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eBay Wises Up...Sort of

Posted Feb 12, 2008 03:41pm EST by Sarah Lacy in Investing, Internet, Information Technology
eBay flubbed its first attempt at "lowering" prices by actually raising them for some users. Those users revolted. Now, it's trying to make amends. Henry Blodget is hoping some other old eBay rivalries can be healed too, now that Meg Whitman is out. (Hint: It rhymes with "Lamazon.")

12 Comments

Debi
Debi - Tuesday February 12, 2008 04:30PM EST

Well, The problem I see, is that ebay was soooo greedy and full of themselves, that while they were trying to fatten their pockets with my money, they forgot that we who sell on ebay, do have a brain... The lies of a promised decrease in fees (which are outrageous) only to find out that you are gouged in the end of the sale... Well, personally, I've had it with them.. I had a store with them, auctions running, and 100% feedback rating... If I continued with them, they now have set my little business up for failure... They have not only charged me more to sell, but then threatened to raise my fees if I don't make "my" customers happy... They've taken what was a dual feedback system, and made it one sided. Now the buyer has ther privledge to leave a negative comment for a seller if they aren't happy with a product, but the seller can not leave a bad feedback for a buyer when they don't pay, or bounce a check, or say they didn't receive an item, even though you have tracking that says they did... And that feedback, is what determines what price the seller pays to ebay at the end of their auction listing or store listing... Now would you want to work in that environment??? No, not many would... That's why we've formed a boycott where we will not buy or sell from feb 18 thru the 25... I myself, along with so many other store owners, small sellers and buyers alike, have completely had it and have committed to other more seller friendly sites... My personal choice is Online Auction.. onlineauction.com wants my business and has many incentives to encourage me to stay with them... Ebay couldn't pay me to go back there.. I see another Enron in the making!! If they think that they can lie to their customers and then tell the news media that we're bound to make a little noise, and then try to make out like we're not serious, they need to WAKE UP!! These little comments could just put them into bankruptcy!!

harry
harry - Tuesday February 12, 2008 04:53PM EST

supper show keep it up

James T
James T - Tuesday February 12, 2008 04:54PM EST

Short term vs Long Term Short term profits equal... maybe stock options that equal... self benefit ? eBay is (maybe was), in the catbird seat with name identity worldwide potential. As they say, many people buy the steak, but more people will buy the sizzle. Give me managemment that gets great rewards based on selling their steak because of great sizzle.

MargaretD
MargaretD - Tuesday February 12, 2008 10:45PM EST

Yes, Amazon should buy ebay and get rid of all ebay management - straighten the whole place out, and then all of us sellers who left might actually return. Better yet - Amazon should open its auction site back up and they'll get a lot of business

you
Yahoo! Finance User - Tuesday February 12, 2008 10:57PM EST

I think EBAY should lower their fees and keep them low to compete with other online auctions or they might be a thing of the past...

Cameron C
Cameron C - Wednesday February 13, 2008 08:55AM EST

What more can you add to that? Spot on. One thing that might help EBay would be to actually have the auction be automatically extended if someone bids in the last seconds before closing. Doesn't it make sense that auto-extending the auction would create greater revenue for the seller and Ebay? It would also virtually eliminate that one thing that really rubs my rhubarb the wrong way, SNIPING.

ron
ron - Wednesday February 13, 2008 11:49AM EST

I am a Power Seller for 10 years. I had a major problem with a buyer. I have been trying for 3 months to talk to someone at Ebay. Forget it!!! They do not care. All I get is Live Chat which is nothing more than robots giving pre-recorded messages. Ebay you are soooooooooooo bad. I help get you started and now you just don't care about anybody except bringing in the $$$$. Goodby Ebay forever.

Donald
Donald - Wednesday February 13, 2008 01:29PM EST

Because of competition and the increase of fraud on the internet, the original eBay business model is slowly becoming outdated. A good case can be made that the management of eBay led by Meg Whitman has undermined the value of this innovative trading portal. Changes have been made solely on the basis of increasing profits and not increasing sales. Recent changes in the fee structure and the feedback rating system has upset many sellers and they have been quite vocal in their protestations. Sellers seem to think that since they pay the fees, eBay would be nothing without the sellers. The fact is, buyers, not sellers, are the driving force. If buyers feel that trading on eBay is unsafe, or a risk then they stop buying and shop elsewhere. If buyers get screwed by sellers, they stop shopping on eBay. Buyer protection on eBay is pathetic and it has effected sales greatly. There is no doubt that eBay deserves most of the blame but sellers should understand the real issues here. Bottom line is that buying on eBay is a crapshoot. Buyers unfortunately learn the hard way. They quickly learn there are risks and take steps to protect themselves including not paying fair market value for an item. Most buyers spend a considerable time evaluating a sellers feedback before bidding. Buying from a seller that does not offer payments by credit card is high risk - you make that mistake usually only one time. Fraud on the part of buyers is a tiny fraction of the fraud perpetrated by sellers and if you are a seller and do not acknowledge this then you are not understanding the realities of the eBay trading world. Sellers, you can leave eBay and find more seller friendly sites but until buyers can find a site that they feel safe trading on then sales will continue to be poor. I speak from the experience of 4 usernames over 10 years buying and selling on eBay. I seldom buy on eBay anymore and for very few low priced items (for example books and coins) and still have problems with one in ten transactions. It is the increasing level of fraud on eBay and the fact that eBay has done a poor job in making the trading portal a safe place to transact business that is hurting sales. Sellers should take note and demand improvements to safe trading.

Diana AKA Kitten
Diana AKA Kitten - Wednesday February 13, 2008 05:33PM EST

Many Ebay sellers could have lived with the fee hikes, at least for a while. The thing that really is motivating sellers to leave are the Paypal 21 day fund holds, and one way feedback, where the seller has the ability to leave only positive feedback for a buyer, however buyers can leave positive, neutral, or negative feedback for the seller. When the new policies were announced, I tried a few sites, but was not satisfied unitll I found OnlineAuctions.com. They want my business, let me run it my way, is very inexpensive, and the site is easy to use. There is terrific customer service support as well. I am very happy there, and would never go back to Ebay.

maryr
maryr - Wednesday February 13, 2008 05:37PM EST

NO BUYING NO SELLING FEB 18-25 and BEYOND

ET
ET - Friday February 15, 2008 06:04AM EST

Ebay is close to hitting their 52 week low price!!! I wonder why!

Bogo
Bogo - Tuesday March 17, 2009 05:48AM EDT

Wat UP?

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