Chalk up another public relations problem for eBay, the uber-successful company that can't seem to get it right anymore. Oh sure, eBay is still raking in money hand over fist, but who knows how long that will continue if the company keeps alienating its bread and butter.
Last week eBay announced a fee change that could likely entice more sellers to the site: Sellers will now pay 35 cents to list as many of the same fixed price items as they want, instead of charging a fee to list each item separately. This sounds good, although critics say that this new move favors larger sellers and puts very small sellers at an economic disadvantage.
This change was paired with a nother controversial change that may turn off some sellers and buyers. Starting in mid-October, eBay will only allow sellers to accept electronic payments, including credit card, PayPal, or ProPay. Sellers will not be able to accept cash, check, or money orders.
Although eBay says those non-electronic transactions account for less than 10% of the sales made on eBay, it's still a shift that may upset some buyers and sellers. Why not offer the customers the choice? It's clear that not many users want that choice, yet it shouldn't matter to eBay if that's how they want to do business.
I suspect that this change may be an attempt to push more people toward using eBay-owned PayPal. Earlier this year the suggestion that eBay might go "PayPal only" brought consumers out in droves against the change. Maybe this is a not-so-subtle move in that direction, without technically "requiring" sellers to accept PayPal. After all, how many non-business owners do you know who have credit card processing capabilities? Those individual sellers will be all but forced to use PayPal since they don't have access to another electronic method of payment.
I've been a pretty big eBay fan in the past, but I'm afraid some of the recent changes aren't really going to endear the company to their existing customers... the ones who made eBay what it is. I'm waiting for someone to come up with the next big idea that will really challenge eBay's position as the dominant force in online consumer-to-consumer sales.
I agree with everything that's been said above. Ebay has made several recent changes which have basically killed my tiny business. I work hard to create several products which I designed and created myself yet increasingly, Ebay has eaten into my small profit margin. One of my products is digital (not an ebook) - a perfectly legitimate and honest product which I was able to deliver electronically to customers all over the world. This method had the advantage of early delivery for my customers (and immediate customer support if necessary) and it saved them postage too. An altogether environmentally friendly solution. However, earlier this year, Ebay banned digital delivery unless they were sold through (expensive) classified ads. My business turnover couldn't justify this and indeed my sales literally ground to a halt as the vast majority of my market is in the US and I in Europe so the postage costs were prohibitive. Ebay said they were worried about feedback scams through the selling of ebooks. People were selling ebooks for 0.01 to generate fast feedback or something. This isn't remotely similar to my business but I suffered through it nevertheless. What I found "interesting" is the fact that Ebay worried about a few people scamming their feedback system yet they seem completely unconcerned about the major problem of counterfeit digital goods being sold on their site. I refer specifically to machine embroidery designs. It isn't rocket science to figure out that if a selling is offering 250,000 designs for £5 that they aren't legit. It isn't rocket science either to figure out that someone selling 500 Disney designs for £0.99 isn't legit either. Yet these sales continue to thrive and the few honest designers who were creating and selling their own legitimate designs have all but disappeared - driven out by Ebay itself. Something seriously wrong there.
Now they are banning postage and packing charges on DVDs amongst other things. Ebay don't take a cut of P&P yet it seems that they are trying to force sellers into raising the cost of the item (which Ebay DOES get a cut of) to cover the problem of having to distribute the item for free. That reeks of profiteering to me.
My shop has also increased from £6 in the early days to £14.99 a month. I have been selling other items purely to try and cover my costs so that I'm not actually making a substantial loss but I've gone from someone who LOVED Ebay to someone who is seriously looking at affordable alternatives. I'm just waiting for the right alternative to come along and I'll be off.