eBay

american-photography · ‎04-27-2024

How can Ebay continue to raise fees for sellers while traffic and sales decline and so much competition is out there?

Example For Sellers:

Mercari sellers pay 0% fees. Cash out fees: $2.00 per direct deposit or $3.00 per instant pay transfer.

Ebay sellers pay $0.35 after free insertion fees and in most categories minimum 13.25% - 15% FVF plus store fees, promotion ad fees, and other upgrade fees.

Example For Buyers:

Mercuri buyers pay 2.9% + 0.50 payment processing fee.

Ebay buyers pay 0% fees.

mam98031 · ‎04-28-2024

@sumsum70 wrote:
I didn't bother reading the 4 pages of replies as I know this kind of topic brings out the propaganda squad.

I don't know anything about Mercari, but I can say it definitely seems like "and others" is eating eBays lunch!

You are jumping to conclusions without even taking the time to read the info provided here. If you read the thread, all of it, you'd see this isn't true.

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

slippinjimmy · ‎04-28-2024

@mam98031 wrote:
@sumsum70 wrote:
I didn't bother reading the 4 pages of replies as I know this kind of topic brings out the propaganda squad.

I don't know anything about Mercari, but I can say it definitely seems like "and others" is eating eBays lunch!
You are jumping to conclusions without even taking the time to read the info provided here. If you read the thread, all of it, you'd see this isn't true.

If "and others" includes Temu (I don't think they have been specifically referred to in this thread) then it's absolutely true.

Temu may not directly affect eBay sellers in the vintage, used, collector type categories but in terms of taking a big bite out of the eBay total GMV it's a serious threat. In comparison Mercari is just a tiny annoyance.

The other site to watch is Shein (basically fast fashion/clothing), some estimates put their GMV at $40b for 2023

The big question for the "big 3" (Amazon, Walmart, eBay) is if those lost buyers still come back for the stuff that is not available from Temu, Shein et al or will they have spent all their money on trinkets from over there.

As for Mercari, they remind me of the failed Alibaba attempt to make inroads in America (anybody remember 11 Main?). Both were dominant in their domestic markets but could not gain traction in the US.

mam98031 · ‎04-28-2024

@slippinjimmy wrote:
@mam98031 wrote:
@sumsum70 wrote:
I didn't bother reading the 4 pages of replies as I know this kind of topic brings out the propaganda squad.

I don't know anything about Mercari, but I can say it definitely seems like "and others" is eating eBays lunch!
You are jumping to conclusions without even taking the time to read the info provided here. If you read the thread, all of it, you'd see this isn't true.
If "and others" includes Temu (I don't think they have been specifically referred to in this thread) then it's absolutely true.

Temu may not directly affect eBay sellers in the vintage, used, collector type categories but in terms of taking a big bite out of the eBay total GMV it's a serious threat. In comparison Mercari is just a tiny annoyance.

The other site to watch is Shein (basically fast fashion/clothing), some estimates put their GMV at $40b for 2023

The big question for the "big 3" (Amazon, Walmart, eBay) is if those lost buyers still come back for the stuff that is not available from Temu, Shein et al or will they have spent all their money on trinkets from over there.

As for Mercari, they remind me of the failed Alibaba attempt to make inroads in America (anybody remember 11 Main?). Both were dominant in their domestic markets but could not gain traction in the US.

All very good points to be sure and I agree with you, there is the most danger for sites like Ebay.

Some just are so excited about Mercari's fee structure change since most sellers won't have fees, they think it is a huge success in just 30 days for some reason. When the facts are simply that it is way too soon to tell. Wishful thinking is in play here big time.

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

stainlessenginecovers · ‎04-28-2024

ah...Mercari. The 'Yugo' of the 'internet selling world'.

chapeau-noir · ‎04-28-2024

@sumsum70 wrote:
I didn't bother reading the 4 pages of replies as I know this kind of topic brings out the propaganda squad.

I don't know anything about Mercari, but I can say it definitely seems like "and others" is eating eBays lunch!

You didn't read the thread and know nothing about Mercari...I'm not sure where you're going with that.

“The most common way people give up their power is by thinking they don’t have any.”
— Alice Walker

#freedomtoread
#readbannedbooks

reallynicestamps · ‎04-28-2024

Whatever happened to Wish? They were a Big Deal and then a sarcastic meme last year.

dbfolks166mt · ‎04-29-2024

Absolutely this. When Mercari implemented this change a month ago I listed a ton of stuff on their platform to try to take advantage. You know how many sales I've made? 0. Not a single one. Meanwhile, my daily eBay sales have continued without a hitch. Mercari is a joke & they are about as much competition to eBay as a childs lemonade stand is to Coca Cola

I remember when people used to say the same thing about foreign cars not being able to compete with GM, Ford and Chrysler. That claim has resulted in Ford only making 1 car model, the Mustang, since 2021 and both Chrysler and GM have filed for Chapter 11 bankruptcy.

Things change keep your eye on Temu.

sumsum70 · ‎04-29-2024

You didn't read the thread and know nothing about Mercari...I'm not sure where you're going with that.

Well let me make it more clear for you:

1) I didn't need to read the entire thread to know that the title would bring out the defenders of eBay. I chose not to wade through all of the drivel.

2) I have never attempted to use Mercari even though I have heard of it and have heard of it's recent fee changes. It has never seemed like a place that my items would sell on. I could be wrong, but haven't tried it yet. In other words, I don't know if Mercari is eating eBay's lunch.

3) Over the past several years, eBay has become more like the China junk mall. Well, someone found a way to be a better China junk mall and advertised heavily to make sure everyone knows it. Temu is absolutely eating eBay's lunch.

4) Regarding some of the products I sell, I started using FBMP and get more sales that way than I do on eBay. I pay no fees and my buyers get lower prices. If it's working for me, I guarantee you it is working for a lot of other sellers. I don't know if FBMP is eating eBay's lunch, but it is definitely taxing their fries.

my-cottage-books-and-antiques · ‎04-29-2024

@sumsum70 I think the OPs question was centered on Mercari's recent fee change, and whether it would force ebay to take similar action. As I said in my answer, I think it is way too soon to say whether the fee change will really be successful for Mercari or not. I personally think, by the time things shake out, we will find it hasn't been the disaster some Mercari sellers are predicting, but I'm not sure it will be quite the success Mercari is hoping for either. So: ebay will watch and respond if necessary, but so far, I think watching is the extent of ebay's response.

All that said, if we treat the question more broadly: are ebay's competitors having a serious impact on ebay's business? My answer would be "yes". ebay is far from dead, but many of its younger, nimbler competitors are gaining ground rapidly. It is possible that no one site will "replace" ebay, but collectively, millions and millions of dollars worth of items, especially in ebay's former sweet spot of pre-owned and vintage, are being sold elsewhere. Not too many years ago, those transaction would have been here.

If Wenig had not insisted on competing with Amazon, but instead had concentrated on solidifying ebay's position as the Number One site for used, etc, ebay would be MUCH stronger today. But Wenig spent years wasting time and Iannone has spent way too much time and focus on his pet Focus Categories and generating ad revenue.

Just one example: I just saw that one of the speakers at last year's ebay Open (and I think an Up and Running grant recipient) announced her first WhatNot Live show coming up. ebay has had its carefully controlled version of Live Auctions for a while now, but average ebay sellers who would like to do live auctions have little choice but to take their business elsewhere.....waiting for ebay to release this tool to the rest of us is an exercise in frustration.

ebay hasn't really released a new Focus Category in ages. It feels like they are completely unsure of what direction they are now headed---but as long as they keep talking happy talk about AI, they can maintain their stock price...for now.

Obviously, I have no inside information, but it feels like management is floundering, unsure of their direction, and , even if they have decided to place more emphasis on a c to c business, they don't seem to have a clear idea how to do that. Sellers have been providing good advice about that for years, but ebay simply ignores it.

ebay is basically maintaining its own status quo, but the growth in pre-owned is happening all around ebay, not so much ON ebay. And, having bowed out of the Amazon contest, pre-owned is where ebay needs to make its mark. ebay is the "OG" (as the kids say) of pre-owned ecommerce, but Wenig frittered that advantage away, and Jamie has done all too little to secure it.

Only time will tell whether ebay can actually start to grow---really grow---- again.

dolcetreasures · ‎04-29-2024

The amount Chinese counterfeits on eBay has started to increase recently. Just search “polo Ralph Lauren” you’ll see all the “Asian market Polo” which is another way of saying “fake”, all coming from Flushing. I can visibly see the items are fake. It’s impossible to compete with those prices, I can’t even buy these items for that price discounted with employee pricing.

Same goes for all the counterfeit Ferragamo wallets coming from Hong Kong. eBay just lets these sellers prosper peddling their fake merchandise because it sells by the droves.

brightlightbookseller · ‎04-29-2024

No, no one else is eating eBay's lunch. Mercari and FB Marketplace are great places to list stuff you don't actually want to sell. Amazon has far more restrictions on what you can sell in the first place. eBay is relatively unique as a venue still, and still has far more visitors than most other sites where you can sell collectibles in particular.

my-cottage-books-and-antiques · ‎04-29-2024

@brightlightbookseller

I think the problem ebay faces is that COLLECTIVELY, the competition is hoovering up a lot of the sort of stuff ebay has been known for: vintage, collectibles, used stuff. Younger buyers ---where the growth is---are gravitating towards those sites rather than ebay.

It isn't so much that ebay is rapidly losing this stuff, and just shrinking down to nothing, it is that ebay's growth should be coming from all this stuff that is not coming here. ebay has been struggling just to prevent a serious decline, but it has been unable to really grow its GMV ...yet the fact that millions of dollars worth of this stuff is selling on these other sites is the evidence that ebay COULD be growing , IF it could figure out how to attract these sellers and buyers.

Ebay isn't on the verge of collapse, but ebay is mostly treading water, and that is not sustainable for the long term. At some point ebay is going to need to really start growing again.