The Ebay Rag Mag

October 17, 2008

Glitch: False Offers of Free Shipping

In a bright, hard to miss orange circle next to eBay sellers’ gallery photo is an icon that indicates that a seller is offering free shipping even though the seller has made no such offer, and it doesn’t stop there.  The glitch is two fold.  If a seller who has set an offer for promotional discounted shipping on combined purchases,  the buyer is not being charged the discounted price, he is not being charged at all.  Sellers are being forced to lose their profits and absorb full shipping costs.  On a combined purchase where shipping is calculated by weight this can be very costly.

As if the situation in itself is not stressful enough, sellers fear unfounded negative reprecussions if they choose not to honor an offer that was not authorized.

The question is, is this a sign of what is yet to come?  Another new policy that eBay is experimenting with on the back end that mistakenly reared it’s ugly face before eBay are ready to slap the sellers with an official announcement?  Is eBay going to force the sellers to raise their product prices to cover a forced offer of free shipping?  This possibility has been in speculation for several weeks.  The thought behind it is that if eBay forces it’s sellers to raise their prices to cover the cost of shipping, it’s just one more way to generate higher revenue from higher final value fees.

October 6, 2008

eBay Announce Reductions, Cuts and Downsizing

Filed under: News & Gossip — ebaygossip @ 3:01 pm
Tags: , , ,
 
blukentucky  (14528 ) View Listings | Report  
eBay Inc. Buys Leading Payments and Classifieds Businesses,marketwatch: http://tinyurl.com/4kdlkbStreamlines Existing Organization To Improve GrowthLast update: 7:45 a.m. EDT Oct. 6, 2008SAN JOSE, Calif., Oct 06, 2008 (BUSINESS WIRE) — eBay Inc. (EBAY:EBAY, , ) today announced two acquisitions that significantly extend the company’s leadership position in online payments and classifieds.In payments, the company is acquiring the U.S.-based online payments business Bill Me Later(R) for approximately $820 million in cash and approximately $125 million in outstanding options.

In classifieds, the company has acquired Denmark’s leading online classifieds site dba.dk and vehicles site bilbasen.dk for approximately $390 million in cash.

The company also announced plans to reduce its global workforce by approximately 10 percent,

affecting about 1,000 employees in addition to several hundred temporary workers and the reduction of open positions.

The global reduction is intended to simplify and streamline eBay’s organization, improve the company’s cost structure and strengthen the overall competitiveness of the company’s existing businesses.

The reduction is expected to result in pretax restructuring charges of approximately $70 million to $80 million, with the charges predominantly recorded in the fourth quarter of 2008.

“We are making aggressive moves to strengthen our leadership positions in e-commerce and payments to competitively position our company for long-term growth,”

said John Donahoe, eBay Inc.’s president and chief executive officer.

“Bill Me Later is a perfect complement to our portfolio, a company that belongs with PayPal.

Together, PayPal and Bill Me Later will make online payments safer, easier and more convenient than ever.”
“Our classifieds acquisition gives us another market leadership position in Europe for this rapidly growing part of our portfolio,” Donahoe said.

“We are the global leader in classifieds with top positions in Canada, Australia, Germany, Japan and the United Kingdom, and sites in more than 1,000 cities across 20 countries.

The acquisition of dba.dk and bilbasen.dk gives us technology and expertise we can leverage across our classifieds portfolio to create better customer experiences.”

Commenting on the company’s workforce reduction, Donahoe said: “While never an easy decision to make, these reductions will help improve our operations and strengthen our ability to continue investing in growth.”

The company also stated it expects to hit the low end of its Q3 2008 revenue guidance and exceed GAAP and non-GAAP earnings per share guidance as issued in conjunction with its second quarter earnings release on July 16.
eBay is scheduled to announce third quarter results on October 15.
More information about Bill Me Later and dba.dk and bilbasen.dk can be found in separate press releases issued by the company today.

eBay Inc. will host an investor conference call today at 5:30 a.m. PDT to discuss this announcement. A live webcast of the conference call can be accessed through the eBay Investor Relations Web site at http://investor.ebay.com. An archive of the webcast will be accessible through the same link.

SOURCE: eBay Inc

————————————-

What are the eBay Powerseller reactions?  The following quotes were taken directly from the powerseller message board:

“After a short lived rebound into the $17.80s, the stock is falling again at $17.50.”

—-

“Can’t find the link/article, but read that eBay has been blocking Google Base feeds. Now, I can’t speak for the rest of you, but over 85% of my purchases were directs from Google & the lowered FVFs were bread and butter for me.

The point being, eBay and all its control freak wisdom, hosed best match and MANY other factors have drastically cut sales and eBay traffic.

What Donahoe and Pierre hoped to accomplish is not understood, but they’re certainly doing a bang up job of killing the site for both the shareholders and sellers in very little time.”

—-

“Quoting Donahoe:

Penetration of Paypal on Ebay grew more in the third quarter than on any time in the last several years

LOL – black and white figures don’t LIE!!!!!!
What a CROCK!!!!!!!!!!!!!!”

—-

“I think it’s hysterical that they think another payment method will bring more buyers to ebay more than Google Feeds would.

They are such control freaks, they can’t stand anybody else interfacing with their little piece of the pie.”

—-

“eBay is in trouble with Skype in China at the moment. Just read this one:

http://www.securitypronews.com/news/securitynews/spn-45-20081003SkypeScramblesAfterBreachAndCensorshipRevelations.html

—-

“Here’s another one:

http://www.dslreports.com/shownews/Skype-Takes-Heat-For-Chinese-Censorship-98174

—-

“i went and checked out that billmelater website – and I couldn’t find anywhere that it list the cost to the person/business offering the service to buyers.

also – it is a service that only takes payment from a checking or savings account. It also accepts money order payment –

I’m guessing this is going to be one of ebays answers to buyers who want to still use “paper payment” options.

though the service does access your credit report as a buyer to use the service. That would turn me off as a buyer – I don’t want a service going into my report everytime I buy something.”

—-

“The best part of the Bill Me Later landing page is the Featured Stores section. I wonder how much longer Overstock and Amazon will be there.”

—-

“If I were Wall Street, I’d view it as throwing gasoline on the fire. They need to fix the issues they already have rather than adding potentially more issues.

You know they’re going to be integrating BillMeLater into eBay eventually, and now that they own them it’s going to miraculously become a trusted payment service.”

—-

“eBay is scrambling for anything to generate immediate and aggressive growth – it ain’t gonna work!”

September 7, 2008

eBay Plans To Force Small Sellers Out of Business

Written by By: Ina Steiner
Sat Sept 6 2008 21:29:36

Points highlighted and tweeked by eBay Rag Mag

eBay announced a Diamond-level PowerSeller tier in June, and as I blogged in mid-August, more corporate size companies will be joining Buy.com and be allowed to list on the site for free. Now I’m hearing that eBay is introducing a pilot program next month in which a number of manufacturer and big-box retailer catalogs will be launched to eBay. Third-party vendors will work with these sellers to get them onto the eBay platform – no small feat given the quantity of product SKUs in their catalogs.

These Diamond PowerSellers will be given special privileges. Commission (FVF) fees will be negotiated individually, and it’s my understanding that participants in this pilot will not be charged listing fees, nor will they have to meet eBay’s seller standards during the 90-day pilot program, which I’ve dubbed Operation Catalog.

The potential Gross Merchandise Volume of these sellers is enormous, and it fills out eBay’s product line and helps it move toward providing a more uniform buying experience on the site, or so it hopes.

The flood of inventory onto the site in October could have a major impact on certain sellers in categories affected. As I write in tomorrow’s editorial in AuctionBytes-Update, not only will some sellers find themselves competing with the manufacturer of the product they sell, but that competitor is getting free listings and better exposure.

If Operation Catalog does roll out in October as expected, sellers will find themselves going up against competition they never knew existed, with no time to adjust their selling strategy during the all-important holiday shopping season.

—-

The general consensus among eBay power sellers is that this prospective change might explain…

Limits on listing certain brand-name items
Crackdown on trademark violations
Crackdown on MSRP and MAP on certain brand names
Elimination of Ebay Express
Reverting neutral feedback back to neutral
No more negative feedback for buyers
Limits on shipping charges (to raise item price)
Pushing free shipping (to raise item price)
30-day FP listings (if you sell just 1 you can’t adjust the price)

Looks like the big guys don’t want any “unfair” competition!

Ware all wondering if this is also the reason behind the new payment recieving policies  being that of Pay Pal only.  These larger sellers are not going to be using paypal, so naturally the stay at home moms and single mothers will be the ones to pick up the tabs that the major corporations are building up.

Blog at WordPress.com.