eBay to Announce Changes at Tuesday's eCommerce Forum

[The Bar Keep]

Henry Blodget | January 17, 2008 6:25 AM

In an attempt to pacify angry sellers and stem share losses to Amazon and other sites, eBay will likely announce some long-rumored fee changes on its earnings call next week, says eBay Strategies' Scot Wingo. Wingo is concerned that the change will likely flood eBay with listings, making the user experience worse and putting even more pressure on sellers. Wingo believes eBay needs to cut fees, but only after fixing its two other big problems: fraud and "finding" (i.e., how do you find what you really want amid all the crap?)

According to some sellers who have reportedly been briefed on the fee changes, eBay is planning to:

Reduce listing fees and increase final-sale fees on high-ticket items.
Offer bulk-listing discounts.


Click here to read the full article...

[The Bar Keep]

Get your waders ready, the great flood is about to occur!!!!





 

[QUILT]

 

[The Bar Keep]

Here is a question I have been pondering the past few weeks. Will it be worth the added costs of having an eBay store once the new fee structure is announced? I have actually been through what is to be the new eBay fee already. Yes it was tested with SIL for 14 days in the category I sell in. Remember the thread I posted? See below:


eBay motor's holiday feemotion promotion...

Not sure if the core listings will be free as of yet but I was told that the above mentioned promotion was the test for the upcoming changes to core listing's.

Going to be interesting to see how many alternative sites survive once eBay cracks the faucet and plugs the drain. Haven't heard any talk of adapting from any alternative sites. I did talk and warn IWACStores of the forth coming fee changes but haven't seen much other than the push for preferred stores. Having upfront fees could be costly for any alternative sites if eBay holds true to form with the new fee structure.

I still see a marketing channel in eBay but the expected flood could make that marketing channel more like a not for profit PBS channel rather then the major network it has been for many. Might just have to turn the dial to Google adwords. Independent websites will always be the way to go as auction style listing's continue to spiral downward in most categories.

It's going to be a fun week.

[The Bar Keep]

By Ina Steiner
AuctionBytes.com
January 28, 2008
 
eBay plans to webcast the Ecommerce Forum keynote address at Tuesday's annual meeting of top sellers, during which it will announce much anticipated changes. eBay President and CEO Elect John Donahoe told analysts during last Wednesday's conference call that the company would announce changes this week to key areas including pricing and feedback.

Donahoe is currently President of eBay Marketplaces and is replacing outgoing CEO Meg Whitman when she steps down on March 31, 2008. Whitman will remain on the Board of Directors and will serve as a special advisor, drawing an annual salary of $600,000 and a target annual incentive bonus of 100% of salary ($600,000). (Whitman will also get other financial perquisites and will receive the use of office space and IT and secretarial services for a total of three years http://www.sec.gov/Archiv...93308000426/htm_25158.htm.)

Donahoe will receive an annual salary of $900,000, a target annual incentive bonus of 125% of salary ($1,125,000), a long-term equity incentive focal award with a target value of $8,000,000, and a promotion equity award comprising two parts, one with a target value of $15,000,000.

Sellers have been anticipating changes promised by eBay, hoping to hear news of a price decrease while remaining concerned over possible changes to search and feedback systems.
 

[2boysandtoys]

Joe....I think it's going to be an 'over-correction' much as we see in the market.  Either that, or it will be another pea in the pot that doesn't help 'most'.  If they drastically reduce listing and FVF fees, they will flood the marketplace there, and the 'dedicated and loyal' sellers will see a drop in revenue, complain and the hamster wheel will churn again - as it's been doing.

If they make minor adjustments, there will be some 'life pumped in', but short term as sellers continue to explore how best to exploit ebaY vs. align with it.

IMHO, the model is outdated - the auction as the primary 'offer', therefore either of the above are band-aids only.  For ebaY to survive, they must revamp their core offering, redesign their business model based on their 'strengths' and based on the needs of the market. 

As buyers and sellers both get smarter, they are seeing and using and believing in alternate means of tapping into e-Commerce - - - whether buying or selling...

[chiquita]

Donahoe will receive an annual salary of $900,000, a target annual incentive bonus of 125% of salary ($1,125,000), a long-term equity incentive focal award with a target value of $8,000,000, and a promotion equity award comprising two parts, one with a target value of $15,000,000.

 

I knew we paid alot of fees, but boy baby that is ALOT of fees. I feel soooo much better knowing where the money went.

 

Erin you are dead on with your pointed analysis.
 

[2boysandtoys]

Well....I am not impressed with what I've seen/heard so far - but I need to find more details.  Not that I 'practice' --- my degree area is finance and marketing (dual) and I can tell you that ebaY is probably a great text book example for MBA students. 

As information comes out, I'll be reading and watching and considering how it can 'affect' me/small sellers positively.  Every 'avenue' existing can help us IF we can tap how best to exploit it. 

I will suggest, as one who worked for a large corporation for a long while, and one who started as a secretary and left as an officer that:

 - ebaY demonstrates the classic corporate structure where those making the decisions are NOT seeing/absorbing/analyzing the detail shared by those closest to the trenches

 - ebaY, like so many others, takes too long to redirect the business - therefore missing the 'opportune' moment for change

 - they are making yet another short-term change to stimulate analysts' speculation (bump up quantity of listings) that will NOT result in the desired/needed revenue stream to finance the system changes they will need to compete long-term.

I see 08 as a transition year and I see 09-10 as the do/die years.