Ebay Goes Down Wrong Path and Hurts Those Who Helped Build Them

Do you feel the ground shaking and hear the sound of distant thunder? That’s the sound of the coming stampede of Ebay sellers making a mass exodus to other sales venues.

Ebay has, once again, presented changes in their venue, many of which I predicted last year, that will be sending a good portion of their sellers elsewhere to do business and leaving their stockholders in a long holding pattern or perhaps experiencing new lows.

Starting last ast year, and much to my dismay, I started predicted eBay would lose a good portion of their market share to their competitors. It looks like this will continue to occur as the company implements their most recent changes. (Links to articles in which I've made eBay predictions are below.)

You see, eBay forgot who got them to where they were, and it wasn’t the buyers. They’ve spent entirely too much time trying to please the buyers, when it was the sellers who helped build the company. In my opinion, it may be too late to salvage their position in the marketplace now or in the future.

Since eBay has continued to raise the percentage they take on completed sales, I predicted eBay would discontinue listing fees altogether, and stated it was in their best interest to do so. Today, they’ve dramatically cut listing fees but have not eliminated them. Most sellers don’t mind paying a little more if their items sell, but if they don’t sell, they take a direct loss which isn’t acceptable.

While from time to time, the company runs special days offering sellers no listing fees, I still predict the time when eBay permanently offers no listing fees will be just around the next bend. However, by then, it will be too late to bring back those who’ve been comfortably comfortably in another company’s pasture.

In their effort to make up for lost revenue and please their stockholders, other changes the company made will prove to be a big turn off to its sellers. Like the increase in fees for their PayPal services and their insistence that this is the only way to pay for fees when doing business with them. Forcing customers to use only the programs they provide will prove to be a mistake in the future. It’s cheaper for their sellers to go elsewhere and use other merchant account providers with more reasonable fees. No, the public isn’t going to let eBay make up their loss in revenue in this way.

Any reduction in fees will prove to be beneficial for those of us who use eBay to sell our wares, but the other restrictions, I believe, will be rejected in the market place. It may prove that eBay has, for too long, underestimated the intelligence of the customers who helped build them.

Ebay’s efforts to swing in the direction of retail sales by emphasizing fixed price selling is about four years too late. Companies like Amazon are not likely to surrender their market share to eBay without a fight.

What eBay might do next in their effort to increase revenue, will be to charge for their completed sales information. I made this prediction earlier, and I stand by it. Only time will tell.

To re-establish their growth pattern, eBay will have to reinvigorate their seller base, and that isn’t going to be easy. In fact, they might have to reduce profits for a while to build future sales volume. This might very well put eBay stock in a holding pattern for quite a some time and their stock prices might even hit new lows.

As I have stated in the past, what is bad for eBay can be good for us. So, when they have specials, take advantage of them, like listing several items on free listing days. Try not to get caught in the traps they set like reserve price auctions and the other gimmicks they state will bring you greater returns but actually cost you more. “Keep it simple” is a good rule to use here. In the meantime, investigate other selling venues if you haven't already done so.

Keep Skip McGrath and his newsletter close to you because I think he has the pulse of what eBay is doing down to a tee. You will find his many great resources available on our site. Don't forget our friend the “ The Auction Rebel – Gary Hendrickson” as he demonstrates his method of being successful on eBay.

Ebay made a change in my life, and for that I am very grateful, but they’ve been very slow to change with the markets. They might have thought they were invincible. But, none of us are. I still hope it isn’t too late for them. They’ve been a tremendous help to me and my family, and I thank them for that. God protects the humble, but if we try to do all things ourselves and even go down the wrong path, He allows for that too. I believe eBay has gone down the wrong path.

LINKS to my Previous eBay Article Predictions:

10/02/07 Will eBay Remain King of the Hill?
01/30/08 eBay Serves Scrambled Eggs
02/14/08 Is Ebay Running out of Juice?
03/25/08 eBay Fighting Hard in Wrong Direction

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News of Economic Downturn Finally Hits Mainstream Media

Yesterday, Cindy sent me an America Online story link that came up as a featured AOL News story. “People Sell Belongings to Make Ends Meet,” was the AOL story in which Associated Press writer, Anne D’Innocenzio states, “Struggling with mounting debt and rising prices, faced with the toughest economic times since the early 1990s, Americans are selling prized possessions online and at flea markets at alarming rates.” I scratched my head and said, "Hmmmmm."

Later in the day, Kovels’ Komments Newsletter showed up in my mailbox. While the Kovels’ are not part of the mainstream press, they are a recognized authority in our industry, and in their newsletter, they acknowledged “The economic downturn has created new sources for antiques and collectibles.” I scratched my head and said, “Hmmmmm.”

Yesterday was April 30th. Didn’t I post a story back on April 18th about the economic downturn and its likely effect on the Antique & Collectible industry as well as its effect on family life? Yes, I did. It's titled, “Inflationary Times Good for Antique Dealers, Collectors and Families,” and it’s been all over the Internet. Could it be I was ahead of the mainstream call?

Then, Cindy reminded me that we made economic commentary on our April 15th Blog when I stated (and I’m quoting myself here) “Timing is everything, and right now the time is right to be buying at bargain prices. At times like these, when people are stricken with fear, and the market fluctuates, we’ll be able to make our best purchases.” I also wrote in that same article, “It is likely that those who feel weary with our economy will likely sell their better items.” Hmmmmmm.

I’m flattered that others would follow our lead and be in agreement that these are going to be some hard times for people. Yet, at the same time, it will be the best of times for people in the Antiques & Collectibles Industry. The signs of it have already emerged, and Cindy is busy putting together a 31 Club Newsletter that will soon go out to our members about this very topic. If your 31 Club can continue to stay ahead of the pack, then we'll able to fill our coffers before others get started, won’t we?

Today, I’ve decided to post my April 18th article, with its link, as today’s Blog entry:

Inflationary Times Good for Antique Dealers, Collectors and Families

Daryle Lambert

With news of inflation heading in an upward direction in energy and food, is anyone really at all surprised? My family has been feeling it for almost a year now. When the newscasters give us the latest figures, do they truly believe we need them to announce it to us? We all go to the grocery store and the gas station and can put two and two together. We know there’s inflation, but this period of time might be just what's needed to revitalize our families, as well as the Antique and Collectible Markets.

When money is tight, families will likely spend more time together cleaning out their houses of unwanted junk, and be especially on the lookout for items that might be of value. We’ll probably see an increase in the number of garage sales and an increase in items coming up for sale at auction houses. Isn't this just what we need? I believe this period of time will be like a child going into a candy store. There will be all sorts of candy for us to choose from, and the knowledgeable antique dealer will always spot the best. Our goal at the 31 Club is to make our members one of the best. For those of us who want to make money selling antiques, collectibles and fine art, the time couldn't be better. The weather is improving, and soon the kids will be out of school. Be sure to include them in your treasure hunting plans because all the children that I've run across enjoy going to sales. Often my children have pointed me in the direction of some real treasures.

Aside from these upcoming hard times being good for those of us in the antiques industry, I believe it will be a good time for family. When a family’s gasoline bill out paces their mortgage payment, it makes sense people will be spending more time in their homes with family and friends rather than running all over the country looking for fun, dining and entertainment. We’re likely to go through a period of nesting, as the cost of going out for a simple hamburger will likely cost more than some are willing to spend. Eating at home may become a necessity rather than a chore. Driving around the block a couple of times just to clear our heads could cost you big on gas, so we just might have to head down to the basement and begin working at that workbench we forgot we owned in order to clear our heads. Maybe at that workbench, we’ll be able to construct a toy for our kids, or teach our children something about building.

Days of reading together, cooking together, enjoying family meals while discussing the day’s events, watching educational television and family shows together might just be a great remedy for what seems to ail us. We might even find that walking together after dinner and getting to know our neighbors could bring us amazing joy. Imagine that!

Rather than finding it necessary to continually looking for entertainment outside the home, the hike in prices can produce interest in family events and the sharing of common interests again and again. Like Collecting. Collecting is likely to become more popular, and from this interest, groups will be formed and deeper relationships forged.

Parents might even participate with their children, once again, in hobbies such as stamp and coin collecting. Some of my greatest joys are now coming from talking with my nine-year-old son about Show Globes, Foreign Coins, Webkinz and Nascar. This is a great way for us to spend a quality afternoon or weekend. Many people were writing off the Antique and Collectible business, concerned that there were no new collectors, and that the youngsters had no interest in anything that didn’t scream high tech. But, this tightening of the family budget may produce the next crop of antique and art collectors.

If this sounds like what goes on in the town of Mayberry, and Andy and Aunt Bea might be stopping over momentarily with a delicious out-of-the-oven apple pie to share with you,would that really be all so bad?

I truly believe that in addition to being good for the Antique and Collectible Business, the hard times ahead can be good for our families. By staying home and working together, money is saved and a real sense of joy and pleasure will return to our homes once more. No longer will we have to settle for the artificial pleasure that the world had convinced us we couldn't live without.

These times seem to be returning, not by choice, but out of necessity. These changes in our lifestyle may leave us with withdrawal symptoms for a while, but in truth, it might be just what we need to get our sanity back. When we do, I’m guessing we’ll feel like we’ve found heaven on earth. When you get off a spinning merry-go-round, it’s often very difficult to keep your balance. But once we keep our feet planted firmly for awhile, it sure is going to feel great. What a great time this can be to reflect upon, and see through clear eyes, what a wonderful and magnificent world God created. And just maybe we'll find some good antiques, too.

Stay ahead of the times and get there before the crowd. Join 31 Club today. Can you get FREE MENTORING anywhere else but here?

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LINKS:

Daryle's Article
Inflationary Times Good for Antique Dealers, Collectors and Families

AOL Article
People Sell Belongings to Make Ends Meet
http://news.aol.com/story/_a/people-sell-belongings-to-make-ends-meet/20080430090909990001