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Thu July 3 2014 14:34:54

Why Are Mom and Pop eBay Sellers Getting Squeezed, Reader Asks

By: Reader

Sponsored Link

Dear Ina,
Why are the little Mom & Pop eBay Sellers getting squeezed? And the high volume sellers do not?

My friend has been on eBay since 1999 and has over 1500 good feedbacks, 1 neg in a year, 3 neutrals this year, and suddenly eBay puts limits on their account, eBay lowered their store a notch, and PayPal holds their funds for 21 days now.

But I was able to easily find several premium and anchor stores with lower feedback percentage and lots of neutrals AND negatives per month, and they do not get penalised. Why is that?
AAW




Comments (33) | Permalink

Readers Comments

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: sasikat9 This user has validated their user name.

Thu Jul 3 16:36:53 2014

$$$$$$$$$

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

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

Thu Jul 3 18:16:13 2014

Who knows? I doubt even Johnny Ho does, but ...

"Our ambition is to be the strategic partner of choice for every leading retailer, brand and manufacturer across the world ..."—eBay Employment Ad (2013) ...

Johnny Ho is delusional, of course; then, we are all entitled to dream ... http://bit.ly/YvxFEg

It appears that ultimately there is no place on eBay for other than the big and the powerful ...

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: pace306 This user has validated their user name.

Thu Jul 3 22:52:00 2014

They are getting squeezed EXACTLY because they are mom n pop shops.

When Meg left, investors and eBay brass complained that while eBay was growing and made money - it just wasnt enough. You cant rely on garage sale items, grannys attic items and finds at the sunday swap meet. A steady specific, regular stream of revenue ''is/was needed''.

All thats great - but its exactly those things that gave eBay its charm.

In waltzes the new guy,the moron we call JD the eBay CEO. Ok so hes a dufus, hes in general not all that bright, needs thinking days to actually think - then does the wrong thing, is a consumate liar and knows nothing about ecommerce ....

Well his pluses are that eBay basically (if you leave it alone) runs itself so all thats needed are a few new positive tweeks, and that he has some kind of finance background aka Bain Capital. Bain usually buys up old companies and disects them for parts to sell off at a profit and dumps the rest - but that doesnt fit into this mold (that should have been a warning to anyone who was considering hiring him - eBay was not about ''taking it apart''.

Well, what to do?? If you are the new eBay CEO and the board is howling for more funds (aka free perks - not stock related) you are under the gun.

So Mr genius looked at eBay and decided to institute (at an institute you usually get COMMITED) a few things.

1) monetize EVERYTHING - with and without permission.

a) put ads in sellers listings with out asking them - that way no matter what sells and for how much - you're a winner
b) force ''free shipping'' on the sellers dime - cause Amazon does it (though they do it through PRIME (79.99 per 2 yrs) but eBay would NEVER let a seller have those kinds of funds - so just pressure the sellers to eat the costs.
c)take a cut of the shipping. Never mind you have nothing to do with it - just grab those FVFs anyway - cause ''what are they gonna do leave? so what?)

Thise things worked but not well enough, so
2) replace all the little people who cant be counted on to produce constant revenue with big sellers who can. (Well arent they in direct competition with you on their own sites? well yes but dont tell the board that - they arent that bright - they will NEVER figure that out)
a) you bring in major retailers and give them carte blanche. As long as they bring in sales (FVF) they can do as they please - there are no defect, DSRs dont count, and negatives are as harmful as butterflies.
b) you bring in the manufactorers themselves. Why have a small dealer sell a sony tv, when you can get sony themselves to do it? (ok eBay has a lot of dreck customers that make them crazy - but so what? who cares when theres FVFs at stake?)
c) you use VERO (who cant be reached, argued with or be bothered to actually explain any of the issues they cause) to strong arm small sellers off eBay. AND you can make money charging manufactorers do kick people via verowatch.com (then SWEAR it isnt you even though they are on an eBay landing page and use eBay logos etc)

eBay doesnt REALLY want to be inbetween sellers and buyers aka customer service, that coupled with the actual costs of providing such a service AND alienating buyers (whom eBay believes is their customer and not sellers) makes it for eBay to have shoddy non english speaking agents, read of scripts, ignore you and then not help you.

ALL these things and more are why small sellers get the shaft (aka they get ''seller protected'') - simply because they are the low hanging fruit and are expendable.

Im one too. My being here since 1998 means precious little to eBay. When I had VERO issues - things they were doing and allowed to be done to me - things I had to pay attornies to correct - eBay brass just laughed. Arent my good yrs of service, my 99.8 rating and being a TRSP mean anything ?... in a word - NO. Not any more then my 6400+ feedbacks.

eBay ISNT your partner, your friend, someone you want to hang out with or even promote. They are a tool in YOUR ARSENAL to make sales aka money. Dont think for ONE second that they have your back - or anyone elses - they dont. eBay will and does do any and every nasty dirty rotten illegal and quasilegal thing they can to seperate YOU from your wallet.

Once you know that - you can switch from defense to OFFENSE and the playing field becomes a tinty tiny bit more een.

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: papergoy This user has validated their user name.

Fri Jul 4 06:30:40 2014

One question- how do you know that the big stores are not getting squeezed?  Did you ask them, or did you simply make that assumption?

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: jaydee This user has validated their user name.

Fri Jul 4 07:47:03 2014

@pace306
I agree 100%

I think eBay may need to re-think their mom and pop cull, because their big box idea is not going to get them anywhere.

yesterday I was looking at their http://www.ebay.com/rpp/designer-collective ==== world famous designers

and just for curiosity I checked the feedback of Nicole Miller a huge designer
I was in shock to see ONLY 2 feedback for the month,

Well I guess it must be such an embarrassing FAILURE for ebay, because today I noticed ALL FEEBACK has been removed , no link, no nothing all traces of feedback are gone.

These ''big box'' retailers might also want to re-think their decision to ''Cheapen'' their good name.

As I have said before, if eBay boots us as a seller we will TERMANATE them as well which will INCLUDE PAYPAL payments.

 

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

This user has validated their user name. by: Ric

Fri Jul 4 09:23:09 2014

The OP asks: " Why are the little Mom & Pop eBay Sellers getting squeezed? "

The answer comes down to eBay's infamously disconnected management team that is comprised of one percenters who are totally and completely disconnected from the wants, needs, desires and preferences of the remaining ninety nine percent of the population.

The power hungry one percenters are too accustomed to telling everyone else what they want instead of listening and understanding what their needs really are.  They conceal this basic personality flaw with not too clever terms like "disruptive innovation" which is one percenter code for "we are doing this regardless of the fact that nobody wants it." .

As such, their disjointed policies are implemented with no thought of cause and effect on everyday users, and when things go bad for those users, there is no empathy until the damage is done and it is too late.

This explains why eBay is unable to maintain buyer and seller loyalty, and also explains why eBay is unable to attract new buyers. The disconnect is so complete that the individuals who run the company have lost their grasp of everyday realities and are incapable of understanding why.

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: papergoy This user has validated their user name.

Fri Jul 4 09:27:59 2014

Again, everyone is making assumptions and giving opinions when we don't know exactly what facts the original post was based on.  How about we wait for the answer before going off speculating?  I ask again, what proof do we have that the big shops are not being squeezed?

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

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

Fri Jul 4 09:46:08 2014

@papergoy, these are not "new" facts, they've been reported here on ecommercebytes the past few years, on discussion boards at ebay, etc., etc. What universe have you been living in?

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: jaydee This user has validated their user name.

Fri Jul 4 11:30:56 2014

How long do you think this seller would last if they were not being shielded ?

90% feedback and half dinged stars, I am sure it's just a glitch, eBay will eventually get around to fixing it, wink wink.


http://www.ebay.ca/usr/tigerdirectca

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

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

Fri Jul 4 12:49:19 2014

@papergoy,

Certain assumption have to be made with eBay because they are incapable of telling the truth about anything, even when to do so would be not to their disadvantage. It’s simply not in the nature of the eBay Dept of Spin, or any eBay spokesperson, to not manipulate the truth; indeed, that is their sole purpose for being/speaking …

The assumption therefore is that eBay is not squeezing the “big shops” because in Johnny Ho’s hallucinations of an eBay world-wide online “Westfield Mall”, it is only the “big shops” that appear; there simply is no room (in Johnny Ho’s febrile brain) for the “moms and pops” …

"Our ambition is to be the strategic partner of choice for every leading retailer, brand and manufacturer across the world ..."—eBay Employment Ad (2013) ...

That statement seems clear to me and it’s probably one of the few honest statement to suppurate out of eBay in a long time; the record over the past seven years clearly indicates that Johnny Ho is delusional, of course; but then, we are all entitled to dream ...

eBay Inc, where the incompetent mingle with the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: pace306 This user has validated their user name.

Fri Jul 4 18:52:28 2014

The OTHER half of the equation is that what ever eBay WAS, it isnt any more - and hasnt been for many many years.

When I started my eBay adventure - it was as a buyer. I NEVER got ripped off - ever , maybe I was just "lucky".

My best eBay find (back in the day when you could spend HOURS searching eBay for stuff) was a case (still in its master carton) of a Corgi toy - all 12 in thier original wrappings. I still have that case pack today - maybe I can retire off it .. lol

My point is that eBay USED to be about ecommerce. It USED to be about the exchange of goods for money with eBay getting its slice.

Not any more.

Todays eBay is about theft. eBay takes it from anybody, anywhere and at any time.

It started with FVFs on shipping. eBay wants and does collect money on shipping fees - even though they have nothing to do with shipping anything.

To enforce the takings, eBay leans on Paypal - the leg breakers. They will steal money from you in a heartbeat. eBay openly discourages other payment types and warns buyers not to use them since "they arent safe" (someone please call visa and mastercard and tell them their financial instruments arent safe). For that pleasure, eBay via Paypal collects %2 on you. They take your money AND charge you for it - good racket.

Paypal usually sides with buyers - for fears of chargebacks. It costs them time, effort and money - things eBay does NOT want to spend any of its loot on.

There are actually 3 types of chargebacks - one of which is unwinnable - wanna guess what happens when your "best buyer" threatens that kind of chargeback? (if you said seller protection" you win - just it never happens)

Ive had buyers swear they got X and not Y from me .. when I dont sell X so its not possible.

Ive had buyers move (change countries) inbetween ordering items and delivery - and then claim INR.

Ive had customer open, use and alter equipment all with Paypal saying "thats how HE tries things out so its OK".

I had a case where eBay let a customer open cases 1 after another in multiple countries (since the laws are different in each one) and then in Paypal ... btw my record is 4 open cases with one customer/complaint aka quadruple jeopardy).

Ive had VERO try to kick me off eBay due to false claims (eBay makes money off people like verowatch.com).

Skullcandy threatened eBay that they would NOT open a store on eBay until a specific set of sellers was removed since they "didnt recognize them as resellers of their product". They came a knocking - but I answered with my attorneys.

Lets not forget Global shipping (now theres a racket). I caught eBay/PB not using Fed Ex as proised, but switch the shipping to local mail services only to get lost. Angry customers dont come back. (I had 4 such cases)

eBay was redesigned to not be an ecommerce platform, but one more like solt machine. The house wins all the time. And, just when you think things are going well .... BAM - a new seller update with  more ways for eBay to take from you.

eBay has no shame period - they are the mafia of the internet.

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

This user has validated their user name. by: Marie

Sun Jul 6 02:49:19 2014

@AAW

You are trying to make it look like it is because of their FB this has happened and it isn't.  The FB rates you stated are not enough to cause this.  There is something else, whether they shared it with you or not.  But it isn't the FB.

They may have had too many cases filed by buyers or maybe too many low DSRs in a category or something.  

I'm not defending Ebay's actions against them.  I am only saying you are not stating the reason for it.

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

This user has validated their user name. by: iheartjacksparrow

Sun Jul 6 11:31:20 2014

I specifically remember reading an article with a quote from JD, or one of his people, where he stated that eBay wanted more businesses like Toys R Us because they had their own customer service departments which could deal with buyers' issues, so eBay's CSRs wouldn't have to deal with those problems. With "mom and pop" and smaller businesses, eBay is forced to intercede, which costs eBay money since they have to pay people to deal (incompetently) with buyer and seller complaints.  

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

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

Sun Jul 6 12:27:43 2014

There should be room for all of us, but seems like there is not. I have an e-bay store just for fun now, to pay my e-bay fee's. If it comes out of my pocket again I will probably close it. E-bay is now a corporate giant not a Mom and Pop friendly environment. My web sites are doing way better than e-bay now.

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: mastoyshop This user has validated their user name.

Sun Jul 6 15:40:31 2014

It just appears that Nicole Miller got her website set up and used ebay to get business and now has her own websie
http://www.nicolemiller.com/

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

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

Sun Jul 6 19:12:44 2014

Ebay has become nothing more than a private playground for ebay's upper management in order to keep the free stock share feed coming.

The Ho will continue to exterminate small businesses under a variety of pretexts all so they they can maximize the number of free stock shares and bonuses they receive annually.

The fact is that ebafia operationally performs exactly the Mafia.

The Ho, Devin Wenig, and Brian Burke are willfully and intentionally destroying small business to protect big business.

Ebafia has become the ecommerce equivalent of Walmart in terms of the number of many successful small businesses it has destroyed and lives they've ruined.

Big business simply can't stand the competition so they have under the table sweetheart deals with The Ho and Wenig to exterminate the rest of us and as quickly as possible and preferably before the holiday buying season begins.

Ebafia is a business ethics-free corporation dominated by sociopathic, narcissistic top management and sheer, unmitigated greed.

Ebay represents all that is wrong with corporate America.

It ALWAYS about the money. ALWAYS.

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

This user has validated their user name. by: bitbybit

Sun Jul 6 21:54:56 2014

I'll repeat what I stated on another post:
''The only thing holding ebay up is all their criminal actions. Seems that is what is running this country. If you are not FOR it, you must be AGAINST it. Anyone with a moral compass need not apply. Sad this is happening to our once great country.''

Fighting ebay does seem futile since they have intentionally covered their a$$ obviously knowing they would be exterminating good, innocence sellers. Of course, ebay will make good sellers all look like serial bad sellers. Good sellers cannot fight since ebay HIDES all their (ebay's) underhanded methods. All done under ''privacy'' or anything they can come up with to hide anything unethical on their part. Anything that does get by can easily be placed under the umbrella of ''money can buy everything''. Corrupt, yes. Sad, yes. Ebay makes sure they ALWAYS win.  

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

This user has validated their user name. by: eBoy

Sun Jul 6 22:51:50 2014

eBay'$ rea$on i$ obviou$.

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: MovinOn This user has validated their user name.

Sun Jul 6 23:46:09 2014

mastoyshop wrote:

''It just appears that Nicole Miller got her website set up and used ebay to get business and now has her own websie
http://www.nicolemiller.com/''

Yep, that's what a lot of us are doing, too. Ebay is obviously so filthy stinkin' rich that they don't need our revenues. They get what, 50%, 60% or so of their revenues from the preferred sellers. Us mom and pop sellers are just noise. They don't need our fees, so they can treat us like cr@p, and we are leaving in droves, especially on Aug. 20 when the new seller defects are implemented and we are blamed for delayed shipping, buyer changed their mind, buyer used an item and doesn't need it any more so they file SNAD to get a full refund, and a bunch of other reasons. They're all the seller's fault. Seller defects. That's when I will be MovinOn.

Ebay revenues are soaring so much that us little guys and gals mean nothing. Ebay revenues skyrocketing, ebay is soaring past amazon as one of the top 10 retailers in the U.S., stock price skyrocketing, JD is the best thing that ever happened to ebay. Surely I jest.

Why Are Mom and Pop eBay Sellers Getting Squeezed,   Why Are Mom and Pop eBay Sellers Getting Squeezed,

by: MovinOn This user has validated their user name.

Sun Jul 6 23:53:14 2014

If we dislike ebay's treatment of small sellers and the ever-increasing hoops they make us jump through to sell anything, and the ever-increasing fees, the best thing we can do is cancel all of our remaining listings on ebay on Aug. 20 out of protest. That is what I plan to do, and I won't be relisting anything, either. I would like to see the number of items listed on ebay drop by at least 30% on Aug. 20. That's when I'm MovinOn.

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