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Small Sellers: Our Competitive Advantage

Posted by Lorrie Norrington

LorrieNorrington_006
In reading some of the comments in Richard’s eBay partners with Buy.com post and the Evolution of the eBay Feedback post I think it’s important that we address the misperception that eBay dislikes small sellers. Let me be clear: eBay has always believed that small and casual sellers — “the little guys” — are eBay’s most important competitive advantage … These sellers created our community, bring a human touch to the marketplace, and continue to make eBay a truly one-of-a-kind shopping experience.

However, having a unique selection alone is no longer enough to maintain a growing and healthy marketplace. People also want to find inventory that includes the latest and greatest brand name models. As a result, in January, we lowered insertion fees, for all sellers, to decrease the risk of selling on eBay and bring more overall inventory onto eBay.

After a few months observing these changes, it is clear that gaps remain between buyer demand and the supply of inventory on our site. This is an obvious opportunity to delight buyers.

We have chosen to partner with Buy.com because we believe their new-in-season inventory, 4.8 DSRs, liberal return policy, and low shipping costs meet unfulfilled demand on eBay.com. Put another way, we are actively pursuing the merchandise our shoppers want and are willing to experiment with new ways of securing it for this holiday season.

We are closely monitoring the results so stay tuned for next steps. But regardless of the outcome of this particular experiment to bring more supply to eBay, we are determined to create opportunities to succeed on eBay for all sellers who consistently deliver great customer experiences– no matter your size.

Thank you,
Lorrie Norrington
President, Marketplace Operations

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implogOn 05.09.2008 at 1:40 pm Said:

Ms.Norrington.

Welcome.

Please clarify your eBay Announcement Board post saying that non-paying bidders can leave a neg for a seller if they identify “item condition”. How can an item’s condition be determined if the item is never sent because the buyer never paid?

Richard & Ms. Norrington:

I strongly urge you to read the Seller Central posting at the link below. The seller filed an Unpaid Item Dispute (UID) against the non-paying bidder. The bidder left the seller a neg and responded to the UID with the words “I’m not paying!”.

The seller contacted eBay and was told that the neg would stand because the non-paying bidder “had responded”.

http://forums.ebay.com/db2/thread.jspa?threadID=1000695810&tstart=0&mod=1210357884990

LAGOn 05.09.2008 at 1:56 pm Said:

I would feel better about this entry if Lorrie had also addressed the ‘powerseller only’ issue for seller protection shipping internationally and for feedback.

MistyOn 05.09.2008 at 1:58 pm Said:

Lorrie,
I do not disagree with what you are saying, by all means have the best of both worlds, that only makes sense. What don’t make sense is your refusal to provide us “small guys” with the same level of protection and security, we are more vulnerable than the big guys are!

I think my rare antique piece of Moser valued at $8,000 requires more protection than a $19.99 toaster does.

implogOn 05.09.2008 at 2:05 pm Said:

Seems the thread in the link I included went poof. It has been reposted at the link below.

Again, according to eBay, non-paying buyer gets to neg seller by responding “I’m not paying!” to the Unpaid Item Dispute. This resulted in no “delight for the seller.

http://forums.ebay.com/db2/thread.jspa?threadID=1000695790&tstart=0&mod=1210356656550

AmberOn 05.09.2008 at 2:31 pm Said:

“it is clear that gaps remain between buyer demand and the supply of inventory on our site.”

As a media seller, I find this completley unbelievable. There is no dearth of new books on the site. The logic doesn’t hold AT ALL.

And please explain how powersellers are somehow “safer” than long-term low volume sellers re: feedback protections.

AmberOn 05.09.2008 at 2:32 pm Said:

“new-in-season inventory”

Again, how does a 5 year old (in terms of publication date) romance qualify as in-season?

AmberOn 05.09.2008 at 2:36 pm Said:

Please reference this listing:

150244824440

“Usually Ships in 1 to 2 business days
When selecting Budget Shipping, items may take an additional 3-5 business days from the time frame listed above to process prior to shipment”

How is waiting 5 days to ship, then shipping via Media Mail going to deliver a terrific customer experience?

AmberOn 05.09.2008 at 2:43 pm Said:

“We are determined to create opportunities to succeed on eBay for all sellers who consistently deliver great customer experiences– no matter your size.”

Can you please delineate the opportunities that low volume sellers have?

Especially if selling used items we are:

1) disadvantaged in search by sellers selling New Items
2) disadvantaged in search by sellers who are Powersellers
3) disadvantaged by the lack of Paypal address protection
4) disadvantaged by the lack of a “waiting period” for negatives
5) disadvantaged by not receiving FVF discounts
6) disadvantaged in the Seller Non Performance sanctions

I could go on, but frankly I’m disgusted. You DON’T care about the little guys. You never have. And your preference for powersellers is revealed in every little new policy change you announce.

TheBrewsNewsOn 05.09.2008 at 2:48 pm Said:

Lorrie, thank you for the communication. As an eBay seller, I understand that eBay must make changes in order to survive in the online marketplace. If eBay doesn’t survive then I am “out of a job” as an eBay seller. Our goals are congruent. I am an eBay Powerseller managing multiple eBay selling IDs but I started out as a small part-time seller. In addition, as an eBay education specialist, I endeavor to educate new “small” sellers.

You make the point, Lorrie, that “having a unique selection alone is no longer enough to maintain a growing and healthy marketplace. People also want to find inventory that includes the latest and greatest brand name models.”

I agree with you on that point! But I disagree with your assertion that the Buy.com eBay seller will be the answer to help you accomplish your goal of maintaining a growing and healthy marketplace.

The question I would ask is: Why are there gaps between buyer demand and the supply of the latest and greatest brand name inventory on eBay?

Answer: Manufacturers do not want to sell directly on eBay and they do not want their product to be sold on eBay because of the perception that anything sold on eBay is done so because it has to be dumped.

eBay is known as so much of a dumping ground that many manufacturers make distributors sign agreements stating that they will not sell the product on eBay. Manufacturers go to great lengths to prevent their product from being sold on eBay and, in contrast, are more than happy to see their product sold on Amazon.

For example, take a look at the makers of Aerogarden and their success with partnering up with Amazon:

PRESS RELEASE:
AeroGrow Products Top Amazon.com’s “Most Wished For” List for Second Consecutive Year

BOULDER, CO–Dec 19, 2007 — AeroGrow International, Inc., makers of the AeroGarden kitchen garden appliance, announced that AeroGrow’s products ranked #1 on Amazon.com’s “Most Wished For” list, #2 on their “Most Gifted” list, and #5 on the “Bestsellers” list for the Patio, Lawn & Garden category as of December 17, 2007. In addition to being ranked first on the “Most Wished For” list, a total of 5 AeroGrow products were ranked in the top 25 and 9 in the top 100. The 2007 holiday season marks AeroGrow’s second consecutive annual appearance at the top of Amazon’s “Most Wished For” list.

Aerogrow went to great lengths to have their product removed from eBay in 2007. They repeatedly had eBay listings removed under the guise of protecting their VERO rights. They removed legitimate items from sellers who used their own pictures and descriptions and who were selling at the correct MAP pricing. They simply did not want the product sold on eBay, even if the price was the same or greater than on Amazon. Months later, Aerogrow did have their VERO takedown notices reversed. The point is that Aerogrow embraced the idea of their product being sold on Amazon but not on eBay.

Aerogrow is just one example of many. Manufacturers simply do not want to see their product sold on eBay.

Even though eBay may not talk openly about the “elephant in the room”, we can all see it there, and I’m sure eBay privately acknowledges that eBay has a major image problem with the manufacturers and U.S. retailers.

I really and truly do understand that, from a business perspective, eBay must make changes. But I think that eBay has unfairly targeted sellers, both large and small, as being the main source of eBay’s problems. While I certainly agree that there are plenty of eBay sellers, both large and small, who fail to provide a good buyer experience, there are also a good number of eBay buyers who are exploiting eBay sellers and taking unfair advantage of the eBay and PayPal system. eBay has no plans to address that problem, at least not that we have been told. And unless and until there is a plan to address that problem, you will never have a healthy marketplace. No amount of Buy.com - type sellers on eBay will make the current marketplace a healthy and growing ecosystem.

AmberOn 05.09.2008 at 2:56 pm Said:

@TheBrewsNews,

Good Point! As I don’t sell “brand name” items, that didn’t occur to me. Especially during the holiday season, the selling boards are filled with sellers being restricted from selling brand name items. Selling limits and VeRO take downs run rampant. I don’t blame sellers for not invensting in inventory when they have no assurances, even for “established” sellers, that they will be allowed to list those items.

DagnyOn 05.09.2008 at 3:04 pm Said:

Lorrie, Thank you posting.

Your first paragraph says eBay does not dislike small sellers. Ok, I expected the second paragraph to explain what eBay is doing to help and to protect the small seller. I was disappointed. :(

The new pay PayPal policies directly target small sellers, new sellers and casual sellers in a very negative way. All the new “goodies” are going to Power Sellers and the restrictions are being placed on non-power sellers. This quote from Monroe Labouisse is telling…

“Provide great experiences for buyers, qualify for PowerSeller status, and then along with the many other benefits eBay provides, you can get this protection from PayPal.”

–eBay and PayPal are focusing on Power Sellers. I infer from Monroe’s statement that if you are not a Power Seller you will just have to suck it up and risk loosing your money and merchandise… and we are in most cases forced to take PayPal.

Small sellers pay more and risk more and are disadvantaged in “Best Match”, we can not offer free shipping as eBay says is the “online” norm. We can not make it on eBay anymore.

You say eBay does not dislike small sellers….eBay’s actions say differently. :(

SharonOn 05.09.2008 at 3:24 pm Said:

Ms Norrington

“Let me be clear: eBay has always believed that small and casual sellers — “the little guys” — are eBay’s most important competitive advantage … These sellers created our community, bring a human touch to the marketplace, and continue to make eBay a truly one-of-a-kind shopping experience.”

I am one of those little guys. If we are indeed Ebay’s most important competitive advantage, what do you think all the “noise” is about. Every change that has been made recently by Ebay has served to disadvantage the small and casual seller, i.e. best match, no negatives for buyers, DSR’s, no seller protection, and let’s not forget, Non-paying bidders. While the recent changes have been geared toward Powersellers (large volume sellers)

If no payment is received, there is no transaction. Hence, no feedback should be left. Sellers should not be afraid to file for their final value fees to be reversed because of fear of a retaliatory negative from a non-paying bidder.

These changes have so disadvantaged myself and others that sellers are leaving this site (and I used to buy on this site more than I sold). Why would you not care to retain sellers (who are also your buyers and your CUSTOMERS)?

Is Ebay really proud of the partnership with Buy? They may have 4.8 DSR’s but have you looked at their feedback? With their volume of sales they can absorb all the neutrals and negatives (as can all volume sellers, they are not worried about these changes) but the small seller will be hurt by one or two negatives.
All the anger and frustration that you see is caused by these changes. No, it’s not the large volume sellers you are hearing from. It’s just business as usual for them.

But for some sellers, Ebay is seriously hurting our business. Do you understand that many sellers supplement their income, or in some cases, their entire income comes from selling on Ebay? If you were selling on Ebay to support your entire family and that ability was seriously impaired, how would you feel?

Thanks for being brave enough to come here and I hope you will read this and understand from a small seller point of view instead from corporate Ebay.

Formerly Known As MarikaBooksOn 05.09.2008 at 4:30 pm Said:

Ms. Norrington, you said:
“I think it’s important that we address the misperception that eBay dislikes small sellers. Let me be clear: eBay has always believed that small and casual sellers — “the little guys” — are eBay’s most important competitive advantage … These sellers created our community, bring a human touch to the marketplace, and continue to make eBay a truly one-of-a-kind shopping experience.”

Do you consider that it was a “misperception” on my part that I thought I must have somehow angered the Ebay gods when my listings were having serious visibility issues? This was well BEFORE Best Match and the current disadavantaging of listings in search.

At the time, quite a few members thought I was crazy when I said that I could not, no matter how I searched, get one of my listings to come up in a search, even though I had the ‘one and only’ on Ebay at the time. Now they see what I went through since many more sellers are now finding themselves invisible while they continue to pay the same fees as folks who aren’t disadvantaged.

This is just ONE of many slaps in the face that smaller sellers have felt and many of these slaps came out of the blue. That fact alone tells me that Ebay doesn’t value ANY of its sellers very much unless a small number of PESA-types are getting advance notice of site changes which seriously affect business plans.

The little guy is just getting one bomb from the sky after another in the form of little-advance-notice changes. A perfect example is what was recently done to digital download sellers who got ONE week’s notice that their Ebay businesses were decimated.

Small sellers are valued? Really. Then, please, tell us all what Ebay has done for them lately. And the so-called fee decrease doesn’t count because most people saw an INcrease in their total fees and we all know it.

And when you are ignoring my questions as Richard does (probably because I am no longer selling here so to heck with me), try to keep in mind that I no longer BUY on Ebay either.

Everytime you all lose a seller, you lose more than one buyer. Ignore me if you like but it might be wise to answer ALL current sellers’ questions before you insult them one time too many and they take their buying dollars elsewhere, too. The buyer is #1, you know.

Patricia1On 05.09.2008 at 4:41 pm Said:

“In reading some of the comments in Richard’s eBay partners with Buy.com post and the Evolution of the eBay Feedback post I think it’s important that we address the misperception that eBay dislikes small sellers. Let me be clear: eBay has always believed that small and casual sellers — “the little guys” — are eBay’s most important competitive advantage … These sellers created our community, bring a human touch to the marketplace, and continue to make eBay a truly one-of-a-kind shopping experience.”

With all due respect, if you can understand that - then you can also understand the misery you people are putting small sellers thru! If you can understand your paragraph above then all logic fails in this situation because not one of you really “see” the trouble you are handing out to small sellers while you keep benefiting and protecting the powersellers! No, I’m very much afraid you all do not understand - because you don’t want too. If you really wanted small sellers to stay then you would never ever treat them in this manner. Every small seller who has kept up with the changes so far truly believes it is only a matter of time before they are tossed out of ebay - and not one of you have said anything to the contrary - or showed any kind of consideration or respect! Ebay-speak aside - ebay’s actions since January prove our point - ebay really has little use for small sellers and will watch them drop by attrition or leave in disguest while they ease in the bigger retailers. The few kind words we receive once in awhile (that are never backed up by actions) are only meant to keep us dangling until we’re no longer needed. Believe me…our regular customers see what is happening to us and are concerned. Ebay should be a bit more concerned too because we all know that good news may spread but bad news spreads like wildfire!

HenriettaOn 05.09.2008 at 4:55 pm Said:

Listing above Price $7.20
3 weeks S&H $3.60 total price $10.80

On the river Price $4.04
Immediate S&H $3.99 total price $8.03

Savings 25% Satisfaction - priceless

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