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Tue Jan 17 2012 09:35:20

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

By: Ina Steiner

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Entrepreneurs and mom-and-pop sellers in the U.S. had to accept a bitter pill from eBay when it began charging a "commission" fee on shipping costs - something unheard of in commerce. At the same time, eBay is lowering shipping costs for Asian exporters selling goods to U.S. consumers.

By making U.S. goods more expensive (eBay advised its sellers to raise their prices to cope with the new fee), and helping make Chinese goods less expensive and easier to get, buyers on eBay may be more tempted to purchase items from China-based sellers than those in their own backyard.

What may raise eyebrows is the role the U.S. Postal Service is playing in this development.

As we report in today's EcommerceBytes Newsflash, the USPS has entered into a third trilateral agreement with eBay and Asian postal systems to provide expedited, low-cost shipping services to Asian sellers that even lets their buyers in the U.S. track orders!

eBay sellers in China and Hong Kong exported $4 billion in goods into the U.S. in 2010, and that number is likely to increase each year as buyers in the U.S. find it increasingly easy to purchase from Asian sellers on eBay.com.

Meanwhile, U.S. sellers continue to express their unhappiness over paying a commission charge on a cost that is out of their control.




Comments (44) | Permalink

Readers Comments

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: Ebay No More This user has validated their user name.

Tue Jan 17 10:08:10 2012

As usual Ebay has this issue dead wrong. The first thing I do while surfing Ebay's site is filter out all international sellers. I support US sellers who sell US goods.

Ebay should be giving highest visibility to any seller selling US made goods. There should even be a filter for US made products. (Look on Amazon's site and read the review comments. Buyers are now saying in the product reviews section ''I don't buy Chinese products.'' Or they warn others the product is made in China and they sent it back. I just sent Amazon customer service an email asking that country of origin be placed in all the Amazon listings because of this issue. I also send everything back if it's made in China. I

The fact that our business community has sold out the American people doesn't mean we have to stand still and take it. As usual Ebay is dead wrong on this issue. Ebay has a distinct advantage over Amazon in this area. They could focus on more Made in America products because buyers do care where the product is made. Another missed opportunity by the Ebay management team.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: anyone out there yet

Tue Jan 17 10:17:41 2012

Hey folks wake up.............

Even the US government is selling us out to the Chinese................

Its called the bottom line.........

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

This user has validated their user name. by: Stockmiser

Tue Jan 17 10:37:55 2012

The worst are those chinese sellers with US accounts that don't actually reveal that everything is shipped from china.  I almost got caught by one of those this weekend and would have never known had I not read the details of their negative FB's.

It should be an absolute requirement that sellers reveal if an item is being shipped from outside the USA.

For that matter, drop-shipping should also be outlawed.  There used to be a requirement that ebay sellers had the product on-hand to sell.  Such a simple concept - that you actually have the product you are selling...

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: PowerSeller This user has validated their user name.

Tue Jan 17 10:40:47 2012

What is interesting to me is this. I can buy a product on eBay US from a seller based in China for $1.00 with FREE SHIPPING .

Can someone please tell me how they cover the following expenses?:
-eBay fees, listing and FVF?
-Paypal Fees?
-Postage/Mailing Fee
Plus the cost of the product and packaging?

Do sellers based in China, that sell on eBay US not pay the same ebay/paypal fees as other sellers on eBay US? I would love to see a breakdown of fees (how much a seller based in China) on a $1.00 item with free shipping.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: ebay refugee camp This user has validated their user name.

Tue Jan 17 11:03:58 2012

This is a slap in the face and has John Donahoe written all over it. His Bain and Company gestapo tactics are getting to be more than anyone should have to take. This will no doubt be another class action lawsuit and the US sellers will definitely win this one. This was done purposely to anger sellers, this is the sort of childish bullying this man is obsessed with. This guy is truly a bully, how childish can a grown man get, this is absurd. This guy is so dishonest and truly a scumbag. Turn your man car in Donahoe real man does not steal to earn his living. Those sitting on ebay's board are ceo's of other companies, it is time to presure those board members and begin to boycott their products.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

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

Tue Jan 17 11:16:34 2012

I live in a US Territory. I understand the important thing of being ''international''. I prefer to use the USPS, but I still don't understand these ideas of making higher fees and slow service for the domestic 1rst Class and punish International 1rst Class with higher fees for light weight items, but adding plus services to similar 1rst Class services from other countries. It is ironic.

For example if you compare the International 1rst Class prices of 2012 with 2011. You will see for 2011 that you paid less for light weight parcels weighting less than 24oz. Now in 2012 the USPS will technically punish you with a higher fee if you ship items weighting less than 24oz.

How much $$$ the USPS will get in this deal?

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: Tony DeLuca

Tue Jan 17 12:18:22 2012

New Axis of Evil: eBay, China, and the US Postal Service.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: Paul

Tue Jan 17 12:21:06 2012

Surprised? Not me, jumped off the sinking U.S.S ''Greedbay'' last year..

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: Loops

Tue Jan 17 13:43:16 2012

It's equivalent to a tariff. A tariff put on U.S. sellers. Ebay can steer the entire marketplace in your direction or away from you by a couple of clicks of mouse. That's a lot of power. Ebay dictates the terms of your business even when one size does not fit all. They are making millions hand over fist, so in their book they must be doing it right. There are a lot of companies that are profitable, so they must be doing it right too. Buy the congress, buy the regulator, buy the lawyer and in today's economy you're free to do whatever you please.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: Digmen1
Web Site

Tue Jan 17 14:02:22 2012

This policy seems bordering on the illegal!

But is there really much day to day stuff made in the USA ? (or anywhere in the west?)

If everything was made in the USA again - think of the high prices, could anyone afford to buy the stuff ?

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: Tony DeLuca

Tue Jan 17 14:02:26 2012

The creepy things eBay does no longer surprise me. What really shocks me in all of this is the US Postal Service -- an iconic USA institution prostituting itself to a communist nation. Anything for a buck I guess.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

This user has validated their user name. by: Ming the Merciless

Tue Jan 17 14:37:13 2012

Many European acountries still have ativ and vibrant manufacturing sectors.

Why? Because they have protectionist trade policies. They understand that the so-called "free" market wouldbe ruinous to their economies just as it has been and is to ours.

What ebay is doing here should go viral -- YouTube, Twitter, Facebook, Linked In, and so on including all communications with buyers.

Every product description should say you're an American based seller selling American made products if in fact you're are. Put "Made in the USA" in your gallery photos.

EBAFIA: The most despicable corporation in America run by a treasonous, anti American Wall Street whore.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: login

Tue Jan 17 15:07:18 2012

I have been struggling with the issue of why our government and businesses are trying what appears to be backrupting the US. That's what I call it-I don't call it the bottom line.
Most manufacturing jobs have been moved out of the country, and if the jobs are not here but we still buy goods then the only thing it accomplished is a wealth transfer from the United States to other countries.
If Jim(us) doesn't work (produce anything) but keeps buying from Tom (China) then Jim will be broke after enough purchases and Tom will have all his money.

I too wish there was a sort feature- to eliminate all international sellers.

And seriously--how do sellers outside the US sell items for 1 dollar with free shippping?

And why are Hong Kong sellers giving an advantage in search-here in the US.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

This user has validated their user name. by: basset

Tue Jan 17 16:33:04 2012

I sell mostly pre-owned clothing. If it is made in the USA, I have always noted it on the title bar.

Why? - 1) I am aware some Union members prefer to buy USA on the label (or get some pressure to do so). 2) I think there is some media attention on USA made brands due to the economy, so there is a small trend to buy USA label.

Does selling Pre-Owned clothing directly provide a manufacturing job? Not really, but it does provide a tax paying job for me, for one of my sources, and I paid USPS at least a couple months of someone's salary in 2011.

If eBay provided a drop down box for "country of origin" I'd gladly fill it in. I somehow doubt they ever will, though!

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: chapeau-noir

Tue Jan 17 17:36:05 2012

>

Yes, we were able to afford it for hundreds of years before, and did not have landfills filled with defective garbage that falls apart in a year because it's made with sweatshop labor.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: chapeau-noir

Tue Jan 17 17:38:22 2012

Try again:

"If everything was made in the USA again - think of the high prices, could anyone afford to buy the stuff ?"


Yes, we were able to afford it for hundreds of years before, because we did not have an insatiable demand for mountains of cheap rubbish. Oh...and decent family wage jobs making it. The prices are not "high" - I remember those days, you could afford plenty of good US made stuff on a working class wage.  

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: Susan
Web Site

Tue Jan 17 17:57:44 2012

The price of everything just goes up and up. Ebay should not contribute to making life harder in the US.
I have heard though that now that some of these Asian and other 3rd world countries want what we want and the cost of doing business there is going up.

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

This user has validated their user name. by: Ric

Tue Jan 17 18:00:30 2012

Is it me, or is everything John Donahoe does with eBay a miserable failure?

JD labors under the misconception that buyers want items available from big box stores. So he opens the doors, creates a class of Diamond sellers and gives them unlimited free listings, discounts on Final Value Fees, and probably lower PayPal fees as well. His big idea flops and sales fail to grow. To hide this failure, JD increased fees to hide the decline in sales.

JD labors under the misconception that buyers want free shipping. Another big idea flops and sales fail to grow. To hide this failure, he imposed an outrageous fee on shipping costs to hide yet another failed portion of his so called turn around plan.

JD labors under the misconception that buyers want cheap junk from China. Once again his idea will flop, but have no fear, there will soon be another round of fee increases to cover the fact that yet another idea from John Donahoe has failed to make eBay more appealing to buyers.


eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: Ron

Tue Jan 17 21:17:47 2012

If there is an agreement with the USPS to provide low tariffs for delivery to the US from China, shouldn't there also be the same deal for Americans shipping to China?

I don't understand why further advantages are accorded to a country (China) that is already advantaged because it is able to produce at low cost.  And why is it able to produce at low cost?  Not only are wages ridiculously lower in China, but the workforce is taken advantage of.  Some businesses run sweatshops and some use underage and or what amounts to slave labor.  Foxconn is only one of countless examples.  Think about it - who's really making the money here?  The Chinese?  Or is it the multinational corporations that have deals with the Chinese to take advantage of the labor force?

I think that Americans have to take a closer look at free trade vs protectionism, and who is really benefiting from trade deals.  Just sayin'......

eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports   eBay Raises Cost of Domestic Goods, Lowers Costs of Asian Imports

by: fallonthalia
Web Site

Tue Jan 17 23:11:31 2012

@powerseller

I wondered the same thing: how can a seller in China sell something for a $1.00 w/ FREE SHIPPING, and make a profit?

One way to shop on eBay is by Distance: Nearest First. I don't know if this can weed out all Chinese sellers, but it seems to me that it can weed out lots of them? I have found for some items that I search for on the bay, it is the only way I can find sellers in the USA quickly.

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