Citigroup: eBay Still Has Plenty to Prove

35 Comments

imagesAs eBay (s ebay) tinkers with its e-commerce site, CEO John Donahoe has been making the case that the company is turning around. But as we’ve noted, while some of the changes look encouraging, it’s not clear whether enough buyers are returning to the site. Today, Citigroup analyst Mark Mahaney expressed similar concerns, noting that while he’s “incrementally more positive” about the company after meeting with executives, he sees “sustained declines in online traffic to the site as a clear negative.”

Traffic to eBay’s site is down 9 percent so far this quarter compared to a year ago, Mahaney said. Meanwhile, over at Amazon (s amzn), traffic is up 9 percent. Mahaney is maintaining his “hold” rating on eBay as well as a $16 target price (at least check, shares of eBay were trading at $17.30).

Still, he says, eBay is making progress on buyer and seller initiatives. On the buyer side, eBay has been trying to improve customer service and promote daily deals through new channels like Twitter. It also plans to introduce a new, improved search engine in the fall.

According to Donahoe, eBay’s top sellers are happy with the new discounts, incentives for free shipping and high placement in search results. And according to Manahey, its integration of BillMeLater will also benefit larger sellers. Mahaney said that smaller sellers, who have been displeased with many of Donahoe’s changes, may respond positively to today’s news that eBay is letting sellers list five items for sale each month without paying the up-front listing fees.

Or maybe they won’t. As Dow Jones pointed out, items that are listed for free will face fixed commission fees of 8.75 percent (or $20, whichever is higher) — instead of commissions that vary according to the price of the item for sale. That means, in some cases, the waived listing fees will mean higher commissions than under the old system.

Some smaller buyers may be willing to accept the olive branch that eBay is offering by waiving listing fees on five items per month. Others will surely point out that the move doesn’t fix a fee system they feel is tilted in favor of top sellers. But the biggest issue facing eBay right now is buyers – why aren’t they returning to a bargain-oriented site in a recession?

35 Comments

philipcohen

You think that rocket fuel plant explosion in Nevada in 1988 was spectacular? In my crystal ball I can see another eBay train wreck approaching; it’s due to arrive in the evening of 21 July; this one’s going to be horrifically spectacular; but as horrific as it is going to be, you simply won’t be able to look away. Mark your diary so you don’t forget to watch, and have your video camera on the ready (catch the train driver—that’s the one who looks and acts like a lobotomized chimpanzee—waving his arms around in the air)—you may be able to sell the footage to the WSJ. (But, don’t worry, if you do happen to miss this one, there will be a repeat episode on 21 October.)

If nothing else it will be interesting to hear who Donahoe blames this time: undoubtedly it will be the fault of all those unwashed, irritating, ignorant, “noisy”, passengers travelling in third-class—not the fool driving the train, Donahoe himself, of course …

An introduction to “Fun with the eBafia Don” at:
http://www.auctionbytes.com/forum/phpBB/viewtopic.php?p=6502877

eBay/PayPal/Donahoe: Dead Men Walking

philipcohen

Citigroup criticising eBay/Donahoe? Don’t these analysts realise that Citi does eBay’s, and PayPal’s banking. Publicly biting the hand that feeds you; now that’s totally out of character for an US financial institution; certainly a new one for Citigroup; found some ethics, after all?

STOP FREE SHIPPINGON EBAY lower you final value fees

Ebay is failing due to stupid and ill thought out policies that John Donahoe claims is diruptive innovations. This man has chased away thousands upon thousands of sellers, who were also buyers on this site. His final value fee increase has made it possible to sell items elsewhere and cheaper. How can anyone justify this pitiful and sorry management. The page views are way down, sales are way down and this man thinks he is doing a great job. Wrong, we have sales growing elsewhere and other venues are growing taking away ebay’s business. If it was not for paypal profits it would be bye bye ebay and bye bye John Donahoe. His policies have hurt a lot of small businesses, bad search, and bad bad micromanaging. He forced free shipping on the site by promising a higher search ranking, did you really get a higher search ranking?guess what you did not. Your final value fees got higher though because almost all sellers rolled that shipping cost into the price of the item and JD got final value fees on that it reaped millions. If weveryone would go back to chargingshipping right now ebay would fail, that is how much they received in thiose increased final value fees. It would wake up the ultra wealthy, politician wanna be board of ebay who are asleep at the wheel. Your items on ebay are generally buried in the search if you sell a popular item. Diamond power sellers who sell the most, importers who sell low quality cheap products that sell the most get first shot on the search, it does not matter if they are giving the buyer a good experience or not, like JD says. He is stupid and has other motives, he is ridding ebay of small business and going for the big huge retailers who are lining his packets. He took away the ability for sellers to tell others about the bad buyers, he took away the ability to accept check or money orders, but yet his ebay accepts cjeck or money orders from you to pay your ebay fees, he said checks and money orders were risky and caused fraudulent transactions. HMMMMM The real truth is JD cannot recover the money from a money order or check transaction and he would not be able to guarantee that 100% buyer money back policy unless it came out of ebay’s pocket, so he made it you must pay by paypal so he had access to yopur money. The lawsuit that will eventually come out of this will change everything, it may take years but JD will be gone and Paypal will be severely hurt, ebay will fail too many sellers have been bludgeoned by this hitler, organized crime chief. His Geatapo trust and safety will no doubt be jailed for their harqassment of sellers who complain, if you complain too much they will get you, ever wonder what trust and safety is? they JD’s army of attorneys who wuill retaliate againt you if you say anything about ebay and there water brained ceo. STOP FREE SHIPPING ON EBAY AND LOWER THE FEEAS EBAY GETS LIST A FEW ITEMS ELSEWHERE DAIILY AND EVENTUALLY WE WILL WIN PASS THIS ALONG PLEASE.

JAT

eBay is losing buyers because they are losing the small sellers. I used to be a small seller of some collectible items and was a buyer on eBay. eBay was great 10 years ago when it was strictly an auction site. They ruined it when they added all the power sellers and stores. Now you can’t find the rare items among all the buy-it-now listings.

elise

So what is the great eBay solution? Not bonanzle..
everyone has been griping about the same things for some time now, higher fees, poor customer service…if they could somehow integrate a social aspect into it….
just seems as though they are trying to tack on every type of fee imaginable every step of the way.

gary mclelland

i there i have been on ebay for 2 years just become a powerseller 12 weeks ago.THIS WEEK AS BEEN THE WORST WEEK I HAVE EVER ADD ON EBAY THEY TOLD ME THIS WEEK I WAS SELLING FAKE GLASESS WHEN ALL MY ITEMS WAS 100% AUTHENTIC MY FEEDBACK AT 99.9% ALL MY BUYERS ARE VERY HAPPY AND PLEASED WITH WHAT I WAS SELLING THE THING WHAT AS UPSET ME IS THAT THEY HAVE SHUT DOWN MY ACCOUNT FOR 7 DAYS CUSTOMER SERVICE DONT TELL YOU ANYTHING YOU E MAIL CUSTOMER SUPPORT THEY BACK TO YOU AND SENT A STANDED E MAIL. I LEFT MY JOB TO BECOME A POWER SELLER AND MAKE MONEY
ALL EBAY AS DONE SHAFT ME GUTTED AND HURT AND SHOCKED AT THE WAY THEY TREAT THE SELLERS.

John

This mans idea are just wrong. He has ruined ebay with his micromanaging and lack of common sense. Sellers are fed up, there items are buried in the search listing, they are micromanaged in every way and punished if they object to anything and the fees are outrageous. He has opened the door for buyers who are thieves and fraudsters and nothing at all is done to these buyers when they are reported. He uses honest sellers accounts at Paypal to fund his 100 percent buyer satisfaction on ebay, even when the buyer is wrong and stealing. The seller has no say, he does not own my businesses, I do. The customer service at ebay is just plain awful and at times these customer service people have retaliated against complaining sellers. Mr Donahoe seems to be thinking that he is allowed to punish whomever disagrees with him, ebay is the only place I have problems with buyers and it is because of Mr Donahoe’s policies that allow thieves to exort free merchandise and money. I have an excellent rep on ebay, and it happens to me. Would a newspaper do this to you if you placed an ad there? no they do not. Does anyone do this to you if you place an ad on the internet other than ebay? no they do not. Sales are down and the ONLY reason ebay is afloat is Paypal’s growth in other markets. In the end lawsuits are going to bury ebay. I pick up sales daily from other venues and it is increasing, if I were a shareholder in ebay stock I would demand his resignation. He tricked and forced sellers to offer free shipping with the bait of a better search standing, we are not getting that. He increased final value fees to outrageous levels, his dsr system is flawed so bad that it punishes sellers who are good and honest, his customer service department has gone from really bad to really worse, his own employees are fed up, he has totally ruined any trust between sellers and buyers and is enabling thieves using sellers paypal accounts. He is totally and completely out of touch with reality and what is going on, and the comments he makes about his research tells him to do this is just plain not the truth. He is just awful and really needs to leave. Ebay needs to restore the trust on ebay stay out of honest sellers way, we are not employees of ebay, and I would like respect right now I am disrespected by John Donahoe and that is not right. I am a ebay customer paying fees and I should be treated with respect but I am not. I am working to get away from ebay as a lot of others, hopefully ebay’s board will see the light and return to common sense, not coloring books and crayongs. John Donahoes disruptive innovations are just pipe dreams, we need constructive innovations. Finally ask yourself a question. Why would a board of directors put with this level of nonsense? That really needs to be answered

NYM Arts

I’ve just recieved word from BONANZLE that they are indeed TUNING UP THIER PLATFORM FOR AUCTONS ! ! ! ! !
No start date yet, but I’m ALL READY TO GO.
New Members : 71,548.
Checks and Money Orders WELCOME.
See You There :o)

Patricia

@ Mike – whoa! All I said was Bonanzle would benefit from some auctions – you’d best go read my post again. I said nothing is selling on Bonanzle – the buyers are not there – I never said the buyers were on Ebay or that Ebay was easy to use. Ebay is hellious for sellers these days – anything but a pleasure! I rarely use Ebay anymore – I’ll throw an item or two on there once in awhile but I don’t expect them to really sell – traffic is THAT bad on Ebay! I have my own website that’s doing quite well plus other venues such as Etsy and occasionally Overstock. Ebay is in a sorry sorry state. Most sellers are leaving or at least diversifying to other sites and cutting way down on their Ebay listings.

NYM Arts

Mike,
Listing on BONANZLE is WAY easier than *bay ( I’ve *bayed since ’98, their layout SUCKS in comparison).
Give it a try.
If Simple, Easy and UNcomplicated is Boring, well, you’ve just redefined boring :o)
BONANZLE : 70,392 members now….gaining Over 1000 new members, or more, every 6 days.
Hey, I just Saw the neatest set of 3 Old wood handle metal saws in great condition….BONANZLE Home page.
Check it out, Everything BUT the ordinary.
Hit the Refresh to see different Home Page Presentations.
I’m supporting my Fellow Americans, so should You.
Checks and Money Orders Rule the Day.
See You There !

Patricia

John Donahoe will NEVER turn ebay around. They’ve lost the most valuable tool they had – their reputation. Everywhere you go you will see posts such as those above. Its been going on for over a year now and shows no sign of stopping. Word of mouth is very very powerful and sellers are using it to drive home the point that they have been misused and mishandled by Ebay They have been insulted by being called “noise” they have suffered fee raises while their wares are hidden by best match – they are being treated with suspicion or outright treated like crooks by Ebay’s new feedback system and I hear there is even more of the same on the horizon! Sellers have been leaving for over a year now and taking buyers with them – anybody who does not see the drop in small seller wares is fooling themselves. Ebay has made selling on its site a hellious experience. Even sellers with perfect feedback feel they are walking on fire every time they list an item – they are vulnerable to every scam buyer who comes along. The lates 5 “free” listings a month is an utter joke and shows the shear stupditiy of Ebay’s management. Sellers with items under 25.00 will be okay but every item over that amount will pay MORE in FVFs. Ebay hasn’t given sellers one inch in over 1 1/2 years! There used to be a free listing day to show sellers Ebay’s appreciation….no more…now sellers are dirt to be kicked around, milked for money and manipulated.

Even if ALL the sellers left tomorrow and ALL the big diamond sellers and huge liquidation sellers move in…Ebay will FAIL. It has tarnished its reputation and more and more buyers are discovering that Ebay is the most hated company on the internet! They are giving it a wide berth – fewer buyers want to shop in that kind of an atmosphere and they DON”T want end lot junk or garbage from China!!! Try to live all that down John Donahoe.

Patricia

A word about bonanzle. Yes its a fun site but there are no real buyers around. I’ve been there 5 or 6 months now with only 11 sales – I have 65 items up. Most of those 11 sales were other sellers or a buyer who came over from Ebay to see my shop on Bonanzle. Bonanzle would do better to charge a small listing fee – institute some auctions (because that is where the action is at – don’t let Ebay tell you differently) and use those fees for ADVERTISING! Otherwise sellers will become disillusioned and eventually leave. I’ve seen it happen before. Right now its mostly a bunch of sellers sitting around and waiting for buyers. Kind of like “if you build it, they will come”.

NYM Arts

“if you build it, they will come”.
Precisely.
*bay got its start the Very Same Way.
As on *bay, sellers are also buyers.
Buying from other Bonanzlers is Supporting Our Fellow Americans.
Purchase by Purchase, Sale by Sale, we Grow.
Economic Hard Times translate into a Closed Circuit, that is to say, fewer people come into Bonanzle as Just Buyers because of fewer Descretionary Funds available.
I’m ALWAYS posting in my chatroom for people to list what it is I need….Antique Lamp Bases like the ones in my photos.
In doing so, I present an IMMEDIATE opportunity to make a sale.
There are sectors of our Economy doing quite well.
The idea is to tap into it by presenting items that are of Interest to these sectors.
A little research, and one can focus in and make headway.
A good example : I’ve researched who has the most Bonanzle Only feedbacks : it is the folks selling nice little things like scented candles, stylish homemade baby clothing, health care products, etc.
As More People join the Circuit, Various Kinds of Attractive merchandise will evolve.
It All takes time, which we have Plenty of :o)
See You There.

Mike

I must agree with Patricia in regards to the auction atmosphere. eBay is so popular “not ONLY because all the buyers are there”, but the layout is appealing as well. I have visited most of eBays competition and i can’t see past the layout. To me it all just seems boring. I’m not trying to be rude to these other sites, but from a buyer and sellers perspective i don’t see any reason to ditch ebay because of fees, poor customer service, etc..when i can still FIND anything and also SELL more on ebay?

NYM Arts

DON’T ERASE MY POST THIS TIME PLEASE ! ! !
BONANZLE is where the Action is going. Almost ALL of us are from Ebay.
Bring your Signed antique lamp bases, your Attic, Basement, Antique and Estate items.
BONANZLE is growing at an Astounding 1000 New Members (or more) Every 5 DAYS !
The Selection of “Everything BUT the Ordinary” is growing by Leaps and Bounds.
MONEY ORDERS and CHECKS Gladly Accepted.
The Setup Routine is So Ridiculously EASY !!!!
Import all of your Ebay Feedback.
If Ebay was so Great is would be BONANZLE.
New Bonanzle members : 69,024…just gained 3 more in the last Minute !
I have been assured by the site owners that they Will Remain Privately Held for the Duration, thus insuring against any Donahoe / Norrington-like TRAUMA. And they tell me when the number of members is “Just Right” AUCTIONS will be the thing !
C’MON in, the Atmosphere is Wonderful. Great People to chat with in your Very Own Booth Chatroom !
See You There !!!!

Galinda

I’m no fan of today’s eBay but I’m sick to death of seeing Bonanzle spammed all over the comments for every eBay article. If Bonanzle was so great, it wouldn’t need people to spam about it.

I’ve seen nothing out there as good as eBay was 5+ years ago. (more like 8-10 years ago) eBay itself has the best chance of becoming the “best new eBay” if current management were thrown out and new management installed who really “get” the company and what made it so special.

NYM Arts

There’s NO SPAMMING about Bonanzle.
I’m THROWING PEOPLE A LIFE LINE YOU MORON !
Sellers Must Know where to go.
BONANZLE IS IT.
If you Don’t Like it, STEP OFF !

Key

“”But the biggest issue facing eBay right now is buyers – why aren’t they returning to a bargain-oriented site in a recession?””

wow ! GREAT question author!

Too bad you didn’t think to ask Donoho.

Gary

I am a VERY active eBay Seller with almost 25,000 feedback. The only reason I am still selling on eBay is the items I sell cannot be sold anywhere else online & I don’t like to do flea markets..
eBay is hurting because the “hoe” ran off most of the sellers of unique items. These sellers were also very active buyers so they are not buying now. When he ran the sellers of unique items off site he tuned eBay into a place you could get what you can get at any of a dozen other sites online. They brag about the number of items for sale but most are variations of the same thing. The general public doesn’t know what has happened. They just know that they could always depend on eBay to find that “unique” item. Now they can’t. The directors of eBay don’t even care. At the recent annual meeting several of them didn’t even show up.

MrsZeee

I have been displeased with ebay for years.
There are a few sites out there with better customer support that are gaining momentum and are a way more attractive option for buyers and sellers alike.
This is a new one on my radar: Yarpool.com
Keep an eye out for it!!

Former eBay buyer

eBay is lost.

Unique, one-of-a-kind / used items were the only reason to shop there, and the management has chased all those sellers off (with a vengeance, apparently).

eBay should be rockin’ in this recession, but instead they just seem to be running out of excuses. I used to buy all kinds of stuff there; now it’s mostly just a sea of high-volume new junk/knock-off sellers.

Christopher Walker

eBay has become an overstock venue for big business. 1) Buy it Now and Fixed Price listings everywhere.
2) Encouraging sellers to offer free shipping. Why would i offer free shipping for an auction? 3)Daily Deals (Can you say big Lots?), 4)Best Match search catering to shoppers “Not Bidders” I could go on and on. Bottom line is eBay made a decision to go after the big business a long time ago and in doing so ,they drove out there family (Community).
Mr. Pierre Omidyar will still be around to watch his vision crumble. The irony of it all is here comes another Pierre with an eBay sister site yarpool. The odds?

RatherRuss

I am a former power seller, who took 15,000 items of eBay due to their stupidity and greed over the last year. Since last May ’08, sales tanked and continued sliding down as each new change came about.
I now sell at flea markets (remember how Donahue hates those), I do in 2 weekends about 1/2 of my last few months of work and sales on Ebay. No listing fees, $25 for 2 days and a lot less work and hassle with turbo lister, fees and the sheer incompetence of the lot at eBay. And oh yeah, a retired guy like me spends money on books, music, tools etc….just not on eBay. They don’t want me, a small seller, and I sure don’t want them anymore….Maybe when Donahue is done killing eBay, he can go over to AIG or some other corporate incompetence culture. Sorry, eBay, see ya…Rather Russ

Dave

Ebay is such a great example of galloping management incompentence ruining a vibrant and successful company. Ebay had a unique attribute – it was the place to go to find fascinating and wonderful stuff for auction – and where to find valuable items too – it was becoming the Sotheby’s and Christies of ecommerce and with the chance to dominate even these. I was a biggish ebay seller and buyer for many years, I don’t list any more as there’s little point, and now my standard search, which used to pick up many items of interest to bid on, now only returns a few. Little point logging on any more really – with the neat stuff going, the “eyeballs” are going too, Ebay’s no longer unique, just another big box estore and there are better ones out there. I wonder too if ebay had any idea of the demographics of their customers – the despised small sellers – the (ex) sellers I know locally certainly aren’t the mom and pop borderline poverty types but are rather well-off collectors with tons of disposable income – I guess they’re elsewhere now.

Jason Harris

I stopped using eBay years ago. I have hardly sold anything there, mostly a buyer, but it used to be a place to get a good deal on something being sold by an actual person, a small seller. Now it’s basically all shady business vendors filling it up with buy me nows. If I’m not getting auction deals, or good mildly used bundles for a decent price, why am I risking it again? No thanks. Not to mention all the headaches people have with PayPal.

fatseal

I don’t shop on ebay. I won’t. Haven’t in a year, and I’m phasing out my store. I pay more in fees than I make in sales. I was a small seller, about 1,000 items in my career. Ebay used to be a place I shopped on and sold on, but they are increasingly becoming less important or even relevant, in my life.

But there is no need to shop on ebay, because you can’t find whatever you are looking for there anymore. All their “improvements” have made them a place where you can’t find “it” anymore. And that was the whole point of ebay,that you could find anything, no matter how weird or off the wall. They’ve become boring and insignificant. They’ve improved themselves to death.

RicRoe

The answer to why buyers are not returning a bargain-oriented site (eBay) during the recession is simple.

Some of the most frequent buyers on eBay were it’s small sellers. Many small sellers used proceeds from successful sales to complete purchases of other items on eBay.

eBay continues to abuse small sellers with exorbitantly high fees and uses the revenues from the small sellers to off set the discounted and free listings offered to their high volume sellers.

The resentment small sellers feel towards eBay results in many making the decision to list and sell on other sites which are aggressively catering to their needs by offering a more advantageous fee structure, enabling them to earn higher profits.

Sales at eBay are unlikely to see significant improvement unless eBay addresses the needs of small sellers making it more profitable to get back into the game. The knowledge that eBay will allow large sellers to flood listings with thousands of items at little or no cost leaves small sellers feeling they have been targeted for extinction.

The token “fee reduction” recently announced is in fact a significant fee increase as eBay will now take an 8.75 % on final selling prices. This lowers the incentive for small sellers to get back into the game as once again, eBay claims to have reduced fees while reaching deeper into sellers pockets after converting sales.

The small sellers as buyers will continue their eBay avoidance because they feel eBay has personally targeted them with not only a fee structure that favors larger sellers, but systems and policies that are targeted to favor larger sellers over smaller sellers.

With millions of unhappy small sellers publicly voicing their dissatisfaction with the changes eBay makes, their vitriol sways the opinion of buyers that once were their customers. Many small sellers which have left eBay for other venues have marketed their move to their former buyers, and the buyers have followed.

As eBay continues to allow their listings to be flooded with merchandise that is out of season, out of production, clearance merchandise, the uniqueness that was once a major attraction for buyers has gone as well.

Under current CEO John Donahoe, eBay continues to try to blaze a new path. As it does, it becomes less and less the venue of choice for buyers looking for unique items.

eBay is throwing the baby out with the wash water, scratching their heads wondering why their efforts to boost sales are failing so miserably.

It all comes down to eBay’s disregard for the ones that brought them to the dance in the first place. eBay will continue to slide and under perform as long as the current corporate mind set continues to disregard the fact that their original dance partners are being poorly served.

Ebayisajoke

Ebay is a mess,Feedback for buyers only? Buyers buying NOT paying!DUH….Sellers being scammed by Paypal Chargebacks? You would be crazy to sell any valuable under the forced Paypal! Then get SCAMMED out of item? For a total loss of item and $$$$? Don’t even get me started about the FEES!Best Match CRAP? Worst match!Free listing of 5 items?8.75% final fee!Ebay is a liar ,with their pants on fire!Ebay & Paypal support theft and fraud.Ebay knock knock……wonder why nobodys home? Donahoe won’t answer the door.the phone,emails…….Where are you John? Just like Ebay LIVE ….Its gone.

NOISE NOISE NOISE

John Donahoe what was it you call the flea market crowd? NOISE? CAN YOU HEAR US NOW?!!! LOL I will never buy or sell anything again on Ebay,Nor will I ever use Paypal. Ebay the most hated site in the WORLD!

Ebay Sellers

We are all previous sellers and buyers on ebay. And we have grown to hate ebay due to the litany of practices they’ve pioneered to establish a monopoly and squeeze every drop of money out of their sellers and thus buyers.

Here is a list of ebay’s actions that we are most displeased about…

1.) Just in the past few years, ebay has slowly increased the percentage of their commission for goods sold from a little over 6% to 8.75% of the final ending fee!! A 50% increase in your commission/share of the profit in just a few years is absolutely unacceptable!!

2.) When overstock.com popped up as a competitor to ebay offering lower commission rates, ebay proceeded to buy them out, gut the auction portion of their site, and only then did it start to increase it’s commission rates ever higher.

3.) Ebay has gone to extraordinary lenghts to shut down other competitors like yahoo auctions and amazon auctions, and are now engaged in buying up any online auction and classified listings left over.

Recently, they bought up 27% of Craigslist (a rival) and are currently being sued by Craigslist for using that stock share to undermine Craigslist. Once any remaining competition is done away with, expect to see ebay’s commissions rise even higher. This is the definition of monopolistic anti-competitive tactics.

4.) When paypal first opened to provide people a cheap easy way to pay for online auctions and other purchases, ebay proceeded to buy out the company, and later increased it’s commission rates. Whereas ebay used to allow sellers to enable buyers to pay for items with cashier’s checks, and money orders even just a few months ago, ebay recently changed this policy. Now the only payment method that can be used on ebay is paypal.

Any sellers that tell their buyers they can pay via money order or check if they don’t have a paypal account, get their auction closed by ebay, without a refund of the listing commission fees. This ensures that ebay gets a cut of the price twice, first for the auction’s ending price itself, and then a percentage of the paypal payment as well. Most sellers including I’ve had auctions that ebay ended prematurely, without warning , and without refunding the listing fees because they mentioned that they will accept payment via either paypal or money order from buyers that don’t have a paypal account.

5.) In addition to the continual increases in the commission fees, ebay has taken away sellers right to leave nonpaying buyers and buyers who abuse the auction site bad feedback. Sellers no longer can leave negative feedback to bad buyers. This policy along with the higher commission rates led to many sellers boycotting ebay as well.

Seriously, does ebay’s management not see the direct correlation between the higher commission rates it started charging 2 years ago, with the loss of sellers (and thus buyers) from it’s site?

Yet, in an effort to squeeze every drop of money out of us, ebay has continuously increased the commission fees more and more and each year. And as a result, it has become less and less profitable for all of us. Many ebay stores have had to close. Ebay’s repeated milking of your sellers with higher and higher commissions and more restrictions is only going to continue your sites trend of losing business, and it’s stock’s decline. And as this petition goes to show, we, the previous buyers and sellers on your site, are well aware of what you have been doing to squeeze every drop of profit out of us.

We strongly urge to google or some other competitor to launch an auction site to compete with ebay that is FREE and completely supported by ad revenue to provide relief to the many sellers that have had to close up shop on ebay due to the commissions going up from 6% to 8.75% in just two years. And we urge them to do so before ebay completes it’s current buyout of craigslist.

Randy

EBAY WILL NOT survive this and their stock tells the story. Rising fees, pitiful customer support, non-enforced policies, and even sluggish web pages will continue to be their downfall.

Personally, the treatment I received last April 2008 from ebay ‘customer help’ is the worst I have ever been treated by ANY company. I will NEVER go back.

Comments are closed.