I found this article by the New York Times, eBay’s Strategy for Taking on Amazon, which explores eBay’s efforts to challenge Amazon. This is particularly interesting to me, because in September of 2013 eBay radically altered the commissions it paid third parties (like eWillys) who send buyers to it’s website. Since many of us have bought or sold on eBay, I thought I’d explain this a little.
Prior to September, if someone clicked on a link from eWillys, visited eBay, bid on an auction (or purchased something), and won, I’d receive a commission. For me it was a good way to generate a little money and motivated me to find unusual items on eBay that I thought would interest folks. For eBay, it’s a good way to encourage niche sites to send them high quality traffic. It was a win-win.
However, in September eBay altered the formula. Instead of awarding commissions based on a time frame that might have tracked a user over a 7 day window, now eBay will only pay a commission to a 3rd party if they purchase (buy-it-now) or win an auction within a 24 hour period. As you can imagine, there was a flurry of angry discussions from eBay traffic partners who watched in stunned amazement as their earnings suddenly plummeted by 50-80% (some were earning 10s of thousands of dollars). The overriding argument for the change was that eBay was transitioning away from auctions to a buy-it-now mentality.
In fact, in the article I mentioned at the start of the post, the New York Times claims that auctions currently represent only 30% of the purchases made on eBay. Even more interesting is how eBay is using its systems to act as the technology provider for large brick-and-mortar companies, such as Home Depot and Toys “R” Us. The company is becoming more and more focused on retail buyers and stepping away from their original core utility: auctions.
http://www.nytimes.com/2013/12/22/magazine/ebays-strategy-for-taking-on-amazon.html?_r=0
Interesting & informative article Dave, thanks for passing this along. I my self have noticed a change in the Ebay format and the way they do business. There seems to be a lot more listings from big money corporation businesses then there used to be; this ties into what you were saying. Years ago with the auction format, it was a more level playing field. A little guy like me could compete, where as today, there are so many listings from the big boys that the little guys “get lost in the sauce”.
… and there starting bid, or buy-it-now, is at or higher priced then what might be listed on there web site, plus shipping and handling!!!
Interesting article, thanks Dave
As of last year I stopped using ebay. Customer service was nonexistent and they seemed to have no interest in providing support or dealing with nonpaying bidders. It just wasn’t worth the hassle anymore. Now I just list on craigslist and maybe in a couple other places with better results and less hassle.
I’ve only bought on e-bay maybe twice very early on. Both times books I think. Before paypal. Only in the last year have I made other purchases over the internet, and only because of the vast parts availability for Willy’s, and because my local NAPA got frustrated and asked why I don’t buy something new for a change.
For e-bay to cut incentives by 50 to 80 percent has to tell you something. It tells me, if they’re not struggling, it’s right around the corner. For them to go to traditional stores looking for a piece of the action, I find comical.
Humanity is an odd bunch. I went back in your posts (Dave), and looked at the nurse/pill picture. Price was $9.99, shipping $2.99. That’s 30 percent. The jeep book was $18.74, shipping $26.51. Did understand that correctly? This is all done by people that clip coupons to save 10 cents on a can of peas.
I just shipped a rather rare seat two time zones, 42 pounds, 47 inches, just over $200 ground freight. It is in very good condition, but will need to be recovered to meet his color match needs I would imagine. The costs just become astronomical.
Unless it’s something someone really needs, shipping things larger than a shoebox is going to come to an end.
Happy Holidays
John
Yup, ebay has gone the way of big government. It used to be a great service to individuals looking to sell their extra things for a good price. Now it is occasionally a great place to buy but a terrible place to sell used things. Time to start ewillysbay.
many of the inflated shipping charges are part of the seller’s profit strategy…there’s no way it actually costs $26.51 to ship a book…
Good info, Dave. Too bad CraigsList doesn’t have a way to pay commissions. The four old jeeps I’ve bought were all featured here on eWillys AND on Craigs List… something you no doubt deserved more than just thank$ for!
ebay , like most good ideas gets less and less something we want to use the more successful it gets. Like most folks with an interest in old Willys , I have and will buy vintage parts online . The trick is becoming not the price but the shipping price “suggested” by the calculators. Added to the now common buy it now prevelance in listings we aren’t seeing the same bargins as only a few years ago. I sometimes hate ” progress.”
I used to use eBay a lot, but this year hardly any. When I sell I always try to make the shipping as reasonable as possible, but eBay charges a commission on the shipping so I usually end up losing money on the shipping – when you figure in the cost of a box and packing materials, and then deduct the eBay commission, along with the commission they charge on the sales price of the item too, it’s too costly to sell anymore. I had some old large brass fire extinguishers on eBay, they would bring $15-$20., but then I took some to the scrap yard and got around $35. for them just for the weight. Much better deal to sell them for scrap.
The thing that really turned me off was I sold an item, buyer never paid, you have to file a non paying bidders report so as to not be charged a commission on something that was never paid for, then a few weeks later that same non paying buyer/bidder gives me a negative feedback saying he never bought the item. eBay refused to remove the negative feedback, so I haven’t done anything else with them.
Surely someone should start another site to give them some competition, but so far I have not seen one.
I’m glad people found the article interesting. I obviously felt it was.
FYI: Most of the high price of the “Jeep to Freedom” was that it was shipping from Australia. I know it costs a lot to ship my books overseas.
eBay managed to wipe out a lot of earlier competitors (I believe yahoo auctions was the 2nd largest for a while). Yahoo closed its auctions in the US and Canada in 2007, but apparently still runs auctions in other locations. Here are some competitors to eBay http://online-auction-sites.toptenreviews.com (disclaimer: I don’t know how accurate the reviews are at this site).
– Dave
I find that some e-bay sellers offer free shipping, but then inflate the price of the item. I usually search by lowest price including shipping.