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eBay was revolutionary - now "peasants" are revolting!

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Yesterday's heartfelt comments from readers to my post, "eBay's message to sellers: Grow or die!" were incredible. I was amazed at the quantity I received (and continue to receive). Even more impressive was the quality of the responses. No peasants here.

MEG, ARE YOU LISTENING?

The thoughtfulness, understanding of the issues and real concern from knowledgeable people went way beyond the usual whining that I see from some quarters. Many people even made good suggestions on how eBay could accomplish its financial goals and still accommodate the disenfranchised sellers.

Another thing that surprised me was that ALL of the comments were similar in their disdain for eBay. Not one person, seller or shareholder (of course nothing from eBay) supported eBay's rate increases, business strategy, or future as a company. I found that bewildering, but perhaps this post will give any supporters another chance to express their views.

Points of consensus:

  • EBay does not care to directly address the concerns of many of their sellers. They treat this subject like so many others where they choose to "play innocent bystander" like they were not involved. I do not know why eBay chooses not to be more accommodating and pretend all is well. Pretending is not usually a good thing.
  • There is real market pressure for an alternative to eBay so Google or any other entity that can gain traction in this space will be gloriously welcomed. To date this has not happened and there are only meager signs, at the fringe, that might be chipping away. Despite portrayals of seller options, nothing I read was convincing.
  • I noted that; "if they raise rates for sellers by any percentage you choose, say 25% then they will make more money as long as something less than 25% of the sellers don't run off to do something else." This most certainly is the way eBay looks at it and, given that the facts will speak for themselves in the marketplace, eBay to date has calculated correctly -- BUT ONLY FOR NOW. Strange as it seems eBay could lose a high percentage of sellers and be fine. WHY shouldn't they do this?
  • EBay is perceived as a monopoly and if it is not thwarted in the marketplace there could come a day (under a different Federal administration) when it comes under closer scrutiny. They are not Baseball, they have no exemption.
  • Regarding my friends' profit margin: She does work out of her apartment and has little overhead, no employees, and a very focused business with limited competition. It is highly likely that whatever she is doing will not remain unique forever and she will have to modify her business plan.
  • Fraud was mentioned many times by readers and eBay seems to be taking only modest steps to combat the scale of the problem. The the cost of dealing with it might be higher than the cost of letting some fraud get by. In addition to financial fraud; security, authenticity and potential criminal activity were mentioned. There are no eBay police.
  • EBay is perceived as conniving, uncaring, calculating, unethical, and headed for a fall by the readers who chose to comment. Calculating and sometimes uncaring, yes. Unethical? I'm not convinced.
  • Complaints about cheap products from foreign markets and junk yards diluting the site were common.
  • No one cares about the little guy -- often said. So? Thats nothing new. Many felt that eBay should owe some gratitude to the buyers and sellers that made it successful. This is grossly unfair and backwards thinking. EBay created the market platform, the opportunity, the strategy, and everything else and adapted to the marketplace. It worked because eBay created something of value to buyers and sellers that did not exist before.
  • The most bizarre of all the comments was the gripe that they are only focused on making money. Now this one is silly. After all, that is what all the ruckus from sellers is about, money!

After reading all the negative sentiment about eBay, my general feeling is that the "little guys" feel like they are being pushed to their financial, logistical, emotional and stress limits and are becoming extremely frustrated with the world they must now operate in.

Some of them migrated to eBay from other businesses and jobs because it allowed them an alternative life style or initially greater financial opportunity. Now they feel the squeeze that every business constantly is subject to and they don't like it. As I wrote yesterday, welcome to the real world where you must "Grow or die."

Sheldon Liber is the CEO of a small private investment company and the vice president for Design and Research of an Architecture & Planning firm.

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Last updated: November 07, 2009: 01:54 PM

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