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Are You Considering Opening an Ebay Store? Wait! Read This First

It is Wise to Stay on the Sidelines Right Now

By Randy Smythe, published May 11, 2007
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I never thought I would say this about eBay Stores/Shops because I love the concept and they are the only place left on eBay to feel like an independent seller but what I am seeing coming down the pike isn't pretty. If you currently have a store and can make a reasonable profit, I would of course recommend that you stay but if you are considering opening a new store, my suggestion is to wait. Wait until eBay figures out what they want to be when they grow-up.

I am seeing a disturbing trend for eBay sellers. It is the homogenization (such a big word) of eBay. It appears eBay management wants to look and feel like a big online retailer. I believe management is concerned that buyers are beginning to migrate to sites like Amazon in increasing numbers -- this is certainly the case in the Media category - so they are pulling out all of the stops to keep that from happening.

Part of this homogenization is the new Finding Experience. In order to present the best buying experience eBay needs to control the product that is presented to the buyer -- it's called merchandising. The popular product is at the front of the store and of course the less popular product is at the back. That appears to be the vision of the new eBay.

They can do this on Express because they don't charge anything to be included on the site but this new approach brings up a dilemma for CORE and Stores/Shops. How do you present the best product to your buyers when you are charging sellers to be included in that search? One seller's 35 cents is as good as another's isn't it. If I want to sell low price commodity products and I'm willing to pay a fee shouldn't my product get the same exposure as a popular product if we are paying the same fee?

We must remember, eBay doesn't sell any product. They display seller's product to buyers and facilitate the transaction and get paid very well for that service. Amazon and Overstock do not have these limitations. They all sell their own product and only charge sellers a FVF so they are free to merchandise to their hearts content.

Are You Considering Opening an Ebay Store? Wait! Read This First

Stop and read this article before you open an eBay Store.

Credit: Randy Smythe

Copyright: Randy Smythe

Did You Know?
eBay is introducing Finding to the .com that will change the way buyers see product and the jury is still out as to what will happen to Stores/Shops.
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Comments
Showing Comments 1 - 6 of 6
 
 
I'm crying with you too. I got suspended my fault of course. I was away from the store since we found out our mom had breast cancer so we were out of the loop for like a month had 4 negatives in my whole ebay career and I've been with them for 5 years tried to get reinstated couldn't get in contact with the buyers since it was over the 90 days mark to redo the feedbacks. Oh well...anyone know any other site like ebay?

Posted on 10/19/2007 at 12:10:00 AM

 
It looks like eBay is having a change of heart regarding Stores. They recently announced some initiatives and seem headed in the right direction. I would still hold off until at least late summer to see if any bombshells come out after eBay Live!

Posted on 06/18/2007 at 8:06:00 AM

 
PJ - This is happening more frequently. I think eBay has said "we are going after bad sellers and if some of the good sellers get suspended also tough, that is just considered collateral damage." Sorry to hear this happened to you.

Posted on 05/23/2007 at 4:05:00 PM

 
Ebay just suspended me for failure to deliver merchandise and refused to look at my proof of delivery notices. Looks like I'm in good company. Someone noted that ebay has recently suspended almost 4000 sellers. What's up with that???

Posted on 05/17/2007 at 10:05:00 PM

 
Wes, you are not alone. This current management team that took over in January of 2005 has ruined a pretty good thing. eBay could be so much more than it is right now.

Posted on 05/14/2007 at 9:05:00 AM

 
Ebay has lost a lot of its appeal to me

Posted on 05/13/2007 at 2:05:00 PM

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