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eBay Changes Could Kill Some Businesses

Quality Score Being Launched

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eBay announced they are planning on launching something like a quality score:

John Donahoe will set out a plan to reward the company’s best sellers with sales incentives and priority ranking in search results for auction items.

"Sellers that describe items accurately, ship on time, and ship at a fair price will enjoy preferential pricing and discounts on eBay," [John] Donahoe said in prepared remarks. "We’re serious about making eBay easier and safer to shop."

On February 20 the changes will start taking place. Depending on how serious eBay is about this change, many eBay based businesses may die. But they also plan on lowering initial listing fees and trying to get more commission when items sell, which could lead to more junk listings as the opportunity cost is lower. If you are one of a few legit sellers in a market saturated with scams perhaps this helps increase margins, but eBay will have a hard time bring back buyers who got scammed in the past or sellers who were sick of years of rate increases.

It is remarkable that eBay has been around over a decade and are just finally getting around to making these kinds of changes. If they didn’t have a near monopoly there is no way they could have waited this long.

I understand why some people sell on eBay, but for anyone who has been doing it for a long time I wonder why they don’t create a site and sell direct. Being stuck in someone else’s network where quality scores can make you irrelevant is a risky way to make a living.

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eBay Changes Could Kill Some Businesses
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