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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

31 REPLIES 31

CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon


@luckythewinner wrote:

@wheredidiputthatremote wrote:

Ch-ch-ch-ch-changes


I don't this changing anything for OOAK sellers.

 

@domin-tomas wrote:

Oh boy! Here we go again, another nightmare.


If you choose not to use it, what makes it a nightmare?


Lower raking in ebay's search is my guess.

Lift your left leg at midnight to start off on the right foot. Happy new Year!
Message 16 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

@greg5000 wrote:
 

 

  • eBay just found another thing to profit from ... and 2x, vs. helping Sellers become more profitable. (Seller's already pay a fee to eBay on Shipping Charges and now eBay will take a kickback from the Shipping & Logistics Companies). 
  • eBay will now have hand-in-the-game to direct you towards where they are profiting from (which may violate Consumer Protection Laws).
  • eBay will be making major changes to the site ... yet again (and we all know how those work out).

The highlighted part above? They're already doing that.

 

Why do you think they can "no longer punish visibility" of sellers with the 5% FVF penalty because they "need sales in order to bring their metrics up"? 

 

Then increasing the penalty from 4% to 5% made it clear earlier this year.

 

Same thing with Top Rated Sellers. They change it so the Top Rated discounts are harder to get, and certain discounts are Top-Rated only. Then guide buyers to listings that do NOT have those discounts! Effectively making Top-Rated somewhat of a penalty rather than a total benefit.

 

Dropping out of Top Rated used to be a nail in a coffin. Now they're guiding traffic specifically to some sellers that can't keep Top Rated (in addition to giving them special treatment).

 

And the AI search. This is the intent of the AI search. It's clearly not making it "easier" to find your items. Instead, they're funneling traffic so that buyers purchase what eBay wants them to purchase. With "trending rates" that are clearly falsified as they claim those rates are higher on listings that don't even have any competition.

Message 17 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

Get ready, sellers costs will be going up.

The Race is over
The Rats won.
Message 18 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon


@laurabeardsley wrote:

This will only be used by big box stores or sellers of large amounts of same type items. They want the sellers to pay to have their items stored and boxed and shipped at a discount rate? At least this is my take on this. So for sellers on a smaller scale of antiques ,etc. it will be of no use and shipping will stay ridiculously high!


Any big-box will have their own setup to drop ship.

 

And what 'logistics partners'? They sold off GSI, which would have been the place to do this. So what - are they going to use the valet warehouses? They can't pack a rock so it survives the trip.

 

Message 19 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

Oh so he wants ebay to be more like Amazon, how novel is this?

Message 20 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

I was wondering about your point like Adidas.  Why would Adidas outsource shipping, storing and packing to ebay when they likely already have their own facilities and employees in place?  Could it really be cheaper to have ebay do it?  I am not sure I understand how ebay is going to do it cheaper than doing it yourself.  

 

I doubt this applies to companies like Adidas.  More likely it applies to overseas companies that would like to have their items shipped from the USA to speed up shipping times and to make it look as though their product is from the USA.  Ebay really should consider a "Fulfilled from ebay from overseas"  Or something to let customers know the product they are buying comes from China and that it in no way supports a local business or even United States business. I think this distinction should be done because it is Ebay USA. They should make a second ebay called EBAY USA China.  People can shop there if they want cheap chinese junk at 10% of the price.

Message 21 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon


@brettyg599 wrote:

I was wondering about your point like Adidas.  Why would Adidas outsource shipping, storing and packing to ebay when they likely already have their own facilities and employees in place?  Could it really be cheaper to have ebay do it?  I am not sure I understand how ebay is going to do it cheaper than doing it yourself.  


I can't speak specifically about Adidas, but many large corporations use 3PL, which is jargon for third party logistics.  Like many corporations, Adidas is merely a brand.  Adidas probably does the advertising and promotions to  create the brand, but leaves manufacturing and logistics to third parties.

Message 22 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

Right. 

 

Were already getting stuff to buyers faster than amazon gets us goods yet this will somehow make us even harder to find in search I bet because amazo, I mean ebay will be pushing these listings to customers searching for what we have. What we have wouldnt work in fullfilled by anyone but us, let alone, Im sure there will be some terrible snafus.

Does ebay makes its employees sign non disclosures? It really has to be hard to get people to do all of this stuff above board.

Message 23 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

@zamo-zuan 

You are writing a couple of things in this post that I was wondering if you could expand upon.

 

 

@zamo-zuan wrote:

 

Why do you think they can "no longer punish visibility" of sellers with the 5% FVF penalty because they "need sales in order to bring their metrics up"?

Did a blue say this?  I haven't seen anything specifically that would indicate that visibility was punished simply because one is now penalized with the extra 5% FVF.  However, the eBay User Agreement says that visibility can be impacted by "seller's history, including listing practices, Detailed Seller Ratings, eBay policy compliance, Feedback, and defect rate".  This list is mostly about customer service stuff, as are seller metrics.  So, I assume that poor seller metrics could impact one's visibility just like all the other customer service measures ... I haven't seen any evidence one way or the other, and I haven't seen an eBay employee suggest something either way.

 

Dropping out of Top Rated used to be a nail in a coffin. Now they're guiding traffic specifically to some sellers that can't keep Top Rated (in addition to giving them special treatment).

Ummm ... what?  I'm not sure what you are trying to say with this statement.  These days, TRS is just a package of mostly token benefits (although in October it could get much better if those seller protections are real).  I don't think eBay is using TRS to give more visibility, and they certainly are not using TRS to punish sellers.

Message 24 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

Fwiw, probably just a guess, but the "advertising" (fee) revenue is what's growing like crazy for eBay now.  Management isn't even pretending they plan to grow US gmv, so they are 100% locked into more and more fee income from sellers to keep wall street happy. So things like sales from large fee listings (penalty & promoted) are going to be a continued priority. 

Message 25 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

OP, what's frustrating is that AMZ FBA sourcing, logistics and finances, plus the scale required to be successful are so different than anything 99% of eBay sellers do.  Folks on the inside don't seem to realize they're not interchangeable business models. 

Message 26 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

This could be a way to verify that your item was in good condition before shipping to the buyer. This protects you from “empty box” scams, or at least puts the blame on eBay. Could they verify it was working and the right item before it’s sent and protect you from INAD claims?

I would need more details, but if they protect you from scams I could see a use for it.
Message 27 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

@orangehound wrote:

@zamo-zuan 

You are writing a couple of things in this post that I was wondering if you could expand upon.

 

 

@zamo-zuan wrote:

 

Why do you think they can "no longer punish visibility" of sellers with the 5% FVF penalty because they "need sales in order to bring their metrics up"?

Did a blue say this?  I haven't seen anything specifically that would indicate that visibility was punished simply because one is now penalized with the extra 5% FVF.  However, the eBay User Agreement says that visibility can be impacted by "seller's history, including listing practices, Detailed Seller Ratings, eBay policy compliance, Feedback, and defect rate".  This list is mostly about customer service stuff, as are seller metrics.  So, I assume that poor seller metrics could impact one's visibility just like all the other customer service measures ... I haven't seen any evidence one way or the other, and I haven't seen an eBay employee suggest something either way.

 

Dropping out of Top Rated used to be a nail in a coffin. Now they're guiding traffic specifically to some sellers that can't keep Top Rated (in addition to giving them special treatment).

Ummm ... what?  I'm not sure what you are trying to say with this statement.  These days, TRS is just a package of mostly token benefits (although in October it could get much better if those seller protections are real).  I don't think eBay is using TRS to give more visibility, and they certainly are not using TRS to punish sellers.

For the first question, it was a response awhile back, possibly last year around when they started the FVF penalties? I don't recall if it was on the forum or in one of the chats, but basically it was stated that they can't punish poor return metrics because doing so would make it so they would never be able to have a chance to remove a penalty. They need to be able to get sales in order to bring the metrics up.

 

Now the thing is, they USED to punish visibility for poor metrics. Or alternatively, you might want to word it as "reward sellers for positive metrics". As of the 5% FVF penalty, they no longer do it, and you can see it in search. Some of the manufacturers we're partnered with have the 5% penalty and showed there was no change in traffic after they had to bring their prices up, and in some cases had increased traffic after bringing their prices 5% HIGHER.

 

Regarding TRS, they USED to have a very big penalty once you dropped out of TRS. We had it happen on an alternate store a few years back that exclusively sold Drones, and as soon as you drop status, your listings go from page 1 to page 3. EBay still said the item was Sales Rank #1, yet it did not appear on the first 2 pages. 

 

You're able to see which sellers have top rated or not, and we can just do a search now to see that many items that show up high on search ARE NOT top rated sellers. It's something you can verify yourself without having to network with any other stores to see their results, we can see it with a quick search.

 

It's a lack of quality control. If we assess why, it seems to be that the common denominator that the places quality control are lacking, happen to be places that eBay gets more profit from.


Another thing I should mention, when I made a large post when first becoming active on the forums here last year, around that time I was told by a supervisor of the Utah CSR office that there's a "risk level" associated with sellers accounts. That includes reasons NOT in the eBay User Agreement. People in the topic asked for blues to comment, as it seems shady that they're punishing people for things not stated in the agreement. They said they would look in to it. But then the mod looking in to it went on vacation, and handed it off to other blues. Which ended up saying that we were "now being treated fairly" (which was nice that we could have some confirmation on eBay's side that what I was saying was the truth), but at the same time, they didn't give a clear answer to the question. Basically saying something along the lines of "We take many things in to consideration" but avoiding giving any actual answer. And we never got a clear answer as to what the supposed "violations" the supervisor claimed we had counting against us, as he never sent any violations or dates to us (and days earlier we were told there were NONE). 

 

In regards to your final question, what I'm saying is they get higher fees sending people to listings that don't have top rated discounts. As mentioned, losing TRS used to be a substantial penalty. This is no longer the case, and search guides people to those TRS listings, even though they are most certainly not the best options for a buyer to purchase.

 

TRS was *always* traditionally used alongside sales history for keeping quality control strong for buyers, and boosting sellers in search as a reward for good metrics. Nowadays it's not the case. It's most certainly NOT better for eBay customers, and not better for the strength of the eBay market. The only place we can see this being an advantage at all, is for eBay's profits.

Message 28 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon


@wheredidiputthatremote wrote:

@zamo-zuan wrote:

Yeah... Managed Shipping will be a "great way to fight Amazon", because offering what Amazon offers, except with slower delivery speeds, has led to so much eBay growth within the last year and a half.

 

Meanwhile, back in reality, Managed Shipping is offering 3 day or less shipping. Exactly the same as what Guaranteed Delivery offers right now


I really wish Ebay would go back to their grass-roots as being the original Uber of E-Commerce.


eBay is like a bad E-Scooter company who came to town without permission, planted their scooters wherever they wanted to, didn't listen to the residents, and did whatever they wanted to.  Smiley Surprised

Message 29 of 32
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CEO of eBay explains how offering its own shipping service will be a profitable way to fight Amazon

Could be a lot cheaper if they have ROBOTS picking, packing, shipping. Shouldn’t be long Ebay can buy its own products to sell to everyone. Sellers won’t be needed any more. Sellers have put together a huge catalog of every item available to sell and selling costs. Hmmm. Just a thought.

“Starting tomorrow whatever life throws at me I’m ducking so it hits somebody else”
Message 30 of 32
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