eBay will fail

eBay will fail long term, and here is why.

I used to be an eBay Powerseller and now I can’t stand them.  Furthermore, I think that their current business strategies are destined to fail long-term.

When eBay started, they embraced everyone and anyone selling products who were trying to meet the needs in the marketplace. The starting story of eBay is pretty fascinating.  Well I thought it was pretty fascinating story about how the owner started the site based on an interest in selling PEZ dispensers.  That is, until I learned later it was a completely fabricated story to help create interest in the website.

Strike one. Dishonesty.

If they cannot profit from it in a big way, they have very little interest.

This is clear from their indications that they will stop at nothing to encourage only big businesses to profit on their medium. Businesses such as Staples, etc. The small seller on eBay scratches their head and wonders, what the heck?!? I need to sell my stuff too and every restriction they put in place limits the ability to do that, oh, unless they are profiting.

Strike two. Greedy.

Cases in point:

  • eBay forbids (not just discourages, forbids!) any sellers from linking to their own website, homepage or ecommerce store (that is, unless its an official eBay store where eBay profits from each an every transaction and post.
  • eBay limits or throttles new users who start to sell online, assuming from the beginning that all new posters are bad posters, guilty first, innocent later only after fighting or proving innocence.
  • Try to use any payment method other than eBay’s own Paypal and watch what happens! This not only enriches the eBay company further, it squashes good payment methods such as Google Checkout, etc.
  • eBay’s VERO program is designed on the same principle above, guilty first, innocent later only after fighting or proving innocence. Any copyright, trademark or manufacturer who says so can remove an eBay listing by just advising eBay to remove it. Very little can be done about. Some eBay sellers such as a husband and wife team at Tabberone have fought back through the Federal court system and prevailed.

Strike three. Non-entrepreneur friendly.

  • They DEMAND that you use only Paypal for a payment method for almost all transactions.  That is just crazy!
  • Not to mention they won’t let free citizens in a free country sell their guns, ammunition or a host of other items…

eBay will fail as they try to control what you sell, how you sell it, who you sell it to, who can damage your reputation and what payments methods you take. In addition, they want you to use their in-house payment method which is ridiculously strict beyond belief. They won’t let you grow your business as their are “eBay’s customers” not your customers.

Much like Square payments and their horrible service that I wrote about here, we are certain eBay must fail long-term.

The model of Craigslist and the ability of the local community to reach local buyers insists this theory.   While Craigslist needs to fix their technology quirks and the ever-abused flagging system (another article coming), they will kill the online auction model eventually.  Well, as it stands now with the likes of the abusive eBay.

A business cannot continue to offend its customer base and succeed in the long-term.

eBay, are you listening?

3 thoughts on “eBay will fail long term.”

  1. Yes, this is sooooo true. There was a time that ebay used to appreciate smaller customers like us, and now its just a push towards bigger, more profitable big box type stores. That is soo unfottunate. We find our family is looking for an alternative – ebay is not what is used to be.

  2. this new ‘improvement’, idiot idea will suck, like all the other ones in recent years. sellers will hate it and ebay doesn’t care. all the new policies have been total crap in the last 5 years – WHO THINKS THIS RUBBISH UP? so sack all those idiots and let me run it!! i was selling on there since 1997 & i can get it working properly again, but i wont sell there now.
    ebay is absolutely intent on ruining every small seller & making them leave – and thereby ruining its self. ebay distroyed my business & income all over pathetic and unsustainable DSR B/S ratings left by the idiots that use that site. 3 low scores and you are stuffed for a WHOLE YEAR!!! they introduced that a few years ago – the worst thing ever – only equaled by the total garbage dispute centre which should be renamed – rip off the seller every time central. its scandalous the way ive been ripped off, even with signed proof of delivery. and poaypal are just as bad, becase ebay refunds them THER IS NO SELLER PROTECTION – ITS TOTAL LIES ALL THAT PROTECTION RUBBISH – DONT BELIEVE THEM.
    they both let you get ripped off by anyone that wants to – or face registered post costs that mean you are too expensive to sell anything in the first place.

    the fees are going so high becase all the chinese sell everything for nothing, and all the western sellers i know have left as making nothing. so fees up to try keep profits high. it wont last. ebay has had its day.

    i hate ebay with a vengence, it is run buy morons who have never had to use the site. every employee should be forced to attain a top rated seller acct, and if they lose top rating their income should be cut by 95% like mine was. i bet all this crap would stop within months and i could go back to making a living in a nice friendly manner again, not fighting with vultures trying to rip me off.

    so carry on ebay – no sellers means no seller fees & you go bust. ebay are too stupid to realize where their money comes from – why are they destroying themselves??

  3. A succinct and accurare assessment, and ine of the reasons thousands of disenfranchised and purged small sellers have turned to the social media backlash against eBay by joining such groups as Former Ebay Sellers on FB.

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