ebay "can't keep increasing their take rate without eventually reducing sales and seller quality".

[isaiah53-57]

Here is a very interesting opinion article discussing ebays viability as an investment grade stock - The author denotes the entity as a "Value Trap" since on the surface it appears to be undervalued and has at least put forth a strategy to get the company back on track - but due to its current and past stagnant or declining growth; the unprecedented loss in year-over-year active buyers from 185 million to 137 million; and the unsustainable trend of monetizing the site through higher rate take, the company's current trends are cause for caution.

https://seekingalpha.com/article/4539902-ebay-stock-value-trap-poor-growth

An interesting quote for sellers taken from the article:

"....profitability gains are largely from increases in take rate. The company is increasing its cut of transaction revenue to compensate for lower gross merchandise volume and declining user numbers.

Yes, this may boost financial performance in the short term. But I don't think this is a sustainable strategy. The company can't just keep increasing their take rate without eventually reducing sales and seller quality."

Essentially postulating that it will cost you more to sell less on the site - an unsustainable strategy - I can only wonder when the people who run the show will do something BOLD that will create a stir to regain a market share foothold and be beneficial and sustainable for ALL? It seems to me thats what needs to happen at this point.

[animesalesandmore]

Yep ebay designed this system knowing that they will over time make more money. 

[isaiah53-57]

---

@animesalesandmore wrote:

Yep ebay designed this system knowing that they will over time make more money. 

---

That may be what they think, but according to the article and the laws of economic growth, they are painting themselves into a corner with unsustainable strategies.

[heckofagame]

How does the eBay "take" compare to other sites with comparable customer exposure?

[isaiah53-57]

---

@heckofagame wrote:

How does the eBay "take" compare to other sites with comparable customer exposure?

---

What does that matter? - Actually, I'll answer that for you... It doesnt... ebay is the one in decline while the others are reporting reasonable growth - they need to do something different rather than seek to increase their take to 30+% of an items selling price in order to continue to show growth and profitability.

[heckofagame]

They do not take 30%. If you think they do, please show your math.

[my-cottage-books-and-antiques]

@heckofagame 

I don't have a cite for this, but the most recent stat I saw was ebay is at 12% and etsy is at 20%. 

[luckythewinner]

ebay "can't keep increasing their take rate without eventually reducing sales and seller quality".

It seems logical that this strategy will eliminate the sellers with the smallest margins. But I am not sure that small margins and "seller quality" necessarily coincide.

I am just grateful that most of eBay's take rate increases have come in the form of optional programs like Promoted Listings, which I do not need and that really do not impact my core inventory.

[isaiah53-57]

---

@heckofagame wrote:

They do not take 30%. If you think they do, please show your math.

---

Wow... Nice that you twist that to your liking - First off, I DID NOT SAY they take 30% - I said they are increasing their take to 30+%.

And Second, there are posts on this board RIGHT NOW where people are claiming to pay 30-50% of the items selling price. Here is an example(I will round figures for ease of use).

Seller sells sleeping bag for $30 and pays $15 to ship with sales tax of $2.50 - Total sale = $47.50.

Seller Decides to Promote at 10%(seeing other posts where ebay is recommending 8-10% promotion rate). Seller Pays 10% promotion fee of $4.75, a FVF of $6.13 and a Transaction fee of .30 cents = $11.18 cents in fees.

That is 37.27% of the items selling price.

[collectfest]

Agreed. I ask fellow buyers and sellers of antiques what you have bought from eBay in the past few years.

I can only speak for myself. Purchases in 2022 quality antique 3 sad

2021 quality antiques 21.

2020 quality antiques 30

Sales, I won't even go there, power seller basically from whenever it started to last year (I began 1999), lost it last year should get it back This month. 

The only thing I will add is that it's not just the fees, ITS THE SEARCH, PAY TO PLAY. Good antique sellers who would use eBay because it's simple easy to list are/have left, laughing, I don't need this silliness (insert your favorite cuss word).

Really search antique bird carving 26000+ most not antiques, click USA location drops to 2500!!!! are you kidding click auction 144. Do you think a serious collector is going to commit to buying antiques with this silliness. Folks are looking for more than 1952 topps mantle and Nike and iPhone etc

So, I am going to stick it out on eBay. Going to really try to have laser focus. I am coming to believe that the best item to sell is an item I pay 1 to 5 dollars can sell at 100 with a 50% pay to play fee, sorry promoted listing.   

[luckythewinner]

---

@heckofagame wrote:

They do not take 30%. If you think they do, please show your math.

---

It makes absolutely no sense to talk about the percentage that eBay takes unless you indicate WHAT the percentage is taken FROM. 

eBay does not take 30% of the total payment.

But eBay can easily take 30% of the item price.

[heckofagame]

The promotional fee is totally optional. Theoretically, if you boost the promotional fee high enough, you can claim that they will take 100%.

[isaiah53-57]

---

@luckythewinner wrote:

ebay "can't keep increasing their take rate without eventually reducing sales and seller quality".

I am just grateful that most of eBay's take rate increases have come in the form of optional programs like Promoted Listings, which I do not need and that really do not impact my core inventory.

---

If this article is in any way shape or form good cause for current and/or future concern, then it DEFINITELY affects your core inventory - If buyers continue to leave because of poor business strategies, you will be affected - EVERYONE on this site is affected by ebays ability to remain profitable with sustainable growth strategies.

[slati_2013]

I know for a fact, several power sellers, who have pretty much quit eBay and deal directly with customers they built relationships over the years directly. They keep a minimum amount of items on eBay and use that to attract customers. They do not want to pay all the fees associated with eBay, so I have to agree there is truth to the "seller quality" issue. 

It is easy to dismiss them as easily replaceable, but many of them sell specialized items and are not easily replaced. If you go through feedback of late, you will see many angry buyers upset at purchases they made. Mostly high end electronic and lab equipment. Many it seems do not know how to file for refunds and angrily vow never to use eBay again. Most of all, these are serious people who do not like their time being wasted.

So yes it matters that eBay tries to retain its best sellers and not replace them with bad sellers. 

[mandisattictoyz]

Because eBay’s take adding in fees to shipping and taxes are more than 12.9%.  Amazon and Walmart only take 15% on the item cost itself.  Not shipping, not taxes.  Therefore ebay is essentially taking more percentage in fees than amazon or Walmart.  Don’t forget, eBay only accumulates like 3% of the market, amazon is more than 50% and Walmart is like 20% or more.  So ya, ebay is essentially costing more in fees to sell waaaaaayyy less in price compared to amazon.  I can put an item up for sale on amazon for 2-3 times the price it’ll sell on here for