eBay Hit Hard by Boycott, Refuses to Change
eBay Hit Hard by Boycott, Refuses to Change
Some sellers have had enough of eBay and call it quits in a massive boycott, others keep coming back to the same abusive system
eBay angered many sellers when it raised its fees and overhauled its feedback system in ways which many perceived to be very anti-seller. The changes particularly hurt sellers of small, low-priced items like CDs and video games, which were faced with sharp hikes in their fees upon successful sales.
These sellers had to decide to either put up with it, or take their business elsewhere. DailyTech's Shane McGlaun wrote in a blog an open letter to eBay, voicing his frustration and the frustration of many others. He cited that he was not alone -- CNN recently reported that five of eBay's top sellers called it quits after the changes.
Since the blog, the fallout against eBay continued. A group of angered users called for a complete boycott of buying and selling on eBay until the company makes amends. The boycott, which ends today, had a devastating effect on the already stagnant eBay.
The total auction listings at eBay.com dropped approximately 13% since the boycott commenced in full on February 18. This brought listings to a low of roughly 13 million items. The boycott was made particularly potent by a YouTube video, which was viewed over 143,000 times. The video helped raise the boycott above other, shorter boycotts, in terms of impact to eBay and helped it win coverage on many online and video media outlets.
The boycott was led by Valerie Lennert, who was flabbergasted by eBay's new bias against sellers. She remarked, "When I heard the changes, I thought it was April Fool's Day."
Lennart, who sells doll clothes on eBay, unhappily discovered that eBay was not fooling around. So she took her fight to YouTube and urged sellers to join her. eBay promptly banned her account. Throughout the course of Lennart's campaign and other protests, eBay tried to dull the impact by offering special deals on listings to boost sagging listing numbers. Meanwhile, Lennart continued onward, making many media appearances.
Jim Griffith, dean of eBay Education, refuted news reports that eBay's listings had declined stating the boycott "has had no impact on our listings." Griffith referenced internal metrics, which eBay refuses to release, and which run counter to the numbers run by major news outlets.
Meanwhile a member of the protest, Nancy Baughman, an eBay PowerSeller who deals in collectibles and antiques, hopes the listing drought worsens with future boycotts. She says, "If [eBay's listings total] falls below 12 million, we've made a pretty good impact."
According to Griffith, however, eBay will stand firm till the bitter end and will not change its new policies. Griffith says, "A lot of deliberation went into these decisions."
David Steiner, president of AuctionBytes.com, a publication for online merchants, says that this kind of attitude could be eBay's undoing. He remarked on the boycott's impact, adding, "The protestors made a loud statement."
eBay has faced fierce competition from Amazon, which charges no listing fees. Even before the policy changes, growth had stagnated. The company will also see a changing of the guard as Meg Whitman steps down to make room for John Donahoe as CEO of eBay in March.
eBay changed its policies in hopes of increasing revenue from listings and reviving sales by making the site more buyer-friendly. With Donahoe soon to assume control, some tough decisions are in store for eBay's executives which may decide the site's fate.
Meanwhile, until eBay changes its policy, more boycotts are surely in store, continuing to draw more attention and further punish eBay for its decisions.
