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Main Reasons eBay Businesses Fail?

What would you say are some of the main reasons eBay businesses fail? You can break them down into top 10 if you want. 

 

I think this type of info can help people to learn what to avoid doing. 

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Main Reasons eBay Businesses Fail?

They are attempting to sell the same items that thousands of established sellers already sell....same as b&m stores.  You have to find a niche, something no one else offers.  Clothes, costume jewelry, books--tubs of them are for sale at flee markets and garage sales for a penny each.  Everyday items--Walmart and all the dollar stores can't be beat and you are getting new not used.  Does anyone really want items you have laying around the house when they can buy them new for a $.

Message 31 of 91
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Main Reasons eBay Businesses Fail?

Its 13% whether its in shipping or extra sale price. You should build in the 13% .
Message 32 of 91
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Main Reasons eBay Businesses Fail?

@uncseniorsportsfan 

Having had a brick and mortar store before selling on eBay, I was far more in control of my B&M business than I have ever been on eBay,

 

To some extent, eBay is like having a shop in a large mall.

Not the competition, but the rules the mall has for the shop owner.

Hours of operation, charges for cleaning, signage, fees for parking lot, fees for garbage collection, fees for insurance (beyond your own shoptheft and shrinkage insurance).

And fees for mall publicity and advertising.

 

We considered going into the glitzy new downtown mall at one point in our business planning, from a shop on a downtown shopping street.
They promised us space on the "high end fashion and jewelry" level.

The killer was being open seven days a week, 9 to 9. 

A family run business just can't do that. Only a business that is staffed.

 

Instead we chose a pedestrian mall where our landlord's main interest was that the rent got paid in time.  Set our own hours, did our own advertising (national not local like the glitzy mall).

 

EBay is a mall. They have their own rules and want a "look" to the site, which they believe will be most beneficial and profitable for their shareholders.

And eBay is the 10th most profitable website in the world.

So they might be right.

Doesn't mean it fits your particular needs or mine.

 

 

 

 

Message 33 of 91
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Main Reasons eBay Businesses Fail?


@flo_mingo wrote:

@greg5000 wrote:

@back-spin wrote:

What would you say are some of the main reasons eBay businesses fail? You can break them down into top 10 if you want. 

 

I think this type of info can help people to learn what to avoid doing. 


I think the Number 1 Reason is eBay.

 

They are not listening to their Customers.


That's my answer too.Number 1 Reason is eBay.

I have been here since 2003, Kept up with updates and new  policies. Listened to eBay radio learned the best practices for product , pictures, listing, and shipping. I offer great customer service. I am doing everything right. eBay is doing everything wrong, Mandated GTC, HATE IT, Search matrix doesn't work, eBay advertises chinese junk in my store listing that I pay for. It easier to find an item  with a google search rather  than searching on eBay. Podcasts are now a joke. eBay executives "dropping in" to tell us what a great job they are doing, if you don't like policies it is because you are a dinosaur, " yard sale" seller and they would like all of the OOAK sellers to leave .... and we are. 


Still reading through all the replies while drinking my morning coffee.

 

So far, your overall summary is the #1 Most Accurate.

Message 34 of 91
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Main Reasons eBay Businesses Fail?


@back-spin wrote:

What would you say are some of the main reasons eBay businesses fail? You can break them down into top 10 if you want. 

 

I think this type of info can help people to learn what to avoid doing. 


Sellers with no business plan and no customer service skills, and lack of desire to learn the required skill set and the ins and outs of the site before listing.

Message 35 of 91
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Main Reasons eBay Businesses Fail?

I would be willing to bet accounting sinks a whole lot of stores.
Good Moms let you lick the Beaters.

Great Moms turn them off first.
Message 36 of 91
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Main Reasons eBay Businesses Fail?

That's one thing I have been working on all week.  I have great accounting and I know where my pictures and data are.

 

But I realized I have a ton of plates in drawers and boxes with no spreadsheet telling me who is where.  Eight drawers and seven boxes of plates later and I'm  done and beat.

Good Moms let you lick the Beaters.

Great Moms turn them off first.
Message 37 of 91
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Main Reasons eBay Businesses Fail?

Also taking things personally and letting your emotions get in the way.

Sellers need to separate themselves from their business. When a customer complains, be a robot, have pre-written replies.

Self insure! Set aside a portion of every sale to cover any bad transactions.

Understand, eBay is a corporation. eBay has no empathy or or emotion. Don't expect the company to give a rats patoot about you and your emotion needs.
Message 38 of 91
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Main Reasons eBay Businesses Fail?

My Number 1 is eBay

 

eBay who doesn't help people.  How many millions of times have you told someone about the Resolution Center?  eBay who DOESN'T TEACH, DOESN'T HELP AND DOESN'T LISTEN. 

Good Moms let you lick the Beaters.

Great Moms turn them off first.
Message 39 of 91
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Main Reasons eBay Businesses Fail?

@craftyjojo1220  - OOAK= One Of A Kind 🙂  

 


@craftyjojo1220 wrote:
What does OOAK stand for?

 

I am a founding member of the eBay Community Expert Group: a USA volunteer mentor with over a decade of experience. I am not an eBay employee.

Live simply. Care deeply. Love generously. Speak kindly. Laugh loudly. Act responsibly. Rejoice daily. Help cheerfully. Plan carefully. Criticize sparingly. Invest wisely. Forgive willingly. Shop seriously. Play fairly. Learn graciously.
Message 40 of 91
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Main Reasons eBay Businesses Fail?

1.  Not keeping up (lack of agility, lack of keeping updated on policy and changes).

2. Expanding too quickly.


When you dine with leopards, it is wise to check the menu lest you find yourself as the main course.

#freedomtoread
#readbannedbooks
Message 41 of 91
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Main Reasons eBay Businesses Fail?

My brick and mortar store was a one person thrift and gift consignment store - not something suitable for a mall especially since I was only open 5-6 days per week from 10-6 and didn't even accept credit cards.   I was located between a bar and an insurance agency/massafe parlor - across the street from a fire station, a post office,  and a center for social services.    My landlord had his law offices above my shop. 

 

I was there for four years and business was good - supplemented by eBay the last two years.   Unfortunately, my landlord who owned all the buildings on the block passed away, and his children sold the buildings to a developer.   They paid us to terminate our leases, but rents in the area had skyrocketed, and I didn't want to start over in another location so eBay replaced the store.   Business on eBay was good until 2008 when sell through rates tanked from 90% to 20% over 18 months - then it levelled off until March 2019  when the downhill slide began again.   I consider myself lucky that I was able to start drawing Social Security in 2008, and didn't need a steady income from eBay.  

 

Because of all the policy and marketplace changes,  and  I no longer sell higher priced items on eBay - there is no way I would rely on today's eBay to pay any of my bills.   

 

 A word of advice, if you are looking for a steady income expand to other sites.  Even if you are willing to pay to to play all of  eBay's new games (and I am not) - there is no guarantee that your eBay business will survive whatever eBay has in store for the future.   

Message 42 of 91
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Main Reasons eBay Businesses Fail?

 

I haven't read all the responses on this thread.

 

The main reason eBay businesses fail,

is the same reason all businesses.. through out history, have failed.

A few business classes, either online or in college, can teach you this.

 

And for eBay specifically?

(or any other eCommerce business?)

 

Not coupling sound, basic business knowledge with

the specifics of the platform (website) you sell on.

(and the specifics of the payment processor / Paypal or whoever)

 

Lynn


Lynn

You love me for everything you hate me for


.
Message 43 of 91
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Main Reasons eBay Businesses Fail?

And then you need to consider your overhead costs,  which include shipping materials i.e. boxes, poly shipping bags, foam peanuts, bubble wrap, tape,  shipping labels, printer ink, driving to drop off large parcels to carriers.   Not everything is going to fit in the free carrier boxes or envelopes. I have a small store so I have those monthly fees, but I do get some free shipping materials.  But I still have to purchase the bulk of them.  I do recycle clean reusable materials from my purchases such as the foam peanuts and new boxes.

Message 44 of 91
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Main Reasons eBay Businesses Fail?


@back-spin wrote:

What would you say are some of the main reasons eBay businesses fail? You can break them down into top 10 if you want. 

 

I think this type of info can help people to learn what to avoid doing. 


Not all EBAY sellers are having a bad time of it.   Blaming all troubles on EBAY,  USPS,  PAYPAL,  bad buyers, dishonest bidders,  SNAD,   MBG,  ETC,  ETC is an over simplification of this issue.

 

#1 reason EBAY sellers fail?       Failure to adapt.    

 

Roll with the changes,   Adapt or fade away.

 

Some EBAY sellers are seeing a steady and constant year to year growth.   

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