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Archive for Saturday, June 15, 2002

Mom-and-pop sellers voice eBay gripes

Despite roaring success, auction site struggles to keep die-hard users happy as it courts big firms

June 15, 2002

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— Twelve eBay users from around the country have been invited to company headquarters to give the Internet auction site's executives pieces of their minds: Customer service is lousy. The search engine is weak. Pop-up ads are deplorable.

The eBay manager writing down their gripes quickly fills a large sheet of paper, then two, then three, eventually taping so many onto a wall that new ones go on the door.

Tricia Spencer, Riverside, Calif., has spent the last three years
selling collectibles, such as antique dolls, World War I military
helmets, European walking canes and children's umbrellas, on e-Bay.
Her fees to do business on the online auction house have increased
more than 400 percent in the past two years. Spencer says, "It's so
infuriating to see the stock continually rise and know that it's
happening because the little guy is taking it in the shins."

Tricia Spencer, Riverside, Calif., has spent the last three years selling collectibles, such as antique dolls, World War I military helmets, European walking canes and children's umbrellas, on e-Bay. Her fees to do business on the online auction house have increased more than 400 percent in the past two years. Spencer says, "It's so infuriating to see the stock continually rise and know that it's happening because the little guy is taking it in the shins."

Michael Benson, a baseball card collector from St. Louis, adds his complaint: "eBay is going with the big sellers over the little sellers." Murmurs of assent can be heard around the table. "You've got to get back to mom-and-pop sellers," nods Judy Tomlin of Mecosta, Mich.

That complaint is not new, but it is becoming increasingly common among longtime eBay users. Many say eBay, committed to growth, is giving big companies an unfair advantage by prominently featuring their brand-name wares, creating tough competition for the millions of regular folks who made eBay huge.

"It's so infuriating to see the stock continually rise and know that it's happening because the little guy is taking it in the shins," said collectibles seller Tricia Spencer of Riverside, Calif., who was not among the 12 users invited to headquarters. "It's like a kingdom where the serfs have done all the work, and the king eats hale and hearty while the serfs starve."

EBay executives say the charge is unfounded. But they acknowledge that after eBay's astonishing rise in recent years, it is more difficult than ever to stay connected to its treasured "community."

"Our communication, frankly, to the community is broken," Bill Cobb, eBay's director of marketing, told the group of 12 at eBay's most recent "Voice of the Customer" session. "We have to figure out a better way."

EBay hopes relations get a big boost from its first "community celebration," called eBay Live, June 21-23 in Anaheim. More than 3,000 users are expected to mingle with company managers, trade advice on how to buy and sell things in more cost-effective ways, hear a speech by CEO Meg Whitman and attend an awards ceremony.

Founded in 1995, eBay is by far the world's top Internet auction site, with nearly 50 million registered users and sites in 27 countries.

It long ago shed its roots as an online flea market. With big companies such as Dell and IBM now unloading goods on eBay, the site is more like a giant mall with a flea market and a used-car dealership in the parking lot.

To attract even more corporate sellers, eBay and consultancy Accenture plan to launch a service to facilitate auctions for companies with discontinued or out-of-season merchandise.

Executives say such deals are essential for eBay's long-term financial growth, which will come largely by expanding its slim market share in major consumer categories. More brand-name products will bring new buyers, which ultimately helps big and small sellers, they say.

They also point out that eBay charges all sellers the same fees between 30 cents and $3.30 to list most items, depending on their value, and a 1.5 percent to 5.25 percent commission on successful sales. And they say 96 percent of the $13 billion in merchandise that will be sold on eBay this year is from small and medium-sized businesses.

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