Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Fri Oct 13 2017 22:41:21

eBay Sorry for Testing Haggling But Will Continue

By: Ina Steiner

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On Tuesday we reported that eBay was adding Make an Offer "haggling" to sellers' auction listings with no warning or explanation of why dynamic auctions would need such a feature. Two days later it apologized to sellers in an email it sent to those who were impacted:

"You may have noticed that a Best Offer option was recently added to some of your auction listings created between October 8 and 10. This feature was added to your listings in error. We apologize for the error. We are working to remove the Best Offer feature from your active listings and plan to do so by end of day, Friday, October 13.

"In the meantime, if you wish to avoid receiving offers on affected listings, you can revise your active listings to auto-decline all best offers below your starting price. This will ensure that you will not receive any Best Offer requests for this listing period. However, if your item automatically relists, the Best Offer option will appear on the relisted item. You can revise a listing's auto-decline amount by going to Manage Offer settings on the listing's item page.

"We apologize for any confusion this issue may have caused, and we thank you for selling on eBay."

As we had written, a major concern was that the feature signaled that the starting price of auctions sporting the Make an Offer feature was too high in eBay's determination, which could be devastating to sellers hoping for higher bids, not lowball offers. See the details here.

eBay didn't respond to or acknowledge our request for clarification, sending a further signal about the level of importance it places on providing clear information to sellers. 

eBay moderators did go into several discussion boards where sellers were discussing the issue. On Thursday morning, moderator trinton@ebay wrote:

"I wanted to step in and provide an update on this topic. We have identified an issue where the Best Offer option was incorrectly added to some auction listings that were created between October 8th and 10th. We are actively working on a fix for the impacted listings. We have identified affected sellers and will email them with further instructions. We will be testing this feature with a small number of lower-volume consumer sellers in the coming weeks."

Questions continued, and on Friday, trinton@eBay posted, "Hi, happy to clear up our intentions for this feature. While testing will be performed to gauge the overall impact and changes may occur, the current setup is that if a bid is received on an Auction, the Best Offer option would no longer be available. If there is a Best Offer pending and a bid is received, the Best Offer would automatically be declined. The Best Offer is only intended to be an additional option and would not interfere with the bidding process."

A seller wrote, "So I'm confused as usual. Is this an error that was made on some listings. or is this something that eBay is testing. or both an error and something eBay is testing for future implementation." 

Trinton@ebay replied, "Sorry for the confusion! The error was that this feature was applied to a larger audience than intended and earlier than was planned. This will be a feature that we test in the near future, but with a smaller group of sellers to start."

The whole kerfuffle led to passionate discussions about auction selling strategies and whether adding "Best Offer" to auction format listings any made sense. "I've been so outraged about how this happened......it's driven any idea of whether or not I like the idea/think it could work," noted one seller.

Another pointed out, "The purpose of an auction is for the price to go up. The purpose of best offer is for the price to go down."

It's one thing to gripe about a lack of communication or to disagree about a feature. But when eBay disrupts listings, it can cost sellers money and the goodwill of their customers. 

The fact that eBay didn't automatically credit sellers fees for the listings that were impacted by its error speaks volumes about the current state of its leadership and their attitude towards customers.

Comments (68) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Sorry for Testing Haggling But Will Continue   eBay Sorry for Testing Haggling But Will Continue

by: smallstuff This user has validated their user name.

Mon Oct 16 23:11:50 2017

Now that I have had a week to think about the mysterious ''make an offer'' that appeared on some of my relisted auctions, it is not entirely a bad idea.  After all, I can choose to reject the offers.  Anything that puts me in contact with a potential customer can't be all bad, even if it the buyer is only seeking a lower entry price.  I have a lot of price flexibility and am sometimes willing to cut my profit in order to gain a new customer, especially one I haven't sold to before.  It is sort of like what happens in a live auction.  The auctioneer states the opening bid and if he/she doesn't get it, he lowers the opening bid... sometimes more than once, finally saying ''any interest'' which is an invitation to make an offer.  High end auctioneers usually won't play that game, but I can often contact them after the auction with an offer.

Perminate Link for eBay Sorry for Testing Haggling But Will Continue   eBay Sorry for Testing Haggling But Will Continue

This user has validated their user name. by: RKTOYS

Tue Oct 17 12:32:00 2017

I don't need an eBay representative.  All I need is for the search engine to work predictably and to stop showing competing ads in my listing.  I'd like lower fees...FVF was 2%, progressively reducing at higher prices, on just the item when I started.  These days, it's 19% on an average sale.

Since I had to explain it elsewhere:
Item Price:  $20.00
Shipping Price/Cost:  $7.00
FVF on Item:  $2.00 (20.00x0.10)
FVF on Shipping:  $0.70 (7.00x0.10)
PayPal Flat Fee:  $0.30
PayPal Transaction Fee:  $0.81 (27x0.03)
Total Fees:  $3.81
Percentage Against Item (shipping is passthru cost):  19% (3.81/20.00)
As shipping continues escalating to subsidize the CHinese, even more of that passthru cost lands on the item side.

I know, I know, my model of new toys is against ye olde vintage-only eBay.  However, eBay's push is new commodities so this is why it's relevant.  Working through a distributor, it's rare to have a margin that high these days.  The "wholesale" discount...stops very quickly...as in there's a rate for 1 case, a rate for 2-4, and a rate for 5 to infinity.  Then it's a HUGE leap to go direct to Hasbro/Mattel where I have to commit to hundreds of thousands of dollars and dozens of product lines that don't fit my market.  There's no in between where I can order 75 cases of a few products with a decent discount for the volume.

Obviously, eking out maybe 1%, eventually, on a trickle, isn't viable.  What I end up doing is selling what I can for normal prices at local shows.  Whatever is left over sits on eBay at a higher price until it's out of print and starts to sell for crazy prices.  That often takes years and thus thwarts eBay's desire for new commodities.  Even still, with my track record of picking products, it's a break even operation that I've opted to wind down.  I know I say that so much it sounds like somebody on a forum posting how they're quitting forever every couple of months but it is taking forever to wind down.

How this relates to eBay...if they'd just give me some room, I could price lower and sell faster.  In their desire to take 100% of the profit, they receive 100% of a far smaller amount.  Cutting the fees in half would probably triple my sales.  As it is, they get ~$40 per month out of me and I tell everybody I know not to get into selling toys if eBay is a significant part of their plans.

Perminate Link for eBay Sorry for Testing Haggling But Will Continue   eBay Sorry for Testing Haggling But Will Continue

This user has validated their user name. by: toolguy

Tue Oct 17 12:36:51 2017

@RKTOYS

You can get that percentage charge down by charging your customer that .70 cents eBay is charging you for shipping.

I charge $7 for a Small Flat Rate so even with eBay's 9% added fee I still make a few pennies on shipping.

Perminate Link for eBay Sorry for Testing Haggling But Will Continue   eBay Sorry for Testing Haggling But Will Continue

This user has validated their user name. by: RKTOYS

Tue Oct 17 15:06:02 2017

I've resisted flat shipping wherever possible.  On Amazon, where you're forced into it, Lord Bezos liked to send me customers 4+ postal zones away.  When I raised prices to compensate, suddenly those distant places were the only places that I was competitive.  Except...California must have a toy store on every block, so there's less/no impetus for them to pay cross-country shipping.  It's perverse.

Although, yes, I do make an extra buck on the rare occasion that I abuse a promotion to double list everything with "free" shipping and make a sale out of it.  It's still just a blip on the radar though.  I'd sooner quit than play psychological games.

Perminate Link for eBay Sorry for Testing Haggling But Will Continue   eBay Sorry for Testing Haggling But Will Continue

by: yesmikan This user has validated their user name.

Thu Oct 19 09:22:03 2017

So basically Ebay's response was "lol sorry not sorry"

Perminate Link for eBay Sorry for Testing Haggling But Will Continue   eBay Sorry for Testing Haggling But Will Continue

by: eBay Shill Buster This user has validated their user name.

Mon Oct 23 14:52:54 2017

You know you are dealing with executives that are dumber than dumb when everyday when you use the website you curse them even more, the new feedback form is an example of the idiots running ebay, these guys are certified morons.

Instead of focusing on bringing traffic to the marketplace they think changing forms for the worse and ruining MyeBay is the way forward, Devin has to be fired for this trend to end, his Seller Hub and Structured Data initiatives are Titanic disasters that drive sellers off the platform due to unprofitability and utter man hour burning time wasting.  

Perminate Link for eBay Sorry for Testing Haggling But Will Continue   eBay Sorry for Testing Haggling But Will Continue

by: eBay Shill Buster This user has validated their user name.

Mon Oct 23 18:06:33 2017

I have news for you Marie, eBay is failing and is losing marketshare quickly on all fronts, Walmart reported + 60% growth, eBay is flat to negative for the last 6 years, the only factor in eBay showing any growth whatsoever is the value added fees on shipping that they put into the GMV figures.

You don't have to be a math genius to figure simple facts like these out.

Devin is a massive flop as CEO, while Walmart makes a deal with Google to deliver Billions of dollars worth of traffic to their marketplace, Devin is forcing sellers into his moronic Seller Hub, that is as big as Titanic disasters can get.
 

Perminate Link for eBay Sorry for Testing Haggling But Will Continue   eBay Sorry for Testing Haggling But Will Continue

by: eBay Shill Buster This user has validated their user name.

Wed Nov 8 13:09:16 2017

Marie, you make up stuff as you go alone like the 'head in the sand' delusional idiots who are running the marketplace, so you had better get with your 'contacts' at eBay and have them fill you in with the 'official policy' that these misguided idiots are forcing on sellers.

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