eBay traders accuse site of selling out.

[tea_past_times]

Sellers fear online auctions will die after a decision to allow fixed-price marketing by major retailers


David Smith, technology correspondent The Observer, Sunday August 10 2008


Going, going, gone? Furious fans have accused eBay, the website that brought auctions to the internet, of betrayal. They are upset by a decision to lurch away from the website's original format and instead allow major retailers to list thousands of products at fixed prices.

The trend, they warn, marks the beginning of the end for the online auction - leaving eBay looking less like a car-boot sale and more like a shopping mall.

'Auctions in some categories are already pretty much dead,' said Chris Dawson, an eBay seller from Thatcham, Berkshire, who runs a blog about the site. 'Not many people bid for rechargeable batteries, Gillette razor blades, toothbrushes or even mobile phone handsets or DVDs - the kind of commodity items you pick up in a supermarket. EBay started out for the collectors' market but it's been overtaken by the business market. Buyers have become used to instant sales on the internet, and they expect eBay to be no different.'

Randy Smythe, a former eBay seller who now runs an e-commerce blog, said: 'I believe eBay's drive for growth has killed the auction format. They are trying to compete with Amazon and the rest of e-commerce by giving you everything in the same search. "Buy it now" and "fixed price" added growth at first, but they've killed the golden goose.'

The changes have led some small sellers to accuse eBay of betrayal. Growth of the site's worldwide active user base slowed to a relatively modest 1 per cent in the past year. Smythe, speaking from southern California, added: 'Sellers have decided they're not going to eBay any longer. I've seen a lot saying that they're going back to the things they did before eBay - the flea markets, the trade shows. It means those rare items aren't on eBay any more.'
In the 13 years since it was first set up, eBay has become famous. But as it pursues more users, its owners have struck highly profitable deals with a string of major firms. Retailers such as Argos, Littlewoods, Orange and the online shoe shop Schuh now offer thousands of items on eBay at fixed prices. These compete alongside items offered by independent small sellers through auctions which can take days.

Buyers are showing a preference for fixed prices, with the promise of a reputable brand and instant delivery. Fixed-price sales on eBay have grown by 60 per cent over the past six years, eating away at the auction side of the business. They now comprise 43 per cent of the value of all goods sold on the site, up from 39 per cent a year ago. Analysts say that it is only a matter of time before auctions are in the minority.

The shift has enraged eBay's many fans. There was fury in America after eBay signed a partnership with Buy.com, which allows the web retailer to sell millions of books, DVDs, electronic goods and other items on eBay without paying the full listing fees. Buy.com's presence has hurt many smaller sellers which compete in the same categories.

It is one of several changes made by eBay's new chief executive, John Donahoe. A spokesman for the company in the UK said: 'Today fixed price accounts for over 40 per cent of the value of all our sales. We'll continue to innovate to bring parity to selling in fixed price alongside auctions and choice for buyers to shop whichever way they want

[pierrelebel]

" allow major retailers to list thousands of products at fixed prices."

The trend has been established for years, not only for "major retailers" but all sellers on eBay.

Like many other sellers, I sell mostly at fixed price, through my eBay store or the core sites (and my website).

Why?

Because that is what many buyers want?

They do NOT want to wait five or seven days for a listing to end at a price they may or may not get. They like the certainty of getting the item they want at a price they are willing to pay.

There is still a huge market for bargain hunters and folks looking for the thrill of the auction. eBay does accomodate both sellers and buyers in this respect.

At the end of the day, buyers dictate the marketplace. There is nothing to gain in being blind to their wishes. If they want to buy NOW at fixed price - so be it. .

[lina-mallows]

Anyone want to tackle the following thought-
If eBay already has WANT IT NOW coexisting within the realm of eBay.ANYTHING-
THEN- why doesn't eBay move ALL- "BUY IT NOW" items to the WANT IT NOW area- and leave eBay.ANYTHING as an AUCTION ONLY venue?

[ampurtle]

They now comprise 43 per cent of the value of all goods sold on the site, up from 39 per cent a year ago.

[pierrelebel]

" why doesn't eBay move ALL- "BUY IT NOW" items to the WANT IT NOW area- and leave eBay.ANYTHING as an AUCTION ONLY venue? "

Because buyers want the largest selection possible. let buyers decide what they want, when they want it and at what price and terms.

To divide the marketplace in smaller pieces will not benefit anyone: buyers will have a smaller selection and sellers will have fewer potential buyers looking at their products.

As pointed out so clearly by ampurtle: recent trend established a few years ago clearly shows buyers leaning towards fixed price .

[lina-mallows]

Pierre- I don't agree. Just because people want something, let them go elsewhere. eBay CANNOT, and SHOULD NOT try to be everything to everyone. And auctions house is not a department store.

The day eBay morphs into this department store concept- the eBay as we knew it will be over. And, most of us will be long gone.

To me, a ''BUY IT NOW'' item is one that I can find at ''Walmart''.
When I am searching- I am looking for a ''bargain''.
Those ''bargains'' ARE NOT in the BUY IT NOW area.
After this many years, and thousands of items purchased, my experience simply makes me ignore eBay STORES.

When searching- why are SHIPPING rates (at present) not displayed under the banner:
" XX items found for starbucks canada in eBay Stores . Learn more about eBay Stores."

WILL eBay equally display (and to some disadvantage those in Canada) by displaying COUNTRY, and SHIPPING- for ALL listings under the NEW model?

[pierrelebel]

"I don't agree"

That is your right.

As a seller, I want the largest number of potential buyers looking for my stuff. .

[lina-mallows]

pierrelebel- As long as I am provided with a ''TAB"" that immediately allows me to REMOVE the BUY IT NOW items- and strictly be able to sort what's left as auctions- I will be somewhat happy.

I am still troubled by the ability to search by HIGHEST PRICE, and not LOWEST PRICE- unless that INCLUDES the shipping component.

No one mentions the SEARCH FUNCTIONS- beyond the BEST MATCH default issue. What other options are provided greatly impact the amount of time it take to view items.

As a seller we are in the unusual position of NOT wanting the greatest exposure. Too many uneducated buyers- who cannot read the description, and ask the silliest of questions. NICHE MARKET collectibles, like STARBUCKS CARDS, and CASINO CHIPS migrated to eBay- though other sites DID, and DO, exists that serve these SPECIFIC buyers needs.
eBay became the SITE OF CHOICE- and may, or may not, remain so.

We are not looking for NEW buyers- and do not want the inherent risks that come with these buyers- and it's not the feedback- we don't care about that. (We RAISED our shipping charges-0 and our DSR went up! Almost time to raise it again getting ready for the NEW postal rates!)
We are happy to take M/O's, and we have a merchant cc account.
The only past issues are virtually all with PayPal.
Almost 40% of our business is repeat business. Without the other 60%- and SUBSTANTIALLY reduced fees- going elsewhere may be the best solution.
The savings on END VALUE FEES, and lower overall listing fees- makes going elsewhere a very realistic proposition.

[recped]

As a seller, I want the largest number of potential buyers looking for my stuff.

And as a buyer I want to find all my purchase options in one place.

[lina-mallows]

recped- I have no clue how often you buy on eBay.
As I spend a good eight hours a day searching for items- purchasing about 150 items a month- eBay's available SEARCH OPTIONS are VERY important to me.

Constant clutter, with similar BUY IT NOW items does not help me find what I am looking for.

Buyers- and sellers have two very different ways of looking at this issue.
I am primarily a BUYER.

(That's the reason I have so many problems with sellers, especially POWER SELLERS who think that rules don't apply to them!)

[axe_n_gear_music]

I agree with recped- as a buyer (I use one of my other accounts to do any buying from eBay, never this one), I want the most selection possible. Sometimes I don't mind waiting for an auction to play out, but honestly, I don't always have time (or the patience,LOL)- this is where store items with Buy It Now are great. And I believe most of my customers feel this way as well. If they don't use the Buy It Now, many of them see my items, and go directly to my website to make their purchase. (I sell the same items on the website at slightly lower prices, as there are zero fees there, and many of the buyers know this.) So I have the added benefit of using my store items as advertising.
I think it has been said here before- that everyone has "different business models".
Some find auctions work best, some find fixed price works best. Some find selling large quantities of lower priced items to be very successful, and others sell lesser in quantity, higher priced items. Whatever works!!
I prefer to sell a mix of low and high priced items, with an emphasis on store items, and a handful of fixed price and auction style listings to attract people to the store, which in turn boosts the website sales too.
Just my 2 cents.

AXE.