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Winning strategies for your eBay and Internet business.
Thalia Miller is an eBay enthusiast, author, artist, mother, wife, and entrepreneur with strong Christian values. She lives in the middle of nowhere, just north of Dallas, Texas.
For more info visit: http://www.bohemiattic.com/album.htm
Thalia Miller is an eBay enthusiast, author, artist, mother, wife, and entrepreneur with strong Christian values. She lives in the middle of nowhere, just north of Dallas, Texas. For more info visit: http://www.bohemiattic.com/album.htm
... Not everyone is too concerned over the fee increase. Jim Cockrum, eBay Powerseller, publisher of "Creative eBay Selling News," the world's largest newsletter on creative eBay selling, and author of one of the best selling eBay books of all time "The Silent Sales Machines Hiding On eBay" has other opinions.
"I don't see the eBay fee increase as a bad thing," Cockrum said in a phone interview. "I actually see it as just the opposite - it's a good thing because eBay is eliminating my competition for me. Who leaves eBay when eBay increases seller fees? It's not the customers (or shoppers). They don't go anywhere since they aren't affected. Only a handful of the weaker sellers leave eBay when fees go up."
Cockrum recommends that sellers use eBay in non-traditional ways to build their online businesses so that future fee hikes will not have an affect on their e-business.
"Selling on eBay continues to be one of the more popular ways to make money online, though very few people are getting rich with an eBay business alone," Cockrum said. "Many Powersellers don't make enough profit to cover their costs. The key to really making money with eBay is not in selling items at auction, but to use eBay to drive customers to your other online ventures. If you do that, the rate hikes do not affect your bottomline nearly as much."
Not everyone shares Cockrum's enthusiasm. Many small sellers think the government or a regulatory board of some kind should get involved to help keep eBay fees in line. This probably won't come to pass anytime soon, but who knows. I can remember when a little company called Microsoft had free rein before they killed off all comers and came to monopolize their market. eBay seems to be headed in the same direction.
The threat of regulation may be the reason eBay is now attempting to smooth the ruffled feathers of the miffed masses. eBay announced this week that they would give a one-time $15.95 credit to eBay store owners and reduce minimum listing fees for inexpensive items from 30 cents to 25 cents, effective immediately.
Too little, too late? Could be. Many sellers believe that eBay may be writing its own obituary with such stringent price increases and such little thought for the smaller merchant. The online petition predicted the long term effects of the fee increase to be:
Smaller sellers will stop selling on eBay and try to sell somewhere else online. They will never have the chance to expand themselves on eBay.
Larger sellers may consider starting their own online store or sell elsewhere.
Prices of auctions will increase. Buyers will turn back to retail stores. The idea of eBay is that you can find things cheaper there, even when adding shipping and handling together.
Discourage new sellers, decreasing competition (which is what the eBay market thrives on for pricing).
Only time will tell if the predictions come true, but for the short term many smaller sellers are closing down their eBay stores and moving up the street to Yahoo.com.
Here's to your success!
Small Business Q&A with Tim Knox
Copyright (c) 2005 Tim W. Knox
About the Author:
Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox.
Tim's latest books include "Amazing CD Money Machine" and "The 30 Day Blueprint For Success!"