eBay Declares WAR on SMALL eBay Stores
storm888
Posts: 11,701 ✭✭✭
I guess they are no longer interested in hosting small stores on their
venue.
New store-listing fees SOARING; effective 8-22-06 !!!!!!!!!!!!!
"You've got 30-days."
(I am NOT saying this is not a reasonable financial move for eBay;
I am saying that many stores are going to shrink or close.)
Maybe google should do something...........
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Store Inventory Listings
For those of you who operate an eBay Store, we're making changes to Store Inventory listing fees, as well as to the on-site exposure we provide for this listing format.
We'll begin charging variable insertion fees for Store Inventory listings, as we do for core listings. Beginning Aug. 22, eBay.com Store Inventory format insertion fees will be tiered with an item's starting price.
These Store Inventory format insertion fees take effect Aug. 22, 2006:
Starting Price New Insertion Fee
$0.01 – 24.99 5¢ (Current Fee 2-cents)
$25.00 – and higher 10¢ (Current Fee 2-cents)
Some Store Inventory format final value fees also will increase, effective Aug. 22, 2006:
Selling Price New Final Value Fee Current Fee
$0.01 – 25.00 10% 8%
$25.01 – 100.00 7% 5%
$100.01 – 1,000.00 5% (no change) 5%
$1,000.01 and higher 3% (no change) 3%
Please note that for current listings, the new final value fees will apply only after these listings are renewed.
For more detailed information on these fee changes, please see our fee changes overview.
For some time, we've been working to identify the best way to display Store Inventory listings on the site. In the spring, we pledged to sellers that we would test a variety of ways to mingle their Store Inventory listings with core listings on eBay.com. We've tested several alternatives and these tests showed the ideal approach is how we're doing it today – that is, when a buyer's search returns 30 or less core listings, we display up to 30 Store Inventory listings. This is what we'll stick with going forward.
However, starting in about a month, we'll also include an unlimited number of Store Inventory listings after all matching core listings, when the buyer clicks the Buy It Now listings tab at the top of every search results page. When the buyer hasn't selected this option, eBay.com will display Store Inventory listings along with core listings as described above.
Half.com Listings Added to eBay.com Search Results
I recognize that sellers in the Books, Movies, Music and Video Games categories will have unique challenges with the changes we're making. As many of our media sellers have requested, starting in late August we'll again provide visibility for Half.com listings in core search results, by bringing back the Half.com listings merchandising feature we used previously (click here for an example). We're also exploring additional ways to promote Half.com listings in search results on both eBay.com and eBay Express.
How These Changes Affect You
I'm confident the actions we're taking are the right thing to do for the overall eBay Community. We'll more effectively deliver on our buyers' needs and expectations. And for sellers, these changes will ensure that eBay remains a differentiated and distinct e-commerce channel with fast inventory turnover.
I know there's a lot to digest here, and that you're probably most interested in quickly determining if and how these changes will impact your business.
A typical eBay Stores seller who uses Store Inventory format – making no adjustments to his or her selling strategy following these changes – will experience an overall fee increase of less than six percent, based on our analysis of all June selling activity. Of course, you need to clearly understand the impact on your business – which could be greater or less than six percent. To get started, please visit the seller resources page or consult the Frequently Asked Questions we've prepared. Also, use your seller support resources in Customer Support. Our CS teams are fully prepared to help you understand the effect on your business, and discuss your options for adjusting your eBay selling strategy to minimize impact to your bottom line.
In addition – to help eBay Stores sellers make informed decisions about any changes to their selling strategies – we're making eBay Marketplace Research Basic available to them at no cost for eight weeks, starting today. Through September 19, eBay Stores sellers can use this data to compare selling formats or determine how best to price inventory on eBay. You can access eBay Marketplace Research here.
I'll be hosting a Community Town Hall discussion tomorrow at 4:00 p.m. Pacific time, where I'll answer your questions. Please click here for more details on the Town Hall, or to submit a question in advance.
Sincerely,
Bill Cobb
President, eBay North America
venue.
New store-listing fees SOARING; effective 8-22-06 !!!!!!!!!!!!!
"You've got 30-days."
(I am NOT saying this is not a reasonable financial move for eBay;
I am saying that many stores are going to shrink or close.)
Maybe google should do something...........
//////////////////////////////////////////////////////////////////////////
Store Inventory Listings
For those of you who operate an eBay Store, we're making changes to Store Inventory listing fees, as well as to the on-site exposure we provide for this listing format.
We'll begin charging variable insertion fees for Store Inventory listings, as we do for core listings. Beginning Aug. 22, eBay.com Store Inventory format insertion fees will be tiered with an item's starting price.
These Store Inventory format insertion fees take effect Aug. 22, 2006:
Starting Price New Insertion Fee
$0.01 – 24.99 5¢ (Current Fee 2-cents)
$25.00 – and higher 10¢ (Current Fee 2-cents)
Some Store Inventory format final value fees also will increase, effective Aug. 22, 2006:
Selling Price New Final Value Fee Current Fee
$0.01 – 25.00 10% 8%
$25.01 – 100.00 7% 5%
$100.01 – 1,000.00 5% (no change) 5%
$1,000.01 and higher 3% (no change) 3%
Please note that for current listings, the new final value fees will apply only after these listings are renewed.
For more detailed information on these fee changes, please see our fee changes overview.
For some time, we've been working to identify the best way to display Store Inventory listings on the site. In the spring, we pledged to sellers that we would test a variety of ways to mingle their Store Inventory listings with core listings on eBay.com. We've tested several alternatives and these tests showed the ideal approach is how we're doing it today – that is, when a buyer's search returns 30 or less core listings, we display up to 30 Store Inventory listings. This is what we'll stick with going forward.
However, starting in about a month, we'll also include an unlimited number of Store Inventory listings after all matching core listings, when the buyer clicks the Buy It Now listings tab at the top of every search results page. When the buyer hasn't selected this option, eBay.com will display Store Inventory listings along with core listings as described above.
Half.com Listings Added to eBay.com Search Results
I recognize that sellers in the Books, Movies, Music and Video Games categories will have unique challenges with the changes we're making. As many of our media sellers have requested, starting in late August we'll again provide visibility for Half.com listings in core search results, by bringing back the Half.com listings merchandising feature we used previously (click here for an example). We're also exploring additional ways to promote Half.com listings in search results on both eBay.com and eBay Express.
How These Changes Affect You
I'm confident the actions we're taking are the right thing to do for the overall eBay Community. We'll more effectively deliver on our buyers' needs and expectations. And for sellers, these changes will ensure that eBay remains a differentiated and distinct e-commerce channel with fast inventory turnover.
I know there's a lot to digest here, and that you're probably most interested in quickly determining if and how these changes will impact your business.
A typical eBay Stores seller who uses Store Inventory format – making no adjustments to his or her selling strategy following these changes – will experience an overall fee increase of less than six percent, based on our analysis of all June selling activity. Of course, you need to clearly understand the impact on your business – which could be greater or less than six percent. To get started, please visit the seller resources page or consult the Frequently Asked Questions we've prepared. Also, use your seller support resources in Customer Support. Our CS teams are fully prepared to help you understand the effect on your business, and discuss your options for adjusting your eBay selling strategy to minimize impact to your bottom line.
In addition – to help eBay Stores sellers make informed decisions about any changes to their selling strategies – we're making eBay Marketplace Research Basic available to them at no cost for eight weeks, starting today. Through September 19, eBay Stores sellers can use this data to compare selling formats or determine how best to price inventory on eBay. You can access eBay Marketplace Research here.
I'll be hosting a Community Town Hall discussion tomorrow at 4:00 p.m. Pacific time, where I'll answer your questions. Please click here for more details on the Town Hall, or to submit a question in advance.
Sincerely,
Bill Cobb
President, eBay North America
Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
0
Comments
We'd like more of your money...about 6% more. That's a pretty hefty raise eBay is giving itself. I wonder if the shareholders can expect a >=6% increase, or if all the employees are getting 6% raises. Just because ebay is a monopoly they keep raising and raising their fees. I haven't sold anything on there in 8 or 9 months, and I'm in no hurry to do so. I continue to buy off of there, but that's only because the sellers are still there and willing to pay all of ebay and paypal's ridiculous fees.
$100 Card Sold before 8/22/06
eBay $5.02
PayPal $3.29
Total = $8.31
$100 Card Sold After 8/22/06
eBay $7.10
PayPal $3.29
Total = $10.39
So just over 10% of your total sale will now be going to eBay and paypal. I know in the "regular" auctions this percentage has run roughly 9-11% so the stores have finally caught up.
My eBay Store
BigCrumbs! I made over $250 last year!
As an aside, I wonder how this might change how small-time sellers submit cards to PSA. I often submit duplicates of the same card I need for my set and figure the lower grade examples might eventually sell in my store. Now that that is not an option, I may only submit one example of each and hope my eye didn't miss.
Brent
Bo Jackson Basic(#1) and Master(#1)
Bob Feller Basic(#4)
Sam McDowell Basic(#1)
2004 Cracker Jack Master
My Ebay Store
<< <i>Bill Cobb: I'll be hosting a Community Town Hall discussion >>
Heh. He wants to watch you bleed.
WTB: 2001 Leaf Rookies & Stars Longevity: Ryan Jensen #/25
Anyway, the FVF for regular auctions after the first $25 is only three percent.
The total ebay/paypal fees if you started an auction at .99 and it ended at $100 would be $6.96. Of course, most seller make a buck or two back on shipping, so you're looking at a 5-6% overhead fee. Where most sellers get screwed is with insertion fees and with lower end items.
<< <i>The Reaction
That's hilarious-- at first glance it appears as though at least 50% of the people b*tching about the increased fees have feedback ratings less than 50.
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The way I am reading his krap is that you shoudl list
full-blast on 8-21-06. And, close the store on 9-20-06.
He does not start stealing-big, on "listings in existence
as of 8-21-06." Anything listed 8-22-06 or later, will take
the big hit.
storm
This further kills the low end business.
How many Fortune 500 companies would kill to increase prices 6% and then tell their customers with a straight face, "it's the right thing to do", lol.
<< <i>
<< <i>The Reaction
That's hilarious-- at first glance it appears as though at least 50% of the people b*tching about the increased fees have feedback ratings less than 50. >>
I noticed that as well. I'm guessing some of them sell under alt IDs?
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End-users of goods/services are the ONLY folks who
pay for those items. Sellers collect money from buyers;
buyers fund ALL commerce.
If sellers find they cannot pass on the costs of staying
in business - as will NOW happen in small eBay stores -
those sellers stop selling. BIG sellers pick up the slack
and end-users' costs rise.
The ONLY people really hurt by eBay's gouge are the
buyers who want the choice to deal with small stores.
That choice will now be erroded, and BIG sellers will be
free to raise prices more easily.
"The rich will get richer, and the poor will lose even that which they have."
storm
I have my doubts, but it will obviously depend on how many of the store owners continue selling. Most of the sportscard sellers will probably stick around (let's face it - we're hooked), but in other areas that are more profit driven it could be a different story.
I also think that decisions like this will hurt them a lot more if a decent competitor emerges. Some sellers may be willing to even lose a little at first just to "stick it to 'em."
I will be keeping my store and will not change one thing about it.
Good for ebay, bad for everyone else.
//////////////////////////////////////////////////////
Yup. That fact is responsible for the uproar that will now ensue.
The uproar will change nothing, though.
I am not closing anything down, but I had planned on opening
some more, now I will wait awhile on that.
storm
I see it as opportunity. Less sellers equals less competition. So please if you are wanting to close your stores please do so.
Show me one venue that is cheaper that exposes your items to more potentional customers?? You can't because there is none.
Don't know what a monopoly is do you?? Nobody is forced to use Ebay, are they?? There are other means to buy and sell items that do not involve Ebay aren't there??
That is true, but that alone does not make them a monopoly. Nobody calls the oil companies a Monopoly, but in reality they are far closer to being one than Ebay is, even though there are several of them.
<< <i>There is no real competition for ebay. That's just a fact.
That is true, but that alone does not make them a monopoly. Nobody calls the oil companies a Monopoly, but in reality they are far closer to being one than Ebay is, even though there are several of them. >>
We need a 'wha guy' for posts like this.
We need a baby crying for posts like yours..
I just love how some posters here ignore logical questions and responses with veiled insults.
<< <i>We need a 'wha guy' for posts like this
We need a baby crying for posts like yours..
I just love how some posters here ignore logical questions and responses with veiled insults. >>
Einstein-
The reason nobody calls the oil companies a monopoly is because-- and I hope you're sitting down for this- monopoly implies a single seller, while 'companies' is plural, and therefore implies, uh, multiple sellers. The oil trade may be oligopolistic, or it may exhibit features of monopolistic competition, but it's obviously NOT a monopoly. With that having been said, there's nothing logical about your response. 'Nobody calls the oil companies a Monopoly, but in reality they are far closer to being one than Ebay is, even though there are several of them'? WTF is that supposed to mean?
And anyway, who cares if Ebay technically qualifies as a monopoly? I don't. What matters is whether they have some monopoly power in the online auction market, and if they do then just how much monopoly power do they possess. Maybe once you've concluded your Tony Robbins motivational talk on how increased overhead will be great for business you can pull your old microecomics book out of the closet and bone up a bit on the concepts in play here.
My store --- $15 per month.
400 items < $25 ---- $8 per month.
100 items > $25 ---- $2 per month.
$1000 in sales ----- $70 per month.
Totals $95 per month.
After change:
My store --- $15 per month.
400 items < $25 ---- $20 per month.
100 items > $25 ---- $10 per month.
$1000 in sales ----- $70 per month.
Totals --- $115 per month.
Looks like a significantly bigger than 6% hit for me.
I probably won't re-open in the fall.
If you would open your eyes and read you would see that I was stating that the oil companies are more like a monopoly than Ebay is. I never said they were, I know the difference in a monopoly and oligopoly.
oleg taktarov would kick olig opoly's ass..
Allen & Ginter Cards
My Blog -- Ballcard Mania
20-cent "core listings"
"Back To Basics."
blahblahblah
Cobb-speak for "run more auctions or close your store."
storm
<< <i>So now you gotta result to name calling.. Very professional.
If you would open your eyes and read you would see that I was stating that the oil companies are more like a monopoly than Ebay is. I never said they were, I know the difference in a monopoly and oligopoly. >>
I can't buy this kind of entertainment.
Say "oligopoly" 5x fast...oligopoly oligopoly oligopoly oligopoly oligopoly!!!
It's just my opinion that Ebay is sinking its own ship. No, this wont be the cause of a downfall and any downfall will not be any time soon...but finding ways to increase fees every 6 or so months will drive away sellers....first it will be the small sellers whom I have had GREAT dealings with!
Next fee to rise will probably be something like the monthly cost of a store. What is it? 15/month right now? Before we know it, it will be 20/month.
Of course I will still buy off ebay. But I am also going to be ready to figure higher shipping costs into auctions. And this is good for the buyer how? Good for the seller? It's a rhetorical question so please no one get their panties in a bunch!
high-FB store owners. Some are closing down, or
say they are.
If the mid-level stores start to bail, it may mean
that there will be room for some smaller stores
to expand.
The main thing this round of publicity is going to mean
is FEWER new stores. That, I like !
All blustering complaints aside, anybody who has set
up several eBay stores knows that they are mini-goldmines
and they will never abandon them, unless there is a
better place to go.
storm
Best quote i could find---
"There are too many items in the store format, and that's caused buyer experience to suffer," Whitman said.
Then why are they constantly urging sellers that don't have a store to open one?
eBay, make up your collective mind!
~*~I killed Kenny~*~
caused buyer experience to suffer," Whitman said. ...."
////////////////////////////////////////////////////////
My buyers do not think they are "suffering."
I would be suffering, if I was having to list "slow-moving"
stuff in 7 - 10 day BINs or auctions.
A lot of store operators stock their stores with the stuff
they "steal" at eBay auctions that are under-bid.
I run auctions all the time, and I cannot recall the last
time I hit a homerun on one of them. They are ONLY
useful to me as a means to get folks to visit the stores.
storm
<< <i>So now you gotta result to name calling.. Very professional.
If you would open your eyes and read you would see that I was stating that the oil companies are more like a monopoly than Ebay is. I never said they were, I know the difference in a monopoly and oligopoly. >>
Actually I've thought about this a little more and I'm prepared to take back everything I said to you. Now I DO think that Ebay is a little sleazy, they have monopoly power in the market place, and so on. But I'm beginning to agree that these changes may be more beneficial then harmful to store owners who know what they're doing, and even if this isn't true then Ebay definitely needs to weed out some of the crap listed in these stores. When Ebay first starting pimping these stores they must have underestimated-- as I too continually underestimate-- the number of guys living in their parents' basement who have nothing to do all day except smoke Newports and list $.25 cent cards on Ebay. The volume of this stuff is staggering, and when you figure there's no percentage in this for ebay-- who cares about 8% of $.25 ?- it becomes clear that they need to thin out the stock.
For a good laugh pick an obscure '90's junk set and do a search through the Ebay stores for it. I just did this for 1992 Topps Micro, for instance, and saw that you can either a) buy the whole set for $5, or b) buy the Paul Assenmacher for $2 (that includes shipping). I mean c'mon-- if you got so much free time that you can afford to list cards like this it's time to reevaluate.
Has links to ALL of the know eBay "alternatives."
As I reported last month, I tried bidville and had
ZERO visitors.
google also has a "selling site," of sorts. Tells me
they are not close to ready to take on meg's
crippled empire.
BTW: Do NOT think for a minute that eBay shares
have hit the toilet. There is A LOT more downside
no matter what the tea leaves are telling you. If
I was still holding, I would dump on ANY sign of
strength and plan to buy back at $13+/-. (Meg's
announcemnt that she is going to buy back $2-billion
during the next 24-months is telling. Anybody REALLY
think she plans to pay $25+ for those shares?)
storm
I have to agree on both sides.
I feel ebay is a monopoly and these fees are out of control.
On the other hand my ebay store profits are still up 100 percent over the auction items so untill a viable alternative comes along i'll have to stick with ebay. It's a sad truth that ebay knows and thats why the fees go up.
As always I feel this crap hurts the little guys. I will still list my big money items but will no longer list the .99 cards i listed mostly to help people finish sets. I usually only made pennies on these but they brought repeat customers and there is a market for it.
I could say more but theres already enough on this board.
Bottom line imo some will leave most will stay and ebay will screw us another day.
There are not too many card dealers over there.
I have bought a few things on there in the past.
Sadly, they now REQUIRE that all shop-owners
adopt a "uniform refund and return policy." That
policy conflicts with the way that I do business,
so I will not be moving to RubyLane.
(I REALLY like the look and feel of RL. If you have
super liberal refund-policies, you could probably
build a little empire over there. I am just not
interested in dealing with buyers'-remorse and
other ridiculous refund scenarios. RL does allow
a "restocking-fee," but that still does not fit into
my model.) The eBay "SNAD" rule is fair and I
just do not want to go beyond that threshold.
The more I search for alternatives tonight, the
better eBay looks.
storm
As I said it just makes you have to get creative.
This is why I dislike free and reduced listing price days as well, all the old FLDs used to do was bog the site down for a week with garbage that would never sell. I know of one seller who used to spend all year getting listings loaded in a folder on TL. When the FLD came around he dropped over 20,000 auctions onto Ebay. This was crap that you could not give away and did nothing buy help bog down searches and turn more and more buyers off to Ebay.
<< <i>That's easy to say when Ebay is such a monolpoly
Don't know what a monopoly is do you?? Nobody is forced to use Ebay, are they?? There are other means to buy and sell items that do not involve Ebay aren't there??
...
So now you gotta result to name calling.. Very professional.
...
Nobody is forced to use Ebay, are they??
>>
Don't know what a monopoly is do you?? - an insult.
So now you gotta result to name calling.. Very professional - whining.
Nobody is forced to use Ebay, are they?? - statement showing poster doesn't know what a monopoly is.
For your edification,
<< <i>
Industries which are dominated by a single firm may allow the firm to act as a near-monopoly or "de facto monopoly", a practice known in economics as monopolistic competition. Common historical examples arguably include corporations such as Microsoft and Standard Oil (Standard's market share of refining was 64% in competition with over 100 other refiners at the time of the trial that resulted in the government-forced breakup). Practices which these entities may be accused of include dumping products below cost to harm competitors, creating tying arrangements between their products and other practices regulated under antitrust law.
>>
source: Wikipedia
Monopolies don't involve the use of force. You don't have to use electricity in your house, but that doesn't stop the electric company from being a regulated monopoly.
But I agree with you on one point:
<< <i>I see it as opportunity. Less sellers equals less competition. So please if you are wanting to close your stores please do so. >>