lack of progress. We separated, got back together and then decided this wasn't going to work.
The relationship between eBay sellers and eBay management is very similar. When things were going great back in "the day", everyone was happy, but soon sellers began feeling neglected or talked down to. eBay management publicly state that sellers are important and they care about their businesses, yet their actions say something completely different and behind the scenes (around the water cooler) they say "all they ever do is complain, nothing I/we do is ever good enough for them."
Sellers on the other hand, look for fulfillment elsewhere, trying different marketplaces in the hopes that they can make one work, so they can leave eBay all together. They go on the discussion boards and bitch with their friends. They get advice from friends, who say, "why don't you just leave". They hold out hope that they can still save the relationship, yet they won't believe anything that eBay says.
So, eBay hires a "Corporate Blogger" (No Dr. Phil) who says all the right things:
RBH: My words go straight up onto the blog, unedited. It's got to be transparent.
There's got to be an authenticity to it, an honesty to it, otherwise there's no point in doing it in the first place. I'm going to open up my e-mail to questions from folks. People can comment, too, and comments are going to be open. You're going to get the good, the bad, and the ugly.
Yet he has no experience selling on eBay, so immediately his views mean nothing. eBay needs a marriage counselor that both sides can agree on. Someone who can tell sellers when they are out of line and someone who can hold management accountable, but you know that will never happen because this is business not a marriage.
eBay management would do themselves a big favor, if they looked in the mirror and said "this is much more than a business". They have to understand that eBay is everything to many of its sellers. Unfortunately, I fear that the damage has been done and nothing that eBay management can say will improve the situation.
You may think this analogy is a stretch, but if you look at the situation honestly you can see there is a lot of truth to what I'm saying.
eBay is much more than a business!
Just my 12%.
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This article has 26 comments:
The newest insult to the buyers will tip the scale even more , the only reason I , along with a large amount of other buyers and sellers are still there , Is to help those refugees who come to the boards and blogs seeking help and answers , and like any who have been stabbed in the back , lied to and insulted , we have earned a right to bitch as you put it , as you should well know , when the trust is gone , then It's over !
There are other sites out there with arm's wide open , we built ebay and we will build again , but this time , we will not put all of our eggs in one basket !!!
Let the buyer leave star ratings and/or old style feedback, but only once, then leave the rest of the feedback system alone EXCEPT:
Stick to the plan of removing neg/neutral when users are no longer registered, but make this retroactive and purge a ton of bad history.
The choice of buyer stars and/or old style feedback can let buyers feel more secure in voicing an effective opinion without fear of retaliation and the purging of non-registered's nasties lets buyers AND sellers rejoice when the truly bad apples are weeded out.
1 out of 5 buyers leaves feedback when a sellers leaves feedback 1st. 1 out of 2 leaves feedback when the seller waits. A seller should NEVER leave 1st feedback, for this and bigger reasons. My feedback will be back at 100% once the May rules kick in, and I will be making my feedback private to counter eBays buyer abuse invitation.
...and that's just my 12% :-)
Gary
Everything you have said is absolutely true-unfortunatley it falls upon deaf ears at Ebay headquarters.
Unfortunately all the threats of boycotting are starting to appear useless. I have not yet heard a single individual or group volunteer/offer to step forward and resolve this matter on behalf OF ALL THE SELLERS ON EBAY-by sitting down with the corporate heads or those so appointed.
Instead of The "blogger" Ebay plans to hire -why not get an arbitrator or mediator -unbiased for both Ebay sellers (ALL) and Ebay Inc. There has to be a meeting of the minds.
I have searched for other venues to sell my little trinkets and such-and find myself in such unfamiliar territory-that i lose alittle more hope each day. It's extremely depressing-and i know i speak on behalf of many ebay sellers. We are intimidated to sell for fear of retailiation by boycotters-and Ebay has 'rasied the bar' so high- it's unreachable and unrealistic.
There must be a compromise that works for all.
Very good article. Normally I would give it 4 of 5 stars. Most people would assume that it's a good rating. But if you're an eBay seller, 4 out of 5 is BAD, gets you kicked off of Power Seller status, you don't get 15% rebate, you don't even get 5% rebate. You are considered a BAD seller.
So, since I liked your article 4 out of 5, I will still give you a 5 Star rating because I think that you seem to get what's going on. Thanks for being one of the few media type that understand what eBay is and means to those who put so much into it.
Ken
eBay Power Seller / 2 Years (24/7/365)
I am tired of the constant fight. The one-sidedness of this relationship. Concerns falling on deaf ears.
So in keeping with the marriage analogy, it really is time to just shut-up, realize it's over, and file for divorce.
Ex-spouse is usually doing pretty well when the other spouse suddenly finds out that shiney new toy was not all it was cracked up to be.
I'll add this divorce analogy, relative to sellers who are either willingly or unwillingly getting a divorce from eBay:
For a typical post-divorce American middle class woman with several children, it is a hard statistical fact that the financial and social scene is usually very grim for a real long time for them. On the other hand, Dad goes out right away and gets an apartment, a new girlfriend, and is able to pay his bills on time and even take in dinner and movie now and then instead of a bucket of chicken (not possible without a coupon) and what's on the Disney Channel (cable, what's cable??).
So there's Mom now, carrying two jobs, unable to pay the bills, kids threatening to go live with Dad...he lets them text their friends all they want and doesn't care how many tattoos and piercings their friends have.
Meanwhile, Dad is saying nasty things about how horrible his former sweetheart was to him (you know, the one who gave up her career to work two jobs and put him through college). Let's just call that the unilaterally negative feedback that the kids are lapping up and using against Mom at every opportunity in order to get their way at home against their siblings and to squeeze more loot out of her at WalMart.
Dad doesn't want to pay child support, either, lest Mom is able to afford a new $2 tube of lipstick now and then as a result of getting a big 10% of his salary every month to help feed and clothe and pay for shelter and health and dental care and transportation and phones and computers for the kids. So Mom will have to take him to court a couple of times a year. He'll lie about his income and expenses, but we all know whom the judge will believe, so Mom will end up paying the legal fees again to get bupkiss.
Ebay has lied and cheated and stolen from Mom's pocketbook one too many times, so now Mom is leaving, taking the kids with her. But that's OK, Dad is in better shape than he was before and he the judge granted him joint custody of the kids. So what's all the shouting about, anyway? That's the way it goes in America.
gouchersway (3 ) View Listings | Report Feb-29-08 06:41 PST 9038 of 10217
niceguy
The problem is ebay does not want a small seller like you. Your items, and mine, would fall in the "flea market" category, which ebay has publicly denounced selling those items.
"Flea market" items are responsible for making ebay successful, however they have forgotten that fact.
Just consider ebay as your lover who has found an asian girlfriend (a real sleazy one). Are you go to take it or live in denial?!
Well I guess if you are a guy, you'll have to look at it the other way around. Ebay has found an italian stud for a lover...yeah ooooh yeah!.............Oh! sorry I got a little lost there. Any way you get the point.
(An asian stud may have been more appropriate, but asian and stud just somehow do not go together, to me anyway.)
Looks as though I knew there was trouble in the marriage quite some time ago.
Thanks,
Farris
Sure dad will do fine for a while - living the high life briefly- then one day he'll wake up realizing that he has lost all that made him good. This will lead him to begin boozing it up making a spectacle of himself- until after a few month maybe a year he dies of cirrhosis
By the time the last breath was drawn mom had been promoted was making an even higher income because dad wasn't around stealing out of her wallet, and the kids had all turned on him disgusted with themselves for ever have trusted him over mom. That disgusting pig!
Of course the mom could use another popular method - staying on in the marriage with an oh so satisfied look on her face while she quietly yet aggressively sets up house else where. Also, to avoid tension with the kids over their feeling she betrayed them by hiding it until suddenly it was packing time, she slowly brought them into the new house with her and they've told friends about the new house and their friends have started visiting all the time. Then when the time was just right she tells her wife beating husband to go to hell.
Due to his no longer having a beating post he starts binge drinking and unexpectedly dies of alcohol poisoning.
I won't vent the anger and frustration here against the 800 Pound gorilla as folks are now well aware how feral the bully has become in the great cash grab from anyone left standing.
I have heard of group weddings before however this may be the world's first mass/group divorce following MAYDAY , the snowballing up and coming May 1st BOYCOTT.
It only took me one year to leave the "B" and find a better, nicer, and much more fulfilling venue... All the stuff I'm readiing now is something I went through in Aug of 2006. I had a store and when stores were in search I became a power seller in three months but lost it just as quick when they didn't like stores being in search because it hurt their "core" listings.
Yes, it is hard to leave!
Yes, it is scary starting over!
No, it doesn't happen overnight!
But, once you get through the stages of divorce (all 7 of them) it does get easier and you will be happier. My husband now is fantastic and even though it took me 8 years to find him it was worth the wait. So, get out there and look, test out the waters and then make the decision.
My favorite is 1finetreasure.ecrater.... but there are several other sites that are good, too, I'm just predisposed to my own store!! LOL But "that is just my opinion I could be wrong" in the words of Dennis Miller.
Excellent analogy!
The final dissolution of this marriage is inevitable unless eBay makes some serious changes, and can make us trust them again. Just as in a failing marriage, trust, once gone, takes a lot of time and consistent work to get back.
eBay sellers are deciding to leave, even though it means a loss of income and lifestyle, because it's just too painful to stay. Just as in a marriage, there is a tipping point where the pain of leaving is less than the pain of staying. This is IT for some of us. TIP -- Elizabeth
Although the article puts a realistic perspective on the situation, I get the feeling from the stereotypical "Jerk Hubby/Saint Wife" replies that there is a lot more going on here than a rant about eBay...lol.
Regardless of the analogies in these replies, we all have the same pain. My wife began selling on eBay, feeBay, greedBay, or whatever other name makes us feel better a little over 4 1/2 years ago. Through the years, I have been there with her day in and day out trying to become one of those select few who manages to earn a living doing something they want to rather than something that provides a "paycheck". We have tried to roll with the punches through the years and make attempts to counteract all the tweaks and twists that eBay throws at its sellers. From the delight of our first dollar item sold, to Power Seller status and back, to barely making enough to cover overhead, we have stuck with it (sort of) simply because we haven't found an alternative yet that has the traffic flow of eBay.
Currently, we have a base store on eBay (dropped featured store to save overhead costs), a store on Vendio, and our newest creation is on eCrater. Although we have made sales on both Vendio and eCrater, the amount of people searching these sites is nowhere near the volume of eBay. Without the funds available to promote our other locations and having to rely on free services that might get our name out to a few people, referring eBay customers to visit our other stores, and getting Google to list us high enough in searches for someone to take the time to look through our store, it is nearly impossible to completely detach ourselves from the grip of eBay.
Long gone are the days of Power Seller status and being up to our ears in orders on a daily basis. Relatively speaking, the potential for eBay sellers is like buying gasoline. Although it will never again be like it once was, you try to capitalize on those days when the price drops 3 cents a gallon/gallery fee because you know if you wait you are going to get burned later.
Meanwhile, you keep plugging away, trying to reach that elusive summit that you have been trying to look out at the world from for years and keep a keen eye on the bottom line. My wife and I have discussed what to do with our eBay business almost daily for the last year it seems. When it doesn't cover expenses any longer, it's done. Unfortunately, eBay will go on. Either they will make the necessary changes to get back to the dream builder that "Mighty Meg" created or they too will fall. However, their fall will be a lot softer since there will be billions of dollars from the pockets of loyal sellers lying around to cushion the impact.
Until next time, keep your head up, fingers on the keyboard, and your eye on the prize! Someday, it will happen . . .and when it does, I will smile all the way to the bank.
-Also several articles i've read -portray the "boycott" to have ended yesterday Mar 9,2008.MAKE IT KNOWN TO ALL .. that THE BOYCOTT AGAINST EBAY CONTINUES!
Let's not walk away from this "marriage" empty handed. I know i signed or checked the box to agreement of terms when i first signed up with ebay as a buyer and as a seller.- as did all you ebayers.. Time to go over our contracts with a fine tooth comb. In addition to bringing any matters that may seem shady to the attention of the necessary authorities... Ebay has not kept their word. They've even been boldly hypocritic enough to do things there in front of all ebay sellers-of which are considered "violations" and in most cases call for suspension should an ebay buyer or seller do the same thing.
Here are ideas -concepts-actions - waiting to be engaged
-class action lawsuit (they're used it by now)but all must sing -scream loud. All must write to every newpaper they can think of-especially and include college newspapers.
-Pay attention to this one: Just so happens- Ms.Whitman will be officially retiring at the end of the 1st quarter (to all -please watch the stock market)
-As Spud and another suggested- an artbitrator or mediatior should be brought in.... but usually if both parties agree- unless of course one party is up to no good....
Let's Go For it! And Randy- Keep up the great work.!
Nice analogy, been in your shoes, now going through it again with ebay...
You would think I would have learned by now... lol
Bill...
When my wife & I split I was amazed at the sudden sense of relief from constant tension.
These recent eBay-free weeks during the boycott have felt much the same!
I don't hate my ex, and don't hate eBay either, but I can sure live happily ever after without 'em!
Your all forgetting that eBay owns Skype, they own PayPal, they own many other companies and websites internationally because they are looking at fusing them all together into one mega business. If everyone in the US leaves, they still have Europe/Asia etc., eBay is everywhere. Some of these other companies just sticking their hat in the arena because they have heard people complain about the eBay fees, and think they can woo away all the sellers with grand promises (are more like Trojan Horses). They have no clue how to control fraud, and fraud on the internet is sooo much worse than a brick and mortar store, because you can't see your seller or buyer physically, unless your selling vehicles or items for pick-up only.
I agree that it's a pain to have to continually fax in documentation, because they want to make sure that their "fraudulent" sellers/buyers don't come back, and/or they saw something "suspicious with my account activity" and to make sure that their PowerSellers don't go bad. (And trust me it's happened, I've been burned by a few Power Sellers, i.e. bought a PS3 video game brand new fairly cheap from a Power Seller lvl 66, they sent me a game for the Xbox360 platform, which I don't own, and their response after making me pay for shipping was that I had to pay for shipping the game back as well and would not get refunded the shipping costs. That chaps my hide, because they forget they were once just another person, not some rich spoiled eBay brat, looking to abandon the company that made them who they are. UGGGH!)
So, I ask this final question......once you leave eBay, where is there a comparable market with that kind of security for much cheaper? If you know the answer, I for one would appreciate to hear it. So that's my 12% and if the economy in the US gets worse probably more close to 20%.
For those outside of eBay this is difficult to fathom, but very real none-the-less.
Whattheheck-as for your unfortunate dealings with a scrupulous Ebay Power Seller- I'm sorry for that. I , myself am a smaller seller -selling knick nacks and other things you can no longer buy in the mega mall stores. I have had 1 or 2 bad experiences buying from Power Sellers when i first signed up on Ebay. I thought that because the seller had such a large feedback number-this was a good sign-but at the time-i was new and did not understand the whole feedback system -to check for negative feedbacks. Also- in my 1 or 2 bad experiences- the one thing that both shared- was that i felt like i was not dealing with a human being. The 2 sellers had enough experience to stall me long enough(seeing that i was new from my feedback)-years back,-trying to contact them numerous times with no luck- that my time had run out for any kind of recourse.
But i learned-and do not judge all sellers by past experiences- but i certainly learned. I ask questions first.
When i started selling- and there are alot more like me than bad ones- i treated my perspective customers & customers the way i wanted to be treated as a customer.
There has been an active boycott against Ebay by a majority of sellers - and many buyers- but in the meantime- new sellers are being recruited - and the door for fly by nite sellers, fraud and other forms of illegal fuctions are running rampant at Ebay right now.
Ebay and Paypal have made an incredible fortune off the backs of many hard working honest sellers. Ebay and Paypal are supposed to be there for the customers that buy on ebay. They would-or should have been the "customer service" you needed when your purchase was what sounds more like a conartist seller getting away with shenanigans.
Ebay and Paypal customer service have gone to alot of trouble the past year to hide from the buyers that have grievences- and yet they are bold when it comes to unfairly grabbing money from sellers who have followed the rules -but have to pay for the misdoings of dishonest sellers.
Again- I am sorry that your purchase was a horrid experience. I would go back to Paypal and Ebay- AND DEMAND THAT SOMETHING BEEN DONE TO CORRECT THE MATTER TO YOUR SATISFACTION. Let Ebay and Paypal earn the money they underservingly get.
Best of luck . I do hope Ebay will get their act together.
Calling your sellers "other than honest", is not, in my opinion, the way to build a strong platform for sellers to want to participate in, especially since there are so many more outlets that can be utilized on the net...
Ebay has sabatoged their own market place by setting unrealistic goals for their sellers to possibly see a decrease in their ending fees...
They have used terminology that isn't compatable with the dictionary and which is deceiving to say the least...
They are using a scoring system which is an out and out lie and completely contradictory depending on whom the person is that is using it...
If a buyer is using the star system, which goes from 1 star to 5 stars, he is told that a 1 is low and a 5 is the highest... So a 4 is above average... So in rating a seller at a 4, the buyer is saying that he had a great experience with the seller...
When it comes to the seller, and the discount at the end of the sale, he is rated according to the star system... The only way to get the discount is to have an overall rating of 4.5 or higher... When your shipment score goes below 4.5, then the buyer is warned in RED LETTERS that the seller has a slower than average shipping record... Ebay then suggests that you look at other sellers items before making this purchase with the seller...
Now, we've already learned when scoring a seller that a 4 is above average and then later learn that they lied to the buyer??!!
They have taken the word "neutral" and changed the meaning to mean "negative" because it's not "positive"... What's with that??? How can this be legal???
Personally, I have been lied to enough by ebay to look at other sites and to pull all of my merchandise from their site... I have paid them plenty through the years and leave them with my 100% positive feedback rating and will not allow them to damage my reputation as a seller just so that they can gouge me in the end with their deceptive practises...
This marriage is over and at this point can not be reconciled... The trust is gone...
LISTEN UP EBAY!!
WE WILL BOYCOTT FOREVER AND EXPOSE YOUR DISHONEST PRACTISES UNTIL YOU CHANGE OR ARE PUSHED OUT OF THE MARKET!!
BOYCOTT VICTORIOUSLY!!
Hello Pierre
I was one of the people who shouted EBAY from the top of the roof. I said eBay is one of those companies that allows Ms. X from Oshkosh, WI or Anytown, USA to stay at home with her children and make enough money to supplement her income. I promoted it, believed in it. I told people to buy shares and encouraged many people to buy and sell there and my saying was "God Bless eBay."
Unfortunately I was suspended from eBay for using a 1/2" picture from Zumba.com as I didn't have a camera at the time for an exercise tape I had bought from that website and was selling on eBay.
Ebay doled out a LIFE SENTENCE to me. Not a fine, no specific jail time for my crime, no community service. Worse than a Murderer who is let back into the community after he's paid his dues to society, I am banned from eBay for LIFE for a MISTAKE. Is that a fair way to run a company? I think not. Only a way to run a Dictatorship.
When I read what you wrote on your blog about the way Obama made you feel I thought to myself; I felt that way about eBay. My heart swelled when I thought of how it empowered the little person. It was the closest thing to the feeling of patriotism and oneness I had felt in a long time. Belonging to a community of people who trusted one another.
Please help me get that feeling back. I want to be an eBay member again.
Sincerely, antiquesrme1
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:
blog.sellerdome.com/?p...
This study shows that between 15k-30K e bay powersellers who account for $3000-$20,000 in seller fees paid to e bay each month from sellers. This is the only company separating itself from its long time customers, many, like myself, who has been with the company fatefully since inception and made it a community before new management. 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. Figure that on 20% margin and facing the headwinds of a slowed economy. 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 as pointed out by many market analysis and Powersellers.
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 a misunderstanding or lack of communication between ebay, the seller and buyer. If e bay would set up a system so that all involved understood the agreement that was fair for all, then buyer satisfaction would be a great number and managements approval ratings would not be in the 20% range "22% “Approve", see the link below and see what employees are saying about CEO John J. Donahoe:
www.glassdoor.com/Revi... to see Mr. Donahoe's DSR rating.
Note the 168 Reviews under the rating.
This is the only CEO that I know of that has its partners/buyers/seller... asking for them to step down:
www.petitiononline.com...
It is doubtful that the sellers, as well as buyers, who make up the success or frailer of the core business rating of John J. Donahoe would be that high. It should be noted that there was a lay off, but this rating was only 1% more well before the layoff. All you have to do is see the off e bay blogs of e bay sellers and buyers to know how they fell now. I say "off ebay" because e bay understandably deletes any blog on there site where people speak out.
Instead of working within the community, that once believed that "people are basically good", took on a policy that made its tight net community fell like "criminals under big brother" and strong feelings of dislike for the symbol that was once regarded by its employees, buyers and sellers. 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. When the culture was "people are basically good" employees at e bay were chronic buyers on e bay, now that has changed. It should also be noted that the sellers they suspended are also big buyers on e bay generally.
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) and Ebid.net 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 link below the demand that is being driven away from e bay by Bonanzle, Ebid.net, onlineauction.com Ubid.com that would have been unheard of 6 months ago.
www.quantcast.com/bona...
www.quantcast.com/ebid...
www.quantcast.com/ubid...
www.quantcast.com/shop...
Notice the chart of hits per month going up on these auction sites. Now look at e bays chart, it shows the amount of volume coming to the site is declining:
www.quantcast.com/ebay...
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. A safe sales platform that is demanded, products that are truly less for buyers, not just advertised as less, but are less for now because sellers are driving buyers to the site.
When e bay was a "venue", now it is felt by many of its sellers that it acts as an employer or landlord or big brother, 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. Seller fees, total have gone up, $0.35 listings are great, but the back end is higher making the total successful sale higher for the buyer and then pushed to the customer. All the discounts given now with the new promotion is good marketing, but those discounts/profit must come from somewhere, it is a known fact that nothing is free. I suspect the seller will foot the bill for this discount, this will cause price to go up or profit to go down. Profit for sellers once offering wholesale prices. This will mean to raise prices or move to a site like OLA.COM or Ebid.net that does not charge listing or final value fee. This will make that seller profitable and give its buyer a low price.
E bay is being accused of being a follower in the last few months 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, and even investors, have 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. I sold $30,000 on Amazon per year with my 82 unique product catalog, but sold 1.7 m on ebay with the same catalog. It would be much different if the items were not $100+, if they were books, cds then Amazon would by far be superior.
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, employees, 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.
Some of E bay's management ideas were good, however, has done a poor job or implementing the new changes and communicating 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.
Many sellers, buyers and investors alike have a dedicated special interest and hope management changes and ebay will 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 record numbers, 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 09 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 couldn'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, and the 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.
It could prove to be a successful venture, but e bay current management 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. Employees, buyers, sellers are all saying the same thing, why is e bay letting this happen. Nothing to gain, much to loose.
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. Why would smart investors believe they will run it any different than there core auction business.
I can say, I am happy to report my family, who bought stock when they seen my success on e bay back in the late 90s, 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 aggressively, sold ebay seems to be the smart move. Stock was $30-$32 per share at that time, March 2008 new management took over, 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.
I think this report on NYtimes has some good in site of the problems facing the company with the current buy:bits.blogs.nytimes.com...
Maybe enough people will sign to make it worthwhile?
www.petitiononline.com...
Let me say, I LOVE E BAY, it is just sellers and buyers don't like what new management has done to its strong culture. We have a vested interest and love for the old e bay culture.
Just one of the PAST buyers and sellers temporarily driven away by new management, it will be interesting to see what the new management that is suspected to come will do to the culture. Hopefully Auctionbytes is right in looking for a replacement for JD and you can see the 150+ comments below the article shows not one good thing to say about this management blog.auctionbytes.com/...
Good thing for golden parachutes I guess, maybe that will soften the fall?