This is the second post in a series comparing characteristics of eBay to the U.S. Government. In the previous post, I compared the notorious bureaucracy of Washington, D.C. to the perception people have of eBay. Number two in the list is:
#2 - [tag]Taxes[/tag] = Fees
Basically we receive services for our [tag]eBay fees[/tag], similar to services we receive from the government for our taxes. Unfortunately, another similarity is that we're paying more for less, and the services are often broken. We have very little say in how those fees are used, and we're often disappointed in the choices made on our behalf.
Many people say, "[tag]eBay[/tag] is not a democracy." True, but people can vote with their feet. Some [tag]sellers[/tag] are leaving because they feel they are not getting their money's worth for the fees they pay. As mentioned in the previous post, old "hands off" approaches to the marketplace are giving way to tinkering and tweaking. Another example is what's happening to the idea of the "level playing field." Just a few years ago, eBay proudly told the [tag]community[/tag] that all sellers, big and small, pay the same rates. No one is treated to special quantity rates or the like. Now though, there is the rumor that some sellers will get better "rates" than others based on their sales volume. Just like the income tax system, the tier you fall into is based on whether you're big or small in the business world. This will encourage larger sellers to flood eBay with items that can be found everywhere else, further alienating those sellers that offer the unique items that made eBay a cool place to shop. When Jay Leno gives eBay free PR on his show, he never seems to mention the sellers that are offering xenon headlights or memory sticks. Will eBay eventually give different rates based on whether a seller is married, has children or drives a hybrid?
Another rumor is that eBay may adopt a new fee structure similar to Amazon.com. No (or more likely low) [tag]insertion fees[/tag], and a higher [tag]Final Value Fee[/tag] on successful transactions. Will that bring sellers back? It would eliminate a lot of the risk of expenses without a sale. But from the comments of disgruntled sellers, I don't think they'll come back. They are really, really upset with eBay. It would be too little, too late. Besides that, for new sellers, all the variations of fees and options are terribly confusing already. In part one of this series I talked about how hard it has become to use eBay. They do not seem to have the ability to make it simpler, just like the tax code.
The fees must keep rising though, because the expenses keep rising. What are some of those expenses? Pork!!
Read part three to find out.
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