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Mon Oct 31 2011 23:29:12

eBay Tells Congress Volume-Based Rates Challenge Small Retailers

By: Ina Steiner

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eBay told Congress that volume-based rates are a challenge for small business retailers competing in a world of big retailers. (See Tuesday's EcommerceBytes Newsflash for full story.)  eBay was actually referring to the shipping rates that sellers pay to the U.S. Postal Service, but it could have been talking about its own fees. While small sellers pay fees just to have their inventory appear on the site, many of eBay's largest "Diamond" level merchants pay no listing fees at all and are allowed to negotiate rates with eBay.

While sellers have the option of passing along shipping costs to buyers, eBay urges sellers to offer "free shipping" - sellers who don't are disadvantaged in search results. Increased shipping costs either cut into sellers' margins or mean higher prices on eBay, and the marketplace is asking Congress to provide relief to the USPS to ensure small Internet-enabled businesses have access to affordable shipping rates.

eBay is calling on sellers to petition members of Congress to oppose any measures to reform the U.S. Postal Service that would entail an increase in shipping rates for small sellers. According to the petition:

"Affordable shipping rates are particularly important to small e-commerce retailers that compete with large online and multi-channel retailers. Already, small businesses do not enjoy the same volume-based shipping rates that larger retailers command. This price difference is a challenge for small business retailers competing in a world of big retailers. Increases to USPS shipping rates would further jeopardize small retailers' competitiveness."

Most ironic about eBay's petition to Congress is that the company now charges its sellers a commission fee on their shipping costs.




Comments (37) | Permalink

Readers Comments

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: dan

Mon Oct 31 23:46:02 2011

can someone provide additional info...some of the largest retailers are selling items for .01 plus 3.99 shipping on Amazon.  Maybe the USPS is giving the large sellers too much of a volume discount and that is putting the small seller at a disadvantage.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: Ripley

Mon Oct 31 23:57:33 2011

If that isn't calling the kettle black than nothing is.
They charge us a fee on shipping and then want the USPS to keep the rates down? Geez... ebay doesn't like anyone screwing their sellers, that's ebays job.

Yes, we all need low shipping rates but ebays interest only lies in the fact they will not be able to force their sellers into offering free shipping with increasing rates.

I don't believe there is a big discount available to large volume sellers, they get something but it isn't much.
Low rates are subsidized with part of the shipping costs build into the price of the item which is the smart thing to do anyway.
Buyers know free shipping is not free but low shipping is harder to determine how much is where, in the price of the item or in the shipping rate.
Rip

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: pete

Tue Nov 1 00:21:49 2011

LOL...more garbage

EBAY is the biggest Challenge for small sellers..everything is stacked against then on eBay

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

This user has validated their user name. by: Philip Cohen
Web Site

Tue Nov 1 01:25:49 2011

“eBay is calling on sellers to petition members of Congress to oppose any measures to reform the U.S. Postal Service that would entail an increase in shipping rates for small sellers.”

My God, eBay attempting to give the appearance that they care about small business retailers. The degree of disingenuousness of this bunch of narcissistic, sociopathic cretins that are running eBay simply defies belief.

Enron / eBay / PayPal / Donahoe: Dead Men Walking.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: woodjungle! on Ebay

Tue Nov 1 01:54:44 2011

* Insert Scooby-Doo inquisitive Sound byte here *

They have testicles the size of mack trucks.  Are they kidding?

Please oh please some one take on the Ebay monopoly. I want a viable alternative.  

It disgusts me to no end that they are my only option.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: Just A Thought

Tue Nov 1 05:16:29 2011

"eBay is calling on sellers to petition members of Congress to oppose any measures to reform the U.S. Postal Service that would entail an increase in shipping rates for small sellers."

I think ALL small/medium eBay sellers SHOULD contact their Congresspersons about USPS rates... and about the companies that charge fees on top of those rates, in effect taxing a federal tax.  Otherwise, eBay's "deep pockets" will ensure money-hungry elected officials 'hear' only what eBay wants them to hear, and not think for themselves, or protect our rights and pocketbooks.

And while we're at it, why not ask why one of the nations largest money changers (PayPal) is not regulated as any other bank would be?  Maybe your elected officials have an answer for that as well....

Just A Thought....

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: CongressionalInvestigationNeeded

Tue Nov 1 05:35:05 2011

ebay once again using and manipulating small sellers for the benefit of ebay and their large sellers while imposing nothing short of a ''Corporate Tax'' on U.S. postage with their shipping fee.

ebay is not the Government or the US Postal service which must answer to Congress yet they have effectively raised U.S. Postal Rates with their fees.

Rather than sign the petition there are 3 things you can do. Write ,email and call your congressman.

If you need to locate your representatives information you can look it up at:     http://www.contactingthecongress.org/

Her is an example found online (author unkown)
-----------------------------------------------------------
-------------------------------------------------------------
The
Honorable (your congressman name here)

What amounts to the equivalent of a  ''Corporate Tax/Illegal US Postal rate increase'' is being imposed by ebay on U.S. Postal services, an official government service established under Article I of the Constitution of The United States of America and regulated by the Congress.

When an item sells on ebay a fee is added by ebay to the United States Postage cost a seller charges the buyer. In addition paypal, who is solely owned by ebay also collects a percentage of the postage.  Such charges undermine the stability and integrity of the U.S. Postal service by unfairly and without act of law effectively raising postal cost for the sole benefit of ebay and paypal profiting. The ebay shipping surcharge has the same effect as a Postal Rate increase but with the revenue going to ebay/paypal. Any rate increase by the US Postal service will be compounded since users will suffer the rate increase plus a corresponding increase in the ebay fee.

Efficient and affordable shipping services are the life blood of e-commerce sales which is projected to reach One Quarter of  A TRILLION dollars by 2014. For ebay and paypal to profit unfairly by adding a surcharge for a necessary government service is unconscionable and interferes with commerce by imposing undue burdens that interfere with the exchange of commodities between citizens of different states across state lines when sold through ebay.

Corporations do not vote. Only People can vote and the people have the right to expect those they vote for to represent them. Corporations consumed by greed that abuse their corporate status, circumvent the law, dodge taxes and prey on consumers are the biggest threat to Freedom and Liberty.

Thank you
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eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: former ebay user

Tue Nov 1 06:32:54 2011

wow. Someone needs to put down the crackpipe.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: JB

Tue Nov 1 07:00:14 2011

Your correct, eBay does have a crackedpipe, and the cesspool is backing up, running down hill and once again onto the laps of the small retailer.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

This user has validated their user name. by: Anonymous Annie

Tue Nov 1 07:01:50 2011

I'm afraid it's difficult to take seriously eBay's sincerity with regard to this matter.

Based on eBay's ongoing pattern of behavior and policies, there is no doubt that their ''efforts'' on this subject are a cynical and self-serving ploy having nothing to do with leveling the playing field.

Under Donohoe's ''leadership'' eBay has become exponentially hostile toward the small sellers--the foundation and backbone of eBay--in favor of a tilted structure that favors only the mega-diamond sellers.

Small sellers have been repeatedly kicked to the curb, thrown under the bus, abandoned, ridiculed, scorned, and unfairly punished... while the favored Diamonds have been given special rates, exemptions, preferred placement, discounts, and automatic DSR overrides.

The arrogance they exhibit in this charade of ''rushing to our defense'' is simply astonishing! It's simply HYPOCRISY ON PARADE and it helps to reinforce the accurate perception of an ungrateful, ill-informed and out-of-touch CEO... as well as his minions.

Such a performance undoubtedly drew a round of back-slapping and high-fives within the hallowed walls of eBay boardrooms and JD's ivory tower.

Their empty gesture will do absolutely nothing to benefit those who need it most. They believe that their words portray eBay as being ''compassionate''... but the truth of the matter cannot be hidden with a headline-grabbing PR stunt.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: Kevin

Tue Nov 1 08:33:09 2011

If they were that concerned about the small seller they would quit rolling out new "fee decrease" structures that always seem to cost us more money.

They could also quite taking a % on shipping charges.  

Oh, and they could also quit giving free passes on their diamond sellers on fees and low DSR's.  

It really is startling how they screw things up time after time.  There  apparently isn't anyone there to say, "hold on, this doesn't make sense".  Amazing if you really think about it.  

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: anyone out there

Tue Nov 1 10:00:09 2011

I would suggest that Fleecebay take some of their stolen off shore money and buy a lobbyist or two and let them convince Congress.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: Fed-up This user has validated their user name.

Tue Nov 1 10:01:14 2011

If Ebay would NOT charge the Sellers a FEE on Shipping, Then Paypal takes it's fee on Shipping,

The Small Seller could offer Actually Shipping Cost!

Every One In America knows that the Post Office charges to ship anything!

I live in a Small town, It already closes at Noon on Thursdays, and Closes at 11:30 on Saturday. Because the Post Office is losing Money.

And something like Ebay. Is asking the Post Office to lower it rates..

Ebay should lower there rates, If they want to help the Small seller.

If I was going to Petition Congress, It would be over Ebay Double dipping on Shipping Fee's.

And it would be Over why My State is Backing Paypal as a bank, When it is NOT a bank.



And Thank you: CongressionalInvestigationNeeded
I am going there next!





Go Green, Recycle Congress!

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

This user has validated their user name. by: elpereles
Web Site

Tue Nov 1 12:38:33 2011

Is a joke? A company that ask 2 times (eBay and if you get pay by Paypal) fees for selling wants that the USPS service drop their fees to implement their ''free shipping'' BS. And also want that the small sellers do their work.

If eBay/Paypal is so great thinking about the benefits of sellers and buyers. Why they don't add the USPS money order as payment method? I believe that the USPS not just loose money in transit volume, but also the sells of Money Orders. Why they also add the Postage online in eBay?

Right now from the USPS. I want to see changes in their shipping methods. For example the 1rst Class, it have a double scale, one Domestic (1-13 ounces) and other for International (1-64 ounces). Also new negotiations between world post office and USPS because sellers from other countries like China can get Delivery Confirmation in US meanwhile US sellers can't have something similar in countries so close like Canada or allies like UK and Australia.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: massachusetts howler

Tue Nov 1 12:52:16 2011

What a BUNCH of GD HIPPOCRITES! And our US Post Office and ebay arranged for the Chinese to get FULL INTERNATIONAL TRACKING on 1st class and WE, citizens of the US don't get 1st class intl ANYWHERE. Well JD, I am glad your Chines buddys are getting tracking but we have DAILY FRAUD HERE in the US DUDE!! FIX IT! tracking!!!!!!!!!!!!!!!!!!!
JD is INCREDIBLE and he needs to GO.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: reader01112011

Tue Nov 1 13:43:10 2011

So rather than rescind the fees they imposed on shipping & handling, (which are complete BS and fraud to begin with) Ebay wants the community they've been scammimg, coercing and abusing, to rally and write congress to influence the postal system, (which is also in dire straights, and Ebay related shipping must be down greatly BTW )

All this while they hold billions offshore sheltered from taxes, spend millions lobbying so they can profit from fakes and stolen goods, and cheat on their taxes?

That is exactly what a drug addict would do.

At this point it's pretty clear that Ebay is nothing more than a fraud, scheme and con game.

How people can still use it is a mystery.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

This user has validated their user name. by: Ric

Tue Nov 1 14:59:22 2011

Plain and simple, eBay is run by MBA's who are apparently too intelligent and too well compensated to comprehend the hypocrisy of their own public statements.

Attacking the rates charged by the nearly bankrupt US Postal Service while charging sellers fees to have stores, listing fees, final value fees on product prices, final value fees on added shipping costs, and PayPal fees as the icing on the cake is sheer stupidity on the part of eBay's management.

eBay affords Diamond sellers significant relief from their own fee structure by allowing them to list for free and secretly offering backroom deals on all other fees based on volume.

eBay's top management is completely disconnected from their buyers and small sellers.

eBay listens only to their Diamond sellers as evidenced by the many changes imposed on the site that benefit Diamond sellers and disadvantaging their fee paying small sellers.

Top management, each of whom are amazingly overcompensated with packages that  provide them with millions of dollars a year in salary, stock options, benefits, and assorted perks like a million dollars to purchase a home are so disconnected from their users, that they  see Postage costs as the biggest issue facing buyers and sellers - not the high fees they impose.

The fact is that sellers need relief from the outrageous fees charged by eBay and their subsidiary PayPal, more than they need relief from Postage costs.

Pursuing Congress over Postage rates while collecting millions in fees which support the bloated compensation packages awarded to their top management is laughable. Then again, what we have here is a company that is completely disconnected from their users debating an issue with politicians who are equally out of touch with their constituents.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: Dave

Tue Nov 1 15:03:31 2011

I love how ebay pretends to give a rats behind about small sellers. We know ebay only cares when it effects their bottom line. I wouldn't sign this if they paid me.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

by: Francoise Van Heusden

Tue Nov 1 16:28:55 2011

Jeeez! As if eBay doesn't have lobbyists to take care of this for them.

This is beyond pathetic. EBay acting like they give a rat's arse about small sellers. I'd LMFAO if they weren't flat out calling us stupid to our faces.

eBay Tells Congress Volume-Based Rates Challenge Small Retailers   eBay Tells Congress Volume-Based Rates Challenge Small Retailers

This user has validated their user name. by: Bob

Tue Nov 1 17:18:48 2011

+1 : Small Sellers need to report eBay/Paypal NOT the USPS to Congress. eBay is the one collecting a shipping fee for doing absolutely nothing!

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