Are Diamond Powersellers the Walmart of the eBay Community?

Since the early days eBay members have been referred to as a community. It really is a good moniker for the millions of people who trade with each other, help each other, and just get to know each other through eBay. Times have changed though, and the community is now taking on another characteristic of it's brick and mortar namesake.

The "Level" Playing Field

For many years, eBay has welcomed sellers of all sizes. Everyone paid the same fees, and played by the same rules. Much of the charm of eBay was the fact that small sellers could compete right along side big sellers, and everyone knew what everyone else had at stake. No one got special deals.

Additionally, if a seller -big or small- listed an item, it was pretty much expected that it would show up when a shopper searched for it. Search results were simple, not manipulated.

The community of buyers was kept in check by a feedback system that, while imperfect, helped the vast majority of members remain civil. The fact that the person we were transacting with could leave us a negative feedback comment made us think twice about being nasty to anyone.

The field is more level for some than others...

Things have changed. As eBay has matured, their philosophy has changed too. In an effort to please every little group that complains, or respond to every transaction gone wrong, they have taken a "we know what's best for you" approach to the community.

Just as government manipulates markets and social groups through legislation, eBay is doing it too.

  • Rather than let everyone pay the same prices, big business cuts special deals.
  • Rather than simply letting people find things unfiltered, eBay has begun censoring search results.
  • Rather than allow for the honest opinions of both buyers and sellers, eBay will only allow the seller's opinions if they are positive.

"We know what's best for you."

Buy.com and the Diamond Powerseller Level

Last Spring, the eBay community became privy to a special relationship between eBay and Buy.com. eBay won't release the details of this relationship, but many are of the opinion that it involves Buy.com listing hundreds of thousands of items on eBay for free - or nearly free. Sellers were scared of the big box store, flooding the site with merchandise. At eBay Live! in Chicago a new Powerseller level was announced that immediately had one member - Buy.com. That level is the Diamond Powerseller. The requirements are at least $500,000 per month, and 4.8 DSRs across the board.

The Walmart Effect

Walmart is the biggest retailer in the world. When they want to move into a town it usually causes a stir. Why? Because they have low prices, a huge selection, everything in one place, big parking lots, greeters, and on and on. Small mom and pop stores may specialize in one product line, they can't get their products at the same low-rate levels as Walmart. Walmart, whether perceived or real, has a reputation for crushing the little guys out of business. They are thought of as community killers in that they draw the business away from downtown to faceless, no-personality shopping centers.

eBay is inviting these same big sellers to their community. Just as when a Walmart moves to town, eBay is offering "incentives" to bring them into their community. They claim the benefits outweigh the drawbacks. eBay says the big box sellers will bring their loyal buyers along with them. This is supposed to spill over into the rest of the eBay seller community and help everyone make more. The problem is many sellers on eBay are selling the same merchandise as Buy.com. Will those small sellers be able to compete side-by-side with a seller that:

  • pays less for their products?
  • offers a big well-lit store with one-stop shopping?
  • has such a variety of inventory they show up virtually everywhere?

It's not likely. Besides - eBay has just not figured out that perception matters. If people FEEL like they cannot succeed due to the big sellers moving in, they will not succeed. They won't list on eBay.

Community Leadership

The difference with your real community, and the artificial eBay community is the leadership. Where you live, if Walmart or another store wants to move in, you can go to the city counsel meeting and stand up and speak. Your voice will be heard. If you don't like the results, you can vote the leaders out, and try again. Not so with eBay. You only have your dollars to vote with. No one is obligated to listen to you.

Rather than look for responsibility from leaders of an artificial community, where you have no rights, why not forget that whole idea and go sell on your own? Learn how to set up a website, and a blog. Gather and use the tools that get people to visit your site. Admit what is happening to eBay and establish yourself before your real competitors do. Take the lead in your own business, it's going to take learning, and hard work, but people do it all the time.

Just ask yourself - what would you do if you had a cute little store in your town, and Walmart moved in on the edge of town? Which way will you go broke faster? Protesting the Walmart in hopes they'll change their mind and go away? Or figuring out how to get people into your store and working hard to do it?

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1 comment so far ↓

#1 We’ve upped our standards, now up yours. — GenuineSeller on 09.10.08 at 8:55 am

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