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Television Documentary about eBay Powersellers
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xbaystores



Joined: 31 Oct 2006
Posts: 684

Posted: Sun Mar 11, 2012 4:05 am    Post subject: Re: Television Documentary about eBay Powersellers  

cohibastore.com wrote (View Post): › docWrite("quote")Dear David,

I apologize for my fellow PSU users. As they say, unhappy people make more noise than happy people. As with any business type there will be winners and losers, and PSU is often dominated by bitter losers in the ebay section.

Most of the successful ebay users are off running their businesses making profit and not spending time in forums making snarky remarks denigrating ebay. I know many in the US who make a full time or part time living on ebay. Often the biggest success stories are now big companies you'd never think were started buy a guy in the garage 12 years ago.

Also, a complete view of ebay and its successful sellers should include, with some effort at analyzing the stories, those who failed, either by their own inability and inexperience, and the rare seller who failed due to an ebay action.

Good luck,

CS

I would say most sellers fail due to their own stubborn attitudes toward eBay's actions and the inability/inexperience to adapt to the way eBay challenges every seller's business plan every year. eBay makes changes based on their income, and forces millions to do the same to keep their stock price inflated. They provide a service and expect you to pay what they ask and change with them, or find somewhere else to sell. No one is an employee, and no one has any rights. If 5 small sellers leave, 1 big seller is more than happy to take their business. It works the same as the B&M business model: the strong survive.

eBay management is smart and uniquely advantaged not to enter into contracts, such as in a B&M mall, where you are guaranteed a certain rent, sales cut, etc for their space for XX years. They know that the seller will adapt to all their changes or fail, because if they don't that seller will lose access to millions of daily customers. By isolating the sellers so quickly through forced payment options, zero off-site linking, and the ease of startup, most sellers will at least try to move along with the changes.

In the end, eBay takes the majority of the profit and the seller gets what's left. Is it right? It damn sure is, because you gave your acceptance of their 93 page extended user agreement without reading every little line-item detail. That's the catch, and they know you won't catch it.
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Digmen1



Joined: 12 Feb 2010
Posts: 1152

Posted: Sun Mar 11, 2012 4:16 am    Post subject:  

But how come they used to be able to survive on 5% fvf
now they need 10% and on shipping as well.
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cohibastore.com



Joined: 15 Sep 2006
Posts: 5140

Posted: Sun Mar 11, 2012 4:56 am    Post subject:  

Digmen1 wrote (View Post): › docWrite("quote")But how come they used to be able to survive on 5% fvf
now they need 10% and on shipping as well.

In ten years I've never paid anything as low as 5%. It has been between 10% and 13% almost every year I've sold on ebay. (10+) Add .7%-1.5% for PP fees.

As for raising FVFs in general, a bigger sites attract more people, more scammers, and requires more resources to a manage it. Does etsy have a fraud investigators traveling the world working with police? Does Banazzle have 1/10th the legal staff ebay does. Does boondoggle even have a legal staff? Do any of these sites except for Amazon have the resources to manage a hundred million users worldwide. Their sites would crash 50 times a day if they have 1/10 the traffic ebay does.

All of that cost money.
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xbaystores



Joined: 31 Oct 2006
Posts: 684

Posted: Sun Mar 11, 2012 8:44 pm    Post subject:  

Now you said .7-1.5% for Paypal? How is that possible with a fee of 1.7-2.9%, plus a 29c-39c transaction fee?
In 2002 all FVF were 5.25%. In 2005 (the year may be off) they raised the store FVF to 8% but the non-store inventory FVF was still 5.25% and it stayed that way until at least 2007-8. eBay's money was made off listing fees then, and now it's made more on the backend of a sale than before.
I will say that overall, since 2005, total eBay fees in all have remained pretty consistent until the last 2 years. They always decreased a listing fee when they increased FVF.
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cohibastore.com



Joined: 15 Sep 2006
Posts: 5140

Posted: Mon Mar 12, 2012 1:36 am    Post subject:  

xbaystores wrote (View Post): › docWrite("quote")Now you said .7-1.5% for Paypal? How is that possible with a fee of 1.7-2.9%, plus a 29c-39c transaction fee?

if you process over $3,000 a month you qualify for the "business account" (maybe its called something else now) but i pay a fixed 2.2% on my PP transactions plus i get 1.5% back on any PP debit card transaction where i use it as a credit card. since 80% of the money goes back out on that card, i get 1.5% i paid back, leaving about .7% fee. the other 20% i pay the full 2.2%, thus the .7-2.2% statement.

lately i've been pulling cash out via ATM for some cash and carry/live auction purchases, so it may be closer to the 2.2% this quarter, but will return to normal later in the quarter.

CS
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campu2



Joined: 17 May 2006
Posts: 346

Posted: Mon Mar 12, 2012 7:16 am    Post subject: Re: Television Documentary about eBay Powersellers  

I would say most sellers fail due to their own stubborn attitudes toward eBay's actions and the inability/inexperience to adapt to the way eBay challenges every seller's business plan every year

I would say most sellers fail because eBay blows and they
are too "stubborn" to walk away.

Aside from the fact that ebay/paypal fees are sucking
15% to 20% of total sales, and aside from the fact that
60% of eBay listings don't result in sales, postage fees
virtually eliminate any profits for items that routinely sell
for $10 or less.

My last purchse on eBay was $60.00 (with free shipping)
The seller paid $48.00 postage. Sound extreme?
Only because its was a $60.00 purchase.
Most items selling for $10 or less only net $1 to $3
after all the fees and postage.

If you can and do make a living selling on eBay,
you have my sympathy.
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cohibastore.com



Joined: 15 Sep 2006
Posts: 5140

Posted: Mon Mar 12, 2012 3:01 pm    Post subject: Re: Television Documentary about eBay Powersellers  

campu2 wrote (View Post): › docWrite("quote")[i]...they are too "stubborn" to walk away.

During the boom era on ebay when anyone could make profit most sellers thought they were gods, rather than a lucky SOBs who we in the right place at the right time. Few if any took that grace period of easy money to actually learn about selling or business. As ebay evolved from the newest fad to just a place to do business and real business knowledge about ROI, profit margins, expenses, etc, came into play, they were driven off by their own lack of ability and knowledge.
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campu2



Joined: 17 May 2006
Posts: 346

Posted: Mon Mar 12, 2012 6:23 pm    Post subject: Re: Television Documentary about eBay Powersellers  

During the boom era on ebay when anyone could make profit most sellers thought they were gods,

This is true. 1997, I warned sellers the party would be short lived.
1998 I warned sellers that if they didn't support Yahoo Auctions, eBay
would have a strangle hold on them, and they would be at eBay's mercy.

AND THEY LAUGHED AT ME !!!!

Yes...I'm kidding. But I'm dead serious when I say that I make more
money than most ebay sellers, using free classifieds, forums/groups, and
tumblr.

Obvious reason.....When I do a $60 sale off oodle or craigslist, 50% to
80% is not siphoned off with ebay/paypal fees and postage. I keep 100%
of the pie.

Take a look at completed auctions. Deduct the 50% to 80% fees & postage.
Most of these sellers could make more money unloading their inventory at
a local pawn shop. Sad but true.
--
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cohibastore.com



Joined: 15 Sep 2006
Posts: 5140

Posted: Mon Mar 12, 2012 10:03 pm    Post subject: Re: Television Documentary about eBay Powersellers  

campu2 wrote (View Post): › docWrite("quote")Deduct the 50% to 80% fees & postage

geeze, i only pay ebay/PP about 12-13%. some folks must be really bad at managing their businesses.
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campu2



Joined: 17 May 2006
Posts: 346

Posted: Tue Mar 13, 2012 12:38 am    Post subject: Re: Television Documentary about eBay Powersellers  

geeze, i only pay ebay/PP about 12-13%. some folks must be really bad at managing their businesses.

I'm sure you're a regular genius...but you're going to pay whatever ebay/PP
decides you will pay (wether it works for you or not).
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cohibastore.com



Joined: 15 Sep 2006
Posts: 5140

Posted: Tue Mar 13, 2012 2:41 am    Post subject: Re: Television Documentary about eBay Powersellers  

campu2 wrote (View Post): › docWrite("quote")....whether it works for you or not

now that just silly and you know it.

if a seller makes a profit and decides its sufficient to keep selling on ebay thats entirely their judgment. if a seller on ebay and makes no profit, or doesn't track profit, and keeps selling, then he's a fool and will be gone soon enough.

now, can some sellers sell goods with little or no fees as you claim? sure.

do most people want to manage 20 different free sites and spend 14 hours day listing, relisting, updating listings, sorting through 100 scammer emails a day from craigslist and poodle and all the rest of the wanna be's? i doubt it.

would this strategy benefit someones who in desperate need of money? sure.

but i have a life and the fees i pay for the services given enable me to sell more in less time, and actually enjoy my life.
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campu2



Joined: 17 May 2006
Posts: 346

Posted: Tue Mar 13, 2012 4:00 am    Post subject: Re: Television Documentary about eBay Powersellers  

would this strategy benefit someones who in desperate need of money? sure.
but i have a life and the fees i pay for the services given enable me to sell more in less time, and actually enjoy my life.

So you believe everyone that buys and sells without paying ebay, paypal, and
postage fees on every transaction is "desperate".

And paying ebay/pp/postage fees enables you to actually enjoy your life.

Okay....Whatever makes you happy. How did you enjoy your life before eBay
was created ?
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cohibastore.com



Joined: 15 Sep 2006
Posts: 5140

Posted: Tue Mar 13, 2012 3:34 pm    Post subject: Re: Television Documentary about eBay Powersellers  

"So you believe everyone that buys and sells without paying ebay, paypal, and
postage fees on every transaction is "desperate"."

Didn't say that

"...paying ebay/pp/postage fees enables you to actually enjoy your life."

Sure does. ebay/PP/Amazon maintain the infrastructure, do the web marketing and SEO, process secure payments, enabling me to concentrate on what I know rather than what i don't.

How did you enjoy your life before eBay was created?

I worked like every one else. I had idiot bosses. I wasted money on neck ties. I drive hundreds of miles each week servicing my accounts or worked my 40-60 hours and came home too tired to do anything except suggest where to eat dinner out becuase my wife was equally tired.

Now I get up when I choose, work when I choose, if I choose to work at all. I have no boss except my wife, the IRS, and sometimes God when he decides to put something new on my to do list. I wear neckties just for funerals and weddings. I'm usually home to help my elderly neighbors at a moments notice.

All this is made possible by the fees I pay ebay/pp/amazon for the services they provide. And its worth every penny.

CS
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Baconsdozen



Joined: 06 May 2008
Posts: 910
Location: S.E. coast of England.

Posted: Wed Mar 21, 2012 8:37 am    Post subject: Re: Television Documentary about eBay Powersellers  

Ebay is a monopoly and a nasty one at that,the proposed documentary already looks like a whitwash looking through rose coloured glasses.
A total waste of time.
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luckyalive



Joined: 27 Apr 2008
Posts: 446

Posted: Wed Mar 21, 2012 10:31 am    Post subject:  

TE.
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