eBay

dutchman48 · ‎09-13-2014

Here is the link to the US posting

http://community.ebay.com/t5/Selling/Fascinating-reading/m-p/22715907#U22715907

drucecat · ‎09-13-2014

Thank you for this link, dutchman48.

Definitely a great read. This puts a nice perspective on the current state of affairs.

Although it still really doesn't answer the question, as to why any business would desire to alienate it's best customers.

mr.elmwood · ‎09-14-2014

@drucecat wrote:
Thank you for this link, dutchman48.

Definitely a great read. This puts a nice perspective on the current state of affairs.

Although it still really doesn't answer the question, as to why any business would desire to alienate it's best customers.

That would be true, except, eBay has no concern for "customers". eBay is adhering to what is known as the Chicago School Of Economics which dictates that the success of an enterprise is reflected in its various ratios, ROI, stock price.

The directors, senior management, stockholders do not care how the money is made, just that it is.

If the individual thinks they have any importance to eBay, they are sadly mistaken. Customers do not make money, money makes money.

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art-in-the-making · ‎09-14-2014

thanks, interesting!

EBay sent a German manager to lead the China operation and brought in a chief technology officer from the United States. Neither one spoke Chinese or understood the local market. It was eBay’s biggest mistake. Second, because the top management team didn’t understand the local market, they spent a lot of money doing the wrong things, such as advertising on the Internet in a country where small businesses didn’t use the Internet.

ha-ha! I wonder how many MBAs it took to put this ingenious plan together?

rose-dee · ‎09-14-2014

Thanks for posting this. A fascinating read, although I agree with some of the US posters that the source and bona fides of the author may be suspect.

The Paypal explanation makes sense, but I think the author didn't go far enough. In saying this:

"Many investors want to solely invest in PayPal and drop EBay stocks. If PayPal separates this will greatly drop the number of EBay investors and in retrospect it will negatively effect the value of EBay stock."

It seems to me the question is: what advantage would a lower eBay stock have? More attraction for a prospective buyer (Alibaba?). Separating Paypal would also keep it at arm's length from such a buyer. Very interesting.

There is something of the apocalyptic reportage in this piece, aka conspiracy theory. But then it's probably not so much theory as open speculation these days. We all get how eBay has changed radically in the past 2 or 3 years. The "why" of it may have been more difficult for us little gnats on the back of an elephant to see until it's on top of us, but the scenario offered by this article is as probable as any.

Something I have been thinking for some time now accords with the musings in this article -- if eBay sheds the majority of its smaller sellers and its larger (especially Chinese) sellers were to jump ship and join Alibaba, eBay will have a very, very hard time wooing back those small sellers. One thing is true: the fewer small sellers of unique and OOAK sort of items there are on eBay, the fewer such buyers there will be too. We've seen how eBay has been turning its back on such buyers and courting the kind of buyer who is looking for the mass-produced stuff you can find in any mall.

From that point of view, selling out completely at a bargain price would be better than death by a thousand blows -- wasn't it "Alibaba and the 40 Thieves"? Seems appropriate. Imagine a scenario where eBay frees itself from Paypal stock, sells at a bargain to Alibaba, then lets the latter move in with its commercial juggernaut sellers in tow, backed by the Chinese government. Sales would skyrocket, taking stock prices along for the ride, and the result: ever-so-happy shareholders (and even happier CEOs). Maybe this has been in the wind for a lot longer than we little gnats know, and is the real reason behind the new e-commerce face of eBay.

Mr. Elmwood is likely right, and eBay, as a corporation, couldn't care less about integrity and customer loyalty, or where the money comes from, as long as it keeps coming and its investors are happy.

We gnats had better hang on tight for a rough ride ahead...

rose-dee · ‎09-14-2014

I meant to add up above that if the scenario of eBay selling out at a bargain to Alibaba does occur, it may be the most stupendously brilliant strategy of the new century on the part of eBay, who will be able to continue to get the goose to lay even bigger golden eggs for its top shareholders.

It's sad to imagine that the only reality these days is the bottom line. It can trump everything -- good service, quality products, customer appreciation, honesty, community involvement -- all those things we used to think had some value for corporations.

Are we back to the days of the monolithic robber barons? Do ethical companies have any hope for real success anymore? Is "bottom line economics" really a good long-term strategy? These are questions nobody seems to think are important now.

I wonder if anybody at eBay ever gives even a passing thought to the hundreds of thousands of individual sellers, particularly in North America, whose livelihoods (and by extension, communities) are tied to eBay? EBay has, in a very real sense, become a social phenomenon. I know -- it's a silly idealistic notion to think someone in charge might have considered this.

jt-libra · ‎09-14-2014

I read this very interesting article a few days ago on CNN Money about Jack Ma and his efforts to clean up Alibaba, Ali Express and Taobao prior to its IPO. Alibaba is poised to raise more money in its IPO than Facebook or Visa did. It could generate $24 billion when it begins trading on the New York Stock Exchange -- likely at the end of next week.

But the counterfeit problem is HUGE. From the article:

"Alibaba recently signed a handful of anti-piracy agreements with luxury brands and industry groups. And just last month, the company launched a policy for some of its platforms that bans sellers after "three strikes." In the first 10 months of 2013, it removed 114 million product listings from Taobao alone."

They certainly have their work cut out for them if they want the lion's share of the American on-line market.

Here's the full article:

Alibaba has a major counterfeit problem - Sep. 11, 2014

http://money.cnn.com/2014/09/11/technology/alibaba-counterfeit-ipo/index.html

holdmygold2 · ‎09-14-2014

If eBay's intent it to rid itself of small and medium sellers as the writer claims, then why do they continue to offer free listings to anyone and everyone who crosses their path?

Seems to me they're wooing new (small) sellers very actively.

theundercutter · ‎09-14-2014

art-in-the-making · ‎09-14-2014

If eBay's intent it to rid itself of small and medium sellers as the writer claims, then why do they continue to offer free listings to anyone and everyone who crosses their path?

My guess is those free listings are more intended to attract Chinese sellers. Same reason as for why they got rid of the $20 featured listings - because they knew the Chinese sellers would never take them and their battle to sell anything was a lot tougher when (in many cases) they would have pages upon pages of featured listings always appearing ahead of their items. Probably also holds true for corporate sellers.

tobyshitzu · ‎09-14-2014

googlebay?

http://business.financialpost.com/2014/09/12/ebay-inc-google-inc-shares/

art-in-the-making · ‎09-15-2014

Yeee-Haw!

or should i say,

YA-ALIBABA - HOO!

holdmygold2 · ‎09-15-2014

Even though many of those selling from China and that area of the world are so often a PITA for buyers and sellers, I have to admit I admire them.

Here we are always scrambling and grovelling at eBay's behest and many posting to this board seem close to nervous collapse........

And there they are in China doing as they please and considering the huge FB scores many have quite pleased with how they're doing.

Most of those sellers have NFB : Piles of it. They simply don't care.

Email with a problem and they grovel in a language not their own ......... they don't care.

Many of those items never arrive: (Are they never sent or do they get lost en route)? They don't care.

If the grovelling didn't work and buy them enough time to get by the 45 day mark, they refund no problem.

Seems to me they've mastered the eBay system in their own way and I have to admire that.

Here, on the other hand:

Who Is the Master? You or eBay?

jt-libra · ‎09-15-2014

@holdmygold2 wrote:

Most of those sellers have NFB : Piles of it. They simply don't care.
Email with a problem and they grovel in a language not their own ......... they don't care.
Many of those items never arrive: (Are they never sent or do they get lost en route)? They don't care.
If the grovelling didn't work and buy them enough time to get by the 45 day mark, they refund no problem.

LOL. So true.

I've ordered a few things over the past couple of years just to see first-hand their product and their customer service, without spending a lot of money.

Counterfeit: you bet! (But what do you expect for $3.00)

Sent the wrong item: "So sorry. Will send the correct item immediately" (Never arrives)

Item never shipped: "You have to purchase $25.00 for free shipping" (But they don't tell you that in advance)

Very poor quality: (Again, what do you expect for a couple of dollars)

I've never pursued any of these problems with them. Their sincere attempts to make it up to you in a language not their own, I find quite amusing.

But if they're serious about attracting the North American buyer with authentic big ticket items, they're going to have to shape up.