Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Fri July 27 2012 23:45:10

eBay to Battle Amazon FBA with Consignment Model?

By: Ina Steiner

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An online seller completed an eBay survey today that asked sellers how they felt about a possible fulfillment service. Two of the questions on the survey were as follows:

"How would you feel if eBay came to your house and picked up items you wanted to sell, sold them for you and gave you the majority of the proceeds? If the item did not sell, eBay would donate the item to the charity of your choice."

"How would you feel if eBay provided a service that came to your home to assess the fair market value of items that you want to sell and make you an offer for immediate purchase?"


Based on the questions in the survey, the seller believes eBay is planning a fulfillment service tied to the consignment model.

Interestingly there was a discussion on the Amazon discussion boards in December about something similar. That seller had written the following:

"I just did an eBay survey under my other selling ID. It was all about a proposed service for people to send their items to eBay, which will then take photos, do listings for 30% - and no risk to your feedback or DSRs. No TA of any worth can compete with that 30%! The working name of this program is Verified something or other, but one of the taglines they asked about had to do with "consign your items to eBay".


There are unsubstantiated reports that eBay is working on international fulfillment services, and eBay's Johnna Hoff had said a year ago that eBay was testing fulfillment services including one for China-based sellers who ship into the U.S., but no further details have emerged.

Given the success Amazon.com is having with third-party merchant sales ("3P") and its FBA program, it's not surprising eBay is surveying sellers about a fulfillment service, but what exactly can it bring to the table, and how will it entice sellers to use it?

How would you answer the questions above, and would you use an eBay fulfillment service?




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Readers Comments

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

by: JustTheFacts This user has validated their user name.

Sat Jul 28 00:19:51 2012

WHY would ANYONE want to help ebay do ANYTHING to make them more money.

ebay has done NOTHING for sellers but cause them more heartache and pain.

It is funny how ebay ABUSES their sellers but is constantly coming BACK to the sellers for more and more ways to make MORE money off of them.

I would rather BURN my stuff then hand ebay ONE THING!

WHY would anyone want to give ebay items to sell who has ZERO concern and experience in this area instead of giving them to Amazon who has at least a decade of experience.

Can you imagine how much of YOUR stuff ebay would just GIVE AWAY to the buyers at YOUR expense.  Do not think for one second this type of thing would not be HIDDEN in the contract.

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

by: JoyfulA This user has validated their user name.

Sat Jul 28 01:12:47 2012

That first suggestion sounds like something I could use for spring cleaning. It would be easier than doing a yard sale for stuff I don't know where it came from, or even what it is, and don't want. I guess after eBay sorted through all my worthless junk, they wouldn't offer to come to my house a second time.

And I'd have to make sure the charity of my choice for the junk donation is one I really disapprove of.

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

by: Bloggo This user has validated their user name.

Sat Jul 28 01:37:00 2012

I've got some worthless garbage they can come and pick up anytime.

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

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

Sat Jul 28 03:13:27 2012

I bought an item recently on eBay from the UK; it was fulfilled by Amazon—LOL


eBay / PayPal / Donahoe: Dead Men Walking

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

This user has validated their user name. by: Ed Gadfly

Sat Jul 28 05:05:40 2012

Send Griff.

;-)  

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

This user has validated their user name. by: Ed Gadfly

Sat Jul 28 05:07:28 2012

Ironic that the truck has holly on the side.

Holly kills you if you eat it.

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

by: Digmen1 This user has validated their user name.
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Sat Jul 28 06:01:11 2012

So they want to help their Chinese sellers, by becoming de facto drop shippers and a fullfillment service !

That really is a reason to drop kick ebay.

But other than that the idea smacks of desperation !

Didn't Bonanza do somethign like that recently with clothing !

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

by: trickstunt This user has validated their user name.

Sat Jul 28 06:20:33 2012

I saw  mention of another survey question:
"How would you feel if you had an option to pay an approximate 25% fee premium to guarantee a "top 5 listing" in search results?"

Huh? What in the world is that all about?

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

by: Ron This user has validated their user name.

Sat Jul 28 10:54:00 2012

If I understand this properly, eBay wants to proactively act as a dealer, appraising, picking up stuff and selling it.

As a dealer myself, I know the pitfalls and problems with dealing directly with people and trying to dispose of stuff in a cost effective manner.  It is not easy, especially at a 30% margin.

I encourage eBay to do this - then they'll finally wake up to the problems and costs that small sellers encounter on a daily basis.

Given their record of incompetence, I'd love to see them give this a shot.

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

This user has validated their user name. by: Spartacus

Sat Jul 28 11:18:02 2012

I think if eBay does follow through with this stupid plan, every seller should call eBay to their house on trash day and have them pick through it. Waste their time and manpower.

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

by: Dee P. This user has validated their user name.

Sat Jul 28 13:17:13 2012

I recently sold an item for $142.75; paid Paypal $5.87, shipped to Canada $24.51, FVF $11.05, listing service fee $1.49; total to me $99.83 with cost of $42.92. 30% of the $142.75 is $42.82.

On that transaction, I would definitely pay eBay a dime to list, ship, etc. Had I shipped to a U.S. buyer, it would have been $6.50 in shipping for $24.91 in costs. Would I pay ebay an additional $17.91?? Not so sure I would.

Haven't done the numbers, but suspect it would depend on how high I expect the item to go for, what I paid for the item and possibility of it shipping outside the U.S.

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

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

Sat Jul 28 13:42:22 2012

Digmen1 writes: ''But other than that the idea smacks of desperation!''

My thoughts exactly! They *must* be getting desperate. This is a return to the ''flea-market'' and ''garage-sale'' model that they truly scorned and despised all these years!

Their apparent willingness to return to those unseemly and roots suggests to me that something is definitely wrong in eBayland.

It also serves as further proof that their decision to abandon the small ''flea-market'' seller is proving to be a mistake. No doubt they have squeezed all they can squeeze from sellers for that short-term gain. The unsustainable model is reaching its end. But all this time, they COULD HAVE been lifting us up, helping us to be successful, and profiting WITH sellers (not bleeding us dry and chasing us away).

You know what? Screw eBay! It too effing late! Not a chance in hell that I'd ever trust them again! I hope they DO go forward with this, and I hope it's a colossal failure.

But no, I'm not bitter. ;-)  

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

This user has validated their user name. by: Ric

Sat Jul 28 14:17:28 2012

So eBay will come to my house, take my inventory for pennies on the dollar and then sell it themselves?  I would rather throw my inventory in the dumpster than consign or sell it to eBay.  eBay has already proven the company can not be trusted and can not be taken at their word, so why would I suddenly trust them to honestly consign my inventory or pay a fair and honest price in a purchase deal?

Apparently, eBay's plan is to drive sellers out of the marketplace by setting the worlds most impossible to achieve standards. Once the seller has been defeated, eBay believes the seller will be happy to have eBay come to their home or business to relieve them of their surplus inventory.

One thing for sure, I do not want whatever it is they are drinking or smoking because it appears that even short term experimental use is mentally debilitating.


This concept is the newest chapter leading to the downfall of eBay.

To succeed in this venture, ebay will make selling on eBay even more impossible than it already is.

Given the dishonest underhanded tactics already employed by this company, nothing stops them from staking out categories they want to dominate, then relegate sellers in those categories to invisibility in search and choking the life out of them. In fact, eBay's newest search algorithms seem to be doing precisely that.

eBay will then come along and present themselves as a white knight by offering to relieve the sellers they killed off of their inventory for pennies on the dollar.

After acquiring inventory at well below normal cost, eBay will hijack the top spots in search visibility for their newly acquired inventory.  The next highest spots in search placement will go to the Diamond Sellers. Everyone else will be buried so low in eBay's search ocean, when they look up all they will see is whale feces.

Small sellers be warned!! Liberally apply lube and grab your ankles... eBay has exposed their newest plans for your extermination.



Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

This user has validated their user name. by: permacrisis

Sat Jul 28 14:52:45 2012

Translation:

"We want your stuff. But we think YOU suck."

And hey. With you out of the loop, how much you wanna bet they will dial Best Match up FULL BLAST.

(And if the idea takes off, they will jack their percentage to 50.)

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

This user has validated their user name. by: permacrisis

Sat Jul 28 14:56:19 2012

@Ric,

I know, right? Ebay showing up at your door in a suit of armor to save you from... Ebay!

The guys in San Jose are smoking shredded garbage bags again...

Yeesh.  

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

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

Sat Jul 28 17:45:41 2012

I don’t know what you guys are all complaining about. Apparently, Corri McFadden is quite happy with the treatment she is getting from the eBafia as far as her rampant shill bidding is concerned; don’t know how much of her stuff is being bought by genuine bidders; not much, I suspect; still eBafia is quite happy to carry on aiding and abetting her wire fraud activities: eBafia takes its cut on all sales, real and faux …
 
“Shill Bidding Fraud on eBay Auctions: Case Study #5”
http://www.ecommercebytes.com/forums/vbulletin/showthread.php
?p=167554
 
eBay / PayPal / Donahoe: Dead Men Walking

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

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

Sat Jul 28 21:15:39 2012

The next step in the thiord party extermination process.

Ebay knows NOTHING about what I sell, and anyone who would trust them to correctly appraise their inventory let alone allow them to cart it off for "charitable" donation is terminally foolish.

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

by: Digmen1 This user has validated their user name.
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Sat Jul 28 22:54:03 2012

I'm in New Zealand
Are they going to come and pick up my rejects ?

I can see ebay warehouses becoming the biggest trash dumps in the world.

The whole idea is so funny.




Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

This user has validated their user name. by: TheCheapSkirt
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Sat Jul 28 23:27:36 2012

Isn't Bonanza.com already doing this for clothing?

Perminate Link for eBay to Battle Amazon FBA with Consignment Model?   eBay to Battle Amazon FBA with Consignment Model?

by: pace306 This user has validated their user name.

Sat Jul 28 23:52:35 2012

??? that isnt Amazon's FBA model. Amazon doesnt come to your house, they dont pick  up things, and they dont give you pennies in return.

Ina - how is this even remotely the same?

In Amazon FBA - you send you NEW, GOOD, sellable items into thier wharehouse, where YOU list it and they just handle the shiping and CS aspects. (yes you do get covered on feedback).

eBay is going to do FBA - but this program isnt it. This is rip off the old, stupid people by paying them a penny on the dollar for thier antiques, then go sell them on ebay.  

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