Bookmark and Share

Tough Times for eBay Entrepreneurs (Pg. 2)

Posted: 2008-08-27 23:31:02
Previous Page

More Full-Timers
Jacques Stambouli is the CEO of ViaTrading.com, an overstock liquidation firm that provides merchandise for a number of online retailers. "We deal mostly with entrepreneurs and people trying to make a little extra money on the side with home-based businesses. What I've noticed recently is that a lot of people who were doing this part-time are trying to ramp up their activities and spend more time on selling. Others are already selling full-time and they are trying to grow," Stambouli says.

Some of his clients who disappeared two or three years ago have gotten back into the swap meet or online retailing business in the past few months, he says: "If all of a sudden you have to spend $1,000 on gas instead of $500, there's twice as much of your income gone and you still need to eat. There are also a lot of new faces showing up at the flea markets, more people bargain hunting and looking for cheaper ways to buy the same stuff."

The problem for small retailers trying to sell merchandise more cheaply than volume discounters -- such as Target or Wal-Mart -- is that they don't have the economics of scale on their side, says David Zahn, president of StartUpBuilder.com. "It is harder [for small e-tailers] to turn a profit, because the pressure is on the e-commerce businesses to absorb shipping costs as many established sites are doing," he says. "For Amazon.com, as well as traditional retailers that have e-commerce sites, such as Staples.com and others, the costs are often absorbed for both shipping to the customer and also from the customer if the item is to be returned. What remains to be seen is if the gas crunch will lead to more online purchasing," he says.

Free Listings
Small eBay sellers have been complaining about the online marketplace's deal with Buy.com, an online volume seller that can offer free shipping and other perks that small store owners feel will undercut their offerings. That agreement, as well as recent price increases (BusinessWeek, is driving eBay competitors as well as eBay itself) (BusinessWeek.com, 1/29/08), to turn up the volume on their appeals to get more small sellers onto their sites.

Some, like newcomer Wigix, are offering alternative business models. "We don't do auction; we operate more like a stock market with open bid orders for everyday stuff. We don't charge anything for listings," says James Chong, Wigix CEO.

The company, which launched in April, is actively recruiting eBay sellers with its free listings and low -- or nonexistent -- transaction fees. "Every time there's a revolt at eBay, we're getting a benefit from it," Chong says. "The small sellers there are competing with a gazillion other listings and they end up having to pay a lot of extra fees to break out from the clutter. Their margins are being eroded by those costs."

For now, Wood is sticking with eBay and hoping her sales will soon be up again. Her online store, which grosses an average of $25,000 a month, has been doing well so far in July, and she is optimistic. "I'm on track to have another big month, and we're seeing a lot of volume on eBay now," she says. She is experimenting with providing some free shipping as well as increasing her sales listings, upgrading the look of her online store, and letting buyers know she can also sell items for them. "I'm always trying to take a cue from the bigger, higher-volume sellers. Watching smart sellers is how I taught myself this business," Wood says.

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.

Previous Page

2008-08-27 17:28:42
Bookmark:

Recent Comments

Post Your Own  
1 - 10 of 29
29 comments

peticketcounter 12:26:41 PM Feb 09 2009

Report This!

E-Bay is a place where anyone can buy and SELL just about anything, with that said, I used to sell on E-Bay and have an E-Bay store to sell my copyright designed products. I spent a lot of money to have my products registered with the US copyright office only to have E-Bay allow sellers that steal folks ideas and make their own bootleg products simular to mine and sell them. If you have a copyright to your products not only can you sue the infringer but you can also sue E-Bay for allowing the infringer to sell on their sight. It takes money to sue but you WILL get it back in the end. I will NOT recommend E-Bay to anyone that has products they designed and had copywritten to sell on. Make your own web-site and sell it yourself. But do go after those that infringe and those that allow the infringers to sell knowingly!

berengaria7 11:29:53 AM Feb 09 2009

Report This!

I loved to shop on Ebay, but not anymore since all they will accept is Paypal. I had a paypal account that was hacked so I started using postal money orders. I always paid for insurance and never had a problem. But no more money orders, so no more shopping. I really miss buying my vintage jewelry and old sewing patterns. Oh well.

lucerelawsec 09:55:41 AM Jan 21 2009

Report This!

yes, ebay has changed. they have gotten too big for their britches, keep raising rates, charge a final value fee on buy it nows that is ridiculous and robbing the small seller. I mostly sell on ebay, have bought a couple of things. anytime I have had to go to live help or had a complaint, I NEVER got satisfaction. the buyer is always right, the seller gets screwed. and what's up with their feedback? sellers can't leave negative feedback for a loser ripoff buyer! it seems to negate the whole purpose of feedback. there are always a few bad apples that ruin it for everyone. and then ebay with raising their rates too often, buy it now selling fees that are just plain robbery, and postal rates going up all the time, I may just go back to doing it the old fashioned way--a yard sale! hg

navyprik 11:28:57 PM Sep 14 2008

Report This!

SELL YOUR E_BAY STOCK!!!!!

swapperpromo 10:51:21 PM Sep 14 2008

Report This!

I was a gold power seller on ebay for 2 years. They have raised the rates more times than I can count..when they couldn't raise the fees anymore they put in a new program that raised the rates and said they would give you back money if you meet there new requirements. But the requirements are so hight that no one could ever get them..so they got there increase agian with in 3 months of the last one. Now on ebay if you sell new items here is what you will make..Buy a blet for 23.00 list it on ebay...160.00 then get charged 12% for selling it..and you can only sell the belt for 44.00 because you have to compet against all the others selling the same belt..plus the new ads that pop up at the bottom of the page...they even let the wholesale company that you buy the belt from have there ad on there...(how smart is that) then your costumer checks out and uses paypal and you get charged another almost 2.00 to get the money..Now if sell 10 of them a day and answer all the emails and get it al

madchemep2 08:55:02 PM Sep 14 2008

Report This!

I opened a PayPal account last year when I was purchasing something from overseas. Six hours later the account was hacked into. This was before I had a chance to use it for the first time! So I should trust PayPal? Not on your life! I immediatly closed it and have been content to use personal checks, money orders bank checks or even CASH gasp! No problems for over ten years. Thats my story and I'm sticking to it.

cougardomme 07:53:19 PM Sep 14 2008

Report This!

Paypal is the biggest scam there is. I sold a gorgeous diamond ring and used a security sealed UPS courier pack and had a signed delivery slip and the "buyer" told Paypal she never got it and Paypal charged me back $2000 so the bitch got my ring AND my money. I'd never use Paypal for anything and I put this story on my listings so that people will know why I don't take Paypal. To top it off, she left me bad feedback!! Unreal!

cougardomme 07:47:32 PM Sep 14 2008

Report This!

Ebay is horrible. It used to be great and you could make some money with it, but now it's all crap. It's gotten so big that instead of unique items, you have sellers underbidding each other to try and pay all the fees and make a few buck. If you want something, do a search and 40 people are selling the same thing so you get the cheapest one and go with it. It used to be fun when there were little sellers with cool stuff, but now it's just insane and they do nothing except raise the fees. there's no support and PayPal is the biggest ripoff on the planet--they let buyers dispute charges when you have a signed delivery confirmation!

beebowsnet 04:44:31 PM Sep 14 2008

Report This!

I have sold on eBay for 10 years now and they are more horrible than ever. You know they own Paypal too! Things keep getting worse for the little guy. Go over to this new auction site. eBid.net. They are based in the UK, but they are great! I had a problem and actually was able to talk to someone there which fixed it and sent me a free T Shirt! Us sellers on eBid.net sell all over the world as well. I am getting tired of the other auction site. SO CHECK THEM OUT! eBid.net ...eBid.net...eBid.net... eBid.net!!!! They are great!

mankatt 09:26:12 AM Sep 14 2008

Report This!

everybody sells the same stuff on ebay - Im always harassing sellers to list food packaging from the 60s-80s - which you cant find on ebay 95 percent of the time - (yet when a Pringles chip can from the 70s pops up - which I wanted - went for 45 bucks) - wanna make money - try selling the weirdest most unlikely stuff - trust me

1 - 10 of 29
29 comments

Add your own Comments

Clear
Add

The Startup

The Startup

The Startup, the web's premiere online reality show for small business owners, is back for its third season! Watch as we follow four entrepreneurs to see how they're making their businesses come to life.

  1. The Startup

    Small Business Checklists

    It can be difficult to keep up with all the details involved in running a small business. Don't lose track of the details -- use a checklist to keep yourself organized.

    1. Checklist: Starting a Business
    2. Checklist: Closing a Business
    3. Index of Small Business Checklists

      Small Business Success Stories

      1. More Than Moonlighting
      2. Reality TV Leads to Small Biz Success
      3. From Couple to Business Partners
      4. Build-A-Bear's Founder Shares Her Story

        Helpful Resources

          AOL Coaches

          Jake Steinfeld

          Business Coaches
          Starting your own business can be a daunting task. With AOL's Small Business Coaches, you can get the best advice to guide you through the process.