Question
http://auctionbytes.com/cab/abn/y06/m08/i11/s01
It appears eBay was sending Wall Street analysts signals about impending changes to its fee structure back in May, but caught its sellers off-guard when it actually announced an increase in eBay Store fees on July 19.
A Merrill Lynch research report dated May 25, 2006, predicted eBay would change the fee structure for sellers. The report states, "At a competitor conference, eBay management suggested that sluggish US core listing growth, an overhang for the stock, would most likely change when management adjusts the core and store listing and final value fee structures to "rebalance" the site. We expect fee structure changes targeted at reaccelerating core domestic listings growth."
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Full story at the link on AuctionBytes, including this golden nugget:
"Sellers have also pointed with some skepticism to a statement Whitman made to investors on August 1 comparing current seller reaction to that of last fee increase. "I probably got, in the last 2 weeks, I probably got 15 angry emails. A year ago, I probably had 5000.""
Answer
I probably got, in the last 2 weeks, I probably got 15 angry emails.
Well......considering that they came up with a 250% to 500% raise in insertion fees along with a 25% jack in FVFs and be telling store operators that we will only see a SIX PERCENT INCREASE.......I doubt that there is ANYONE in San Jose that has a clue HOW to count ANYTHNG anymore!
OTOH......I might believe that she only received 15 "angry" emails.....the other ten gazzillion were REALLY PISSED OFF ones!
Seriously.....this is exactly where the real probelm with the store increases is.......the LIES being told and the complete lack of ANY common courtesy for the store owners. It is one thing to introduce rate changes.....to do it with Bush-administration style spin and Enron-like accounting numbers is both a slap in the face to those of us that are their customers AND the stockholders who are being lied to also.
In the world of poker......this would be called a damn poor bluff and a MAJOR tell that all is not well in the ivory tower.
Answer
Originally Posted by Toy Ranch
"Sellers have also pointed with some skepticism to a statement Whitman made to investors on August 1 comparing current seller reaction to that of last fee increase. "I probably got, in the last 2 weeks, I probably got 15 angry emails. A year ago, I probably had 5000.""
Well, uh yeah....Meg quit answering emails or even looking at the ones directed at her long ago. I am sure she has two assistants screening her emails, and they simply long into a database by checking a box, and she might look at the date spread sheet once a week if that. So yes, she has only seen 15 emails at that point.
I think they are busy right now looking at ways to the next fee hike. Seriously, once core listings improve the FVFs enough to prop up the stock by 4 bucks or so, they will be convinced that they are back on track, customers are in fact addicted, and a fee hike is acceptable. I would expect an anouncment in Dec. with fee hike in this coming Jan.
Answer
ebay live would have been just a TAD ugly, had they announced the fee hike in May........
Answer
Originally Posted by Flutterbees
ebay live would have been just a TAD ugly, had they announced the fee hike in May........
Ain't that the sad truth!!
I'm gettin' busy selling everything I can possibly sell this year. I can't justify wasting the time selling after another rate hike. I'll donate what I have left before I go back to spending $15 to make $20. And that's assuming I even get paid for the measely sales I do get!