SmallBizResource Blog -- Internet

eBay Sellers Unite in Boycott

Posted by Gayle Kesten Tuesday, Feb 19, 2008, 09:16 AM ET

Ebay has ruffled its customers' feathers, many of whom have joined forces to boycott the site.

The weeklong strike is to protest self-proclaimed "bold changes" the company announced late last month regarding fee structure, seller incentives and standards, and feedback. Here's eBay's it's-all-to-enhance-the-customer-experience spin.

But eBay members aren't buying it. Writes Fortune Small Business' Stacy Cowley: "What's really inspired an outpouring of wrath is an adjustment to eBay's feedback system: sellers will no longer be able to leave negative commentary about their buyers. Critics say that will leave sellers vulnerable to negligent bidders and scammers."

Methinks that does suck. My husband sells on eBay, and to say he prides himself on positive feedback would be a total understatement. If someone were to mess with his standing and he couldn't respond...well, let's just say it wouldn't be pretty.

eBay is also increasing the percentage it collects off each item sold. For entrepreneurs who have built their businesses around eBay, that means passing the costs along to buyers, or eating into their own bottom lines to maintain a competitive edge. "There's the dilemma for a lot of small business owners...We're going to have to increase our prices or our rates to be at the same playing field we were at yesterday," an eBay power seller told NBC News Channel.

A third change impacts eBay search results, which will favor sellers with high and detailed customer-satisfaction ratings. Small-volume sellers argue that puts them at a competitive disadvantage.

It'll be interesting to see how the week plays out -- and if the boycott will really make a difference. In the meantime, rival sites have reported an uptick in new members since eBay's announcement, while tons of angry eBay sellers are venting their hearts out in this forum.

Do you have an eBay business? How will the company's new policies affect your bottom line? Even if you don't partake, what do you make of the changes? Do you think sellers are justified to be up in arms? Let me know.

Internet