Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Aug 1 2019 13:46:40

eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

By: Ina Steiner

Sponsored Link

eBay filed a second lawsuit related to Amazon's recruitment ("poaching") of eBay sellers, accusing three Amazon managers of engaging in a "pattern of racketeering activity - a conspiracy designed to infiltrate and exploit eBay's internal member email system using fraud and false pretenses when recruiting eBay sellers," according to eBay.

In the complaint filed Wednesday, first reported by the New York Times, eBay wrote, "Amazon reps often described to targeted eBay sellers how they were prospecting as a team led by the Defendants and other Amazon managers. Examples of such communications abound: "I am part of what you would call a hunter/recruiter team which actively searches for sellers we believe can do well on the platform,..."

eBay accused the Amazon employees of violating the RICO Act (Racketeer Influenced and Corrupt Organizations Act). The New York Times said eBay's lawyer told it a whistleblower helped eBay by providing it with information.

The Times wrote, "EBay cites multiple fake accounts that gained access to its site via an internet address registered to Amazon in Seattle. It includes messages from 2016 to 2018 recruiting sellers that offered a range of items, including shoes, refurbished computers and tools." The article includes a link to the lawsuit.

eBay's sensitivity to Amazon's recruitment activity may come as a surprise to merchants given how long multi-channel selling has been a fact of life in ecommerce. But in an interview published yesterday, eBay CEO Devin Wenig demonstrated a lack of appreciation for sellers' desire to diversify selling channels.

When Mark Steier of Wortfilter.de asked Wenig what he would want from German sellers if he had 3 wishes, he reportedly laughed and replied, "Number 1: Stop selling on Amazon! Number 2: Stop selling at Amazon! Number 3: Stop selling at Amazon!"

eBay's CEO has been unable to stop a decline in marketplace sales, but trying to dissuade sellers from turning to Amazon (and trying to get Amazon to stop recruiting sellers) may not be the best tactic.

Comments (55) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: jimcooncat This user has validated their user name.

Fri Aug 2 04:22:03 2019

eBay: "You don't want to pay so much in listing fees? Get a store subscription!"

Amazon: "We don't have listing fees."

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: leathermermaid8 This user has validated their user name.

Fri Aug 2 07:52:10 2019

Unless some business had actually signed an exclusive contract to sell anything on eBay, they haven't a leg to stand on.  

"We believe people are basically honest,"  Guess YOU'RE  not people, Boardroom, 'cuz you are not honest at all.  

I don't believe Amazon is a saint either but that doesn't mean the lawsuit has any real merit.

As someone has already said, eBay owns nothing and no one and as long as there is free enterprise, they'll either have to get over themselves or continue to pound sand into their own rat hole...as proud owners of the Glitch Of The Month Club Just a venue Bar.

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: I Must be Crazy This user has validated their user name.

Fri Aug 2 09:43:13 2019

How ridiculous. Amazon doesn't need to poach anyone to sell on their site. They have a model that works and sellers are coming to them in droves.

Many of those same sellers are leaving eBay because it isn't worth the hassle anymore. They don't need eBay.

Devin and his predecessor have bungled too much for too long.

Amazon could just buy eBay outright and put them down like a lame horse once and for all. However I think it would be better if they ungated many of their products, and allowed second hand items, ebay would be virtually eliminated inside of a year.

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

This user has validated their user name. by: toolguy

Fri Aug 2 09:44:29 2019

@jimcooncat

Amazon charges .99 per item sold plus 13% average fee

or

You pay $39.99 a month to be a "Pro Merchant" and don't have to pay the .99 item sold fee but still pay the 13% average fee

It costs MORE to sell on Amazon then it does eBay, but most of the time depending on what you're selling you'll probably sell more on Amazon then eBay. . .So the HIGHER fees are OK to most sellers.

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

This user has validated their user name. by: toolguy

Fri Aug 2 10:32:59 2019

@I Must Be Crazy

"Amazon could just buy eBay outright"

It's not just that easy.

eBay has a current market value of $30 billion

A buy out would drive the market up no less then 50%

And Amazon would have to come up with $45 billion

Last time I checked Amazon had no where near $45 billion in cash. . .

And a stock swap would drive Amazon's stock price down!

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: thievesBay This user has validated their user name.

Fri Aug 2 13:17:40 2019

@ I Must be Crazy

"Amazon could just buy eBay outright and put them down like a lame horse once and for all. However I think it would be better if they ungated many of their products, and allowed second hand items, ebay would be virtually eliminated inside of a year."

100% agree on that and I've mentioned this before in other articles. If Bezos decided he wanted to eliminate eBay it would not be difficult. Allow all items that can be sold on eBay to be sold on Amazon, and maybe even open up an auction section of the site again. eBay would be finished. Maybe the clowns that run eBay are too dense to realize that. eBay shareholders should also fear this. Can't you just see their investments circling the drain never to recover? It wouldn't take long.

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: Silver Ice King This user has validated their user name.

Fri Aug 2 14:20:49 2019

I am not sure how Amazons auction section worked, but Ebay somehow managed to get their auction format patented just so nobody else could duplicate it.  I have not seen any other site that has regular auctions like ebay has, but have seen many who have 1, 2, 3 day type auctions which are not all that popular.  

As far as owning Ebay, Bezos would not have to buy all the stock,  he could just buy a controlling interest 50% plus 1 share and could pretty much do what ever he felt like with them.  Even a 10-15% ownership would give him enough power to dump Wenig and basically revise the BOD the way he would like to see it.  If he made any move towards doing that, I do believe the stock would skyrocket as investors would be looking for Ebay to do what Amazon has done, but most people have forgotten just how many years that Amazon was losing their rear ends and having to come up with additional funds to keep expanding the way they did.  There is no way that Ebay could ever manage to pull anything close to that off without a massive infusion of cash and staff that understand the industry, unlike what remains at Ebay.

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: pace306 This user has validated their user name.

Fri Aug 2 14:30:18 2019

"eBay has a current market value of $30 billion"

So says eBay and its accounting gimmicks, thats NOT reality.

None of ebays numbers are real, they are contrived and massaged by lawyers.

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

This user has validated their user name. by: iheartjacksparrow

Fri Aug 2 15:45:19 2019

@Silver Ice King - Check out Yahoo Japan Auctions, it's THE site to purchase items like anime, manga, action figures, Pokemon, etc. If you don't live in Japan (since most sellers will only ship to Japanese addresses), all you need is a deputy service to bid for you, and ship to you if you win.

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: SANT1N1 This user has validated their user name.

Fri Aug 2 16:58:12 2019

Racketeering!
False Pretenses!
Fraud!
There's a new sheriff in town, and his initials are DW. Gonna clean up that amazon swamp so fewer sellers will want to switch over there from ebay. Oh wait....

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: OnlyPollyPocket This user has validated their user name.

Fri Aug 2 18:01:34 2019

Oh my!  I think Wenig has been enjoying more than liquor at Walker's West...does that place double as a brown cafe?

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

This user has validated their user name. by: toolguy

Sat Aug 3 10:45:30 2019

Chances of me becoming an Amazon seller

ZERO

Chances of me becoming an Amazon buyer

Almost ZERO

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

This user has validated their user name. by: toolguy

Sun Aug 4 12:19:09 2019

"sellers can't run fast enough to Amazon."

"Sellers" have no reason to go to Amazon, why you ask? Because they're SELLING

Now Non-sellers might consider Amazon for some sales. . . .

I myself would NEVER sell on Aamzon, as Amazon is the enemy of any good eBay seller!

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

This user has validated their user name. by: toolguy

Sun Aug 4 12:24:12 2019

""eBay has a current market value of $30 billion"

So says eBay and its accounting gimmicks, thats NOT reality.

None of ebays numbers are real, they are contrived and massaged by lawyers."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~

It's
NOT "so says eBay", it's Wall Street who has given eBay it's market value.

"None of ebays numbers are real" ~ All of eBay's numbers are real, and if anything they are UNDERSTATED.. You do realize they pay TAXES on earned income!

No company wants to pay more taxes then it owes.

PS: If you only knew as much about Wall Street as you do chinese trinkets. . . .You'd be a billionaire. . .

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: pace306 This user has validated their user name.

Sun Aug 4 16:44:44 2019

1) I don’t sell Chinese trinkets nor rusty old tools (did the 737 max aircraft use any of them?)

2) Wall Street uses the numbers eBay supplies in their quarterly filings, prepared by Wendy

3) “you do realize they pay taxes”? Yes and do do I - topic isn’t relevant- no one said they don’t pay tax

4) “sellers aren’t running to Amazon because they are selling”. ..... ahem- if you were such an astute person you would realize that eBay sales grew %2 WITH stubhub and Amazon grew %20

You may know lots about rusty used tools but not much about e-commerce

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: Floria This user has validated their user name.

Mon Aug 5 00:53:41 2019

EBay needs to be liquidated, let somebody revamp the company
For everybody sakes
All the eBay CEO’s past and present sucks  

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: BargainzBabylon This user has validated their user name.

Mon Aug 5 02:55:56 2019

LOL, calm down, Toolguy, you'll blow a "casket"

I'd rather Bozos NOT purchase eBay, thanks, but I think Wenig is delusional and way over his head.  

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: KE6HTS This user has validated their user name.

Mon Aug 5 03:56:02 2019

EBay has been driving people from their site for years, so this is nothing new... except to new people :). Perhaps it would be a good start for them to redefine customer service as a service that sides with the customers (sellers.)  I quit buying or selling on eBay about four years ago after getting screwed by their policies and "customer service."

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: Flying Childers This user has validated their user name.

Mon Aug 5 06:11:25 2019

With all the money that people are spending on the totally screwed up venues of Etsy and EBay (buyers and sellers) you’d think that someone or some group of venture capitalists would want to invest in a new American marketplace.

Perminate Link for eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?   eBay RICO Lawsuit Meant to Curb Seller Exodus to Amazon?

by: hawk This user has validated their user name.

Mon Aug 5 06:39:11 2019

it's always the same. the great empire builders always get so rich and greedy that they become great low life scuuzzz bucket lickers and destroy all small businesses and eventually themselves.  it will never change !  how much is enough ?

Click to view more comments
1 2 3  [Next Page]


Login is required to post comments.
To sign in to leave a comment, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.