eBay's Revenue From Auctions | Ramblings of an e-trader

Thursday, 26 April 2007

eBay's Revenue From Auctions

I read that eBay has been facing a downtrend in total revenue from auctions. This has been caused by eBay's increasing fees that are borne by Sellers. eBay is a one-way street market place where all fees incurred are borne by Sellers only. With the rising cost of listing and selling on eBay, many big time Sellers have moved the bulk of their inventory to other free-list auction places.

From reports, many Sellers felt that they have been short-changed, not only in the numerous rises in fees but also in sudden suspension of accounts on eBay as well as Paypal, a sister company of eBay.

A suspended will not only affect a Seller's revenue but also put a black dot on his reputation when existing and potential Buyers will be able to see the suspended status and wondered what fraud the Seller has committed. This mars a Seller's reputation.

Moreover, some people claims that after an investigation, their accounts were released without so much as an apology or at least an explanation. I think it is unfair to treat Sellers this way.

eBay does offer protection to Buyers but without Sellers, who will be paying the fees and the money to run a site like eBay? Just think about it.

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