SmallBizResource Blog -- Internet

eBay Dangles $120K Contest Carrot In Front Of Existing, Potential Sellers

Posted by Gayle Kesten Tuesday, Jun 9, 2009, 11:38 AM ET

I haven't written about eBay in months. Perhaps no news is good news?

In fact, the last time I had something to say about the online auction house, it had just announced changes in listing fees and commission that small sellers complained put them at a disadvantage. Three months prior, small sellers were also upset when eBay tweaked its search algorithm to favor large-volume sellers, took away their ability to post feedback about buyers, and gave PayPal the ability to freeze transactions based on factors beyond their control.

Between then and now? Well, there's that detail called the recession. Even eBay was not immune, with two quarters in a row of declining profit and revenue. That's not to say the multibillion-dollar company is going away anytime soon, but with the help of the Kauffman Foundation, it's now appealing to current and potential sellers with $120,000 worth of business grants to set up or expand shop on eBay.

Score one for the good news team?

The eBay Sellers Challenge is divided into four categories: individuals or small businesses who have not sold on eBay, part-time sellers who want to go full-time on eBay, full-time eBay sellers who want to grow their business, and current or former members of the United States armed forces. Due end of day Tuesday, July 7, participants must submit a business plan that explains how they would spend $25,000 to start or grow a business on eBay, along with a video explaining said plan and their "passion" for selling on eBay. Judges will determine two finalists in each of the four categories, and then voting will be turned over to the eBay community beginning July 20. Each category winner will receive the $25K they pitched for; runners up walk away with $5K.

"The eBay marketplace is a community rich in innovation and entrepreneurial spirit," said Lorrie Norrington, president of eBay Marketplaces, in a press release. "The Sellers Challenge helps underscore this simple truth, and along with the powerful selling tools available on eBay, signifies our fundamental commitment to ensuring the success of our sellers."

Sellers, ey? Can she be more specific?

A few caveats: The contest is open to registered members of eBay who are legal residents of the 50 United States and the District of Columbia and 18 years of age or older. Winners must use grant funds to start or grow a business on eBay.

For potential sellers, would you want to set up a business on eBay? For current sellers, how did eBay's changes impact your business now that you've had close to a year to watch your numbers?

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