I am surprised there has been no discussion from your readers regarding the eBay requirement for UPC Codes.
I have 1100 SKU's on eBay. This is a big burden to us to meet this requirement. This is probably close to 20 hours of work to accomplish this. We are selling 1 or 2 items a day this summer. We expect sales to increase this fall. However, we are close to losing money on the eBay platform right now. A few items I have do not have UPC's. Yet eBay is requiring them.
I was surprised that the Citi analyst for eBay appeared to be positive on these changes.
The results of these changes will be negative for them:
1. They will lose retailers.
2. Higher barriers to list will have fewer new retailers joining the platform.
3. By requiring UPC's they will set up a system of "race to the bottom" in regards to pricing.
4. The low margin big retailers that they have acquired will be the beneficiaries while the mid and small retailers are going to be eviscerated.
5. I suspect eBay is getting 2% to 5% commission on the big retailers that they have brought on like Target and Under Armour. eBay's margins should continue to be under pressure as they push business to the big retailers.
We have only been with eBay a few years. Yet not one of their initiatives has helped our business. We were doing 8 to 10 items a day at one point and our business keeps going down on this platform.
(Please do not use my name.)