posted on May 28, 2002 09:27:11 AM new
If yahoo execs were smart now would be the time to have a "summer promotion" and waive all listing fees while increasing FVF's. With eBay giving small sellers the "hint" their not wanted they should try building another venue. I know yahoo has its own problems, but its the only other site with a brand name.
posted on May 28, 2002 09:52:47 AM new
"Yahoo! plans to pull most of its online auction initiatives in Europe and instead promote eBay's market-leading auction site.
It will shut down auction services on five of its European websites - Britain and Ireland, France, Germany, Italy and Spain - in six weeks' time.
Under a marketing deal with eBay, Yahoo! will feature advertisements touting eBay as the preferred online auction service in these countries."
Granted its only europe, but this doesn't bode well for the US auctions in Yahoo.
posted on May 28, 2002 10:34:54 AM new
It's all in how you look at it. I think it bodes very well for the Yahoo Auctions USA. I shows that Yahoo finally has learned the "know when to hold 'em and know when to fold 'em" aspects of overseas online auction markets. They can now concentrate more on the US market and not waste money on the European markets that where never going to bear fruit anyway.
posted on May 28, 2002 10:51:33 AM new
For about five months, I have seen ads for eBay "pushing" the BIN option for buyers. The first time, my response was "yeah, sure the buyers are going to demand to be able to BIN instead of having patients til the auction closes."
I used the BIN a few time during it's free promotion period, but wasn't impressed. I haven't used it since. Even though, I would use it, if it would help to sell an item, using "impulse selling."
[ edited by clarksville on May 28, 2002 10:52 AM ]
posted on May 28, 2002 11:05:28 AM new
I use the BIN often on what I consider the right price for the item. It works well with me and I will continue to use it until I don't get any more buyers. I don't know how anyone here feels but when I sell an item I feel is not worth more than what I put it on for I use the BIN. I feel guilty if it would go any higher. I don't like ripping people off. I have researched quite a bit and realize that people will only bid so high. I also realize that the BIN gives everyone a chance to buy my item. I hate bidding on an item when I know it is only worth so much so that is usually my top bid, but someone always outbids me. i.e. I have bid on a CD and I can never win it but one day someone put it on for a BIN in my price range and I got it. I think the BIN is like a fixed price store front and mine usually sell within a day, they pay by PayPal usually and the merchandise is out of my house in into the bidders house in 3 days.
posted on May 28, 2002 11:19:27 AM new
I only buy an item if it has BIN and the price range I am looking for....no time to deal with bidding anymore i Love BIN saves me alot of time and hassle.
posted on May 28, 2002 11:31:43 AM new
"I shows that Yahoo finally has learned the "know when to hold 'em and know when to fold 'em" aspects of overseas online auction markets. They can now concentrate more on the US market and not waste money on the European markets that where never going to bear fruit anyway"
I agree that focusing on a smaller set of businesses will allow Yahoo to be better at the remaining ones, but how much of an attack could Yahoo mount in the US if they are actively promoting Ebay worldwide? Also, auctions in the US only means there is a smaller market to support the fixed overhead costs of their auction business.
In any case, it will be interesting to watch. Such examples of "co-opetition" are always fun to follow!
posted on May 28, 2002 11:36:32 AM new
I think BIN is a good deal. For a nickel, you can set an "average" price for an item, and if it used, you not only get your money sooner (often people using BIN also pay will paypal), and more often (I have yet to have a BIN deadbeat, although I'm sure they exist), you have some additional protection against the item selling only at a minimum bid. Also I think there are people who strongly prefer BIN, some to the point of rarely considering non-BIN items, so it helps expand your potential customer base as well.
Frankly, I'm surprised ebay doesnt charge more for it. I hope they aren't reading this.
posted on May 28, 2002 11:50:35 AM new
If JC Penney's has 100 stores in the State of Nevada lets say and 25 of those stores have always lost money isn't it a smart move to close those stores? Yahoo isn't closing all of its many overseas markets, just the 5 European markets that have never showed much promise. Yahoo's deal with eBay is to only promote those newly-abandoned European markets. Take eBay's money.
The BIN only works for sellers that sell common items that historically sell in a narrow price range. I feel that it enhances the eBay shopping/auction expierence by allowing shoppers to buy common items instantly. It also makes checking out the 'newly listed items' frequently a must as many sellers put a very low BIN price and that creates a lot of tremendous buys for a lucky few buyers that find these bargains.
posted on May 28, 2002 11:55:34 AM new
Actually, ebay should be charging NOTHING for the use of BIN. Since it actually reduces their costs and gets them their cut of the money faster.
posted on May 28, 2002 12:36:22 PM new
"Actually, ebay should be charging NOTHING for the use of BIN. Since it actually reduces their costs and gets them their cut of the money faster."
Prices are set as much on value as cost. If something has a value to a customer, ebay (just like most companies) will try to set a price for it. If ebay can cut their costs at the same time, its a win-win for ebay - most value-added services actually cost MORE money to do, not less.
"If JC Penney's has 100 stores in the State of Nevada lets say and 25 of those stores have always lost money isn't it a smart move to close those stores? Yahoo isn't closing all of its many overseas markets, just the 5 European markets that have never showed much promise. Yahoo's deal with eBay is to only promote those newly-abandoned European markets. Take eBay's money"
Its not the same thing as JCpenny closing 25 out of 100 stores. It would more like JCpenny putting a big sign on the closed store saying "Please, shop at Sears, they really are the best". Talk about your mixed message to consumers...its going to be tricky for Yahoo to simultaneously tell German consumers that Ebay is a wonderful auction firm...and simultaneously push Yahoo auctions in the US. Unlike a physical store situation, where its not as hard to segment the market, its harder to prevent people on the net from surfing both Yahoo US and Yahoo Germany. And also if Yahoo US were to mount a savage attack on ebay for market share, might it not endanger their European marketing agreement also? Its one thing to be dispassionate and say they are separate, but the fact remains that humans run ebay, and if you tick them off in one market, they may not want to pay you money in another.
posted on May 28, 2002 12:47:57 PM new
Then maybe there is a place for another large venue. eBay could remain the high end auction venue and some other venue could pick up all the smaller stuff that eBay and Yahoo see so anxious to get rid of.
This would require some kind of seller/buyer "unity" to agree on where the smaller stuff should end up, and would require a management/customer service skill set that just doesn't exist on any other venue right now.
Assuming it did work though, how long do you think it would take for the owners of venue 'B' to realize "Hey, we're making money here" and take the same path as Meg?
posted on May 28, 2002 01:27:27 PM new
I think eBay is hoping that the sellers of these $1 paperbacks place the items on their Half.com portion of their site. That is where a huge percentage of the items would go if forced off the regular eBay auction. Many sellers may try the Bidvilles and Carnabys and quickly realize that no fees or low fees also mean no sales or very few sales.
posted on May 28, 2002 08:39:36 PM new
Okay, for a minute assume that eBay doesn't make Meg's predictions by 2005. Would that be such a bad thing? eBay is already the only successful dot-com, it's practically a household word, etc. All this without Sears Roebuck selling through eBay.
Remember "100 million dollars in 100 days?" Look how that turned out. A dismal failure. Or was it? Remember the mileage and FREE ADVERTISING that Meg got out of that promise? And when eBay didn't come through, the whole Auctions for America thing simply disappeared.
What makes you think Meg isn't doing the exact same thing now? What makes you think Meg isn't playing Wall Street like a fiddle? So what if years down the road, eBay doesn't meet Meg's promise? That still won't negate years of Wall Street chatter and speculation. That kind of advertising is priceless.
Let's face it, eBay is immensely popular in its current format. If eBay can integrate business and fixed prices, great. On the other hand, many eBay buyers have no interest in an online mega-mall. Why kill the goose that lays the golden eggs?
posted on May 28, 2002 08:53:30 PM new
This jumped out at the conspiracy theorist in me:
The auction site just announced a deal with consulting firm Accenture designed to help eBay solicit more business from the Fortune 500.
I don't know if anyone is really familiar with "Accenture" under that name. Previously, it was known as "Andersen Consulting." Yes, fellow "marginators," it's that Andersen .... Arthur's in the HOUSE! So we all know eBay is going to do real well from here on out.
Despite what should have been the corporation-killing shame of the Enron scandal, Accenture is very much alive and making all kinds of trouble. Here in Florida Accenture is known as a big FOJ (Friend of Jeb.) They have several million dollars' worth of state contracts and have already collected one or two dings from state auditors who found their practices....questionable?
[ edited by msincognito on May 28, 2002 08:59 PM ]
posted on May 28, 2002 09:29:57 PM new
Don't forget about ebay closing its Japan operations because Yahoo was way too strong in that market. It simply comes down to who owns which market. Ebay is King, but Yahoo is a strong second in most markets. Both are smart enough to get out of areas that are losing money for them.
posted on May 28, 2002 09:35:33 PM newOn the other hand, many eBay buyers have no interest in an online mega-mall. Why kill the goose that lays the golden eggs?
eBay will still be very much like it is now with the exception of the very low end items on its auction section. As eBay contines to integrate its Half.com unit into the site all of those 75 cent books will be one easy click away. Except eBay will make a tidy 15% profit instead of 5% on all that stuff.
When the long awaited eBay TV show arrives eBay will even go more mainstream. If the Antiques Road Show can go mainstream on Public Broadcasting stations then eBay oughtta be super successful on regular stations. I think eBay will get more and more popular as time goes by.
posted on May 28, 2002 09:56:14 PM new
<b>Well, unlike the eBay “party line,” that eBay is a “community,” it isn’t, it is a business and that is the way it is being run. Unfortunately, in time the cost of posting on eBay will drive the part timers out – but that is the difference in a “business,” and a “community.” Just remember that the next time you feel like falling for the eBay line of “it’s a community.” BULL!</b>
I’m not knocking the business approach, but I hate to be patronized by eBay with “it’s a community!”
I just recently returned some of my smaller items to Yahoo, which is presently giving a high percentage of sales for us. I won’t leave eBay, but will certainly again add Yahoo to our list of selling auction sites.
I would love to see Amazon make a come back, but alas, I think Amazon is long dead.
Regarding the TOPIC HEADING – regarding running the “small dealer” off, I don’t believe that is eBay’s intent – I do believe their intent is to make more and more money, which is true of all of us. I don’t believe eBay wants to run any one in particular off, but the more eBay functions as a business the less power the small/part time seller will have, and I don’t believe if they all left, which they won’t, that their leaving would strongly impact eBay.
IF the small/part time seller had made a stand a few years ago, it might have impacted eBay for charges more in line with the needs of the average seller, but since everyone is scared to death of leaving eBay, then there is no reason to bemoan the current state of eBay. Talking never changed any thing unless backed up with action, which I have never seen from eBay Sellers.
I feel sorry for the part time seller, but many of us who began selling on eBay in the “dark ages,” just the stuff laying around the house, or found in yard sales, have moved into new, redundant items just like a store would, and found it the only way to consistent sell and have product available for auction. Just a matter of business…..sad but true.
[ edited by JWPC on May 28, 2002 10:06 PM ]
posted on May 28, 2002 10:36:59 PM newUnfortunately, in time the cost of posting on eBay will drive the parttimers out Tell me why will it force them out. I'll bet that the part time people have the same merchandise as the regulars but don't have the time to list. I am a part time seller, I have worked in the real working world 45 years and part of the time was part time. The field in which I worked depended on the parttime people. If you look into business the part time people are the ones who pick up the slack. They are very important. I am sure there are quite a few retired people here that only do this parttime to unload their treasures and enjoy the money for the use of travel.
posted on May 29, 2002 07:24:11 AM new
I think the group that higher fees will run out are the under capitalized sellers.
These are the low volume sellers that do not have the funds to risk on higher listing fees, or higher volume sellers of really low priced items. I saw one power seller with over 10,000 feedbacks over 4 years, but his items sell for $2 or less, and the profit couldn't be more than 30 cents per item.
These sellers are also the same ones that can not refund/replace items in a deal gone bad because they simply do not have the funds to offer refunds/replacements.
When I read about sellers on AW boards that are arguing about a $10 item rather than refunding and moving on, I assume the sellers are under capitalized and simply can not afford a $10 hit, yet can spend a month and send 50 emails regarding the transaction.
posted on May 31, 2002 03:08:54 AM new
Meg, Meg, Meg - you got where you are BECAUSE of the small sellers! I am a small seller, no powerseller here, and I pay on time, never file for FVF (too much trouble) and list almost every day. Sure, a lot of my auctions end up under $10.00 but a lot are much more. If you list with a high starting price (to get Ebay more fees) you don't get any bids - it is that simple. If Ebay gets rid of the small sellers, it will be just another online mall, no fun at all. I plan on retiring soon and going full time on Ebay, maybe she will like me then!
posted on May 31, 2002 08:54:13 AM new
eBay may have been built on small items but times change. There is little profit in small items and actual losses on very small items. There will still be a LOT of small sellers as they will pass on all eBay fees to the buyers. There just won't be as many as there are now.
posted on May 31, 2002 10:56:18 PM new
The basic problem is that when eBay was capitalized the only way the investors were interested was if it had the potential to be a huge multiBILLION dollar industry.
They said whatever they had to and agreed to anything to get the bucks.
Sooner or later the truth will out that the potential is not there.
If they destroy what WAS there in trying - well no loss as far as the investors are concerned. That was nothing worth owning anyway - just a stepping stone to some REAL action.
They want to like - buy McDonalds when it was still a single drive-in. There is no real interest in just having a drive-in and running it well unless it becomes an Empire.
posted on June 1, 2002 12:46:53 PM new
I don't think ebay is trying to get rid of small time sellers... they're just trying to get rid of small time items. There's a huge difference there and one that I have noticed over the months.
Either way it's pretty smart business for eBay. They stop losing money on low-priced items... and thus increase profits. It's of course bad news for the people who sell those low end items, but they still have the option to sell on Yahoo! or Bidville (granted not an ideal alternative).
