New Lower Listing Fess For Coin Sellers........Paper Payments Are OUT !
storm888
Posts: 11,701 ✭✭✭
/////////
EBay lowering fixed-price sellers' listing fees
Wed Aug 20, 2008 12:56am EDT
By Alexandria Sage
SAN FRANCISCO (Reuters) - EBay Inc is cutting the fees U.S. sellers on its site pay for fixed-price items, in one of the company's boldest moves this year to boost merchandise for sale, lure new buyers and take on competitors.
Total sellers' fees will decrease in most cases under eBay's plan to improve the balance between buyers and sellers on the world's largest online auction site, and thereby reduce customer defections to rivals such as Amazon.com Inc.
"I'd say this is the most fundamental change we've made, ever, to the marketplace," Lorrie Norrington, president of eBay marketplace operations, told Reuters. "It's a huge shift from where we've been."
Instead of charging sellers to list each item separately, eBay will charge 35 cents to list any number of the same types of fixed-price items. Similar changes will be made in Germany and Britain, eBay's second- and third-largest auction markets.
The move, effective September 16, is a bid to reduce the clutter of similar items on eBay -- 100 pairs of white socks will now be sold as a group, for example. The change is timed to boost business heading into the crucial holiday season.
Such items will remain listed for 30 days instead of seven, helping sellers avoid the time-consuming process of re-listing unsold items and lowering the risk of inventory going unsold.
Fixed-price items, which made up 43 percent of merchandise sales on eBay last quarter, often attract newer or less-sophisticated online buyers who don't want to wait for a multi-day auction to close. EBay says fixed-price sales are popular because they bring in newer, more in-season goods, whether its plasma televisions or the latest video game.
EBay has been trying to attract more buyers as its main auction site has experienced slowing growth in recent years. The novelty of online auctions has waned and rivals like Amazon have muscled in on its turf with strong fixed-price offerings.
"Consumers are voting with their wallets and saying, 'Auctions aren't really the way I want to buy cosmetics,' or something like that," said Scot Wingo, chief executive of ChannelAdvisor, a sales consulting firm that advises online merchants who sell through eBay and other sites.
He called eBay's move a "relatively big change" to make before the holidays that also shows eBay's new management is willing to look beyond the traditional auction format.
Patti Freeman Evans, research director at Jupiter Research, said given the fast-growing nature of fixed-price sales, eBay's move is "very opportunistic, but also in line with what their customers are telling them they want."
MOST COMPETITIVE?
EBay's fixed-price focus reflects a shift in e-commerce. Consumers are now more comfortable with Web shopping and barraged with choices, whether it's auctioneers, retailers or classified sites like craigslist.com promoting bargains online or in stores. Also, sellers often post wares on many sites.
EBay, a San Jose, California-based company with 84 million active users worldwide, said lower listing fees, together with rejiggered back-end fees that will vary according to category, will make it the most competitive fixed-price player.
EBay said an "average" fixed-price seller that once spent $5,000 in eBay fees each year would now spend 11 percent less under the new fee system.
A revamped search engine, which is now being tested and will be introduced in September, will give buyers looking for a specific item options to buy at a fixed price or via auction.
This year, eBay has been taking steps to reward its best sellers and give new incentives to buyers, including coupons.
Fraud protections have been enhanced and upfront listing fees have been cut in favor of fees for successful sales. Sellers with high customer service ratings have won discounts and their goods featured more prominently than other sellers.
Further changes eBay said it would make include a maximum shipping price for sellers in media and electronics categories, with incentives to offer free shipping, and requiring sellers to include at least one electronic payment method.
The latter may irritate some small, but vocal, sellers who have objected to recent eBay changes.
"This will be viewed as 'eBay continues to push PayPal down everyone's throat,'" Wingo said.
Besides its main auction business, eBay also owns online payments service PayPal and Web-based call service Skype.
(Editing by Braden Reddall)
© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.
Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
0
Comments
/////////////////
eBay Changes Search, Bans Checks & Money Orders
By Ina Steiner
AuctionBytes.com
August 20, 2008
eBay made major announcements overnight, including major fee changes to its Buy-It-Now Fixed Price listing format effective September 16, 2008 (see today's other news stories in AuctionBytes.com for details). eBay said it would also make changes to Finding (search), Shipping and Seller Standards. And in a move that was expected by many, it will move to an electronic checkout system, banning checks and money orders.
Finding
eBay is making two major changes to Finding (also called Search). First, it will change the mix of inventory on the site and will score fixed-price and auction listings separately in Best Match, but display them together on the search results pages. eBay's Jeff King of the Finding Team said this allows it to give greater weight to Time Ending Soonest to auction formats, which would be irrelevant to fixed-price listings.
In addition, eBay will expose auction or fixed-price listings more heavily in search results, depending on the category. For example, it would likely show more auction listings than fixed-price listings in collectibles categories. The changes are designed to ensure that auction listings are not buried underneath Fixed-Price listings.
eBay will also create a new factor for its Best Match search algorithm for fixed-price listings only, called "Recent Sales." This will reward multiple-quantity listings that have had recent sales over single- and multiple-quantity listings with fewer or no recent sales. eBay will continue to use factors such as DSRs (Detailed Seller Ratings) and shipping, in its Best Match algorithm. In addition, factors will be given different weights in different categories, as is done today. King said, "We let buyers tell us what's relevant," with eBay mining data based on buyer behavior.
Changes to finding will go into effect on September 16, 2008.
Seller Standards
Beginning November 1, 2008, eBay will require sellers to have a minimum DSR of 4.3 across the board. eBay's Dinesh Lathi said this will affect a very small percentage of sellers.
Payments
eBay is moving to an electronic Checkout system, banning checks, money orders and postal orders. Accepted payment methods will include merchant credit card accounts, ProPay, and PayPal, effective late October.
Shipping
Lathi said eBay is "actively looking to bring shipping costs into the realm of the reasonable," stating that shipping is important to buyers, who will go elsewhere if shipping is high, and will draw in buyers if shipping costs are reasonable. In the Media category only, eBay will put limits on Shipping & Handling charges, effective mid-October. It will vary by specific subcategories.
In certain "edge cases," Lathi said, such as an 80-pack DVD, there will be a safety valve: sellers will have the option of using the shipping calculator if the caps are not appropriate. The shipping caps will apply to the first shipping service. eBay did not have details about the caps available to reporters on Tuesday.
Where shipping caps apply only to the Media category, eBay will give incentives to sellers to offer free shipping in all categories. It will give items with free shipping more exposure in search, and will offer additional discounts on FVFs (Final Value Fees). The discount will apply to individual listings, so sellers can choose which listings, if any, on which to offer free shipping.
Ebay has been getting less of my business. I wonder why?
Just when the last load of stupid was just about to run out ... beep, beep, beep ... another truck load backs in.
my early American coins & currency: -- http://yankeedoodlecoins.com/
<< <i>This will be viewed as 'eBay continues to push PayPal down everyone's throat,'" Wingo said. >>
What a news flash! None of us already knew that.
- Jim
Luckily for me, I was fazing out of selling on ebay anyway. I am out of town so much now, that selling on ebay is getting inpractical for me. I was planning to close my ebay store by the end of the year, now it looks like I will be closing it by September 16. I sent 99% of my ebay store inventory to Heritage a month ago, and plan to use Heritage to sell my upgraded duplicates in the future. Unfortunately I have to wait until I get groups of $5000 or more before sending to them. I will only be using ebay to sell the occasional duplicate that is valued under $50.
I must admit, it is a good feeling to slowly get away from ebay as a seller. I have been selling there since 1999. It was a fun ride, but it is time for me to move on.
They sure have been pushing their luck with sellers lately.
Ebay ain't what it used to be, fer sure!
Just a couple years ago it was FLOODED with all sorts of high priced PCGS (and other) certified coins!
Not no mo!
<< <i>So if this comes to pass and checks/MOs go bye-bye I know many of you refuse to use paypal. Would it help if I could take a credit card outside of paypal? --Jerry >>
So are they saying that you have to complete payment thru PP in order to receive or leave feedback or any other things that may arise? What if you and I agree to our own payment terms?
All this will do is end up screwing ebay & paypal as customers (established customers who like to pay with Bank Checks & US Postal Money Orders will be cutting deals & items will no longer be available. Watch! Bet ME!
And ya know what, that's GOOD for eBay for being so damned greedy along with their greedy sidekick called PayPunk!
Just watch & see! NOBODY likes being TOLD what to do with what is one's own property!
As for the fees, we'll see how that goes.
<< <i>Regarding the ban on checks/money orders... I think this will eliminate a lot of fradulent listings. Once you buy something on eBay, with the new policy, eBay will have complete oversight to verify that the buyer actually paid. People that put up listings and had their friends bid on them, or even the seller with a different account, will have to pay for the item. The buyer can't just say "payment sent" and the seller can't just click "payment received". I think it is a great idea, I am all for it. It was said earlier too, checks are a pain in the butt and the buyer has fewer options for getting $ back if the seller is a crook.
As for the fees, we'll see how that goes. >>
So whats to stop someone from just "going thru the motions" is what I'm asking?
<< <i>If you do not sell in large quantities, a few heavy hits to your DSR's could be a knock out punch. >>
Extortion of small sellers has become a cottage industry on feebay. They're just reinforcing it.
<< <i>Anyone know what "ProPay" is? >>
ProPay is a merchant account for small operators. It allows you to accept credit card payment at somewhat higher fees for lower volumes. See ProPay website.
I too like the paperless payment. Less fraud, better protection, nothing lost in the mail or tossed in the recycle bin with the slew of junk mail. I can close sales on the road.
And I don't agree that eBay is run by idiots who misunderstand fundamentals. Anyone who thinks that has never run a business. You may not like how their decisions affect your business or hobby. Change always upsets some, but it is ultimately good. Good for making smart businesses stronger and for weeding out those who make bad calls. For eBay, time will tell.
I just wonder how many people will really start taking advantage of paypal and make claims like the package was empty when someone ships a $2000 coin when really the coin was there. Or they make up something like the coin wasn't as described and all they do is take another coin from their collection and take a picture of it and claim that the coin was misrepresented. IT is scams like this I'm afraid of and I know people who have been a victim of paypal extortionists who know the system and try to get free products or reimbursed a large portion of what they paid out knowing that sellers are at their mercy. Paypal is fine for transactions for a few hundred dollars or under because if you do come across a scammer who knows the system and says, hey the box was empty when it really wasn't then you can afford to eat a few hundred dollars, but what happens when someone ships a $5000 coin and some scammer claims the box was empty then what happens? Do they get paypal to refund their money? I know alot of sellers who want checks only on large amounts for circumstances like these. I just could never bring myself to sell a coin on ebay in the thousands and being forced to take paypal knowing what could happen. I will continue to use ebay for items $300 or below, but anything over I will not take my chances. NOt that I have many coins over a $1000, but if I did I would hate to ship it and then have the buyer make something up like the wrong coin was sent or the box was empty and then get a $2000 coin for free at my expense.
No. Businesses are not required to accept any or all forms of payment. Sheesh...give eBay a little more credit.
A lot of kitchen table dealers of all kinds don't report their sales/income.
I believe a significant number of these will simply quit rather then more toward a system where they have to track and report income.
There's already too much (high) fixed price stuff there already which is often available at other places for less money. IMO, it's more evidence that they are trying to get rid of the small-time auctioneers and replace them with larger powerselling storefronts.
".......... in one of the company's boldest moves this year.......................and take on competitors."
I thought the "no negative feedback" was much bolder and exactly where are all these "competitors"?
Never mind, I figured it out, a competitor is any company whose stock is worth investing in!
The name is LEE!
<< <i>Admittedly I did not read the entire thread as the aroma of BS was too overpowering:
".......... in one of the company's boldest moves this year.......................and take on competitors."
I thought the "no negative feedback" was much bolder and exactly where are all these "competitors"? >>
We should be so lucky that eBay had legitimate competition.
<< <i>
<< <i>Anyone know what "ProPay" is? >>
ProPay is a merchant account for small operators. It allows you to accept credit card payment at somewhat higher fees for lower volumes. See ProPay website.
I too like the paperless payment. Less fraud, better protection, nothing lost in the mail or tossed in the recycle bin with the slew of junk mail. I can close sales on the road.
And I don't agree that eBay is run by idiots who misunderstand fundamentals. Anyone who thinks that has never run a business. You may not like how their decisions affect your business or hobby. Change always upsets some, but it is ultimately good. Good for making smart businesses stronger and for weeding out those who make bad calls. For eBay, time will tell. >>
That's a very broad claim, anyone who has ever run a business, etc. Idiots come in many forms. I don't claim to have a crystal ball but I've owned two companies which I sold and before that pretended to be a commercial loan officer of almost 30 years and this looks like a familiar pattern to me. You overpay for a company have come with all these bright ideas learned in business school to squeeze every last dime of profit out the business by changing the model that made it what it was. I don't see these changes as adding income but ultimately costing them income and creating opportunities for someone else to resurrect the successful business model and taking away customers. It's can be very dangerous to try to go horizontal like they have, i.e. buying paypal then cramming down your customers throats. Goodwill and customer service were taking a big hit the way it way and I think this reinforces that attitude among its clients. I truly believe they've lost sight of what made them work so well in the first place.
Someone please provide a rational explanation of why this is a good thing and not just some opinion based on what I can see is speculation. I don't have a crystal ball but I've seen these red flags so many times before and the bells are ringing loudly in my ears. As a former commercial loan guy I'd sure want to see some valid predictions behind these decisions. You have to be very careful when you run the risk of running of customers and therefore income.
Personally I'd love to see someone come along and eat ebay for breakfast.
<< <i>
<< <i>So if this comes to pass and checks/MOs go bye-bye I know many of you refuse to use paypal. Would it help if I could take a credit card outside of paypal? --Jerry >>
So are they saying that you have to complete payment thru PP in order to receive or leave feedback or any other things that may arise? What if you and I agree to our own payment terms? >>
Well, given the fact that they will not allow paper payments to be made, I suspect that the software will no longer have a "Mark as Payment Received" option which may or may not lead to more Unpaid Item Disputes which could lead to investigations to see if the system was being circumvented?
As for lowering the BIN structure to 30 days, I suspect they were forced into this since sellers will now be FORCED to cough up an additional 3% for PayPal.
Did anybody respond with what ProPay was?
The name is LEE!
The only thing in these new announcements that I find troubling is eliminating checks and money orders. Plenty of collectibles buyers still prefer that payment method.
Russ, NCNE
<< <i>I don't see these changes as adding income but ultimately costing them income and creating opportunities for someone else to resurrect the successful business model and taking away customers. It's can be very dangerous to try to go horizontal like they have, i.e. buying paypal then cramming down your customers throats. Goodwill and customer service were taking a big hit the way it way and I think this reinforces that attitude among its clients. I truly believe they've lost sight of what made them work so well in the first place. >>
<< <i>And I don't agree that eBay is run by idiots who misunderstand fundamentals. Anyone who thinks that has never run a business. You may not like how their decisions affect your business or hobby. Change always upsets some, but it is ultimately good. Good for making smart businesses stronger and for weeding out those who make bad calls. For eBay, time will tell. >>
Why do I suspect that you do not earn a living selling on eBay. Change, in and of itself, is not necessarily good. And in the case of eBay, time has told. They're losing buyers, they're losing sellers, they're losing money, and their stock is near a 5 year low. They've resorted to scams, lies, and listing number manipulation to cover up their mistakes in a lame attempt to fool stockholders. The company is self destructing.
PCGS, ANACS, & NGC Certified Coins on My Website.
$34.95 Annual Membership fee
3.5% plus .35 cents per transaction?
The name is LEE!
<< <i>The only thing in these new announcements that I find troubling is eliminating checks and money orders. Plenty of collectibles buyers still prefer that payment method. >>
Yes, but is that like saying the only thing that hurt Abe Lincoln was a bullet to the head?
That "only thing" is, IMO, huge. There are a lot of people who won't use PayPal, period, despite eBay's obvious desire to force everyone to do so. And many of them will stop buying rather than use it.
Geez, is it too late to short their stock?
<< <i>ProPay actually looks more expensive than PayPal.
$34.95 Annual Membership fee
3.5% plus .35 cents per transaction? >>
I dont think they want you to use propay they just want to look like they are offering an option to paypal.
I'm going to pick apart that post just a little bit for some self-therapy. I hope I don't offend too much.
<< <i>They're losing buyers, they're losing sellers >>
It is difficult to quantify the buyer side. As far as sellers go, i'd say that i've seen a 10% reduction in the volume of US Coins available on the site within the last six months. But it's hard to quantify exactly where that loss comes from. There still seems to be a great deal of stuff going by that is worthwhile. One must still pick and choose as one always has.
My favorite sellers in my favorite seller list? Going strong as usual. Not one has stopped selling. That list has not shrunk at all.
Based on the prices realized, I find it hard to believe that enough buyers have left eBay to make a difference in what I get the goods for.
<< <i>they're losing money >>
They are making money. Their PE ratio is positive. Based on what I see in the financial information, they are not in the red this quarter, not the last two either.
<< <i>and their stock is near a 5 year low >>
True, that stock is a poor performer. I suspect that what you meant by "they're losing money" is that they are not growing fast enough to support their overvalued stock price. At a P/E ratio of 66, they need to be growing explosively. I blame this on overenthusiastic investors more than the company failing to grow.
<< <i>They've resorted to scams, lies, and listing number manipulation >>
Scams? Lies? Hard words to use with no facts to back them up. Perhaps you mean 'business decisions you do not agree with'. The biggest scams and lies come from seller auctions. Second biggest; fraudlent buyers.
Listing number manipulation? The only listing number issue I am aware of is that they went to a randomized scheme because there were problems with folks committing forms of fraud when the numbers were sequential and predictable.
<< <i>The company is self destructing >>
Time will tell. I have my own issues with eBay but it is not 'anti-corporate' in nature.
The one thing I do not like about the recent change is forcing PayPal as a payment type. But, when I was selling, I was a 'paypal only' seller. So, my disagreement here is extremely minor. Since then, i've softened up on alternative payment types, but eBay has apparently hardened.
In order to avoid scrutiny from the FTC, they have also allowed various other 'garbage' payment methods. If it was PayPal only, that would probably be a conflict of interest. Eliminating checks? Eliminating money orders? I do not like it. And they have taken some 'fakey' steps to avoid scrutiny for it.
One thing I will say about eBay; it has driven me to locate many other sources for items. That is also a good thing (for me)!
Heck, i'm a graduate of U.C.Santa Cruz and so I was in the midst of hardcore anti-corporate indoctrination. But somehow, I managed to escape with my brains mostly intact, I think think I think thinky.
The elimination of paper payments is a problem because many buyers prefer the "old fashioned" way of paying for items. Either they are not techno-savvy, or are untrusting of electronic payment systems. But obviously it makes sense from Ebay's perspective because it will run all transactions through Paypal, improving visibility and increasing fees. Plus you will get that "great" seller protection! It was inevitable that it would come to this. I am surprised that Ebay could get away with telling independent sellers that they can't accept legitimate forms of payment. I think it may spawn some lawsuits in the US that would at least delay implementation for awhile.
/////////////////////////////////////
No, but wait for some strength in the share-price to do it.
I have been SHORT here for more than a year. I will be covering
in single-digits; but, I have no idea when that will be.
When a few AGs determine what many lawyers think they already
know - EBAY is nothing more than an out-of-control RICO-Enterprse -
I hope to see perp-walks and BK filings.
/////////////////////////////////
ProPay is an expensive and non-viable option for MOST sellers. It
was tossed into the mix to help avoid AG/FTC interference.
<< <i>That "only thing" is, IMO, huge. There are a lot of people who won't use PayPal, period, despite eBay's obvious desire to force everyone to do so. And many of them will stop buying rather than use it. >>
From here:
What should I do if I have long-standing, repeat customers who insist on paying with checks or money orders, even after I explain the benefits of electronic payments and offer suggestions.
We know this may happen occasionally. However, we will not allow abuse of the new policy and will be watching for sellers who accept a significant amount of prohibited payments. Remember, you can refuse to accept these payment methods. If the buyer doesn't pay, you can file an unpaid item (UPI) complaint. Buyers who insist on paying with these prohibited payment methods in a UPI claim will lose the claim and will not be allowed to leave negative feedback.
Yes, just what I want to do- refuse a payment from a past customer, and then file a UPI complaint against him. Should really be good for business, don't you think?
In case anyone wonders, most of my best repeat customers pay by check or money order. No, I don't think this change is a good thing.
The new approach is designed to counter eBay's slowing sales growth. The New York Times says auction sales account for only 57 percent of eBay's revenue, with the rest coming from advertising, PayPal and global classifieds. The new business model is eBay's attempt to boost retail sales by favoring bulk sellers who make their living selling items on eBay. However, collectors and others who are trying to sell rarer items that could fetch a respectable price at auction may find it tougher to do business in the new eBay. Members of the Professional eBay Sellers Alliance told the Associated Press that they are seeing fewer of their listed items on eBay sell and those that do move are being sold at lower prices.rest of the article
You still think this is a good model for coin collectors and sellers?
<< <i>Members of the Professional eBay Sellers Alliance told the Associated Press that they are seeing fewer of their listed items on eBay sell and those that do move are being sold at lower prices >>
PeSA is a joke headed by an arrogant buffoon. Half their membership is at risk on eBay due to poor seller performance. You can safely place little stock in anything they have to say.
Russ, NCNE
IMO, they are trying to increase volume to PayPal, encourage eBayers still without an account to get one, and to shorten the time between purchase and delivery (eliminating payment mailing time and check hold times) to improve buyer experience.
WH
//////////////////////////////////////////////
Nope.
But, I understand that any "cheerleaders" here have not been affected
by past changes and expect not to be harmed this time either. Only
time will tell.
I sell few items in the collectible categories. NONE of the past changes
have harmed me at all, in those cats.
I sell MANY items in fashion and electronics. The changes have radically
changed the way I have to operate on EBAY. My profits have been hurt,
and the prices paid by my buyers have INCREASED substantially.
If GOOG and AMZN were to open their venues as "collectible sales platforms,"
folks would be shocked at the exodus from the corrupt and incompetent EBAY.
Not likely to happen, but stranger things have happened.
<< <i>PeSA is a joke headed by an arrogant buffoon. Half their membership is at risk on eBay due to poor seller performance. You can safely place little stock in anything they have to say. >>
That's all true, but still- forcing sellers to tell their buyers they they can't pay by check or money order is not a good thing.
<< <i>...auction sales account for only 57 percent of eBay's revenue >>
Gee, only 57 percent?!?!?! Well let's be sure to alienate and eliminate that minority, er, um, majority. Yeah, that's sure to increase revenue, said the CEO.
Buy.com, ebay's new biggest & best seller, has a less than 2.9% sell through rate. The sweet deal they received from eBay included no listing fees. They currently have over 700,000 listings on eBay. Free listings.
Why would they have such a low sell through rate you ask. Let's take a look at what some of their listings look like.
Here's a single (as in 1) AA battery that you can proudly display as your own for the low, low price of only $12.97 with shipping. LINK
So while "real" sellers are leaving in droves, and real sellers are also real buyers, eBay pads their listing count numbers with goodies like these and the stockholders will be none the wiser.... until the "real" revenue numbers kick in.
PCGS, ANACS, & NGC Certified Coins on My Website.
<< <i>With 30 day BIN's, Ebay is effectively encouraging the closing of ebay stores. All the store inventories will now flood into the the core listing searches. We will have to wade through a lot of overpriced fixed listings now to find what we want. I am not sure how much damage illiminating checks and money orders will do. I know several buyers and sellers that do not use Paypal, but they seem to be a minority these days. I suspect some of them will convert.
Luckily for me, I was fazing out of selling on ebay anyway. I am out of town so much now, that selling on ebay is getting inpractical for me. I was planning to close my ebay store by the end of the year, now it looks like I will be closing it by September 16. I sent 99% of my ebay store inventory to Heritage a month ago, and plan to use Heritage to sell my upgraded duplicates in the future. Unfortunately I have to wait until I get groups of $5000 or more before sending to them. I will only be using ebay to sell the occasional duplicate that is valued under $50.
I must admit, it is a good feeling to slowly get away from ebay as a seller. I have been selling there since 1999. It was a fun ride, but it is time for me to move on. >>
I had recently closed my ebay store due to the constantly rising fees, now you have a point I might actually take advantage of this new structure and won't bother with the auction portion and you are right it will get messy.
<< <i>That's all true, but still- forcing sellers to tell their buyers they they can't pay by check or money order is not a good thing. >>
No argument here. It's a stupid idea. It might be a good idea at some point in the future, but right now there are still too many folks buying collectibles who prefer the old fashioned way.
Russ, NCNE
What should eBay do instead? Take its medicine all at once. Affirm to the entire world that it intends to once again provide the most value to buyers and sellers on the planet...and cut fees 25% across the board.
Yes, this would wallop cash flow. But eBay can't figure out what to do with its cash flow anyway (Skype?). With the stock at $25, moreover, the market has largely given up: eBay trades at less than 15X trailing cash flow, a multiple once reserved for octogenarian companies like Time Warner. Also, after a decade of plenty, eBay undoubtedly has a lot of fat it can cut, so the hit to cash flow would likely be less than the cut in fees.
And, more importantly, the change would help get the eBay growth engine going again.Link
The market looks at and reacts to a lot more than profit and loss just as any good lender would.
<< <i>If GOOG and AMZN were to open their venues as "collectible sales platforms,"
folks would be shocked at the exodus from the corrupt and incompetent EBAY.
Not likely to happen, but stranger things have happened. >>
I'd give them a try. BUT, Amazon would have to do something about their fee structure. It's more than double my combined eBay and PayPal fees.
Russ, NCNE