What’s your reaction to the Ebay fee increase?

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InflatableMadness

posts: 25

Jul 26, 2006 11:10 PM ET Quote Report Abuse

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Hi guys,

I wanted to gague your reaction to the Ebay fee increase that they just announced. Give me your thoughts!

-Kevin

-------------------------

Sleep is for the uninspired

http://www.inflatablemadnessdvd.com
http://www.buybackmadness.com

iouone2

posts: 1185

Jul 26, 2006 11:32 PM ET Quote Report Abuse

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I am actually getting a little tired of eBay fee increases. In the beginning they were so reasonable. Now, it`s getting more and more difficult to make a decent profit.

Why can`t a company stay flat, instead of increasing revenue each year. Craigslist seems to do ok.

Comments on fee increase... it`s beginning to look like a good choice to switch to overstock.com or some other high profile auction places.

That`s my thoughts on eBay and their increase

:)

-------------------------

Vincent Wilcox (a.k.a. KRAKR)
Drummer
My band: Letters Make Words

ScrapBizKim

posts: 369

Jul 27, 2006 1:27 AM ET Quote Report Abuse

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A lot of scrapbookers who sell on eBay are looking elsewhere since the fee increase was announced. They may move to sites starting to pop up that cater JUST to scrapbook auctions.

~Kim

Chuck

posts: 340

Jul 27, 2006 6:57 AM ET Quote Report Abuse

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It would certainly seem to discourage some of the volume of lower priced items on the site, especially with the changes you outlined Kevin - that would be your blog entry regarding the practice of pricing items at $0.99, for example, with a shipping fee of $9.99.

I`m not that surprised on the eBay side of things, but with your connections to the major seller community, what`s the buzz on the street, so to speak, about the fee increases? Are more sellers exploring other venues, as Vincent alluded to?

-------------------------

chuck fuller

iouone2

posts: 1185

Jul 27, 2006 11:55 AM ET Quote Report Abuse

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Chuck, I too understand eBay`s side of things. But let me ask you (and anyone else who wants to chime in), why doesn`t eBay create a second sight dedicated to small transactions? I mean really, they could still make decent profits (as they did in the old days) and stir up public opinion in a good way... Similar to the good faith of Craig’s list devotees.

Craig is making... ok, not Craig, but employees of Craig are making great money because of his dream to create a community. I hear Craig doesn`t take pay or donates his pay... what ever it is, his income comes from somewhere else...

So getting back to my question... Why doesn`t eBay put time and branding into a smaller niche market? (eBay, eBay Motors, eBay Stores)

Why not.... ??? um... "eBay Small Scale"

-------------------------

Vincent Wilcox (a.k.a. KRAKR)
Drummer
My band: Letters Make Words

MiteyMite

posts: 489

Jul 27, 2006 12:32 PM ET Quote Report Abuse

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I`m with you Vince. Wish Ebay would maintain the lower fees. Certainly they could continue to grow by volume if they keep it more affordable. Each time they raise prices I re-assess my pricing structure.

InflatableMadness

posts: 25

Jul 27, 2006 1:47 PM ET Quote Report Abuse

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Chuck, I took a quick poll of my PESA group (the Top 100 sellers on Ebay) - I asked them "do you think the Ebay fee increase will be positive, neutral, or negative to your Auction sales?"

I got 25 responses - these companies total over 2 million feedbacks.

8% said Positive

42% Said neutral

50% said negative

So I think that states pretty clearly where the large seller community stands here.

-Kevin

-------------------------

Sleep is for the uninspired

http://www.inflatablemadnessdvd.com
http://www.buybackmadness.com

Chuck

posts: 340

Jul 27, 2006 2:45 PM ET Quote Report Abuse

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Thanks for that insight Kevin - definitely interesting to know what the absolute top sellers (who drive a massive % of the volume through eBay) think about these changes.

The broader question is -- do you get a sense that with half of those sellers having a really negative perspective on these changes, there`s going to be real action on the seller`s part? Will they branch out into other venues, as Vincent suggested, or does eBay still hold too much sway for that to make sense? Yahoo made their auctions system free a while back, but I don`t think there was a lot of defection, because eBay still commands too dominant a position. Sellers have to go where the buyers are, so I suspect unless eBay raises their fees past the point where most major sellers can still turn some sort of profit, it`s not going to lead to too many exits from their marketplace.

Am I right?

-------------------------

chuck fuller

iouone2

posts: 1185

Jul 27, 2006 3:55 PM ET Quote Report Abuse

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Amen Chuck. It won`t make a difference to eBay until a company of similar can be #2 in the market. Then eBay might... might pay a little attention to the sellers.

-------------------------

Vincent Wilcox (a.k.a. KRAKR)
Drummer
My band: Letters Make Words

MiteyMite

posts: 489

Jul 28, 2006 4:36 AM ET Quote Report Abuse

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Hey guys, for the record.....

I`ve conducted thousands and thousands of auctions on Ebay and haven`t listed a thing since they started charging for market research. Now with the store rates going up too!!!???

I`m really searching for another venue. Even though I`ve got my lister out there waiting for my dictation so she can list and my shipper chomping on the peanuts and waiting to ship, I`m not budging!

yet

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