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07/19/2009

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Tom,

I'll speak only for myself, but I found eBay has priced itself out of the market for many lower priced items. When you add in all the fees that eBay charges, various listing fees, transactions fees, fees for Paypal etc. they add up to a big chunk of the selling price.

It's a lot cheaper to post on Craigslist or some other more local site for lower priced items and they seem to work pretty well. I sold an Apple TV recently (won in a trade show draw) on Craigslist. Cost to me... $0. The guy who bought it came to me, paid me in cash and took the product. How much easier does it get?

I think eBay is still good for products that may require their reach to find buyers -- e.g. more esoteric, collectables or larger items.

Saeed

I just would like to know who is running their affiliate program. They are running eBay into the ground. Ebay Partner Network is the most abusive and unfair affiliate network you could ever find out there. Their affiliates are the motor of that company and EPN treats them like crap. They have no respect for their affiliates. Their affiliates are scared to death of them. Somebody needs to fire the head of EPN but 911!

John Donahoe and his "disruptive innovation" has lost Ebay billions in revenue during the past 1 1/2 years. Sellers are outraged and Ebay's reputation has become so tarnished that even if they do possibly hit on a viable business model they simply won't get the buyers back. These are going to be hard-learned lessons for Ebay - perhaps lessons they can never recover from! Other venues are happy as clams. The tight monopoly Ebay had on the collectibles and vintage niche has been broken...and just like Humpty Dumpty, they'll never put Ebay back together again. This is what happens when you entrust a multi-billion dollar company to incompetents!

There are people who are caleld speculators and they buy large numbers of an item that they believe will be a big seller and that regular retail outlets will run out of. They hope that consumer demand will out-pace retail supply and there will be shortages. They then put these items on ebay hoping the people are so desperate for UGGS or Playstation3 or Wii or whatever that the buyer will be willing to pay whatever ridiculous price the seller asks. When the consumer demand is nowhere near what the speculators hope for; you have a situation like this, where ebay prices are way over retail prices. The speculators can't lower their prices and they likely paid retail price themselves. if they lower the price then their is no profit for them. After a while they realize that people don't want to pay five times retail on a piece of junk like a playstation3, especially when stores have reduced the price because they are full of the PS3 s that no one wants. It will probably happen with UGGS as the company made more than enough to satisfy consumer demand. Don't let some greedy speculator profit, be patient and there will be more available through UGGS or regular retail outlets.

It is so fucking uinfar, I do charge to my customers what the really shipping costs are, if a small flat rate box is $5.40 I do charge them that amount. but ebay like fucking shark comes and charges me a percentage, I know many sellers try to make money on shipping they charge $10 but they pay $3 to $5 but with this shit it will get even worse, if they used to charge $10 now it will be $20, ebay does this because they still on the top and will stay there for many more years so, they don't care.

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  • Tom Grant is a senior analyst at Forrester Research. You can e-mail him at tgrant@forrester.com, or reach him via Twitter at TomGrantForr. All opinions expressed here are my own, and not necessarily those of my employer, Forrester Research.

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