E-baY strikes again with a fee raise

danger boy

seems like some of us here aren't the only ones ticked off at Ebay. But seriously.. in the end.. it'll just may Ebay more profits and hurt sellers in the pocketbook.

SAN JOSE, Calif. (AP) - Some small business owners who reach most of their customers via eBay Inc. (EBAY) expressed anger Thursday at the online auction giant's plan to boost the monthly fee it charges sellers by 60 percent. Its shares lost nearly 4 percent.

EBay outlined the increase in a terse e-mail on Wednesday to all buyers and sellers, including small business owners who hawk clothing, electronics and other low-margin commodities.

"It seems as though the larger eBay becomes, the more greedy they become," said Lynette McDonald of Alton, Ill., who has sold Barbie and baby clothes on eBay since 2001. She says she may close her eBay store entirely because of the fee hikes or raise prices she changes buyers.

Starting Feb. 18, eBay said the monthly subscription fee for people who operate "Basic eBay Stores" will increase from $9.95 to $15.95.

The fee for a standard listing of 10 days will double, from 20 cents to 40 cents.

"This site used to be a place where one could get a good deal," McDonald said. "Now that the starting prices on goods are higher to accommodate the growing fees incurred, there are no more deals to be had."

Such reactions underscore the popularity eBay has achieved with small business owners who can't create their own Web sites or operate a traditional bricks-and-mortar establishments. Peddling vintage china, handmade sweaters, classic cars and other collectibles on eBay generates supplemental income for senior citizens, rural Americans and others who live far from commercial hubs.

EBay spokesman Hani Durzy declined to discuss how the price hikes would affect revenue at the San Jose, Calif.-based company, which reported sales of $805.88 million in the first three quarters of 2004. The company will report fourth-quarter earnings on Wednesday.

"We believe the price changes are the right thing to do to ensure the continued success of the marketplace," Durzy said. "Ultimately that's good for the entire community of buyers and sellers."

The changes, combined with eBay's dominance in the auction and online payment sectors, prompted some members to ask whether the government or a fair-business consortium should regulate fee structures so small-scale entrepreneurs don't get gouged.

"Yes, it is a free market and sellers can take their business elsewhere, but there is very little competition for this style format," said Artie Klawans, an art dealer in Ft. Lauderdale, Fla.

EBay shares fell $4.12 to close at $103.13 on the Nasdaq Stock Market. Its shares were at a 52-week high of $118.42 in December.

faster100

Great article danger boy,

Guess i wasnt alone in my thoughts on the new price increase, Ah well gotta check my auctions...

Demiurge

Originally posted by faster100
Great article danger boy,

Guess i wasnt alone in my thoughts on the new price increase, Ah well gotta check my auctions...

Reasonable people will disagree with Ebay's antics. A lot of people have a legitimate gripe. I think the fact that you get all bent out of shape when people don't agree with you to the tee is what irks the hell out of me. Initial responses were a mere differing opinion on Ebays fee increase.

Everything that doesn't completey correlate with what you say is some giant attack. You may damn well be a great guy, but your EBay and Flea Market antics aren't new to us all. I just appreciate if you don't try to personally smear those who have a differing opinion. We all do it, but this is consistent for you. I really have no argument with anyone else here because they're all making valid points without the personal callousness. You leave one no choice but to respond in kind. Maybe dial it back a bit and not take everything so personally.

And if you didn't think my suspicions are justified here's just one small case in point and another.

faster100

Demi,

NEXT!!!


jackass .

brettw22

I hate edited posts where people delete all their stuff.......so weak.

Life Lesson: Many people don't have the capacity to change.

dragon1952

The bottom line is that the Ebay/PayPal conglomerate is making huge, obscene profits. Notice the spokesman won't address that. You know they can't blame it on increasing overhead. They certainly would have mentioned that if it were somehow true. The only reason is pure greed...because they can, and virtually no competition. They're no better than the gasoline and energy companies who gouge their customers every chance they get for no apparent reason other than pure greed.

bobman1235

Originally posted by dragon1952
The bottom line is that the Ebay/PayPal conglomerate is making huge, obscene profits. Notice the spokesman won't address that. You know they can't blame it on increasing overhead. They certainly would have mentioned that if it were somehow true. The only reason is pure greed...because they can, and virtually no competition. They're no better than the gasoline and energy companies who gouge their customers every chance they get for no apparent reason other than pure greed.

Very true, but this is capitalism. I mean, some guy thought up eBay, built it from the GROUND UP. It's not like some huge company started it and through unlimited resources made it a monopoly. They had a good product at a reasonable cost, people bought in, and they grew. It seems now that they've outgrown their britches, so to speak, and teh common man (you folks) don't wanna pay the fees anymore.

Look at what's going on on this very forum with Monster Cable. I'd say as far as market share goes, they're almost as high percentage-wise in their market as ebay is in teh auction market. But we're boycotting them. So boycott ebay. Provide or point out alternatives. Make the system work for you. Otherwise everyone here will continue to use eBay despite not agreeing with their business practices, and they'll just get worse, and it'll be even harder to provide an alternative. And then what, you're gonna ask the government to step in, and not allow ebay to charge so much?

I hate to see that this thread devolved into a bunch of namecalling, because you guys KIND OF make a good point about eBay price gouging - the problem is you treat it like it's a lost cause and someone's twisting your arm to pay them. I'd love to see a NEW thread that said "boycott ebay - try these auction sites". i know yahoo has one. Get a campaign going. Be proactive. I know when I don't like a company (Best Buy, for example) I speak with my wallet.

faster100

I tell ya what, i didn't mean for this thread to turn for the worse.. i argued too in this thread,

Only because some things in life are held in higher regards then to other people.. if that makes sense.. Right now e-bay is my bread, not forever but for now.. and every increase is an increase. and loss all at once. and your right i'll keep selling as long as i need to, and capitalize like all the other sellers and the owners of e-bay.

Seems anything remotely controversial (sp) shouldnt be brought on the polk forum, because it turns ugly 90 out of 100 times..

lets agree, no more e-bay talk...... I can't see a boycott at this point. But any mention of fee's and pay-pal and such is a sore spot for some...

Besides!!!!!! It's Friday... eff it

reeltrouble1

Demi is cool even though he is a Cheese Head!!!!!!!!!!!!

Bobman--Friggen Boston what you win ONE world series in about a hundred years and now your all about peace.

Let em gripe, or have you forgot how many years we had to listen to Mass. about your beloved Sox.

RT1

bobman1235

Originally posted by faster100

Besides!!!!!! It's Friday... eff it

LOL, yes, let's just crack open a beer and crank up the system.

Err.. when I leave work, that is

danger boy

OK. i'm in for letting this die out. I've said my piece about Ebay. I think we all know how disgusted I am over Ebay sellers getting f*cked.

someone said it's only the cost of doing business.. i understand that. When Ebay began in the 90s.. i'm sure it cost less doing the same thing they are doing now.

Imagine if you can.. you have your mortgage rate for your lovely home at 5.25%, then your mortgage company sends you an email stating your NEW rate will change in Feb 2005 to 8.00%.

Would you be a little ticked off? Hell yeah! But your mortgage company is telling you it's just the cost of doing business.. or worse yet.. they don't give you a reason for the increase. It's a done deal.. you have no recourse.

Honestly.. does the cost of doing business raise that much? who's to say.. that they won't do another "cost of doing business" rate increase later this year or next?

anyway. i'm out. no more whining from me about it. I'll just buy and not sell anymore on the bay.

brettw22

I would like to see what their stock does over the next month or so to track the effect of this rate change....

trubluluc

Originally posted by brettw22
I would like to see what their stock does over the next month or so to track the effect of this rate change....

I see it (their stock) going in one direction....UP.
Simple reason.....NO competition.
Business life is pretty uncomplicated when you are a monopoly, ask Microsoft.
People will gripe for a while, just like when the landlord raises the rent, then they will just suck it up, because what options do they have?

I say we start our own online bid company.

let's call it.
EBID

makes more sense than ebay.

-Luc

reeltrouble1

EBID is cool, how about MONSTERBID!!

bobman1235

Got this from ebay today, related to the fee raise... just in case anyone was not aware of this :

Dear eBay Seller,

Recently, we announced fee changes taking effect on February 18th and affecting certain optional listing upgrades on eBay.com, the subscription fee for a Basic eBay Store, and Final Value Fees on Store Inventory Format listings. Based on Community input, we understand our original communication was a bit unclear.

To clarify, no changes are being made to the Final Value Fees on Auction-style, Auction with Buy It Now option, and Fixed Priced listings (with the exception of certain Business & Industrial capital equipment categories). Final Value Fee changes apply only to Store Inventory Format listings, a listing format only available to Store sellers and with durations of 30, 60, 90, and 120 days and Good 'Til Cancelled.

The Final Value Fees for Auction-style listings, Auction with Buy It Now option, and Fixed Price listings have remained unchanged since 2002.

You can view the full details of the pricing announcement here.

Regards,

eBay

goingganzo

the problem is there is no other on line aucton site and so ebay can charge what they want. and we have to take or not use the site.

dlew308

There's sites like bidville.com and yahoo's auction, even gun auction sites