EcommerceBytes-NewsFlash, Number 1715 - January 29, 2008     2 of 8

Deadbeat Bidders Comprise 10% of eBay Unit Sales

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As many as 10 percent of eBay listings that close with a bid go unpaid, according to a report from Wall Street analyst Scott Devitt of Stifel, Nicolaus & Co. He states, "The refund process for sellers is cumbersome and the ramifications on NPB's (Non Paying Bidders) mostly non-existent. Feedback is not the answer, as reciprocity limits NPB's receiving the appropriate reputation." Devitt likes eBay's new Snapshot View feature, however, calling it a material improvement to eBay's standard listing results view.

The report came out the day before eBay is expected to announce pricing changes. Devitt writes, "We anticipate lower listing fees and higher final value fees for both auction and fixed price listings, as well as a possible integration of gallery into the listing fee structure. We believe eBay could also announce early buyer initiatives, such as Snapshot, at the seller event."


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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