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eBay sellers to strike

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Angry reaction to pricing changes prompt users to threaten to stop selling on site

Changes to the way that online auction site eBay handles transactions have been met with hostility by sellers, with many threatening a week long strike if the firm does not repeal them.

On Wednesday, the company announced that it would be altering the way that it charges people selling wares on the site. Previously, people were charged a flat fee regardless of whether their listing sold.

The new system will see traders pay a minimal fee to list their items, as well as a further fee if it sells. CEO-elect John Donahoe has described it as a 'fairer' to sellers when he announced it earlier this week.

"[They will] prefer this structure, as it lowers their risk if an item doesn't sell," he said speaking at the company's third annual eCommerce Forum in Washington. "Put simply, we will make more of our money when sellers are successful."

However, it is that last part that eBay sellers are angry about, with some describing it as a 'tax on being successful'. It has angered many so much that they are considering striking for one week after the changes come in.

"Why punish people that actually sell stuff by charging them higher fees? Isn't this kind of a negative reinforcement?" said Joan on the AuctionBytes blog.

Sellers have also been venting their feelings via the official eBay forum. "I read about the strike on the other boards, so I think the message is spreading," said user mrskillion. "We have just been left powerless. We need to take back a little bit. If we all band together eBay will notice. I believe that completely."

EBay has been quick to respond though, with spokesperson Usher Lieberman saying: "eBay has always had a very passionate community and our members do not hesitate to tell us how they feel.

"Over the past week we have presented them with a tremendous amount of bold changes and initiatives and they have a lot to absorb. If our community was not reacting loudly to what we've announced, that would have been a real surprise and something to be concerned about."


However, strike may be the least of the online auction's worries. The changes, which had originally be implanted to combat defection from the site to rivals like Amazon's marketplace appear to have backfired.

Seller Cosmic-King said: "I am a long-time power seller with a peak of 2,000 listings down to under 200 listings. I thought this was supposed to be good news but this is more of the same. I will continue to remove my business from eBay. Besides, I now do over triple the business on Amazon."

However, analyst Tim Boyd from American Technology Research was less than sympathetic. "These are the same sellers who have been whining for three years about wanting to pay only for performance," he said. "I am so sick of listening to these guys [complaining about this].

That's all they do is [complain]. Let them strike. Someone will step in and take their place. EBay did not raise its fees, it slashed its insertions fees and raised the final value fees, and for some sellers – some sellers – it amounts to a fee increase."

He highlighted one of the main issues eBay is facing is that rivals like Amazon do not charge upfront to list items, only when they are sold. It found itself losing volume and sales and had to act.

"Amazon only charged people when [they sold something]," Boyd said. "Sellers really liked that because they only paid when they got something. But 60 per cent of the pay out to eBay was upfront, and you didn't know if you were going to get anything and sellers didn't like that.

"It made it real nervous, and I think as eBay lost traffic share it was put in a pickle where it had to become more like Amazon to draw some sellers back and to draw some inventory back."

Source: PCWorld

Tags: Auctions, Buyers, Ebay, Online, Seller, Strike
1
 

“It's the FEEDBACK change that has folks upset.”
Posted by: Gigi Anderson - Feb 1, 5:59pm

I think we (ebay sellers) are far more outraged at the change to the feedback system.


2
 

“Re: It's the FEEDBACK change that has folks upset.”
Posted by: Brian - Feb 1, 8:55pm

EBAY AND THE BIG LIE

It's been years since Ebay has really been a user friendly company,
especially when it comes to sellers. Their customer service is, by far, the
worst I've ever experienced. This is easy to prove, just try any of the
following: See all the hoops they make you go through to get a refund on an
unpaid item, or try to have a patently unfair feedback removed, or try to
fight an unfair PayPal chargeback, or try to contact an actual, living
customer service representative -- and if you do succeed in contacting one,
see how helpless they are at resolving your problems.
But now, eBay has reached a new low in their disrespect toward their
sellers. They have cloaked their largest fee increase in the company's
history, as a benefit to the entire eBay community. And they have portrayed
their short-sighted changes to the feedback / selling rules, as a positive
change for sellers. This "Big Lie" strategy has used by many in the past --
blaming one group of people for the ills of the world, getting sleazy
politicians elected, leading countries (including our own) into wars.
Now, eBay is using this same tactic in an effort to put a positive slant on
the changes they have outlined for February 20th. This time, I hope, it
won't work.

In their announcements concerning the changes, President Bill Cobb and VP
Jim Ambach made a number of statements, concerning these changes. I'd like
to look at eBay's own statements, and compare them to the facts:

Lie #1 -- Bill Cobb states, "Our goal for these changes is to continue to
improve the overall experience for our customers, both buyers and sellers."

Truth #1 -- While these changes may improve the experience for some buyers,
they drastically worsen the situation for the overwhelming majority of
sellers. And if the changes should cause a mass exodus of small sellers from
eBay, these changes will then hurt even most buyers, as well.

Lie #2 -- Bill Cobb states, "We're making a fundamental change to the
economics of selling on eBay, resulting in three significant price
reductions."

Truth #2 -- The overall fee changes will NOT result in a reduction for
almost anyone, excepting those who's items do not sell (they will save a
nickel). For most everyone else, this is a massive fee increase of more than
40%, in many cases. Most of the trumpeted "fee reductions" are for expensive
add-ons, that are rarely used by the majority of eBay sellers.

Lie #3 -- Bill Cobb states, "First, we're reducing the up-front risk for all
of you by lowering insertion fees for auction and fixed price listings
across the board...and we're balancing that change by adjusting some final
value fees.

Truth #3 -- When one balances something, it is presumed that they give and
take equally. In this case, eBay is giving a token listing fee decrease (a
5-cent reduction on most listings), and 'balancing' it with a whopping 67%
increase of the final value fee. In practice, this will increase the cost of
selling a $25 item from $1.91 to $2.74 -- 43%. This is by far the largest
fee increase in eBay's history. I fail to see the balance.

Lie #4 -- Bill Cobb states, "All of these changes came as a result of
listening to your ideas and concerns ... You told us that you want free
Gallery. You said you'd prefer fees for success, not listing. But more than
anything, you told us that our overall pricing structure is simply not
working for you, and that high insertion fees, in particular, have been a
big deterrent in moving more of your merchandise onto eBay."


Truth #4 -- I wonder how many sellers feel that a nickel off the listing
fees would be a major improvement in their listing structure? And how many
of those same sellers would think that a massive final value fee increase
would be a fair trade off? It is true that the free Gallery is a plus, but
If Bill is really listening, and he really wants to eliminate the 'big
deterrent,' I have a suggestion. Lower the across-the-board listing fees by
67%, or 50%, or even 33% -- and add only a commensurate increase to the
final value fee, when an item sells. This would have been a true way to
eliminate the "big deterrent in moving more of your merchandise onto eBay,"
and it would not greatly detract from eBay's bottom line.

Lie #5 -- Bill Cobb states, "I know that all of the changes we're making in
pricing, seller standards and incentives, and feedback are big ones ... and
that not everyone will like them. But the overall package is what you should
focus on ... and the overall package is strong. I think we've demonstrated
that we're committed to making improvement to the overall customer
experience and that requires higher standards and bold changes. That said,
the vast majority of our changes work to strengthen our relationship and
they'll be great for the marketplace as a whole, and certainly great for
many of you."

Truth #5 -- When Bill refers to overall package as 'strong,' one can only
assume he's referring to the odor. What eBay has really demonstrated is
their short memory. Remember that this site was started by Pierre to give
his girlfriend an outlet to buy, sell and trade Pez dispensers. It was
created for little people just like me -- who sell collectibles and other
small items at a small profit. And while I sell small items, I sell lots of
them -- paying yearly eBay/PayPal fees of close to $10,000 annually. But,
time and time again, eBay has pushed people like me -- their originally
users -- out the door. They do this to make way for the high end items and
mega-retailers they seem to covet. Bill says, "the vast majority of our
changes work to strengthen our relationship and they'll be great for the
marketplace as a whole." If he is confident that this is true, why not put
these changes to a vote -- and let the buyers and sellers decide. After all,
it is we who pay all the eBay's fees, thus paying these executives their
salaries. However, Bill does get one thing right ..... not everyone will
like these changes!

Lie #6 -- Jim Ambach states, "Let's take a quick look at all the things
we're doing to strengthen our partnership with our sellers:

1. Reducing insertion fees 2. Free Gallery on all listings! 3. Reduced
Feature Plus and Pro Pack fees 4. Increased listing exposure for sellers
with great DSRs 5. Pricing discounts for PowerSellers with great DSRs 6.
Protection from chargebacks for PowerSellers 7. All addresses are confirmed
addresses for PowerSellers on their eBay listings that are paid with PayPal
8. Unlimited PayPal protection for PowerSellers 9. Repeat Feedback credit
10. Rolling 12-month Feedback Percentage 11. Personalized Seller Dashboard

Truth #6 -- Jim forgot to mention a few things, that might not "strengthen
our partnership with our sellers."

1. A stunning increase to final value fees -- many, many times higher than
their minuscule reduction in insertion fees.
2. The free Gallery (which I must admit is the one positive in all this
mess) is really much more of a benefit to buyers. For sellers who previously
used Gallery it will actually hurt them, since now all listings will have
the Gallery pic -- so their listings will no longer stand out. Many other
sellers got by without using Gallery in the past, so getting it free will
probably only be a minor perk.
3. OK, lets have a show of hands, how many sellers have ever used either
'Reduced Feature Plus' or 'Pro Pack?' It's like if McDonald's raised the
price of a big Mac to $10, while lowering the price of their cookies a few
cents.
4. As an honest seller, I already have a big advantage over dishonest
sellers. When buyers check my feedback, and compare it to theirs, they
invariably come back and shop with me. 5. Ebay's "Pricing discounts for
PowerSellers" only eliminates a small portion of the fee increases. Even
with the full 15% Powersellers' discount -- fees will increase monumentally.
At the risk of kicking a dead horse, with or without the small discount for
PowerSellers, THIS IS STILL THE LARGEST FEE INCREASE IN EBAY'S HISTORY!
6. I've had experience with PayPal's chargeback protection. Last year, an
overseas buyer purchased an item from me, and as always, I gave them a
choice of shipping options ..... CHEAP -- with no insurance and they must
accept responsibility should the package become lost or stolen ..... or, NOT
SO CHEAP -- with insurance and I will accept responsibility for delivery.
They chose cheap, and sent an email stated that they would accept full
responsibility. We shipped the item the next day. Two weeks went by, and we
were contacted by PayPal, letting us know that there was a dispute against
us. This buyer has claimed that the package has not arrived. Of course,
since there is no tracking number on the package, we had no way to know if
he was telling the truth. We told eBay that: 1. We have 100% positive
feedback with thousands of transactions, so we are not in the habit of
cheating our customers. 2. We have a customs number and postal receipt
proving that the package was mailed. 3. We still have the email from the
buyer, stating that they requested no insurance and that they would accept
responsibility.
PayPal said the customs number is not trackable and they asked for the
tracking number. Of course, we did not have a tracking number, since the
buyer did not want insurance. PayPal took a day to make their ruling, and
after "looking at all the facts," they deducted the full amount of the
payment from our PayPal account. Therefore, we not only lost the item, but
we had to pay for the shipping charge, as well.
This scenario has been repeated with us several times. And this is the same
PayPal who is going to protect sellers from chargebacks!
7. When they state, "All addresses are confirmed addresses for PowerSellers
on their eBay listings that are paid with PayPal," they are not telling the
real truth. If you read the fine print, it says that this will apply to most
(not all) countries. 8. See #6.
9. The "Repeat Feedback credit" is a double-edged sword -- multiple negative
feedbacks will also count against you when this change takes effect!
10. This is mainly an advantage for poor or dishonest sellers. I have built
up a nearly spotless feedback record over 10 years, but the first 9 years
will soon disappear. This is great if I have lots of problems I want to
hide. But now, one vindictive buyer can ruin my reputation -- and I won't
have a long record of positive comments to counteract the damage.
11. I'm not sure what a "Personalized Seller Dashboard" is, but I doubt it
will be the highlight of my business life.

In addition, here are a few more serious flaws in this new sellers' program:

12. There are many new penalties to sellers who do not meet eBay's criteria
for success. For low-volume seller's, one vindictive buyer has the power to
increase your fees and lessen the exposure of your eBay listings.
12a. Sellers can no longer punish abusive, dishonest or deadbeat buyers with
negative feedbacks -- sellers can ONLY leave positive feedbacks!
12b. The new one-way feedback structure eliminates any constraints on the
buyers. They c****e feedback as a weapon to extort concessions from
sellers, and sellers will have absolutely no recourse, or protection.
12c. Buyers can, in some cases, cause sellers to have to wait for 21 days
for their PayPal money, by simply withholding a positive feedback. Here's
the eBay policy in their own words: "When eBay suspects the transaction may
result in a dissatisfied customer, PayPal will delay release of the payment
funds to the seller until the buyer has left a positive feedback, or 21 days
have passed without a dispute."
Notice that this can affect sellers, even without there being a clear
problem. This policy can be instituted even if PayPal suspects there "may"
be a problem. That is a little scary to me.
12d. eBay can now force many sellers to accept PayPal, even if they don't
want to. They claim that newer sellers must get PayPal or a merchant credit
card. However, the cost involved in obtaining a merchant credit card makes
it prohibitive for most low-volume sellers. This leaves PayPal as the only
feasable option. And who is it that benefits financially by PayPal's usage?
Monopoly anyone?
12e. Buyer's can anonymously hurt sellers by leaving a low rating on any of
the "Detailed Seller Ratings" categories -- on any of the four seller
attributes. Like feedbacks, these DSRs can be used by buyers as a weapon by
buyers, against sellers. What makes this particularly disturbing, is that
eBay benefits by this practice. If a buyer gives a seller a low rating, the
seller will lose their PowerSeller discounts on eBay fees. Which will mean
more money for eBay. So the entity who I'm counting on for protection,
greatly benefits by not protecting me.
Here's what can now happen; if a seller states in his description that they
use priority mail for all packages, the buyer can now demand that they use
another service. And if the seller refuses, the buyer can leave a 1 on the
"shipping cost" attribute. This will hurt the seller in numerous ways
(higher fees, lower visibility to their listings), but they will have no way
to determine who stabbed them in the back.

In conclusion, eBay has instituted a widespread series of changes, and they
have tried (and lied) to project these in a positive light. They have made
an attempt to imply that these changes have widespread benefits to the
selling community. But, if sellers take the time to even give even a cursory
glance at these changes, they will find that in fact, they benefit only two
groups -- buyers (especially the dishonest ones) and eBay itself.

As an honest and hard working seller, these changes are quite upsetting to
me. However, when eBay tries to tell me that they are for my own benefit,
they become even more repugnant. If they just were honest about it, eBay
would announce something like, 'We want to make more money off your labor
and we want to make a big, public show of protecting buyers -- even as it
comes at our sellers' expense.'
It has become ever increasingly clear, that eBay does not respect sellers,
does not care of our concerns, and does not choose to truly try to reach out
to us in a spirit of mutual benefit. But at some point, anyone with any self
respect has to say, "enough."
I have never been one to stay where I am unwanted. If these changes become a
reality, I will let eBay know that they have gone too far. I will stop
providing them with thousands of dollars in annual fees. I will stop
recommending them to my customers and friends. And I will find other venues
to use, in order to sell my merchandise.
Maybe if enough sellers follow this example, eBay will finally stop treating
its sellers as second class citizens, and instead, work with us, to fix the
company's problems.


3
 

“Re: It's the FEEDBACK change that has folks upset.”
Posted by: Mrs Wonderful - Feb 2, 3:09am

eBay took what once WAS a gem of a company and ran it to the ground. Taking the long time loyal sellers with them!
Remember AOL? eBay is going the same path! The path of self destruction! I pay $1500 per month in eBay / PayPal fees. I'm outta there the day the new feedback / fee structure begins on Feb. 20. Bye Bye eBay!


4
 

“Ahhh, ebay”
Posted by: Nancy - Feb 2, 3:32am

Interesting these changes. Ebay has been losing market share here in the US, Amazon took the lead in sales figures for December, ebay went "ouch!".

Ebay has long ago lost sight of how it became so wildly successful with many harmful policy changes over the years. They created animosity between buyers and sellers. They refused to address the real problems of fraud and bad sellers for too long.

They forgot that feedback was it's unique way for trading partners to exchange comments on their transaction experience and now are using that very unique item to punish sellers in a variety of detrimental ways.

Instead of addressing the vindictive retaliatory negative style sellers, they punish all sellers. Instead of holding it's core values, they've caved to "market share" dynamics first, customer service last.

By making these changes to policy, they are not going to be able to say "we're only a venue" when indeed they have become the overseer of judging sellers based on arbitrary feedback policies. They are playing God.

They're not good enough to do that.


5
 

“Ahhh, ebay”
Posted by: Nancy - Feb 2, 3:34am

Interesting these changes. Ebay has been losing market share here in the US, Amazon took the lead in sales figures for December, ebay went "ouch!".

Ebay has long ago lost sight of how it became so wildly successful with many harmful policy changes over the years. They created animosity between buyers and sellers. They refused to address the real problems of fraud and bad sellers for too long.

They forgot that feedback was it's unique way for trading partners to exchange comments on their transaction experience and now are using that very unique item to punish sellers in a variety of detrimental ways.

Instead of addressing the vindictive retaliatory negative style sellers, they punish all sellers. Instead of holding it's core values, they've caved to "market share" dynamics first, customer service last.

By making these changes to policy, they are not going to be able to say "we're only a venue" when indeed they have become the overseer of judging sellers based on arbitrary feedback policies. They are playing God.

They're not good enough to do that.


6
 

“Ebay customer service”
Posted by: henry mcglone - Feb 7, 2:10pm

ebay shut my account for thirty days though it was paypals
fault they even sent me an email stating this and gave me �30.00 compensation i brought this up with ebay customer services more than once and gave everybody a full refund but ebay customer services did not take any notice of the fact that ebay sent me and them an email stating it was thier fault and not mine ebay reply was more or less tough luck 30 days suspension stays because of this i got four bad feedback it ruined my 100% good feedback when i asked ebay to remove this bad feedback as it was thier fault (oh sorry paypals fault)
they where not interested said once feedback left cant be removed i own a small it company in nottingham i will gladly drive to thier office and show them how to press the key that says delete no charge even though i am disabled
bottom line is they dont give a toss about thier sellars as long as the money and it substantial keeps pouring in
i hope sombody at ebay sees this and replies why they dont help the sellars that keep them going
yours grudgingly henry


7
 

“Re: Ebay customer service”
Posted by: redbanktoys - Feb 20, 12:04am

FINALLY maybe we'll get somewhere - the changes that eBay is implementing a total slanted against the seller and that is not only their core community, but their profit engine as well - How silly can eBay be to attack their main sorce of inncome.

Me. I'm On strike and have been a member/power seller on eBay since 1999 with 6450 feedback rating and over 700 items currently listed - and I'm not Happy.....


8
 

“Re: Re: Ebay customer service”
Posted by: disgruntled - Jun 8, 10:50pm

EBAY- a company who is like a cancer-ever growing in greed,spreading its vile growth in the deepest roots. But for how long? All empires crumble in the end. They have got too big for their boots.
1.Feedback policy is a joke-how on earth can a seller defend themselves from a deadbeat buyer? One who can be malicious and extort a chargeback,and in the process leave negative feeback for the buyer,thus ruining his standing and livelehood. This is a very bad move from Ebay. Donahue your changes really going to driive loads of sellers away-the core of ebays income.
2.The fee structure is ridicolous-it is all about money in your already bulging pockets. Many selelrs are ending paying more fees than selling now-another stuiped move.
3. the dashboard and detailed sellers ratings-which is meant to show an aerage score of a sellers abilities and howthey will be rewarded if a powerseller. Or a smaller time seller be punished if their DSR fall below an impossible goal. A seller can get a standard or lowered search rating- a disaster for the small time seller.
4.Customer service is a joke only bigger scale company where you have to email them and it atkes ages. And they only give priorotity to powersellers who line their pockets
5.Ebay used to be a great place and fun-now its a greedy,nasty company which tells lies,deceives its users.
Donahue you are out of touch with Ebay-god knows who employed you to become President and CEO of ebay. You are just another bloated cancerous ill informed , who does not listen to the people who made ebay as it is today-the sellers.
One day you will crumble into a shambolic heap-ebay days are numbered-good riddance.


9
 

“Re: Re: Re: Ebay customer service”
Posted by: em2322 - Aug 28, 10:59pm

i was a seller with a fb over 16900!! i stopped selling last week and begun my search for another auction site. i found an amazing uk auction site called 2made apparentley there is no fees at all!!


10
 

“Re: Re: Re: Re: Ebay customer service”
Posted by: PappyCaligula - Sep 9, 7:26am

The feedback changes were to remind business, in the long-run, the customer is ALWAYS right. Too many so-called business people have won many an argument and lost nearly as many customers simply to "have the last say" All to prove a point, instead of make a profit. NO, you can't satisfy every customer and a few, mind you a VERY few, are con artists waiting to pick your pocket. Wisdom can quickly identify that lot.

NO, customers were beginning to do like I did when someone tried to slip a 35 dollar shipping fee on a 1 ounce 11 cent adapter. We complained NOT to Ebay to but to our individual state's Dept of Consumer Affairs as well as . ethe state of the bad attitude business. Ebay was becoming an accomplice to unscrupulous business practicies and they were FORCED to balance toward the customers.

Heh, all this forced-pay business OR you get a strike is anti-capitalistic and anti-customer. If I find out what I bid on an "won" isn't exactly what I needed, I the CUSTOMER have the ultimate RIGHT to change our mind if WE so chose. Make your little strike and so what. You piss enough of us off, and you're out of business.

Ebay is a fad that will eventually crash on it's own. Especially, when foilks realize their ain't no such as an Internet Easy Job.


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