Proof eBay Is Losing The Small Seller

Posted by admin in ECMTA, Internet Marketing, News, ebay, ecommerce on 06 8th, 2008 | 7 responses

For months (OK, I have been talking about this for years but only writing a blog for about a year) I have been writing about the lower volume sellers being pushed away from eBay. Many readers and listeners to our weekly live radio program ebay and Beyond: Basics to Business, as well as eBay exec’s have been saying show us the proof. In April, Lorrie Norrington, President of eBay Global Marketplace Operations said in her keynote address at the PESA/ECMTA  conference in New Orleans that eBay embraces the smaller sellers, that small sellers provide the unique buying experience that is eBay.

Well low and behold I opened my local newspaper this morning while drinking my first cup of coffee and guess what I found? More proof that what I and many others have been saying for several years is happening in the real world.

In the Sunday June 8th edition of the Jamestown NY, Post Journal  newspaper on the front page of the business section there is a story about two brothers that have opened a brick and mortar store because they were pushed away from eBay by higher fees and the lack of customer service.

Roy Walker, owner of the brick and mortar store The Bargain Cave in Jamestown NY is quoted in the article

“ We were selling antiques and collectibles on eBay “

, and when Roy talks about why he decided to open his B/M store he says

“ Another swaying factor in the decision to open a traditional store was the rising cost of doing business on eBay and the customer service. I was giving them a lot of money with the increased fees and they (eBay) weren’t very helpful when I needed it. I was just getting attitude from them (eBay) and started to question whether is was worth it anymore”

I have read 10’s of these articles from newspapers all around the country. This is not an isolated case as we all know. eBay is moving towards a retail buying experience, advantaging the big sellers and disadvantaging the small sellers.

When lower GMV (Gross Merchandise Value) sellers are disadvantaged on the site by being placed low in the Best Match searches, they have a much lower chance of selling their products. If they don’t sell their products they can not grow. This is simple economics.

Listen to our live ebay and Beyond: Basics to Business broadcasts from eBayLive 2008 in Chicago June 19-21, 2008

Ref: The Sunday Post Journal, Jamestown NY

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7 Comments »

  1. avatar comment-top

    While I agree that Ebay is getting outrageous as far as their fees and lack of customer service, I do think it is also worth point out that everything is outrageous. I have both a brick and mortar retail store and I also sell on ebay. In the retail store my heating costs, payroll costs, packaging cost, and any additional maintenance cost have gone up. Of course you will have some of these cost if you are selling on ebay, but not as much. If you’re not selling much you can send your employees home, in retail you have to keep set store hours. You can limit your packaging cost and put off maintenance. In a retail store you also have to factor in customer damages, shoplifting and shop worn items. There are definitely pros and cons to both.

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  2. avatar comment-top

    Laura

    I agree there are pros and cons for each venue. However my point here is that with the change in strategy eBay is taking, the lower volume sellers are looking for other marketing venues and I find it very interesting that going back to the more traditional BM store is a viable option.

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  3. avatar comment-top

    The nail in the coffin will be the new changes regarding the feedback policies. SELLERS are no longer ALLOWED to leave a negative feedback for buyers who do not pay, or who are difficult to deal with, or complain after not reading a stores policies. Buyers however can still leave any type of feedback they wish, even after receiving their merchandise. E-bay all the while collects their dues. There are new venues popping up all over the place, just waiting to catch the E-bay drifters- such as etsy.com, Wagglepop.com, and of course Amazon and Overstock. There was a time that Ebay could do ANYTHING they wanted, and really the consumer had no other online selling options..unfortunately for E-bay, that’s no longer the case.

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  4. avatar comment-top

    Wait

    Their is only one answer to ebay.com in india that is onlinedukan.com. It will provide free buying and selling to all the consumers without charging any commisions.

    The website will be launched in a month

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  5. avatar comment-top

    Awsome !!!! Have been waiting for such services. Lets wait for OnlineDukan.com and see what they have to offer. Thanks for sharing this information.

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  6. avatar comment-top

    It’s a very good website , i sold some of the items that i had with me for long time. Also , I purchased some great deals. These guys also provide platform for promoting services and soon i’m planning to use it.

    Onlinedukan rocks!!!!!!

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  7. avatar comment-top

    I too am currently an eBay seller. The new policies protect the buyer. However there has been a negative affect on the seller as well. While the new policies exibit fairness for buyers, it exposes more and mroe sellers to unfair treatment from buyers. I have seen cases where the buyer was clearly wrong but still left the seller a negative. Just go an review any randome sellers feedback and you will see many cases for yourself. I opened my own store on
    not to long ago and its Booming! my store is http://www.thephonerush.com, I used to get an average of 40 orders per day on eBay now im seeing anywhere from 60-100 orders per day selling mostly the same stuff. Also I dont have to pay any fees. eBay is a good place but it has its share of problems to fix before mant sellers decide to take alterative routes by choice or by agitation.

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