eBay hopes new rules appease irked sellers

Published: Thursday, Aug. 21, 2008 12:26 a.m. MDT
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NEW YORK — Some people who sell things on eBay are fed up with new rules the company has been imposing in hopes of making the auction site more attractive to online shoppers. Now even more changes are coming in the next few weeks, but this time eBay Inc. hopes it can cool tempers.

Already this year, eBay has tinkered with its fee structure, search results and feedback system. These efforts might be meeting eBay's aims of improving the experience for buyers, but several sellers say their relationship with eBay is worse than ever, and some have left the site entirely.

Jonathan Garriss, executive director of the Professional eBay Sellers Alliance and head of Gotham City Online, which sells shoes on eBay, said his group's members are seeing fewer of their listed items sell and lower average prices for things that do sell.

EBay has been rejigging its vast Internet marketplace in hopes of turning around a troubling trend: Its number of active users is barely rising. In the most recent quarter, the figure rose 1.4 percent to 84.5 million.

One big change came in January, when eBay altered its complex fee structure and said it was trying to encourage sellers to offer more items for sale, which in turn could attract more buyers.

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Generally, eBay cut the fees it charges for listing an item but raised its commissions on completed sales of products auctioned for less than $1,000 or sold at fixed prices lower than $100. Meanwhile, the company began taking a lesser bite out of higher-end fixed-price sales — as much as 4 percent instead of a previous maximum of 5 percent.

At the time, eBay said more than 60 percent of its sellers would save money under the new rules. But plenty of complaints poured in. EBay responded by cutting listing fees by as much as half for items in its "media" category — such as books and DVDs — that sell for under $25.

Still, many sellers were still unhappy that unlike in the past — when eBay consistently talked of a level playing field for brand-name companies and weekend attic-raiders alike — a new top tier of vendors seems to have an easier time flooding the marketplace.

Under a new "Diamond PowerSeller" plan, the highest-volume merchants may be eligible for reduced fees. One Diamond PowerSeller, Buy.com Inc., is offering so many goods on eBay that many sellers suspect Buy.com is listing items practically for free. EBay won't comment on Buy.com's arrangement.

Buy.com's listings also emphasize eBay's move toward sales with set prices rather than its traditional auction format. EBay says auctions are not going away but fixed-price sales are the fastest-growing part of the company's marketplace, increasing 60 percent a year.

Recent comments

Too little too late. Way to ruin a company. Whitman got out after…

Into the dust bin | Aug. 21, 2008 at 2:56 a.m.

Signs illuminate an eBay expo booth in 2006. The company plans some changes. (Mark Lennihan, Associated Press)
Mark Lennihan, Associated Press
Signs illuminate an eBay expo booth in 2006. The company plans some changes.