Rate Hike Causes Sellers To Drop eBay

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Frustrated customers often threaten that they’ll never shop at a store again. Now, a number of online retailers have become angry at eBay, and many of them claim they’ll never again sell on the site.

This is due to a recently implemented rate hike, which resulted in a number of protests and boycotts, as well.

eBay intended for at least some of this to occur – the fee increase was supposed to make selling items through a store less advantageous, as compared to selling them at open auction.

However, the online auction site probably didn’t want sellers to abandon it entirely.

According to MarketWatch, the impact is already being felt.

“A number of former eBay merchandisers say they’re shifting their listings to Amazon.com Inc., Google Inc. and its Google Base free classifieds listings, plus a host of other eBay competitors,” writer Ben Charny stated.

At least one notable outsider thought the rate hike was a bad idea.

The same article included a “notably dour prediction about the effort” from Piper Jaffray & Co analyst Safa Rashtchy: “eBay is plagued by other problems that a fee increase won’t cure.”

The fee increase is arguably creating (or at least exacerbating) some problems. One group has grown so frustrated with eBay that it named itself “Google We Need An Auction Site.”

Between August 15 and August 25, the group gained 99 new members, which represents an increase of about 20 percent.

eBay’s numbers have been slipping for some time now, and the figures are similarly discouraging. “During the second quarter ending July 19, eBay said its profit dropped 14% from a year earlier,” MarketWatch reported. And the company’s share price has declined about $20 from its 52-week high.

If the rate hike fails, expect the slide to continue.


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Doug is a staff writer for WebProNews. Visit WebProNews for the latest eBusiness news.

Rate Hike Causes Sellers To Drop eBay
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  • Guest

    2010 eBay fees will be 4x greater than they were just a year ago! Stop their LIES of NEW LOWER fees! I have had every post I put on eBay Community pages removed by their monitors. We CAN stop them from gouging us and continuing to ruin their own business….

    It is time for an organized revolt. We have the power, we are stronger than this corporation in numbers AND in dollars IF we unite…..

    Yes, eBay thinks we are all stupid… lower prices! Yes, rates are going WAY up and eBay is not doing their job by increasing traffic, instead it continues to spiral downward. This is in large part due to all the policy changes and rate hikes in the last year. Sellers are leaving in droves because they can’t make money, Sellers who also used to shop there. Buyers are leaving as quality and selection of merchandise has gone way down. There is nothing unique anymore. And it is also very hard to get a good deal because Sellers must make some kind of profit in order to stay in business so Sellers have to raise prices to make up for all the shafting up the butt they’re getting from eBay.

    I tell you, it’s almost to the point that it’s no longer worth shopping there anymore. Mostly all you find is Walmart kind of junk and then you have to wait for it to be shipped and if it has to be returned, you get stuck with shipping costs twice, so often it’s not worth returning or worth the risk of buying there…. I used to shop there all the time but because of all the changes I’m seeing, my buying there has been very minimal. Retail or other websites are better.

    Yes, eBay may have Sellers over a barrel and yes, they buy out competitors… I suggest Sellers unite. This will help Buyers, too, so they also need to get involved. I suggest two things:

    1. We agree to help build another auction site AS A GROUP. We still sell on eBay of course but let’s get another site going. It can be an existing one that we just all agree to use but I might suggest spreading around to other sites so it doesn’t become the same thing where they get successful like Yahoo and eBay buys them out just to kill them. Suggestions are welcome.

    2. I also suggest Sellers unite and that all agree to have one day or one entire week where all agree to have absolutely NO LISTINGS up on eBay.This would sure send a message. Organizing this would not be easy and would take some time and planning. I would like to have those who would have interest in these two ideas contact me and see what we can get going. I also ask that you post this message on every forum and bulletin board that you can. We need to reach a huge number of people for this to be successful and eBay will do their best to prevent this every inch of the way.

    I’ll put an email address here for the purpose of contacting me & so we have one central point of contact:

    (United Sellers of Ebay For Fair Auction Costs and Treatment)

    If anyone has suggestions, please send them as well. We can reach many people through Craig’s List, MySpace, FaceBook, Twitter and other Bulletin Boards and Forums. We will need leaders to take responsibility for posting this message, responding and for gathering ideas, etc.. Contact your Favorite Sellers, Contact your Buyers….

    eBay needs to cut their own internal costs and the salaries at the top (which I assume are HUGE), just like other businesses must do. As Sellers, we have to pass increases along in prices or in our shipping/handling costs. This drives buyers away (also hurts ratings and feedback!). So…. with these new “lower” prices, Ebay figures they’ll be able to count on the new store subscription fees they’re forcing on Sellers for regular monthly revenue so even if Sellers sell nothing, they don’t care. I say it’s time to revolt and have a little Tea Party!

    Please contact me and tell all your friends, favorite Sellers AND Buyers. Buyers want better selection, quality and pricing. Price hikes and policy changes prohibit a good buying marketplace. It’s time for us to show them who REALLY has the power to create a fair marketplace! Please write….

    (United Sellers of Ebay For Fair Auction Costs and Treatment)

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