The Ebay Rag Mag

October 12, 2008

China Invades eBay with Counterfeits AGAIN!

On the front end EBay is increasing it’s restriction of sellers in the number of legitimate name brand items that can be listed on eBay U.S. due to the high risk of law suit by copyright owners while at the back end there is a growing number of China based sellers flying under eBay’s, “anti-counterfeit incentive” radar.   

China based counterfeit merchandise sellers are manipulating eBay’s new Best Match search tool with specific keywords and product names that slip through eBay’s anti-counterfeit program without detection but are easily found by conducting a basic human search.   The search manipulation is blatant when the product names being used are not registered members of the Vero program and other times it’s not so blatant when used with the term, “genuine”. 

EBay sellers are reporting the auctions through the report this auction  link located on the bottom of the auctions only to have the reports ignored.   They are becoming more vocal in their complaints of eBay’s failure to remove the offending auctions from it’s site and are questioning the competence of eBay’s trust and safety department.   Many are even asking for the removal of Mr Donahoe from his office.

The lack of synergy and consistency on eBay have many sellers asking where is this road leading us?  The luring big box retailers to replace the small home based sellers, the push to replace the auction format with an immediate purchase platform, increased back end fees for sellers who are not qualified under the Diamond level seller program aka the big box retailers, the failed Best Match search tool, the failed anti-counterfeit incentive program and the acquisition of Bill Me Later is making eBay a volatile ground which is fueling the growth of competing venues and the creation of new, smaller venues.

As the changing balance of global financial power shifts more and more to China why is it that eBay executives have such little respect for the basic considerations of it’s American seller base?


October 6, 2008

EBay Cuts Jobs, Buys Bill Me Later

Filed under: News & Gossip — ebaygossip @ 3:06 pm
Tags: , , , ,

AP: Online auction site eBay says that it will reduce its work force by 10 percent which will affect about 1,000 jobs. EBay, which has been struggling to attract new users, also announced that it will buy three online companies, including payments business Bill Me Later.

SAN JOSE, Calif. (Oct. 6) – EBay Inc., which still reaps big profits but has been struggling to attract new users, said Monday it will cut about 1,000 jobs in an attempt to streamline its business. The cuts amount to 10 percent of eBay’s work force.

The online auction site also plans to get rid of several hundred temporary workers and reduce open positions. EBay Chief Executive John Donahoe said in a conference call the company is “creating efficiency” in areas that require it.

The company expects restructuring charges of about $70 million to $80 million as a result of the cuts, mostly in the fourth quarter. EBay said the reductions will lead to $150 million in annual cost savings.
The latest round of cuts follows eBay’s announcement earlier this year that it was cutting 125 jobs in Europe and North America, including 70 posts at its headquarters in San Jose, Calif.
Donahoe said Monday the weak economy and the effects of the strengthening dollar are “affecting our businesses.” Nonetheless, eBay said its third-quarter earnings would be higher than it predicted in July – though revenue will be at the low end of its expectation. The company is scheduled to report third-quarter results on Oct. 15.
EBay shares were down $1.19, 6.3 percent, at $17.75 in morning trading.
EBay also said Monday it will buy online payments business Bill Me Later for $820 million in cash and $125 million in outstanding options. The company also said it will buy Danish classifieds site and vehicles site for $390 million in cash.
Bill Me Later allows online retailers to offer shoppers credit. EBay said Bill Me Later has “sophisticated underwriting techniques” and tells shoppers within seconds if they’re approved for credit, without detailed application forms. Bill Me Later will become part of PayPal, the online payment service eBay bought in 2002.
Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
2008-10-06 08:12:22

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: 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 and vehicles site 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 and 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 and 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 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:


“Here’s another one:


“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!”

October 2, 2008

Burbank Sportscards to Launch 30 Million Listings to eBay

Filed under: News & Gossip — ebaygossip @ 12:29 am
Tags: , ,
By: Ina Steiner
Tue Sept 30 2008 030:27:55
Burbank Sportscards has 884,862 listings on eBay and plans to launch its entire 30 million-card inventory. While that exceeds’s inventory of 739,473 listings on eBay, there is a major difference: Burbank Sportscards cards are in Store inventory format, meaning its cards only show up on Store searches or at the bottom of core search results.

It is also cheaper to list in Stores versus the core platform. However, eBay cut a special deal with, whom many suspect pays no listing fees for its fixed-price inventory on core.

According to Burbank Sportscards’ About Me page, it has an inventory of 35 million cards, of which 1.2 million are unique. “Our goal over the course of 2008 is to bring our staggering inventory to this EBAY store and delight collectors the world over with the very best possible selection of singles that fit with the unique style of your collection. And we’re going to offer this selection with the best possible shipping and handling deals anywhere.”

Burbank Sportscards uses Beckett Channel Integration (BCI), “a multi-channel inventory management tool that allows users to keep track of products across their Beckett Marketplace, eBay store and in-store Kiosk.”

Sellers in the sports card category may be wondering if Burbank Sportscards will become eligible for Diamond-level PowerSeller status, which would allow it to negotiate fees one-on-one with eBay for listing on the core platform. If so, expect a major disruption in the category similar to what happened when flooded certain core categories.

Professional Seller Alliance PESA tells it as it is

Filed under: Secret Message Board — ebaygossip @ 12:10 am
Tags: , , , ,
PESA/ECMTA Position Paper, September 30, 2008
noblespirit  (31880 ) View Listings | Report Oct-01-08 07:27 PDT

September 30, 2008

PeSA Official Statement on eBays Marketplace:
Deteriorating eBay Market Conditions Erode Seller Confidence

Members of the Professional eBay Sellers Alliance have been concerned with the vibrancy of the eBay marketplace for the past few years. In the first nine months of 2008, we have observed a substantial deterioration in the value of the marketplace for merchants. Broader e-commerce growth is in the high teens while eBay’s GMV has increased at low single digit rates; a clear sign that eBay is losing wallet share among online shoppers.

We were encouraged with the culture of change that swept through eBay during the past 12 months; however, we believe the flawed execution of change has accelerated the deterioration of the marketplace. Today eBay merchants have an increased level of business uncertainty due to eBay’s poor execution of changes in many areas including seller performance measurement, fees, site search, buyer activity, and seller communication. The result is that merchants are changing their behavior in ways that we believe is not beneficial to the eBay marketplace.

Merchants are pursuing alternate channels for their businesses which are more economical, including launching their own website, participating in other third party channels such as Amazon and Overstock, and even opening brick and mortar stores. Based recent feedback from PeSA members, merchants are focusing on other channels at higher rates than we have ever measured in the past. Prime products that used to find their way to eBay, are now being diverted to these new “premier” channels that are reportedly delivering higher margins with greater certainty and decreased overhead.

Merchants that used to prioritize the eBay channel now regard the marketplace as a venue of last resort used mainly for liquidation of product that doesn’t sell elsewhere. eBay has acknowledged that it may have an undersupply of merchandise on the site, however, they fail to recognize that the supply issue on eBay is a direct result of their relationship with their customers, the sellers. The lack of credible communication from eBay to its sellers about its strategy has resulted in a marketplace of skeptic sellers, which is bad for business. We would like to highlight eBay’s recent move to allow “big box” retailers free access to eBay, at a competitive advantage to its existing seller base, as an example of a decision that exacerbates the situation by threatening the diverse supply of merchandise that shoppers expect on eBay.

As PeSA has stated in its prior position statements, the real issue affecting eBay is buyer activity. We believe that issue still exists. According to eBay’s latest published results, eBay’s annual active user churn rate was close to 40%. eBay has discontinued reporting the data that allowed us to actively monitor the issue, but based upon the flat active user growth, we believe eBay is still seeing poor user activity.

Unfortunately, most of the changes at eBay have been focused on sellers, not buyers. We are proponents for measuring the performance of sellers and rewarding those sellers that provide positive customer experiences. The concept is used in other marketplaces; however, the eBay execution of that concept resulted in a Detailed Seller Rating (DSR) system that is substantially flawed both in its measurement and transparency. We understand that a new system will not be perfect and should be adjusted as experience builds. The real problem is that eBay seems to be building on top of a flawed DSR system that has not been adjusted to reflect true buyer experience.

At PeSA, our position on eBay fees has been that as long as sellers are receiving value, eBay is certainly entitled to share in that value. During the past few years, that economic balance has shifted dramatically to the disadvantage of merchants. In our opinion, eBay still does not recognize that their excessive extraction of value in the form of fees and other monetization techniques has resulted in dramatic underinvestment on improving the marketplace. Declining buyer activity also has a direct result on average selling prices and conversion rates on the platform. Thus the lower margins in conjunction with rising eBay fees, results in eBay taking more value while leaving less for merchants.

In addition, the diversion of traffic off the eBay platform in the form of advertising (run by Yahoo in the US) helps eBay monetize the marketplace, but leaves less buyer traffic for merchants that list on eBay. And, the greater compliance burden of operating on eBay combined with the risk that a merchant business will be shut down with little visibility creates an unworkable environment.

We embrace the effort that eBay has made to adjust fees to better align with the success of merchants. But, again, the implementation of the changes comes across as an effort to increase the take rate on merchants without really investing in the marketplace. While eBay lowered the upfront cost to list on the marketplace, they dramatically increased the fees on the back-end. We were disappointed with this approach and would have preferred that eBay show some commitment to increase value to the marketplace before raising final value fees on its customers.

We argue that the declining economics on the marketplace justified lowering front end fees without an associated increase on the backend. After all, less buyer activity means that the marketplace is not as valuable a channel for a merchant and the cost to list on the marketplace should be less. Unfortunately, eBay does not see it that way and the result is that eBay is placing the burden of all the changes on the marketplace on the backs of its customers, which are its merchants. We continue to experience one step forward on concept and two steps back with execution. We cannot find any other case where a company, with the desire to restructure and improve its business, places the burden squarely on its customer base.

PeSA is focused on promoting professional and successful selling on the eBay marketplace and are actively working with all professional sellers to help them navigate the changes on the marketplace. We believe eBay still needs to better understand its customers and we hope that sharing our views helps highlight the most pressing issues. it is our intention to continue working with sellers and with eBay to effect positive

September 28, 2008

I ran into Kirsten of the other day and decided it’s time to start featuring exemplary eBay sellers.  I can think of no better eBay seller to start with.

Kaydeecouture.c got her start on eBay in December of 2003 and became a Gold level powerseller within the first three months of offering her preowned designer clothing on eBay.   She is one of the most well known and most successful of eBays’ clothing sellers. 

I am inspired by leaders.  Leaders know it is risky to speak up, to lead by example, to support a new idea, to follow a dream, to step out of the box and utilize ones creativity to stand above the crowd.   Yes it can be risky, but it will always be rewarding.  No one knows this better than Kirsten of who amid the disaster of the October 2007 wildfires stepped up to the plate and donated her unsold inventory, collected thousands of pounds of clothing from local businesses and private homeowners,  and shipped them to the victims of the Southern California fires.   She also offered free personal shopping services for any victim that made the request, no questions asked.

Kirsten’s generosity became known to the media and a private e-mail which she sent in response to appeals for assistance was featured on CNN Headline News and is still being featured on

This was not done for publicity it was a genuine offer which came from empathy for those who lose so much to natural disaster.    Kirsten, a victim of natural disaster herself,  was forced to relocate to West Palm Beach, Florida from Ft Lauderdale after losing her condo following the one-two punch of Hurricanes Katrina and Wilma and understands, “how traumatic these events can be”.   Although it was not her intent to be recognized for her efforts she admits that she was pleasantly surprised by the positive attention it brought her business.   Unfortunately, she never got to enjoy the benefit of all of the positive publicity because shortly after her own life would take a horrific turn.

Kirsten suffered a great loss, a personal tragedy, and while she was preoccupied with her grief, several of her eBay competitors took advantage of the situation and maliciously destroyed her eBay feedback profile by making small purchases and leaving undeserved negative feedback in an effort to sabotage their competition.  It is not known if they actually knew of the turmoil Kirsten was dealing with.  It is known that it was done as a result of the CNN news report.

That’s eBay for you!  eBay claims to want to rid itself of, “bad sellers” yet this type of competitive underhandedness seems to be on the rise.

It breaks my heart to know that such a good person, such an admirable woman could be blindsided like this and it makes me think twice about who I will make my purchases from in the future.

Kirsten aka kaydeecouture.c has been selling quietly under the newly created eBay ID for the last year Piquant_couture and says she we begin selling on her original account again in December after all of the negatives have dropped out of the equation.

There is so much more to this story but out of respect I will not go into detail.  Most of us already know of the personal tragedies that Kirsten has had to overcome.  We admire you, support you and encourage you to continue to succeed.  Congratulations on getting your (off eBay) site back up and running again.  We wish you the best of luck and hope everything you touch will be as wonderful and as awe inspiring as you are. 


September 7, 2008

Paypal Dispute Scam Coming From China

Filed under: News & Gossip — ebaygossip @ 7:08 pm
Tags: , , , , ,


Item Not Received dispute for the payment you sent to hot stuff enterprise on Mar 5, 2008 (Transaction 221-775-854-221-775-854) is now open.

By opening a dispute, you are communicating with the BUYER, not PayPal , about this problem transaction. We will email you when your BUYER posts a response in the Resolution Center.

Use the link bellow learn more about PayPal’s dispute resolution process . (NEVER NEVER EVER CLICK ON ANY LINKS!)

Click here Resolve this Dispute and avoid funds deduction (THE LINK IS DEAD!)

Transaction Details

Seller’s Name: XXX XXXXX (Ok it appears I am the seller again)
Seller’s Transaction ID: 7DP17654GX785445X221-775-854
Transaction Date: Mar 5, 2008
Transaction Amount: -$1,291.98 USD (WOW thats a lot of money)
Your Transaction ID: 9S418577AD872064T221-775-854
Case Number: PP-449-619-671221-775-854

Buyer’s Transaction ID: 9S418577AD872064T221-775-854
Deadline: SEPTEMBER 08 , 2008

On SEPTEMBER 08 , 2008, this dispute will automatically close and funds ($1,291.98 USD ) will be deducted from your account . By escalating to a claim, you are asking PayPal to review the case and decide the outcome.(They gave me 1 whole day to respond to this or they will yank $1300 from my account!)

This is the last warning. A closed dispute cannot be reopened or escalated to a PayPal claim.(OOOOOHHHHH big scare tactic THE LAST WARNING!)

Thank you,


Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, Click here (THE LINK IS DEAD!). If your inquiry is regarding a claim, log in to your PayPal account and go to the Resolution Center.


PayPal Email ID 221-775-854

End of Scam email

You need to be on your toes as these guys get more and more clever in these scams. Best advise I have is:

  • Never keep more in your paypal account then you can afford to loose.
  • Forward all of these types of emails with full headers to (hopefully they really do work to get them shut down)
  • Always read the email to check for any irregularities
  • Only log into your accounts from a new browser window
  • Never use the same password for all of your accounts and change them regularly
  • Have current virus and spyware programs installed and make sure they are updated.
  • Most of all use common sense
  • August 23, 2008

    Top 25 eBay Sellers Ranked by Feedback

    Filed under: Powerseller Watch — ebaygossip @ 2:55 pm
    Tags: , , ,

    casacaiman ( 371307)  Not a registered user recieved their last feedback in August of 2007 so we here at The eBay Rag Mag are wondering how this seller figures in to the equation of being the number 19 seller in the “top 25 seller” list.

    glacierbaydvd ( 358326)  Not a registered user recieved their last feedback in Febuary 2006 so we here at the eBay Rag Mag are wondering how this seller figures in to the equation of being the number 21 seller in the “top 25 seller” list.

    It is our opinion that just as feedback is removed from an eBay users’ profile (when it benefits eBay) when a peer goes unregistered, these dummy powerseller accounts should be removed from the equation as well, especially since both of these sellers were removed from eBay for non-performance.

    August 12, 2008

    Can’t Find It on Ebay

    Filed under: News & Gossip — ebaygossip @ 11:52 pm
    Tags: , , , ,

    The scenario:  A buyer types one or two keywords in the ebay search box in hopes to find their treasure, unfotunately for the buyer eBay is using the infamous Finding technology, a.k.a Best Match, to sort listings and determine which listings are duplicates. If Best Match thinks it found a duplicate – then the item disappears into a void because only one unique item per seller is allowed… thus not allowing the buyer to choose which item to buy, but telling the buyer which item to buy.

    The Best Match technology has disadvantaged ebays best sellers while giving an unfair advantage to many of its poorest sellers since its inception.  How is it that ebay can use this program site wide when they know that it is not working?  How do we know that ebay is aware that this new search technology isn’t working?  Because sellers are complaining that they are paying sky high fees for services they havent recieved, and buyers are complaining that the search results appear jumbled and they are tired of trying to navigate through it, and ebay keeps claiming to fix it!

    Meanwhile, Amazon is experiencing their highest growth rate since their site was erected.

    DSR’s: FAILING policy compliance

    An Ebay Powerseller with a feedback number of 1784 and a 100% feedback percentage writes:  I was wondering if anybody else experienced this after the DSR problem was fixed this past weekend. I have been showing as PASSING policy compliance since the dashboard was implemented and now it says FAILING. I had one policy violation with the date shown of 11/24/07. That is still the only violation that I am aware of or have been notified of and shows up under that section. I thought they rolled off after 90 days? And why all of a sudden the failing? I sent an email but haven’t heard back yet. Anybody else have this problem?

    The responses? 

    Hundreds of ebays top 10% sellers are being told that they are failing despite the fact that most of them don’t have any violations and never did.

    The miscalculations, the undeserved punishments and falsely placed disadvantages on undeserving sellers  continues as does the loss of thousands of dollars in daily sales.

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