Large eBay PowerSellers Getting Booted The Exodus Continues

August 14, 2008 · Filed Under amazon, eBay, ecommerce · Comment 

PowerSellers On The Lookout

eBay PowerSellers are watching their emails and waiting by the phone for the notice that they have been suspended or placed on notice or restriction. Several very large (Top 25 in category) eBay PowerSellers are reporting that they have been suspended or restricted on the site. These PowerSellers are reporting that due to the increase in neutral and negative feedbacks from buyers who know that they are immune from negatives, they are being scrutinized by eBay.

What totally mystifies me is why eBay would do this without CALLING these sellers to discuss the perceived problems. What further just blows my mind is that according to the affected PowerSellers, their TSAM’s (Top Seller Account Managers) have NO CLUE as to what is going on, and worse yet no idea how to remedy the situation.

eBay vs Amazon

From the postings on forums by the PowerSellers I have seen, they report that they had moved a portion of their products to Amazon prior to the suspension, and there is some specualtion that the suspensions are a result of this move. One PowerSeller speculates that eBay determined the seller had opened and populated an Amazon Store, and is angry over the loss of listings on the eBay site.

Randy Smythe reported in his blog Tusday on the exodus from eBay. Based on the increasing number of seller accounts being suspended, I would imagine the number of exiled ebay sellers will increase dramatically in the very near future.

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eBay Plays The Shell Game Again This Time with eBay Motors

August 14, 2008 · Filed Under News, eBay, ebay Motors · Comment 

Rob Chesney VP of eBay Motors posted an announcement on the eBay Announcment Board yesterday regarding pricing changes for selling cars and trucks, boats and other vehicles on the eBay Motors site.

At first glance it looks like a good deal. Casual sellers who sell on eBay Motors (those selling up to 4 vehicles per year) can do so after September 2, 2008 with no insertion fee (this was $40). HOWEVER, the final value fee for a listing that does sell will now be $125.00

The Shell Game

eBay is notorious for this. At first glance the pricing change looks great, but wait a minute. Who is it great for? If you place a vehicle up for sale on eBay Motors currently the cost will be $40.00. The vehicle sells, and currently there would be a $50.00 transaction fee for a total cost of $90.00 to sell the vehicle. Under the new pricing structure there would be no listing fee for those that sell up to 4 vehicles in a 12 month period, but those transactions that do end in a sale now cost $125.00. This is a 39% increase over the current pricing structure.

Who Benefits

Those casual sellers that again, attempt to sell less than 4 vehicles in a 12 month period will benefit by paying no listing fees, but,,,

If these 4 vehicles all sell, the seller would be charged $500 in ebay fees under the new pricing. Under the old pricing the cost would be $360.00, this represents a $140.00 increase in fees. In the same scenario, if 2 of the vehicles sell and 2 don’t, the cost under the current pricing structure would be $260, and under the new pricing structure the cost would be $250.00 a ten dollar difference.

eBay is taking on more of the risk under the new pricing structure, and being rewarded handsomely. For the casual vehicle seller, the cost increase of 39% increase for a successful sale might just be too much to stomach considering an ad in a local classified paper costs an average of $25.00.

The successful sellers are bearing the brunt of the costs for those listings that don’t sell.

And what about the sweetheart deal that both GM and Chrysler have made with eBay Motors? Who is going to get better exposure in the searches?

Bet you can figure it out.

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