The Wholesale Forums

[greedyboy]

Are you just making these things up because you don't like paying ebay to bring you business? What should the law do? And more to the point, why hasn't the 'law' done anything about it?

Maybe ebay should pay us for giving us the business and paypal should offer 4% cash back for accepting it?

Still no one has mentioned the value ebay gives? Only the same old wingers 'oh the fees are too high, I can't wait for google to wipe them off the planet'. God forbid you actually sell something that actually makes decent money and makes the fees look laughable?

Suppose that will never happen or dare I say impossible?

[ADC]

Originally Posted by greedyboy

Ebay has been flying now for a good 3 - 5 years, long enough for someone like Microsoft, News International (who tried and failed in the 90's), Google, Tesco, Wallmart etc to take notice and create a rival.

So why do you think they haven't?

To be honest I have no idea why no other big player has stepped in. If you can think of a reason why they haven't greedyboy, I would be interested to hear it. The only thing i can think of is maybe low profit in the first few years whilst they build up a big customer base.

We all know there are other options to ebay. But is the same difference as opening a shop in a busy city centre shopping centre or opening a shop on a dusty desert highway 200 miles from the nearest city!! The business isn't there anywhere else. Can I ask you greedyboy, if someone bought up all the major shopping centres & retail parks in every major town & city in the world, then said to all the shops we are going to take 12% of your turnover if you want to stay in any of our shopping centres or retail parks. Would you think that was fair or would you expect something to be done about it? Because ebay are controlling the online shopping world in the same way.

[connell83]

I agree with ADC.
greedboy needs to get a grip. Yes the law can move in to act, but its only recent that laws were brought in about anti-competitiveness. Miscrosoft was fined 280million euroes! Its only a matter of time that ebay can hide under this. Not many people realise what they are doing. Why should we pay ebay for commission then pay tthem more commission throught paypal - which is ebay under another name.

[ADC]

Originally Posted by greedyboy

Imagine your business made £1M a year. Would you feel guilty and slash your prices just so you made £500K instead? Or would you charge an extra £1 per customer and make another £1.2M a year?

Just some scenarios to throw in to the big pot

I think your slightly missing the point again with this. From ebays point of view we know they will maximise the profits whatever way they can. The same way me, you or anyone would.

But we are trying to look at the bigger picture here. We are not even looking at it from the sellers point of view. We are looking at it from the buyers point of view. Basically people are paying more for goods because ebays fees are so high. The reason the fees are so high is because of lack of competition.

[greedyboy]

Originally Posted by ADC

To be honest I have no idea why no other big player has stepped in. If you can think of a reason why they haven't greedyboy, I would be interested to hear it. The only thing i can think of is maybe low profit in the first few years whilst they build up a big customer base.

Lets be realistic here. Ebay isn't new and it's been one of the success stories (along with Amazon) since the .com crash. Ebay posts massive if not record profits year on year and I doubt if anyone has stood by and not noticed by big corporations, such as say google.

So why is there not a decent competitor. Afterall it's a drop in the ocean for microsoft to spend a billion dollars launching MSbay.com. I have many theories why. FOr now they will stay between my ears and not for public consumption.

We all know there are other options to ebay. But is the same difference as opening a shop in a busy city centre shopping centre or opening a shop on a dusty desert highway 200 miles from the nearest city!!

That is so true. The running costs are significantly reflected in the costs. Hence you pay a few quid more on ebay and a few quid less on ebid.com. You are finally coming round to my way of thinking

The business isn't there anywhere else.

Because ebay won't let them or out of choice?

Can I ask you greedyboy, if someone bought up all the major shopping centres & retail parks in every major town & city in the world, then said to all the shops we are going to take 12% of your turnover if you want to stay in any of our shopping centres or retail parks. Would you think that was fair or would you expect something to be done about it?

What if I opened a shop on the moon? That equates to the same thing you are saying. But for you sake, that would never happen because that is a monopoly. Hardly compares until ebay buy every single auction site in the world. Try and keep the debate sensible.

Because ebay are controlling the online shopping world in the same way.

Are you related to Arthur Scargil?

How are ebay controlling the online world? You have a choice where you sell.

Now a question for you (and anyone else). This is a serious question and expect serious answers.

1) Fees aside, why do YOU list items for sale on ebay?

2) Why do you choose ebay to list items instead of say ebid.com (or another online venue)?

3) If you were to open a 1000 sq ft shop in a high street what would be your combined monthly overheads be? And what % of your sales would that equate to? (remember to take VAT into consideration).

4) If you took out 1/4 page advert in 5 monthly published magazines (5 adverts) what would be your combined advertising costs be (not to mention you operating overheads as well) for that month? And what % of you sales would that equate to?

I'd be interested to know these answers.

[ADC]

Originally Posted by greedyboy

Lets be realistic here. Ebay isn't new and it's been one of the success stories (along with Amazon) since the .com crash. Ebay posts massive if not record profits year on year and I doubt if anyone has stood by and not noticed by big corporations, such as say google.

So why is there not a decent competitor. Afterall it's a drop in the ocean for microsoft to spend a billion dollars launching MSbay.com. I have many theories why. FOr now they will stay between my ears and not for public consumption.

That is so true. The running costs are significantly reflected in the costs. Hence you pay a few quid more on ebay and a few quid less on ebid.com. You are finally coming round to my way of thinking

Because ebay won't let them or out of choice?

What if I opened a shop on the moon? That equates to the same thing you are saying. But for you sake, that would never happen because that is a monopoly. Hardly compares until ebay buy every single auction site in the world. Try and keep the debate sensible..

I don't know how to do that multi quote thing so you will have to bear with me. My comparison isn't a monopoly I said if one company owned every major shopping centre and retail park. It still gives a shop the option to open on a normal high street or a minor out of town shopping centre. Why is that a monopoly? Ebay are an online shopping centre all the shops under one roof.

[greedyboy]

Originally Posted by ADC

I don't know how to do that multi quote thing so you will have to bear with me. My comparison isn't a monopoly I said if one company owned every major shopping centre and retail park. It still gives a shop the option to open on a normal high street or a minor out of town shopping centre. Why is that a monopoly? Ebay are an online shopping centre all the shops under one roof.

Sorry I read it wrong. Well in that case, you'd have the choice. Pay the 12% and have a site in the retail park or don't pay the 12% and go into the high street. If business is significantly increased in the retail park then it's worth paying the 12% premium.

One important thing to note. Buy applying the 12% premium it keeps the scummy shops out of the centre. See any similarities here with ebay?

I also presume in your example there is no rent to pay as ebay do not charge you rent.

[ADC]

Originally Posted by greedyboy

Are you related to Arthur Scargil?

How are ebay controlling the online world? You have a choice where you sell.

Now a question for you (and anyone else). This is a serious question and expect serious answers.

1) Fees aside, why do YOU list items for sale on ebay?

2) Why do you choose ebay to list items instead of say ebid.com (or another online venue)?

3) If you were to open a 1000 sq ft shop in a high street what would be your combined monthly overheads be? And what % of your sales would that equate to? (remember to take VAT into consideration).

4) If you took out 1/4 page advert in 5 monthly published magazines (5 adverts) what would be your combined advertising costs be (not to mention you operating overheads as well) for that month? And what % of you sales would that equate to?

I'd be interested to know these answers.

No i'm not related to Arthur Scargill, i supported Maggie on that one. I don't believe in strikes. But thats a debate for another topic.

Yes we have a choice where to sell (either loads of business or hardly any business at all) so there is no choice.

1) We list items on ebay because we get lots of people that buy them

2) tried ebid no one bought anything ever. (ebay we sell 30 - 50 items per day)

3) Can't really answer this question having never done it. I used to be a manager for a major electrical retailer. At that time new stores in a retail park cost about a £1m to open, then first five years were rent free. The rent was then about 30k a month on £500K a month turnover. Obviously then there were staffing costs, electric & telephone bills etc. I can see what point you are trying to make here, but it isn't a valid one because ebay aren't the internet. The whole point of selling online is that there aren't as many overheads.

4) Same again don't know because i've never done it

I see the point you are trying to make but they can't say in one breath that ebay are giving amazing value for our fees, spending seller fees on all these other things to promote our auctions and then in the next breath saying they are making $5 billion or whatever. Because from the figures it is obvious that even though they are probably doing everything possible to promote our auctions it is still only a small percentage of the seller fees. So therefore the fees could be reduced. But we all know that won't happen because ebay have no competition.

[ADC]

Ebay spent $871 million on advertising last year 15% of it's revenue. So i think there is some room for a reduction in fees don't you?

Maybe google don't open a an auction site because the majority of this money is spent with them.

[D M]

http://finapps.forbes.com/finapps/js...s.jsp?tkr=EBAY

5-Year Averages
Pre-Tax Profit Margin: 23.9%

Keeping that in mind how much do you want ebay to reduce their fees by?