Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Will eBay Fee Hikes Recharge Growth--or Drive Away More Merchants?

Posted by: Rob Hof on July 19, 2006

A lot of people, especially eBay sellers, assume that the online marketplace raises fees largely to extract more money. But the bigger reason is usually an attempt to alter seller behavior—to change what kinds of products they list, for how long, and so on, to keep the marketplace humming for both buyers and sellers. Same deal today, when eBay announced it’s hiking listing and sales fees by an average of 6% on items merchants list in their eBay Stores. Apparently, the moves eBay made in the second quarter to promote auction listings over Store listings in search results didn’t do the trick, which put a damper on U.S. revenue growth.

No doubt, a lot of merchants will scream bloody murder. Big whoop. The thing to watch for real insight into whether this will help recharge eBay’s growth—which ain’t bad but not good enough for investors—isn’t how loud merchants yell. It’s what they end up doing.

Will they dump listings of commonly available, often overpriced merchandise piling up in their eBay Stores, as eBay hopes, thereby improving the appeal of overall eBay inventory? Or will they get fed up and list those items on their own Web sites or on Google Base or somewhere else?

When I talked briefly this afternoon with eBay CEO Meg Whitman following the second-quarter earnings call, she sounded confident. She thinks the pricing moves will cull out sucky merchandise—my term, not hers—as early as the middle of the current quarter. “Some stuff will simply disappear” rather than get listed in eBay auctions, she said, because it’s simply commodity merchandise at standard prices that you can find a thousand other places.

I get the clear sense that as eBay expands its other marketplace and ad venues, from its international classifieds sites to to the new eBay Express site, it’s no longer trying to make the place for all kinds of merchandise. That way, she hopes the fun experience of bidding on eBay for unusual items won’t get further “diluted.”

I think that’s probably a wise strategy. As Whitman herself has noted, brands are like quick-drying cement. eBay’s core brand appeal is set, and it isn’t, as Whitman points out, interminable listings of Mariah Carey’s latest CD. The big question is whether the pricing move will also spur bidders to return and buy more stuff. We’ll know before three months are up whether eBay’s latest gamble pays off.

Reader Comments


July 20, 2006 12:08 AM

From what I have seen on the Ebay blogs is that merchants are cutting their loss and moving to yahoo auctions. Although Ebay may think it is a wise decision to hike prices up. In the end it is the merchants who suffer from the ebay monopoly. I really think what Ebay is trying to do is weed out the mom and pop stores with the stores like walmart and other superstores who have more to offer then the little merchant. Its only a matter of time that ebay will see their mistake.

Firozali A.Mulla

July 20, 2006 5:13 AM

Just a hint. Your article is a wee late. I just read the EBay is losing money.
Here is the little script. 19th July 2006 EBay to boost shares with buyback
Internet auction firm eBay is to start its first ever buyback scheme of up to $2bn shares over two years.
Ebay shares, which rose 5% on the news, have shed 41% of their value this year amid stiff competition.

The firm is also planning on raising the fees retailers operating on its site pay, to counter slower growth.

The announcement came as the firm announced second quarter profits had fallen by 14% to $250m ($135m) from last year's £291.6m.


July 24, 2006 1:35 PM

The whole point of ebay is that there is a broad line of stocks available. From a pin to House. Extracting out items is not a good idea !


July 24, 2006 5:49 PM

Too many eBay vendors list overpriced dreary sucky stuff in their stores -- the lure for buyers visiting the site is the opportunity to buy an item that's unique, special + important to them. Buying it at auction increases the excitement. Actually eBay has got it right this time.


July 24, 2006 6:27 PM

Rob -

If weeding out the gazillion copies of the same CD, etc., were the agenda, then this could be a good thing. If the increase were truly 6%, most sellers could absorb it. In reality, it is a 125-500% listing increase as well as a backend increase on items sold from 8 to 10%. In addition, sellers are now promised less site exposure for their money. And for this U.S. sellers must compete on the U.S. site with Asian sellers who pay ebay NO FEES WHATSOEVER.

Right now, listings are being pulled by the thousands. I don't know about Mariah Carey CDs, but there are an awful lot of collectibles dealers closing their shops and taking their customers with them elsewhere. They have been squeezed to the point where ebay is no longer a viable place to do business. Unfortunate, since the availability of low-end collectibles - coins, stamps, postcards, and the like - were always the one thing that made eBay a unique place to shop.


July 24, 2006 6:54 PM

i dont not agree with the price hike on ebay and as a result of it i am closing my ebay store on august 21 first thing in the am. the majority of my listings are shapes in plastic canvas. i am the only one on ebay with the variety and the volume. my prices and shipping is not outrageous and does not gouge the buyer. my crocheted items are done by me and are all brand new and never been used. i have a scale i use to ship by zip code from the weight of the item so as not to charge too much. i dont think alot of people have thought this through and i know my customers will follow me to other places and they follow me to my web page as well. they all know how to contact me because i provide a service for some poeple that cant cut their own canvas. so in this category the ebay market place will be hurt because i am not going to share my shapes with someone that supports the price gouging to the small seller trying to earn a small extra income to support their family .


July 24, 2006 6:56 PM

Sorry to say Mr. Hof, but you should have asked good ole' Meg how she figured the 6% increase. eBay's claim is based on averaging auction-style feels with store fee increases.

The last poster is right on the money. Store fees will go from 2c per listing per month to 10c per listing per month, with a backend increase to boot.

That sounds like chump change, but my store has 8500 items, that's a jump from $170 to $850 per month base operating cost, ontop of the $50 per month I pay for eBay to host my store.


July 24, 2006 7:41 PM

Sorry Rob, but you and Meg are dead wrong about eBay stores being full of duplicate items that can be bought anywhere. Many of use offer unique items that you can't go buy at Wal-mart, or even other places on the web. My own eBay store offers a number of items that are used by crafters and are not easily available on the web or off. So the idea that we have cluttered up eBay with items no one wants or that duplicate each other is simply wrong.

Are there stores full of merchandise that fit your description on eBay? Sure, and most don't stay in business long as they have nothing new to offer the consumer.

Will the changes force sellers to change how they list? Yes, but not in the way eBay intends. Over the past couple days since the announcement, eBay's "core listings" of auctions and BINs have not gone up. They have gone down. Sellers are not switching to auction and BIN formats on eBay.

I think this time eBay grossly under-estimated the wrath of their sellers. They may have a tiger by the tail that has very sharp teeth.


July 24, 2006 7:51 PM

The fee hike is closer to 175% for me. I sell one of a kind collectibles with an inventory of over 20,000. No way can I afford to list these on Ebay at these fees. I've opened a site elsewhere and already opened two stores on Ebays competition. Many of my items will be right for Yahoo auctions and they will go there.

I'll continue to use Ebay to drive customers to my other sites but they will not get another penny from me.

The last fee increase saw me drop all auction listings and concentrate on store. My Ebay fee went from $500+ per month to around $125. That is what the fee increase is all about. I'm not the only one that found a way to cut the outrageous ebay fees last time. And, I listed more items than before.

This time around, I will have to list those on other sites.

DaWhip In Tallahassee

July 24, 2006 8:14 PM

As others have pointed out, eBay uses their own fuzzy math calculator when computing fees. They also rely on the media (such as yourself) to not fully understand the eBay model and simply regurgitate their corporate press release.

I might suggest you actually interview sellers and buyers for the complete picture and not just take eBay's PR at face value.

As for myself, I've been a seller (and buyer) on eBay for 8 years. Business plans change, they have to in order to adapt and survive. However, eBay's approach to throwing it out there, see what sticks, and make updates on the fly to paraphrase Meg, does little for the *community*. How would you go about finding an alternate path to your office in the morning if no one told you the roads have been moved or closed in advance.

Enuf said...


July 24, 2006 8:15 PM

We just ran our estimates. For us, the increase will be a little of 3% of our gross sales. We can certainly live with that.

There are so many ebay stores with hundreds of listings that maybe have $50 in sales a month. I looked at one store that has 7x the listings we have but last month only had 2x the sales revenue.

No one likes fee increases but I can understand the thinking behind it.


July 24, 2006 11:00 PM

Why will no one at eBay answer this question:

Why are US sellers being forced via this rate hike to subsidize the free listings for Asian sellers?

The Asian sellers, by the way, are not the buyers on eBay, but many of the US sellers are. When the US sellers are all forced out due to rate hikes, who will be left to purchase anything? How will eBay make any money then.

Or is this entire event just a very dramatic bit of stock manipulation before eBay is bought out by, oh, say, some company like Yahoo or Google? Who then will benefit from this bit of chicanery?


July 24, 2006 11:06 PM

Rob - Many store owners are looking at 150% listing fee increases on top of final value fee increases. eBay is sugarcoating this by floating that 6% increase number, and stock analysts and reporters are falling for it, without doing any research or verification.

For the past few years, stores have been encouraged HEAVILY by eBay. In fact the latest eBay Live in Vegas was basically a roadshow for the glories of the eBay Store, i.e. "You aren't really selling on eBay unless you have a store" or "You need auctions, you need a store and you need a website" to be a successful eBay seller.

Then 30 days later eBay throws stores to the dogs, stating that they are "troubled" by this imbalance. Apparently, these wonderful stores were nothing but a millstone around eBay's neck. Yet up to the MINUTE before the announcement, eBay was heavily marketing stores to all sellers.

According to eBay, stores are the future of eBay .... no wait, eBay Express is its salvation .... no, auctions are "magic". Should be interesting to see what happens a few quarters down the road when eBay is not meeting expectations. Who will then be responsible?


July 25, 2006 2:20 AM

Yup, this time I'm leaving eBay. 10% Final Value Fees? Almost double what auctions cost? While Chinese sellers selling knock-offs and pirated goods get free listings and free stores?

I've had enough abuse from eBay about how I need to spend more to upgrade my store, I need to spend more for auction listings, I need to spend more for listing "enhancements."

If eBay is having so much trouble, why don't they get rid of some of the bloat? Like their Reviews & Guides, their non-function Wiki, and Blog spam?

Someone needs to whack eBay upside the head.

And I am not moving to another auction site, unless Google wants to step up to the plate and offer an alternative? I have a website, I am going to spend some money to make it better and more user friendly - and move everything I'd intended to list on eBay to my own webstore. Been meaning to do this for awhile, guess I have to thank eBay for the kick in the pants. :)


July 25, 2006 8:33 AM

Since we pay by the listing doesn't raising listing fees make the one-of-a-kind collectible the item that gets priced out rather than the 100s of duplicate commodity items that are gathered into one listing? Isn't this going to do exactly the opposite of what they say they are trying to accomplish?

It's the one-of-a-kind items you can't find anywhere else that will be leaving. For the sellers who stock 10,000 copies of some CD album the listing fees are still cheap since they only pay for a single listing.

Ebay is about to capture all the magic of wal-mart online.


July 25, 2006 8:38 AM

I too am furious at ebay. I was lured by them into opening a store 3 months ago. I then bought about $10K worth of inventory to stock the store. I bought at wholesale and sold at about 1/2 of retail. The store has just begun to make money for me. Will I stay? No. I can open my own store for $4 more a month than I pay ebay, and pay no listing or commissions to sell my items. Am I taking a risk? YES. But it is one I am willing to take. I am also going to list on the free auctions. Do they sell like ebay? No, not now. Maybe never. But at least I will not be supporting a company that does not support me. And all of my work will go to reward me, not ebay. That is the American dream.


July 25, 2006 8:47 AM

The online marketplace has evolved. It is now more convenient and even cheaper for customers to shop online.

The auction model no longer meets the needs of the buyer. The customer's time is more valuable - not to mention the cost and hassle of driving and parking -

They don't want to spend a week trying to "win" a product - they want to find it, buy it, and get it delivered quickly.

Ebay management is evidently struggling with warring factions - the old guard working with the auction model, and the stores team (ebay stores are a great bargain, even with the new fee structure).

Ebay management also seems to be struggling with the concept of a "free market" model... The idea that all things are equal, that value will always be reflected in price, that emotion does not affect the buyer's behavior.. in ANY venue, not just ebay - The management seems to be forgetting that ebay is the venue. The stores rent from the venue - and the stores are responsible for building market great customer service, quality products at fair prices, good value.

Each store is independent. If ebay wants to set "controls" on the type and quantity of inventories stored and sold on ebay, then they are going to have to hire a whole bunch of people who can make the judgements as to what is ok to sell, and what is not ok.

Ebay needs, in my opinion, to support the store model. It is the way of the future.

The market will determine who succeeds and who fails. That is as it has been and will be. Create a level playing field, and let sellers navigate the learning curves - some will fail, some will get along, and some will succeed beyond their wildest dreams.

Ebay needs to set their price and let the market do its magic.



July 25, 2006 1:43 PM

Ebay is so incensed by the reaction to their outrageous fee hikes, that they pulled all the auctions that used the words fee hike in them. Although as of this morning, there is a new batch of these kind of auctions.

I wonder if they will pull all the store items that use the word fee hike in them as well, just before the fees go into place on Aug.22.


July 25, 2006 3:28 PM

Ebay sellers were agressively courted just this spring to open stores with the assurance that their products would be available on the core search. They were told by upper management that fixed price was the new future of ebay. As a further enticement sellers would gain exposure in their new Ebay Express product.

And things for a brief time were very good for sellers, as buyers were able to find product through core search.

In a scant 4 weeks later, stores merchandise were pulled from search. The reason given to sellers is that it was diluting the buying experience.

Now, less than 4 months later, store sellers face huge cost increases and are told that they are no longer wanted on ebay. The great new buy it new on Ebay Express product will be featuring auction products. Auctions are now the new focus of our business.

In the midst of all this, ebay managed to buy a phone company, an apartment rental website, and persue a few very non-luctrative deals with several Asian countries.

Buy stock from've got to be kidding. These people appear to have no focus as to where they are going with their business.


July 25, 2006 8:40 PM

Ebay stores were the best kept secret of selling online. Meg & co. don't seem to understand that. They are throwing away something that was working and angering their customers - the sellers - while they do it. They are manipulating the searches the way they try to manipulate the sellers with their fee hikes. It's going to backfire on them, because they don't know what they have. Meg wants to go back to the "essence of Ebay". Well - that was 10 years ago. Buyers don't want auctions anymore. They want it yesterday!

Ebay doesn't hold all the cards anymore with selling online. Buyers are now comfortable buying from just about any website they stumble across. And there will be many more soon. The ebay boards are ablaze with sellers saying they are not going to other venues, they are going to their OWN websites to sell.


July 25, 2006 9:36 PM

It's clear now that there has been major dissension within the ranks at ebay over the Stores issue, which must be behind the departure of Jeff Jordan and Maynard Webb.

Phil Dispenza

July 26, 2006 12:57 AM

I've been with Ebay for 8 years as a seller and 10 as a buyer. I've seen ups and downs with sales. In April, 2006, I decided to go forward and open my Ebay store. My friend had much success for the past year, so I thought I'd try and see how I did myself. I've actually done decent in sales. Nothing spectacular, but turned a profit nonetheless after the fees and cost of goods. Then came this news last week about this huge hike. My store and store listing fees were going to go from $30/month to over $50/month. That didn't include the sales fees and paypal fees, which you're talking probably over $100/month. It turns out that I'm probably paying about 15% in fees.

The buyer is fed up with paying outrageous shipping costs. With gas prices rising (thank you oil hogs), the cost of shipping has gone up with several services such as fed ex and ups. Look for another increase probably by the US Mail early next year, like it did this year.

What I can't understand is how Ebay made almost $300 million dollars for last quarter and need to complain about business. Who cares if the stock is dropping? I can't see why it would drop if business is so good. But the major drop began to take place in Feb of this year, which is when Ebay announced some restructuring of fees.

I think Ebay has gotten too greedy and the sellers aren't standing for it any longer. They think by driving the small sellers to close their store, they will get what they want. What they don't realize is that we are BUYERS too, and I'm happy to take my business elsewhere. Unless I can get something dirt cheap, and I mean DIRT CHEAP, I'm abandoning Ebay altogether and taking my business elsewhere. I think many others should follow suit. is offering a great site for selling, and you can import your auctions from Ebay along with you feedback. Wagglepop is similar to Ebay, but only charges $9.95 for their store with no listing fees in any format if you have a store! Free auctions, fixed price, and store listings, only for $9.95 per month. You can spend that with 25 Ebay auctions alone. These are the two I'm currently pursuing along with my own personal sites. I urge others to do the same. For $120 for the year, I'm willing to give Wagglepop a try and if others did the same, some of these smaller sites would begin to compete. Please make a stand!


Melinda Burnett

July 26, 2006 9:46 AM

I don't know where Ebay gets off with this socalled "6%" fee increase. I have calculated that my Ebay store and final value fees will increase nearly 300%.

I am incensed, especially after Ebay went out of their way to lure me to open a store, offering promotions and freebies to do so.

I purchased a domain name last night, and registered with an ecommerce site.

I average $2-300 a month in Ebay Store fees selling very htf and rare collectibles to a very defined niche market, and Ebay tells me they are "troubled" by too many stores.

I find (with great difficulty, due to the rarity of my items), purchase and store the inventory, create the listings, pay fees to a third party photo hosting service to do so, stock bulk packing materials at my own expense, answer the bazillion emails, pack the items, and trek to the Post Office to ship them.

Ebay sits back, provides bandwidth, and bills me monthly for the privilege of permitting me to do all their labor for them.

Hell, in my day job I would be THRILLED to have a customer bring me $3,000-4,000 a year in commissions with so little work on my end.

See ya Ebay.

Ken Gillam

July 26, 2006 11:12 AM

I have a store and can be considered a small seller, however my items are my artwork and not interminable CD listings, so where are the buyers going to buy my artwork in future, unless things change NOT on eBay.

They forget we also list auctions to promote our stores so they will lose those auctions as well!


July 26, 2006 7:36 PM

Here are two video interviews of Meg Whitman:

Lisa Curtis

July 27, 2006 7:05 PM

I have a small ebay store. Small in the sense that my store is only 2 years old and I have only about 600 items. I have a specialty store. You can not find my items "everywhere" or "anywhere" else for that matter. My items range from 2.50 upto 13.00 for the most part. This fee hike will kill me and what little profit I was making. I keep my prices low so everyone can afford to shop at my store. The month they had stores in the searches was my best month in almost 3 years of selling. The month they took stores out of the searches I was down in sales by 33% of what I was making BEFORE they added the stores in the searches. Ive not recovered YET... and now their idea of fixing things is to add more fees to store listings. My items can not even be found in walmart or any other store. The whole point of having a store is so you can carry inventory and have it available for purchase. How long can we keep things in our store if the cost to have it there out runs the cost of the item ? THis is my living and how I support my family,,,,, im now searching for greener pastures and ive already waggled my store elsewhere and am in the processing of moving my inventory. They atleast dont charge me for putting things in my store as inventory. Im hoping that my 42% repeat business will follow me there as well... So wagglepop yourself along with so many other store owners over to greener pastures.....

JOHN chau

July 27, 2006 8:49 PM

closing my ebay store they take 500 dollars a month from me and i make 500 dollars !! who loses more here ebay !! thats good for the greed bay people !


July 28, 2006 2:42 PM

Ebay are censoring the merchants who disagree with the fee hike :(


July 28, 2006 5:10 PM

You and Meg have got it so wrong, and this reflects that neither of you actually sell on eBay as a business.
I live and work in Thailand, using eBay as an international outlet for the handicrafts of Burmese refugees and Thai Hill Tribes, giving them access to markets they otherwise couldn't reach. Because of "back home" circumstances, I list on eBay UK, paying eBay UK fees.
In the UK we didn't have the eBay Stores visibility-Rollback that the US had earlier in the year (for UK it happens on August 4th), but we have had our fees "aligned" with the US as from Aug 21st = a double whammy - increased fees at the SAME time as reducing visibility of our goods.
Every month I list thousands of items in the sub-GBP 1.00 (approx US$ 2.00) category. In stores, this costs me GBP 0.03 per 30 days and GBP0.05 for a gallery listing for 90 days.
After Aug 21st, the fees will increase to a tiered system with my average listing fee increasing to GBP 0.10 and the gallery fee increasing to the same. Thus INITIAL listing fees increase from 0.08 to 0.20 = 250% not Whitman's 6%.
The Final value fee taken by eBay increases from 6% to 10% = 66% increase not 6%.
On an average GBP 0.99 listing, eBay plus PayPal will be taking GBP 0.53 of every sale = 53% of sale price is taken by eBay Corp. What incentive is there to continue selling individually unique items, that feed stateless people, via eBay?

Comments about Asian sellers selling for free are only partly true however - SOME Asian sites are free to list, others are not. With the exception of the Chinese-language eBays China and Hong Kong, all the others only display on their own national site - there is NO worldwide option for sellers. Therefore it appears that is following the White House lead of sucking up to Beijing in this respect. Don't complain about the sellers taking advantage of it without first having words with your Congressman about the Federal example being set daily.

Will I quit eBay? Unlikely - yet! But I will be moving thousands of unique items and mass handicraft-production items from eBay to their largest UK competitor where it's FREE to List, FREE to sell - everytime, if you use the site to best advantage.
eBid has captured tens of thousands of disaffected eBay users over the years, around 5000 in July 2003 alone, and creeping up to 1,000 PowerSellers since July 20th this year. eBay has made at least one attempt to buy eBid, and the owners gave them the bird.

The writing may be on the wall for Whitman remaining head of eBay International.


July 28, 2006 8:25 PM

I agree with Meg's premise that ebay has lost its magic. It certainly used to be alot more fun to shop before all the junky stuff came in. But I think she has taken a giant swat at all of us, rather than just the junk dealers. In the jewelry category where I am, the junkers would have disappeared from discerning buyers' searches if ebay had kept their vow and stopped the relentless parade of items that were lies. It is not difficult to delete ads headed with the word "diamond" and described in the body of the ad as "cz"s. Keeping with its original beliefs and morals would have kept the market clean enough. Meg's decision to let the climate slide and then be heavy handed in a splashy show seems to me to throw the baby out with the bathwater. Ironically, I think in some ways it will work. I will definitely be more thoughtful about my listings on ebay....and few items will be either in my store or at auction....but, Meg, you have opened the door for your competition to develop. I for one will be listing on other sites quite actively, and will be putting more effort into the marketing of my website. I really didn't think it was possible to find buyers on other sites, but jeez! I listed one fine jewelry item on eCrater yesterday and it sold today! I think the fatal flaw is that ebay's sellers are also ebay's buyers, and as we congregate elsewhere to sell, we'll also begin our buying there. It's too bad. eBay was an amazing idea, and I'll always cheer them on... but mostly from afar.

Sunny Martin

July 29, 2006 10:51 AM

While some people go to eBay to pick up bargains - most of what I sell are things (like deleted/rare videos and first edition books) are items buyers deliberately search for as they cannot be bought in their local High Street. As I understand it - eBay stores that sell items like mine will be in a minority so these stores will be the ones that will show up where the auction listings are.

I would advise eBay store owners to diversify - by all means let eBay know of your concerns - but take this as an opportunity to develop your businesses. After all - our business success is our responsibility and if we can't adapt to change then that's not someone else's fault.


July 29, 2006 2:35 PM

i had over 5000 items listed in my ebay shop - the vast percentage - collectible obscure one offs that have great appeal - i had a great sell through rate and pay ebay a lot in fees already - i was amazed that they wanted to decimate my business by changing the visibility of the shop listings and therefore make no money in fees - i wont be relisting these at auction on ebay as the fees there are already too high and the sell through rate is hit and miss - i will be moving them to my own website and other auction outlets - ebay has forgotten who its customers are - namely the sellers - the buyers are our customers - this decision is so way off the mark as to make you question the business acumen of the people who made it - can i trust the future of my business in their hands - no


July 29, 2006 2:41 PM your regurgitated 6% fee increase contention is an absolute joke, and off by so far it's embarrassing. Besides not having an idea of what it takes and costs to sell on Ebay, you didn't bother to ask the people who actually know. As a seller of collectible books and vinyl, the increase is a direct stab in the back. My items sell well in my store, but take time. Auction sales are poor indicators of value, as I am waiting for the right person to come along, and not the freak occurence of two people willing to bid a book up to 20,30,or 40 dollars. My store is closing. Who can do business with a company that woos you to open a store, and then keeps changing the fees and parameters under which you operate. I have thousands of interesting saleable items that wont work under the impending Store fees.

C Elliott

July 30, 2006 12:51 AM

Ebay's reasoning is to 'cut the crap' from ebay? Well, it's not working! It's all coming from Asia!!!! I am (until 20th Aug) Australia's largest seller of Hawaiian Jewelry on ebay Australia! I am closing up my ebay store and relying on my simplyjewelry website (click my name) for international orders and combination of this plus listing at oztion, & aussiebids. Does this give ebay buyers the choice Meg wants!!!


July 30, 2006 4:27 AM

I too would have been hit badly by the fee hikes and reduced visibility. I make handmade bath products and am one of few sellers that actually hold EU certification, making me a reputable seller and not someone selling 'cruddy' items. The move by eBay has forced me out, and I closed my shop on the 20th of July after the announcement- why should I line eBay's pockets any further after this latest insult?

Sellers and buyers alike know that the clogged categories are due to fraudulent Far Eastern sellers, NOT shop listings. Someone in eBay must have a massive ego to not be able to admit their mistake about search defaults or a report button...

I now sell on, it's easier, quicker, a darn sight cheaper, and I have found them to be approachable and flexible about their site. Already they have added new payment options and altered their listing editor to accomodate sellers needs.

eBay may well have shot themselves in the foot with this, the sellers are leaving- it won't be long before the buyers follow suit.


July 30, 2006 10:18 AM

I wish here in Australia we were getting 10 cent store listings here we are going up to 50 cents.
what kills me is the 10% fvf.

We have to close To pay ebay fees would meen putting up prices to equal those off line.

No bargain there and no sale and no shop and no ebay fees and a new auction site for me.

It will be interesting to see how this goes for ebay. I feel that many ebayers have now been alerted to the alternatives and will list products there to see how they go, keeping an ebay presence if they can.

When the sales pick up in the alternative store, they will start questioning why they pay so much to ebay.



July 30, 2006 1:47 PM

You have judged this so wrong this time.

I'm moving to - why?

NO listing.
No relisting fees.
NO minimum reserve.
Low sellers fees.
Good site policing for listing violations.
Level playing field for all sellers.

Available worldwide - with sites in UK, US, Canada, Australia and Ireland - a no brainer!


August 2, 2006 4:01 PM

ebay does seem to be trying as hard as they can to give themselves competition. If they didn't have such a monopoly in the first place the ever-increasing fees would have killed them.


August 4, 2006 4:33 PM

I had a store on ebay, take a look at some of the stores there now, just do a item search and check the number of bids, completed listings, that should tell everybody something about the FVF (final value fees) and why so many are jumping ship.

I am investing our time and effort into our website! will be trying to drive traffic to it. May take awhile but the way I look at it time is less costly than ebay fees!


August 4, 2006 7:01 PM

From what I have read a LOT of store owners are moving there products to . The question is will they get the sales that they got on Ebay.

Doug Fulmer

August 9, 2006 10:21 AM

Rob.. you have bought the eBay LIE that this is a six oercent incresase.... going from two cents per lsiting to either five cents or ten cents (depending on the price of the item is NOT SIX percent. Do the math


August 11, 2006 8:04 AM


My name is Larisa Butcher, and my company is Kuntry Kritters.

I can appreciate that ebay needs to make some changes, and I need to make some too. In fact 35-40% of my gross income spent on monthly store fees, store listing fees, auction listing fees, relisting fees, upgrade fees, gallery fees, final value fees, and paypal fees is entirely unacceptable.

I am writing to you today in an effort that myself and other online business owners are making to put together a NEW online "mega mall" in an effort to provide the ebay giant with some much needed competition.
In order to make this effort successful, we need to make sure when customers come to shop with us they will find WHATEVER they are looking for.
We would very much like to include you in our community.

Please join us at

Please note that it costs NOTHING to join us.
The site administrator has joined our cause. She has agreed to waive all monthly store fees (the original cost was $7.50 a month with no fvf's on store items) through January 15, 2007. There are no listing fees, no gallery fees.
The only fees involved are listing upgrades and a 2.5% final value fee / backloaded sales commission on anything you sell from the site. In addition, you are free to link to your website on your "about me" page of your plunderhere store.

In addition to NO RISK, you have the added plug that the site feeds directly into the feeds of Froogle, Google-usenet, Googlebase, Bidhopper, and Bidfind. And we can all use all the advertising we can get.
This site is "virgin territory" as it just went live yesterday morning, and I think you will find it extremely attractive and easy to use. Should you have any problems setting up, there is live help available with just a click of your mouse at the top of your screen. The site administrator has been working around the clock to address any and all issues immediately.

We are not asking anyone to close down any other stores they have online. Only to add a little shop on to help us form a viable online marketplace that doesn't require 35% or more of our gross sales revenue to operate.

Ebay was a giant long before it launched its first television commercial. It was built brick by brick by business owners just like you and me. It is a wonderful marketplace, but it desperately needs some good old-fashioned down-home competition in order to keep online auctioning viable.

Please join us in our effort at

Thank you for your time and consideration.

Maureen M McCarty

August 11, 2006 12:52 PM

I can adjust for an increase in fees, but I cannot adjust for eBay's constant behind-the-scenes tinkering with search (they euphemistically call it "optimization"). You'll find many people discussing this on the eBay Stores Board in the Community section.

I refuse to pay store rental, plus increased insertion and final value fees just so I *might* have a chance at being seen if I don't draw the short straw of search for the month. That should be illegal. It's up to me to sell my stuff, but it's up to eBay to give me the visibility I am paying good money for. My eBay-provided Stores traffic report for June vs July is here -

I'm one of the collectibles (vintage Snoopy) people getting swept out along with the "sucky merchandise" that Meg so despises. What I find "sucky" is eBay itself. Along with their numerous search issues, they also have billing error problems that they acknowledge BUT REFUSE TO ADJUST FOR THEIR CUSTOMER! Here is the 2nd sorry response I've received over a two week attempt to get money owed to me:

""""Thank you for writing eBay in regard to the credits you are waiting for due to a technical problem on our end.

I understand you would like to be credited right away but unfortunately we are not able to issue the credits you have requested until this technical problem has been resolved. I assure you that it is a top priority and hopefully it will be corrected soon.""""

I strongly urge anyone else suffering the billing issues to file a report to the San Jose BBB and California Attorney General's office. That billing issue has affected many people for YEARS. Top priority? Don't think so.


August 11, 2006 4:55 PM

Sorry Rob...I own two stores. First, Ebay did this to themselves when they added us stores into the general search. Business was GREAT! Now they move us into neverland and expect us to swallow a hefty price increase? How is this smart for shareholders? Why does Ebay tell potential customers they can get IT on Ebay if the ITs are being forced out?

Also, why doesn't Ebay chase after the shipping gougers, bootleggers and such instead of punishing the legitimate product seller? They have allowed dropshippers who don't own ANY of the inventory they list to clutter the boards with multiple listings of the same crap. How is that okay?

When they announced the changes they upped the number of duplicate items you can list for auction. You tell me how that makes any sense if Ebay is truly cleaning up the marketplace? Meg is all wrong here and the auction sellers will be next to bear the brunt of the next fee increase to cover Ebay's quarterly shortfalls. Mark my words...

Also: If Ebay says store sell through is so bad, how about asking them to break out the numbers on the month where stores were part of the general search? I bet sales picked up didn't they?

I sell a mixture of items Wal Mart won't carry at prices and service not many offer. I also sell collectable toys that Wal Mart may carry but never restock for fair prices. I offer service. Sellers like me HELP the image of Ebay. If Ebay truly cared about things, they'd attack the problems of scammers, bootleggers and such instead of punishing us stores. They won't do anything about bootleggers and scammers because they pay for auctions and auctions make money, even if the consumer is being screwed.

k. j.

August 11, 2006 5:24 PM

readers take a look over at
and become more educated as to what is really
going on

It is not just the fee hike and balancing
it is a mess that they have made and at
the expense of sellers and yes buyers too
as they cannot find all the items they
should find that sellers paid for them
to see.


August 12, 2006 1:14 AM

I too, am leaving ebay. I was all set to take the next step and open a store to sell more vintage items, but when I did the numbers, it would not be worth my time with the increase. I'm not greedy, but I need to make a certain amount of profit. I put 6 years in and it is time to roll on. I will try WAGGLEPOP and Yahoo.

Ebay says it is costing them too much to host the stores listings, what about all of the junk that they are trying to promote (I don't know anyone that actually is interested in Skype, Guides, Reviews, Wiki, - doesn't even work, or Want It Now).

The bleed is not from stores, but all of this auxiliary stuff.

Meg Whitman is not good for this company! Before she came, it was truly a community and shared values that benefited the community as buyers and sellers. She is corporate and ICY!

I hope she doesn't institute a "membership" fee!


Confused about eBay

August 13, 2006 4:01 AM

Rob, please do a follow up article about eBay, if possible, please try to find out where the 6% comes from? Two cents to ten cents is NOT 6%??!!?? Also, eBay blatantly censors its sellers, well, except for the Asian sellers, who seem to have not only free stores but free range to do whatever they want. eBay also has started to add outside links to seller's listings, which so violates their own linking policies!! Please ask Meg about this? Oh, and their never-ending rules say you can't link to your OWN eBay store from your OWN eBay Express listings?!! What?? I could go on and on, SOOOOO many questionable practices!! Zero customer service, no replies to questions on boards or emails, but constantly pulling posts and listings?!!?? There is most certainly life after eBay, AKA Greedbay, Feebay, Suckybay. is awesome, also,, Deal Gates, lowbid, and many more, and these places are really growing and making sales!! Any buyers reading this, please check out alternative sites for your buying needs, the selection is growing and will continue to grow. thanks!


August 13, 2006 4:42 AM

Well in Aus., removing store items from basic searches has made 2/3 of all listings on eBay virtually invisible to buyers. Therefore ALL store items are now unsellable regardless of their quality. EBay's biggest resource, the experienced sellers who have learned the art of online trading there, and the very backbone who run the place, helping and advising new eBayers, have had the biggest stab in the back. And they are moving lock stock and barrel to competitor sites.

eBay will be left with few longstanding sellers who will all be listing with a vendetta with the opposition (and spreading bad word freely about eBay). EBay will be full of inexperienced and Chinese sellers which will cause a dramatic drop in customer service, and buyers complaints. It will have the smell of death around it.

There will be a shortlived peak in auction listings, and probably shares, as sellers offload their lef overs. After that, a swan dive into oblivion.

Today's buyers are convenience buyers. They buy today, not wait 10 days to maybe win maybe not win. The novelty of "sport" shopping online is over. Only by buying from an established store with a reputation can you be sure of the honesty and integrity of the seller.


August 14, 2006 10:11 AM

As a very small Ebay store owner, I am very frustrated. Ebay encouraged people like me to open a store as a great way to grow on Ebay and now they gripe and complain about us. I opened my store as a way to earn money for my PayPal account so I could use it in turn for auctions on Ebay to buy the things I wanted. Now I will probably close my store and buy much less on Ebay auctions.


August 15, 2006 12:59 AM

You people don't get it. Ebay doesn't care about your stores. They make their big money on PayPal... People who cheat ebay by charging outrageous amounts on their shipping are still being caught by PayPal. That's why they won't go after the cheats. They would rather subsidize the cheats with honest ebay sellers because they are making it up with PayPal. Do The Math...How else are people selling .01 cent items becoming POWER SELLERS? If you truely want to hurt Ebay...close your store and refuse PayPal on your auctions.

samantha sousa

August 17, 2006 3:10 AM

hi i closed my store too and have moved it to about 3 weeks ago they had 163 stores at that time over the course of 3 weeks they now have 703 stores and over 60,000 listings cant beat 9.95 for unlimited listings and a store..i paid my first bill with them it was 40.00 when i paid ebay almost 700.00 and i have 3 times as much listed on wagglepop than i ever had on ebay.....I just want to let meg know when ebay first started the reason ebay got so large was from all the small people that registered and started listing.(ebay was a friendly wonderful place to be)..they are the ones that brought the buyers...there were no huge corporations at the time it was all the little guys that got ebay off the ground...and i guess years later you don't need the small seller anymore....well, this is the way i see it...a lot of sellers are leaving ebay closing there stores(some are powersellers) and going somewhere else to sell and it's working... they are taking there customers with them...and they are more than happy to follow if you can offer them the same merchandise a bit cheaper on another site...we do live in an age where the auction block is still entertainment for some...but i know in-country customers do not want to wait for something they need they want to buy it when they need it...It is sad that all ebay is concerned about is i am one of your powersellers and it saddens me that ebay has changed so much...and its all about the big i have decided to go with who was also one of your powersellers 4 years ago...i will still list some items on ebay's auction block but nowhere near what i have done in the past...i don't think you realize how many people you have angered and upset, and i think it will all show by the end of the month...


August 18, 2006 12:47 AM

good on you samantha. glad to see people willing to try alternatives to eBay. i haven't tried wagglepop myself, but i have been using for a while. i must say, it's pretty good - and it's free. for other people that are interested in trying alternatives to the hill giants of the industry, i recommend giving them a go.


August 20, 2006 2:52 PM

Hi! I was an Ebay store holder. For me a hobby due to disability, but kept the brain cells in use. I loved speaking to buyers and made friends of many.
I sold things that my house move left over. Now I cannot afford this hobby. July 20th my small stall was ended after a lot of effort to put the 600 listings on.
I am not a huge business magnet. But Ebay seem to be drifting all over the place, after just coming of the UK forums and the remark of one pink(Richard)ebay employee about things being competitively priced! Ebay is no longer so priced. I instantly switched to Ebid and Tazbar on July 20th. New postal charges in the UK make small sellers like me think twice about listing anything! If I cannot make a stall work, with the goods already paid for as a hobby, God help those poor business people whose business plans cannot keep up with Ebays changes!!!!I want no sympathy, my small stall is never going to yield much-but a little respect and manners go a long way, Ebay.

Lynette Jester

August 20, 2006 4:42 PM

I have been on 2 years. In that time years we have not raised rates at all. We were feeding to google, froogle, bidfind and bidhopper before most of these sites were even thought of.

What you won't find on bid-alot??? Snakeoil salesmanship and Nigerian scammers or fraudulent buyers and sellers.

What you will find is real people running a real alternative. And now is the time to join.


August 20, 2006 9:20 PM

I closed my ebay store this month as well. I don't have a huge inventory like so many, but I won't have a huge mark-up to make a tiny profit. And with the ebay's listing fees, final value fees, and then we must add Paypal's merchant fees, the cost of selling a handmade curtain starts to climb beyond reason. I am relisting everything from scratch, on , No listing fees, fvf, and free storefront, worth a try I thought and am, afterall ebay was new once too.


August 31, 2006 10:06 AM

I have closed my eBay shop and have started to concentrate on alternative methods to promote my main online shop.
If you're the owner of an off-eBay collectibles store and you're thinking about using alternatives such as paid search engine keyword ads, I have something to tell you.
For less than two days, I have been using paid search engine keywords to promote my website. eBay has already outbid me by DOUBLE on a critical set of words that are essential to my shop promotion. I know it will not help me to increase my bid on those words; eBay will just outbid me again, because they can. What can an independent online shop owner do when eBay threatens to swallow your small business at every turn?

Ebay shopper

September 2, 2006 12:36 PM

I just want to comment as a consumer and not a seller. I have always gone to ebay first to buy my goods because that's where all the good deals are, not because of the unique auction feature that they offer. Although this is what built Ebay I think it has just played out a little, it was great in the beginning being able to bid against someone from the comfort of your couch, but now it's more about where you can find the best deal and how fast can you get it.
I for one shop in the stores now because I don't want to wait for auctions to close.
If the items I buy are no longer easily found in the stores, then I will be shopping elsewhere.


September 10, 2006 6:52 PM

I have been around ebay as a moderate buyer and a small seller since 2000. Today was the last day that I will list any item on ebay as a seller, and based on what little I saw searching there today, I probably won't be buying much there, either - not anymore.

Ebay's unique strength was - and I emphasize that this is in the past - small sellers selling unusual, old or rare things often very cheaply. That dusty stuff in dad's attic might include something tremendously important to interested parties somewhere on the Internet. Ebay provided the connection.

The auction format represented the two-edged sword of the marketplace. I have bought from people who were astonished at how much money something ended up bringing at auction because they had no idea it was worth so much to anyone. And then, I have bought worthwhile things for next to nothing because, apparently, no one else wandered along during the course of the auction who needed or wanted it. I am a buyer of books in particular, and I happen to have one of the largest privately held collections in the country on the subject on which I specialize. I have spent thousands of dollars on online transactions in recent years, much of it at ebay. But no more. The mom-and-pop "yard sale" auctions that used to produce some of the rarest, best stuff, are actively discouraged and what's left is no longer necessarily the best value for my money. The "yard sale" outfits are gone, replaced by a handful of savvy, sharklike buyer-collectors who know they have something of value and overprice accordingly, or cookie-cutter stores, who have the same stuff that I could walk into any used bookstore (or even retail store) and buy. I have seen books listed on ebay at prices at, or very little below, full retail price, and I've seen more of it recently.

The specific policies which have caused this to happen are the increase in insertion fees and, in my opinion, changes regarding paypal. I used to accept non-credit card paypal payments, since paying 30 cents a transaction for a handful of small-ticket transactions was poor business. If someone sells something on ebay for a dollar and accepts a paypal payment for it, they have spent 73 cents in fees! Goodbye, small sellers, with lots of juicy product that they don't expect to get much more than a couple of bucks for. Whether those books were destined to be bought at bargain-basement prices, or at auction-frenzy prices, the bottom line is that they are no longer available.

Ebay is all but useless to me now. I will never sell there again, and I won't waste a lot of time looking to buy there either.

October 30, 2006 2:44 PM

I started out as a small seller, just dabbling a bit on ebay, maybe making couple hundred dollars per month, and with that, ebay was taking in close to $100,not to bad for Ebay considering all the work they did not do. All they are is a parking lot attendant collecting fees, and outrageous ones at that. Two to three years ago, fees were at a place I felt were fair to all, and that was the plan from the onset, to create a place where everyone had a level playing field, but apparently this Meg gal have not learned much from the Enron case a few years back, as Ebay is manipulating things all over the place to create a market that they think is going to suit them , minimum input maximum output or profit, and what they do not care about that has gotten me livid, is that there are poor people out there working 16 hours a day, trying to add a little income to their humble household, and Ebay has now taken the little they earned, and all the work they put into it is gone by the wayside. I think and hope that Meg joins mr. Schilling at his place of residence and they can trade ideas, and maybe learn a thing or two from each other of what to do and not to do to the people whom can least afford it, and although Ebay apparently has done nothing wrong, I take issue with that, because there is a moral factor that has not been considered. I have grown over the last few years, and earn from $5-$6k per month gross, but once the fees and all the costs are removed, I make far less than minimum wage, now that they have become the Walmart of the world wide web. I will soon also be gone from Ebay, as I am setting up shop elsewhere, and hope that they do not follow in Ebays footsteps, and I make a prediction, that Ebay will no longer exist like it once did in less that 24 months. Ebay has gone to hell and ain't coming back folks. Do not follow, stop where you are and consider other options that will allow you to create your own, and market using simple tools, and grow from there, although it will take some time, I think you have a better chance than to stick with Ebay, as you have to list at prices that is close to buying price, and the only other place to make any profit at all is from the time you spend, but buyers are turned off by that, and so the last option of making a profit is no longer a viable one. Ebay is no longer the way to go, run the opposite way, it will be the best decision you could possibly make

Ephraim Makuve

November 2, 2006 2:51 PM

The uncertainty of how and when Ebay will increase their prices has caused me to create a website for former store owners like myself and everyone here. has only been up and running for a month and has already sold 3 $475 items for an Ebay powersellers. The concept here is simple, you pay nothing to list, when you sell, charges 4% commission. I am hoping you will consider selling some of you merchandise on



November 9, 2006 6:42 PM

The alternative to ebay is a brand new site which is This site offers free listing so only pay fees if an item is sold, free classified ads section and on online chat cafe.


December 23, 2006 11:44 PM

To us eBay experience is like a BAD Marriage. It started with Love & joy; Growth and Profit was the result of years after years and suddenly eBay got up one morning & annouced the Love was Fake and this relation is NO longer valid unless you give us whatever you make online!!
Is eBay a Modern Slavery Online or simply a network to empty our Life and our Homes!!
To solve any situation, you have to reach to the roots and start from there. It started as a simple Dream & neccesity to sell junks and was working for everyone. The slogan was we recruit average people to get together,unite themselves & become giants in every field in the worldwide market. Suddenly this ebay lover decides today that those average Joes are NO LONGER NEEDED who made eBay to be what they are today by supporting and paying for any fees they asked for.
Many were kicked off eBay silently & behind the closed doors with NO where to ask why & the rest were recently slaugthered by the fee hikes.
Did they lie to us or we got deceived? Either way, it is ODD, UNJUST & not right. If 21000 items & 1000s of Auctions of ours is NOT good for them, our guess is that THEY ARE CURRENTLY LOST and asking us to follow them NO MATTER WHAT.... Frankly, We do NOT like to get lost & their road ahead needs a Giant Flashlight to lighten up...

Penguins starve but NEVER eat another Penguin


December 31, 2006 6:34 AM

There is also the Free UK online auction site AVABID.COM


February 4, 2007 5:22 AM

I completely understand that more and more sellers cannot handle the rise of fees anymore. Why do they want to get rid of some items? Their advantages are the diversity and volume of products on the online auction marketplace. I have found a way to buy item cheaper using reverse auctions, like on That may save some sellers stores on eBay, if they can get cheaper procurement method.


March 4, 2007 1:43 AM

we opened an ebay store in oct. 2006. we thought ebay wanted companies like us to open stores because of all their hype and advertisement to do so. at first we did pretty good. now in march 2007, we are hardly selling anything. we have cross-promoted, advertised off-ebay, and done everything else under the sun to drive business to our ebay store. but it seems that as hard as we work, ebay works harder against us. we have reduced our inventory by half, and if sales don't pick up, we will close our store. when we try to search on ebay for our items, if they're listed, we're way in the back. also, some items take days to list. we only put a few items out on auction because it is too expensive. and we are not going to be forced to do fixed price. we have spent about 1000.00 so far on ebay and paypal fees, and we have just about broken even. this is turning out to be nothing more than a tax deduction for us. it's a shame, used to be that ebay was the best in town. now, they're going down hill fast. sorry ebay, if we can't show a decent profit, we're out! your company isn't the only one that needs to show a profit.


March 12, 2007 8:35 PM

I don't understand the theory behind these price hikes apart from making more money for Ebay.

It is quite simple. If 10 million of us were selling a bic pen and Joe Bloggs had his listed for the cheapest price he would sell the most. The other 9.99999(etc) million sellers would be selling the odd pen and paying the same listing fees. Joe Bloggs would theoretically be making the most money.

The other sellers would surely realise that they aren't selling so many bic pens as Joe Bloggs and drop their prices or decide that they don't want to sell this item because it isn't getting them enough buyers.

So the market will dictate because the buyers are searching and deciding who is the best price surely.

Then along come Ebay and put up the prices.... so Joe Bloggs who has always been fair and only added on a modest percentage has to increase his prices. Now he can only afford to list a small amount of his listings because he only ever sold a percentage of them anyway and with the price hikes he can't afford to lose the money.

So now the buyers have less choice and only see Mr Bloggs every so often. The other sellers that make bigger profits are laughing because finally they are rid of Mr Bloggs. They can afford the rises because they always charged more anyway. Silly Mr Bloggs for being a decent chap.

Oh well, it's ok because we have finally got rid of all those duplicates now!!!!!!


June 15, 2007 6:26 AM

I couldt agree more with the above, but ebay is doing far more bad stuff than this.

Ebay is currently trying (for some weird reason) to destroy, one of its most profitable sites, has decided in its wisdom, to not only restrict visibility to shops (450 -odd shops on have closed in June 2007 alone), it has also blocked listings from!

Our sales (and the sales of many others) have plummeted out of existence. We have been told by ebay to list on the american site, which is difficult as you cant put in the correct shipping costs on any item.

In addition ebay are emailing buyers and encouraging them to shop elsewhere on other non UK ebay sites!!!!!! So in effect, ebay are pushing both BUYERS AND SELLERS off the UK ebay site.

So when before, if you listed an item and you lived in england, it would be visible worldwide, aka the "global merketplace", but now it doesnt happen. USA sellers meanwhile can still list their items on and they will show up here in the uk on!!!!!

Can anyone tell me the logic in this? Ebay's discussion boards are full of furious people and ebay will not give anyone a straight answer! In fact many posts discussing it have been removed by ebay as they dont want people reading it!

Ebay has angered, in fact INFURIATED many dedicated sellers and i think you will find that many ebay sellers (and not sellers of "junk", all types of sellers of all types of items, both used and new), have just left ebay as they cant make any money any more. The COMMUNITY of users built ebay, and if they carry on kicking UK sellers where it hurts, the community may also eventually destroy ebay!



November 26, 2007 11:00 PM

I like the article here. Although I am a loyal ebay seller, I just signed off from ebay and paypal as a gift to ebay for their increased fee and rudeness.

Justin Linch

November 26, 2007 11:02 PM

Because the fee increase, my listed items sell very slow. So ebay could charge relisting fee to double their profit. Not bad for ebay money making machine.

Frank Steve

November 26, 2007 11:25 PM

Check out

There are so many ebay power seller want to leave the ebay and go to alternative auction site.

Jessi Smith

November 28, 2007 10:02 AM

Seller could compare the fee for at

with ebay complex fee scheme at

As most wholesale seller, their profit margin is only 15%, ebay fee
will take you 9%, and is
flat fee per month $40 + 1.5%total transaction fee. Which one make
more sense? Does seller work for
ebay or ebay help seller?


November 28, 2007 9:24 PM

Want to know how ebay treats its loyal seller, check out


December 29, 2007 10:54 PM

Jenny said:

Mehmet _vs_Paypal NewYorkIndex# 110537/07 - UPDATE

Sent: 08-02-2007 03:39 Quote Reply

My name is B. David Mehmet and I'm the real damn deal and I don't allow anyone to take advantage of me and break the law in doing so. When Paypal violated me this week, I immediately went to the court house yesterday and filed a lawsuit against them for (1) Fraud, (2) Conversion and (3) Intentional Infliction of Emotional Distress. Paypal not only harmed me with my Paypal account; but the inability to forward the payments to the third-parties has caused me to lose two (2) contracts. One of the contracts is valued in the hundreds of thousands of dollars. Even after I supplied Paypal with the additional verification they requested, they still failed to release my funds. They then claimed that I owed them money from an old account in the amount of $695.00. Not only did they not send me proof of this debt or allow me to access the old account; but they are still holding $1,950.00 of my money, which is $1,255 above what they claim I owe them.

I've established this TOPIC so everyone can see that suing Paypal is easy, and that this is the fastest way to resolve any dispute when it comes to Paypal. In addition, you could also win punitive damages against Paypal since this is habitual behavior with Paypal. Their behavior creates a pattern of behavior that can be used to prove tortious conduct against them.

The following is my OPINION: Litigation process in New York

1) Request that the offending party to remedy the situation

2) File a Complaint with the court and purchase an Index#

3) Have a process server serve Paypal with the complaint

4) Paypal will have 20-30 Days to Answer the complaint

5) File an RJI (Request for Judicial Intervention). The judge will be assigned.

6) File a request for a PC (Preliminary Conference). The schedule for the litigation will
be established and when the Notice of Trial is to be filed. This includes the completion of all
discovery. You will have an opportunity to request Paypal to produce executives from their office to
attend a deposition where you will be able to ask them any relevant questions. If they fail to answer
any relevant questions, you can make a Motion to Compel their answer. The Judge will force them to

7) This is a good time to make a summary motion. A motion that will end the case in your favor. It tells the court that there are no trialable issues of fact that would warrant a trial. Paypal would have to establish that there are issues of fact, which at times is not hard to do; but they must be of a material nature. Just because there are issues of fact doesn't mean it will win them a denial of the motion. For example, you could move against Paypal for LIABILITY. Your argument is that after you satisfied Paypal's request for additional verification, Paypal still refused to release your funds on the grounds that there was still a pending investigation (issue of fact). However, because you supplied them with the requested verification and the alleged debt to them for $695.00 does not justify them holding the balance of $1,255.00 of your money, the could rule that the issue of fact by Paypal is not of a material nature as to the $1,255.00 balance and the judge would grant the summary motion on liability against Paypal. The remaining issue at this time is DAMAGES. If paypal's wrongful conduct caused you to lose some type of benefit, Paypal could be liable to you for that lose. Thus, damages could be very high against paypal. This would be compensatory damages. Punitive damages is another story. Because it can be proven that Paypal's tortious conduct is of a habitual nature, they would be hit with huge punitive damages to punish them and deter them from engaging in this conduct again. Since Paypal has been doing this to thousands of members even after it settled a prior class action lawsuit, Paypal can really be hit hard with serious punitive damages.

8) At the end, the trial occurs. If the case is not fully disposed of before this point.

Keep following this TOPIC for continuous UPDATES on the lawsuit against Paypal in New York.


December 30, 2007 12:32 AM

From WSJ, "eBay is some of the riskiest places to shop online"
From nytimes, "Feel Cheated At Ebay"
Why ebay got sued in France for not protecting consumer?
Retailer sues eBay for contributing to trademark infringement
eBay is a "rat's nest" of fake goods

Alan White

December 30, 2007 9:21 AM

Ebay should be stopped for auction because it hides as a broker but operate as auction place. French auction regulator sues to close down eBay France. Why US regulator does not choose the same approach to protect consumer and merchant?

Ebay knew it is popular "organized retail theft" marketplace, but still fool consumer and merchant that ebay is most safe place and try to put fake "protection" sign to confuse mass. The reality is ebay does not want to provide any protection because the company is so greedy.

Cheap Ebay Item = Stolen Item = Crime + Money Loss. If you bought cheap item which is stolen, you will be charged with criminal and neither ebay or paypal could protect you.

Ebay: Scammer has "750 Positive Feedback Score" arrested. Fruaded Feedback System, Misleading Protection Claim for Fake Protection For Consumer and Merchant,


January 30, 2008 10:29 AM

ebay will loose a lot of sellers i run about 2000 auctions a month & i am now selling off my inventory & closeing my on line business for good ,

now that you can only leave positive feedback for a buyer & he can leave as many negitives as he want for the seller with no recourse is B.S.

now you cant want other ebay members of scam artist on ebay no thanks

Manos Galounis

February 6, 2008 12:12 PM

Reading about ebay hike rise and its’ resulting upheaval , reminded me about some early thoughts regarding the actual nature of these types of sites.
These sites could be considered communities.

It was evident when YouTube [name check] was acquired by Google:
Google acquired an actual community not a simple site with a superior number of users. It acquired a community mature enough to exert self consciousness. Thus the statements of the form ‘what will now happen to us’ were openly declared by the users.

Now, with ebay, we have a similar case of direct, one way intervention to a community.
Moreover, in the case of ebay, we have a site that invites and suggests users to establish their own business in it’s domain ie tie part of their well being to the site. Some of these users are depending their entire income to the site, some others their extra earnings and others are just making their first efforts.

Rising the rates at an absurd manner isn’t similar to a local community governor raising the community taxes in an absurd manner?
Is not the same as a community new tax policy forcing small shops to close?
If yes, is there any protective mechanism in place?

Ebay case generates some questions like :
These types of sites, how can be governed?
How a user can be protected?
Can they run as a simple corporation without responsibility towards their users?
Social responsibility issues are not in effect to this type of community?
Only commercial rights and responsibilities govern these type of relationships?

Extending this line of thought further, an ultimate question rises :

Has the right, a site like ebay, to close down?

Manos Galounis,,

Robert Gillette

February 9, 2008 5:35 PM

We had removed ourselves from the eBay (Community?) almost (1-1/2) years ago, way before price hikes. We were a power seller with 98% positive feedback and deal in US Rare Coins. We listed several 2006 3piece gold sets $3600 ea. After several buyers met our reserve and before the auction expired (they pulled our listings). I was told that I had to send them a copy of my DL and receipts of where I bought my merchandise.
I complied and sent the copy of my DL and a copy from the US Mint. They said that a copy from the mint was not proof that we really paid for the coins...
I have not since dealt with this "Community"?) and my wife & I have formed our own auction site(s). They are both FREE for listing, photo uploads, FVF. Only low costs for attention grabbers & bold.
AmberAuctions.Bix Specialty Rare Coins.
gBay.Biz Many varied categories, store fronts available.
Bob Gillette


February 11, 2008 12:29 PM

I think it bites! I have been a seller on eBay since 1999! I have tried to support eBay through every change, fee hike and restructure, sometimes to my bottom lines detriment. They don't care about your issues! They don't care about problem customers! They DON'T CARE. Oh...unless you are a large company. I have continually seen much favoritism towards large sellers, in search, advertising and other areas. Me and my 'smaller' company are tired of eBay. I have my own website and this is the push I needed. I foresee an abandonment of this once unique online venue (now resembling an 'e-big-box' store) for other, warmer waters and venues. eBay built their empire on the backs of people like you and me who have been selling since eBay started and this is the straw that's breaking it! Toodles eBay! :op

gearheadz autotek

March 3, 2008 11:08 PM

i got out of the ebay store business because of their ridiculous price fee increases. come on! there's store fees, listing fees, sale fees, get boned up the ass fees. then there's paypal and their 3 percent. OH NOT TO MENTION COMPETITION. unless ur allowed to sell crack on ebay. ur not making money.oh yeah i was left with a last bill and im not paying them! wagglepop and ioffer here i come! >8^D


August 4, 2008 10:51 AM

Add to the seller costs the price of gas riding to the P O to mail items, and the cost of packaging supplies... I used to charge only the cost of shipping based on the Post Office cost, but the cost of shipping can deter buyers. It is no longer profitable for me to sell on eBay.

Roger Wolf

April 15, 2009 1:09 PM

"What do Ebay and a Vampire have in common?........... They both take as much as they can without killing you, as they both need to keep you alive for their next meal." Roger Wolf

Post a comment



Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.



BW Mall - Sponsored Links

Buy a link now!