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eBay has struck a deal with the Web retailer Buy.com that allows the company to sell millions of books, DVDs, electronics and other items on eBay without paying the full complement of eBay fees.
The recent change is one of several under eBay’s new chief, John Donahoe, that is stirring rancor among the faithful who depend on the site for their livelihood. The deal with Buy.com has added over five million fixed-price listings to eBay.com since the beginning of the year. Since eBay’s search listings favor larger sellers who can add perks like free shipping, which improve their feedback ratings, Buy.com’s presence has hurt many smaller sellers that compete in those product categories.
This latest move will put the final nail in the coffin as far as I am concerned and it will be good riddance to eBay.
This is great opportunity for someone to introduce a real auction site for the millions of people who would still prefer it to eBay as it is now.
It definitely seals the coffin for small merchants that sell in computers & electronics. They pay higher prices for inventory, but since Buy.com has financial perks on eBay -- that makes it even more difficult to compete. Buy.com has a terrible customer service policy - they are not a good partner for eBay.
Auction format has been dead for almost 10 years now.
The auction format is still alive and well. eBay is just making it more difficult for the people who want to buy and sell via online auctions.
...not constantly monitoring your auctions to see if you'll win or not.
There are eBay-provided tools and a number of third party tools that prevent the need to constantly monitor.
You can check the graphs here, but BIN has performed above auctions year after year:
Last fee structure changed was specifically targeted at auction sellers. Those that had 100% sell-through rate were least welcome. At the same time, fixed price media (CD, DVD, video games) sellers got a sweet heart deal. I think you'll see with the upcoming fee change in 2008 Q3/Q4, fixed priced sellers are desired on eBay. eCommerce is still about value, but also about convenience which fixed priced is better suited for than auctions.
[edited by: lorax at 11:44 am (utc) on July 15, 2008]
What this situation does is open up an opportunity for a new auction site that does what it says on the tin. Or perhaps one of the many others that are operating in a smallers market place could grab this opportunity?