Friday, May 9th, 2008
Small Sellers: Our Competitive Advantage
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
Tagged: buy, buy.com, buyers, community, ebay, ecommerce, Marketplace, online community, sellers, small+sellers
Patricia1On 05.11.2008 at 8:33 pm Said:
You know, I’ve read thru this thread and come to one conclusion…what does it matter? It doesn’t matter what we say or what we do, ebay has an agenda and they’re following it to the letter. If Buy.com isn’t the greatest, ebay will make it look like the greatest…they are never wrong, they are always right. They will have another fine quarter even if we all leave and nobody buys a thing - they’re masters at that alone. I am facing the fact that I have to move on to other things. Whether ebay rises or falls or changes or doesn’t is not my real concern. My real concern is my own future. I care about ebay just about as much as they care about me.
Patricia1On 05.11.2008 at 8:36 pm Said:
The one thing they fail to see is that the “noise” has quieted now that most sellers are coming to just about the same conclusion I did. I only try to impress upon them that when they leave they must take as many of their buyers with them as they possibly can. This is to assure that other sites we list on will improve and not fall by the wayside 
I think all sellers should be spreading that message to other sellers and buyers. Its the most important thing right now…we brought the buyers to ebay - they didn’t do it - we kept them coming back - ebay didn’t do that either - now we need to take them with us.
TWOn 05.12.2008 at 9:00 am Said:
Ok, so lets pretend that the small seller is wanted on the eBay site (I say pretend because I have seen nothing to think it is true) and all the new policies were to assure a strong buyer experience as well as bring new buyers to the site.
My question is …. Where are all the buyers? Since the announcements I have noticed a slow erosion of buyers in my market. An item that used to sell for well over $100 is now bringing $50 or less. The problems happened so rapidly that it can not be explained away by the economy.
Did eBay misinterpret their research? I think so.
Is eBay too stubborn to admit they made a mistake? Obviously.
From the DSR’s to Best Match, from wanting sellers to give away shipping to feedback, from board censorship to execs pretending to communicate while not communicating at all, it is one big debacle.
I feel that as a small seller that the tools to succeed have been stripped and replaced by all the tools to fail. I was doing well in January, now I am struggling to survive and all the adapting (which I have tried to do) in the world will not be able to overcome the policies set forth.
Communicating is not just one way Ms. Norrington. Communicating is give and take. Not take and take.
Patricia1On 05.12.2008 at 9:27 am Said:
@ TW I think they know exactly what they’re doing. Their positioning the field so the big boys can come in and set up shop. They won’t have to deal with us small seller riff-raff anymore. I’ve been asking where’s the buyers for weeks now….so now I’m just about totally on another site in particular and doing surprisingly well - and my stress level is back to normal where it should be. I’m among countless other ebay refugees on other sites and we’re supporting each other and brainstorming every idea we can think of to get our buyers to come with us. It will happen - its just going to take time. In the meantime, ebay has made their site so unwelcome for us that it doesn’t take much effort to move on anymore.
implogOn 05.12.2008 at 11:27 am Said:
I don’t really believe that President Norrington wrote the initial post above.
Look at how it is “signed”.
Thank you,
Lorrie Norrington
President, Marketplace Operations
Hardly an ending for a blog post by someone with an ounce of online experience. It’s more like a corporate communication on paper.
PLUS
Not once does she say that she is “excited“.
That’s not the President Norrington I know.
Thank you,
implog
Power Seller, eBay Marketplace
RicOn 05.12.2008 at 11:59 am Said:
eBays motives with this release are clear, keep the PR spin going in an effort to keep the small sellers around.
Retaining small sellers who produce full fee revenue to eBay while the high volume sellers get the advantage in listings visibility and highly discounted fee deals is clearly the motive behind this lip service.
Small sellers are getting buried in Best Match. Sales have declined, and eBay wants everyone to believe all is well.
Small sellers have been shown the door by the recent changes imposed, all the PR spin in the world is not going to change the fact that small sellers have been severely disadvantaged by policy that clearly is designed to give the advantage to high volume sellers.
However, a Thank you is in order to eBay executives for holding the door open as small sellers stampede for the exit and head to other venues that value their business.
Peter Leeflang / CEO of Leeflang Archives CorporationOn 05.12.2008 at 1:03 pm Said:
Ms. Norrington, your words contradict your actions.
1_ Best Match favors alrge sellers, who have resources to optimize their listings. We have no such resources. So small sellers end up on page 100 or higher most of the t ime, rendering them invisible, so without sales.
2. The DSR (which also impacts Best Match) makes especially small sellers vulnerable. The smaller teh number of transactions, the harder a DSR change hits a seller, so that is most typical for small sellers. That again places them on page 100 and renders them invisible, so without sales.
3. Additionally the 15% discount is unachievable for most small sellers because of their DSR vulnerability and lower sales volume, so their Ebay fee cost is at least 10% higher than large sellers.
I can go on like that for a while.
Peter Leeflang / CEO of Leeflang Archives CorporationOn 05.12.2008 at 1:05 pm Said:
PS
As a small seller I do not have the margins nor resources for dealing with experiments (and following financial and staffing problems) initiated by Ebay. I know Ebay itself has those margins and resources, but you are a major company.
TWOn 05.12.2008 at 1:36 pm Said:
Peter Leeflang has some extremely good points but … anybody else get the feeling we are just talking to the wall here?
DagnyOn 05.12.2008 at 1:51 pm Said:
Lorrie, we (small sellers) are just not feeling the love. Could you come back and answer the many question posed in response to this blog?
How does raising our fees, not allowing us our honest opinion in feedback, not giving us the 7 day “no neg protection”, subjecting us to a 21 day hold on PayPal funds, and disadvantaging our listings with best match translate into “eBay has always believed that small and casual sellers — “the little guys” — are eBay’s most important competitive advantage”
If we were “eBay’s most important competitive advantage” eBay would help, not hinder.
It does not compute Lorrie, so do please come back and explain.
TWOn 05.12.2008 at 1:58 pm Said:
Yes Colonel … it seems we are in a maze of new policies and regulations and if we do good we will get a treat at the end.
Patricia1On 05.12.2008 at 2:23 pm Said:
What riles me the most is that ebay management thinks small sellers are that stupid and naive. Dear ebay among the thousands of small sellers there are undoubtedly many with IQ’s much higher than yours!
mmmmmmmOn 05.12.2008 at 2:25 pm Said:
quote “TW On 05.12.2008 at 1:36 pm Said:
Peter Leeflang has some extremely good points but … anybody else get the feeling we are just talking to the wall here?”
exactly that folks…think she’s going to waste her time reading these?…I seriously doubt it
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