Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Fri Apr 5 2024 22:20:44

Is eBay Competing with Its Sellers?

By: Ina Steiner

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A reader questioned eBay's strategy of using a single seller to power the eBay consignment service, which eBay explains is "a service designed to help you sell your luxury apparel and handbags with ease. We take the hard work out of selling your items." The reader posted a comment yesterday on an EcommerceBytes article about eBay's expansion of its partnership with longtime seller Linda's Stuff to handle all of the goods consigned through the eBay consignment service. 

"Why wouldn't they choose several/many high-rated sellers to share this process with," the reader asked. "With this, eBay is competing with their own sellers!"

The timing of the comment was interesting given that eBay promoted Linda's Stuff (not the eBay consignment service) in a marketing email yesterday featuring the subject line "15% off fresh kicks." The following coupon was embedded in the email that went out to eBay shoppers:

Save 25% at Linda's Stuff

Shop an array of chic handbags, jewelry, apparel, and more.
Get the coupon

Ends 4/7. Max $250 off orders $55+. 5x use.

The favored treatment doesn't end there. eBay CEO Jamie Iannone published an interview with the proprietor of Linda's Stuff in a post on LinkedIn last week.

We don't want to pick on a single seller - there are many merchants who would likely jump at the chance to enter into a high-profile relationship with a prominent marketplace.

And there's no reason eBay or its CEO should not promote its partners. 

But the reader raised an interesting issue in their comment - especially since eBay contends it does *not* compete with its sellers (it's even in the eBay purpose statement). By entering into a partnership with a single seller to handle eBay-branded consignments, is eBay competing with all the other sellers who use eBay in their consignment businesses?




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Readers Comments

Perminate Link for Is eBay Competing with Its Sellers?   Is eBay Competing with Its Sellers?

This user has validated their user name. by: COVID-19

Sat Apr 6 00:51:51 2024

Never forget that eBay follows Amazon's lead just like a good little bro.

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This user has validated their user name. by: Rexford

Sat Apr 6 08:00:45 2024

OP says "Why wouldn't they choose several/many high-rated sellers to share this process with," the reader asked.

Because eBay has to control everything.   This special treatment isn't new.  It's been going on since Donahoe was CEO.   Sweetheart deals with big brands, the Chinese and those who pay up.  The use of VERO to protect the sweethearts from competition.

My question is, how did Linda's Stuff achieve this status?   Would love to know how Linda LIghtman received the keys to the castle.  Who does she know?  What are connections?  Oh wait, a $25M fashion business?  Unlike the average eBay seller, I guess that there are no selling limits for Linda's Stuff.

Take it from a seller who has busted his chops for over two decades to grow a business on eBay and one who has played by eBay's rules.  eBay is not a level playing field.  Which is why this seller created his own web site.  The satisfaction is that every item sold on my site is money that does not end up in eBay's pocket and I can actually grow my business.

Perminate Link for Is eBay Competing with Its Sellers?   Is eBay Competing with Its Sellers?

by: Stone Cutter This user has validated their user name.

Sat Apr 6 09:46:08 2024

*** A smart move for Ebay ***

I recently read an article on how dissatisfied Buyers have been when buying used clothing and goods from online Sellers.

Buyers complain that items arrives dirty, tattered, and smell of BO, perfume, and cigarette smoke.

Bringing in a professional consignment vendor could help with those issues.  

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by: AddyUp This user has validated their user name.

Sat Apr 6 14:58:49 2024

"Buyers complain that items arrives dirty, tattered, and smell of BO, perfume, and cigarette smoke"


That's exactly the same complaint that sellers have about their returns.

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by: MeAgain This user has validated their user name.

Sat Apr 6 16:09:46 2024

Stone Cutter :
Have you seen the negative feedback on Ebay's 'chosen professional consignment vendor' Linda's Stuff? Here you go: https://ebay.us/75wJCD
It is absolutely horrible! Read the complaints! They come in daily! Ebay should cease & desist on this activity. It is in direct competition with a huge amount of sellers. Instead, I would propose Ebay should offer a link/index to a list of established Ebay sellers for those wanting to consign.  

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by: DingDong This user has validated their user name.

Sat Apr 6 18:20:40 2024

"I sat down with Linda Lightman, a phenomenal eBay seller who transitioned from a career as an attorney to running a thriving $25 million fashion business. "

It's funny how attorneys attract attorneys.
? Does she have the same "mind set" as the eBay attorneys ?

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by: Stone Cutter This user has validated their user name.

Sat Apr 6 20:48:53 2024

@MeAgain

Yes, you are right. Reviews for this shop are spotty. Bad reviews talk about stained items, damaged items and inaccurate sizes. Yet, the percentage of bad reviews to good reviews is a small percentage.

I’ll continue to stick to new garments, thank you.  

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by: Snapped This user has validated their user name.

Sat Apr 6 21:48:57 2024

“ Instead, I would propose Ebay should offer a link/index to a list of established Ebay sellers for those wanting to consign.”

Fine idea.  They can call them…Trading Assistants!  

Oh wait - they already trashed that program years ago after advising those type sellers that maybe they needed to ‘re-think’ that business model on eBay.  Wasn’t part of the ‘vision’, see?  

And now, they want to compete with those sellers. The few lying smoke belching cheats still ‘believing’ in eBay’s ‘partnership’, that is.

Perminate Link for Is eBay Competing with Its Sellers?   Is eBay Competing with Its Sellers?

by: pace306 This user has validated their user name.

Sat Apr 6 22:28:02 2024

eBay has long since being about actually you know ... "selling things" - which explains ALL of its behavior.

Want to know why she was chosen? follow the money
Want to know why feedbacks are 1 way? follow the money
Want to know why listings can (openly) sell fakes? follow the money
Want to know why eBay sent stooges to attack the Steiners? follow the money
Want to know why eBay spun off Paypal (they were "the great internet ..." - the money!
Want to know why some sellers get sales and you dont? follow the money
Want to know why and what VERO is? follow the money

Same answer for everything.

Theres nothing wrong wanting to make money, but there IS when you lie cheat and steal to get it.

I dont know this women but 1) shes a "high powered attorney" (apparently) which means "she can sell Levi's and you cant) because eBay knows to leave her alone. If eBay left US alone - we could be successful too.

eBay has long favored some sellers over others. Brands, distributors, buying groups, retailers ... subsidizing the Chinese - the list is long.

Yes, eBay is once again wrong, once again lieing, once again putting its finger on the scale.

Not new news but horrible to find out non the less.

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This user has validated their user name. by: iheartjacksparrow

Sun Apr 7 10:29:35 2024

@MeAgain: Thanks for posting that link, it was fun reading the complaints. But to be fair, the positives far outweigh the negatives and neutrals.  

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by: my2cents This user has validated their user name.

Mon Apr 8 02:01:01 2024

@meagain

You are ignoring how many transactions she had.  The more transactions you have the higher your risk for getting negative FB.  You should not be viewing someone with as many transactions as she has had the same as you would view someone with a lot less.  The answers are always in the math.  Which is why they are at 99.3%.  A very respectable rate.

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by: Chicago48 This user has validated their user name.

Mon Apr 8 05:27:59 2024

Never forget that eBay follows Amazon's lead just like a good little bro.
^^
Amazon is using one single consignment shop to sell name brand luxury goods like Chanel.  
BTW, I use Linda's Stuff to sell my name brand clothing items and so far have made one sale (little or scant profit).  I just sent a bag full of stuff to her -- the same as sending to Thredup.
The reason I send these clothing items to a consignment whether Thredup or RealReal is because it's not selling in my account, because I don't have the traffic that these other sites have.  Linda has more traffic.  Plus the garments are kept ONLINE for a year to sell.  Also it gets more clothing out of my closet.  I also go to the buy-sell-trade stores to sell.
I don't have a thousands of buyers.  Posh has live shows and they're soaking up the site's sales.  I don't do Posh live shows.
So, folks you try all avenues and platforms to get your stuff sold, including flea markets.

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by: Chicago48 This user has validated their user name.

Mon Apr 8 05:30:38 2024

Have you seen the negative feedback on Ebay's 'chosen professional consignment vendor' Linda's Stuff? Here you go: https://ebay.us/75wJCD
^^
My experience with Linda has been so-so.  It took them almost 4 months to cut a "small" check after one sale.  She doesn't followup with buyers like Thredup and the REAL probably because she doesn't have the personnel and automation to do it.  You have to watch your sales on her site, and I'm almost constantly in convo with her about the sales.
That's not good, but if she can sell it and I can't, I'm good.

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by: Chicago48 This user has validated their user name.

Mon Apr 8 05:33:57 2024

You are ignoring how many transactions she had.  The more transactions you have the higher your risk for getting negative FB.  You should not be viewing someone with as many transactions as she has had the same as you would view someone with a lot less.  The answers are always in the math.  Which is why they are at 99.3%.  A very respectable rate.
^^
THIS.

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This user has validated their user name. by: Philo

Mon Apr 8 08:04:16 2024

Ebay tends to scrub feedback on the preferred sellers, so let's track.  Feel like this carvana all over again.  4/8/24

negatives
1 month 6 months 12 months
29           155             279
https://ebay.us/75wJCD

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by: MARK NICHOLS This user has validated their user name.

Mon Apr 8 09:33:18 2024

If you think sellers on eBay have to ''COMPETE'' with eBay for sales ... then you better pay attention to this!!

As a buyer on eBay ... as I search for something on eBay I always find ADVERTISEMENTS in the search results that show me ''like items'' that eBay sellers want to sell!  And with just ONE CLICK these ''ADVERTISEMENTS'' take me to sellers WHO ARE NOT EVEN SELLING ON EBAY ... it actually allows me to LEAVE the eBay marketplace!!!!  WHY do eBay sellers allow this?

Is eBay only interested in ADVERTISING FEES - and - do they make more from such fees over selling the SELLER'S STUFF?  To show me goods that are not even sold by eBay sellers - and - then allow me to LEAVE the marketplace ... HOW GOOD IS THAT FOR EBAY SELLERS?

Kind of like the UNITED STATES POSTAL SERVICE (U.S.P.S.) ... they are there to DELIVER our LETTERS and PACKAGES.  BUT, now they COMPETE against the LOCAL BUSINESSES in the towns they serve ... by selling GREETING CARDS that the drug store sells - and - now PREPAID GIFT CARDS to BIG BOX STORES and RESTAURANTS.  The U.S.P.S. needs to remain ''neutral'' and NOT be allowed to offer anything other than the government service our Constitution says it is to provide ... as it is, selling greeting cards and gift cards takes money away from SMALL BUSINESS!

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by: Whatever This user has validated their user name.

Mon Apr 8 10:24:16 2024

I have about 20 items listed on ebay - been there 25 years - just keep the listings there so I keep my profile and name - sell about 1 thing a month. Used to be a cheerleader - remember those Vegas conventions? ah the old days when ebay appreciated the sellers.

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by: Snapped This user has validated their user name.

Mon Apr 8 10:26:17 2024

“ You are ignoring how many transactions she had. …. The answers are always in the math.  Which is why they are at 99.3%.  A very respectable rate.”

So did eBay.  For YEARS they ‘disadvantaged’ smaller volume sellers who otherwise had the exact same “very respectable rate” - by “ignoring” the fact their using the “math” was based on a regressive ratio.  One ‘disappointment’ in 100 transactions, as rightfully pointed out (and endorsed) is decidedly NOT equivalent to 100 over 10,000 transactions.  

Both a ‘respectable’ 99% (especially considering the subjective nature of the ‘experiences’).  Yet only one who was treated with disdain and mandated impossible to achieve ‘improvement suggestions’.  

They did the exact same thing with those disgusting DSRs.  They ignored the intrinsic ‘volume comparison evaluation’ favored herein, and used the “math” as a weapon.

They don’t do that so much (by those ‘metrics’ alone) anymore of course.  Funny though, that this numeric ‘respectability’ wasn’t so respected back then, even though the MATH isn’t any different.

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by: Snapped This user has validated their user name.

Mon Apr 8 12:28:39 2024

Article I, Section 8, Clause 7 of the United States Constitution, known as the Postal Clause or the Postal Power, empowers Congress "To establish Post Offices and post Roads."

This Congressional empowerment has evolved to Congress establishing the USPS as an independently financed organization.  By that alone, their products and services - those considered as NOT “market dominant” (MD) like stamps for example - are empirically competitive by nature.

It is that very ‘competition’ to remain solvent, much less so (gasp) potentially turn a profit, that puts pressure on the ‘people’s service’ to adjust prices regularly on those competitive products.  (The PRC oversees and approves MD rates)  And some, beyond ‘affordability’ considering what the completion charges anyway.  Chiefly due to the fact the PO was never designed for volume package delivery, only the occasional ‘parcel post’.  Hence today’s infrastructure limiting size and weight surcharges as their latest ‘steam release’.

As for those greeting cards and gift wrap and gift cards, etc.  The PO doesn’t ‘run’ those.  The vendors serving the other businesses do. No PO expense save floor space and ringing them up.  The vendors are the one’s making the approach and making any ‘deals’.  The same the other businesses get, proportionately as applies.  Helping the bottom line insofar as that also proportionately applies.  Must be a reason.  Perhaps they are targeting a true public cross-section and their proclivity for impulse made convenient?  Imagine that.

Anyway, folks would laugh if they really knew how little ‘market share’ their little card carousels dilute from other ‘businesses’ in the busy postal lobbies.   All of which are nevertheless free to contact Hallmark and the gift card wall guys and make their pitch for a piece, or lodge any complaint as may apply.

Meanwhile, the PO is indeed looking into other potential profit making enterprise, when directly related to services they already supply.  Perhaps (networked) banking? They already have volume data, cash and accounting experience, and a POS infrastructure in place for that.  

Or maybe even one day, a kind of on-line classified, (no big box need apply), with built-in shipping services at ‘for efficiency’ discount.  Backed by the integrity of the USPIS to combat fraud, theft, and abuse with a much more comprehensive insight and control over transaction data in question.  And all at very ‘competitive’ fees.

You know - to REALLY be of service to We the People.  Instead of the wolves.  

Perminate Link for Is eBay Competing with Its Sellers?   Is eBay Competing with Its Sellers?

by: MeAgain This user has validated their user name.

Mon Apr 8 12:52:36 2024

Good comments on this thread. So much of what we talk/complain about with Ebay touches on, or is, anti-trust violations. How can sellers organize and create a class-action suit, or a union!? Ebay needs an independent seller's review board/watchdog to look out for seller's interests. Right now, it feels like an abusive relationship.

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