Partnership Between Buy.com and eBay Raises Concerns Among Sellers

By Jane McEntegart, published on July 16, 2008 at 12:30 PM
Source: Tom's Guide | Keywords: , , | Themes: Business, The Internet
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There’s trouble brewing for those of you that count on eBay for all or part of your income. The Internet auction site has just signed a deal with Buy.com, which will allow the latter to sell products on eBay at a fixed price.

The New York Times reports that the deal between eBay and Buy.com is eBay’s answer to the rise in popularity of online stores like Amazon and what seems to be a drop in online auctioning.

Larger sellers are able to offer perks alongside their auctions, like free shipping or the like. These are deals, which smaller sellers can’t afford to offer without taking a fall financially. The deal with Buy.com has many of these small sellers up in arms but that’s not to say it’s good news for bigger sellers either.

ebay logoBig sellers pay thousands of dollars in listing fees every month and the NYT speculates that considering the volume of listings from the company, Buy.com isn’t being subjected to these fees. Several Power Sellers voiced concerns to Ecommerce-Guide.com at eBay Live 2008 with one anonymous seller saying the deal was unfair to sellers.

"They’re flooding the market, they’re not paying thousands of dollars in fees each month like the rest of us (Power Sellers), and so there’s no level playing field. And the whole thing, the way we found out about it, it’s this secret deal. It’s just so unfair."

The change is one of several eBay has implemented since it named John Donahoe as its new Chief and is said to have added 5 million listings to eBay. Details of the deal have yet to be announced.

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Anonymous 07/16/2008 6:51 AM
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also ebay's high seller fees...
DXRick 07/16/2008 8:00 AM
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DXRick
There are that many idiots that use Ebay to buy new products from e-tailers? I gotta laugh :lol at those that pay more for products on Ebay than other e-tailers (like NewEgg) sell them for.
MadHacker 07/16/2008 8:40 AM
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MadHacker
"...It’s just so unfair."
Umm... Life is unfair...
Who sais it has to be fair?
Anonymous 07/16/2008 8:58 AM
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Competition drive prices down, all good for consumers.
turbolover22 07/16/2008 10:01 AM
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turbolover22
Until people actually see what kind of prices Buy.com posts on their items we really aren't able to see if this is fair or not. If ebay allows them to post at prices that are way below and sellers stop making money then sellers may/may not stop selling. If sellers stop posting items then ebay loses as much money as they gain from buy.com I don't think that ebay will push US(me included) away like that if they can help it.
evilshuriken 07/16/2008 11:20 AM
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evilshuriken
DXRick, while there are many sellers on ebay that sell for much higher prices than newegg, certain items can be had for cheaper on ebay. I sometimes find new items selling for as much as $100 off the newegg price, I attribute this to ebay's stiff competition. So ebay is not all bad, maybe you've just had bad luck with it in the past, or you simply don't know where to look. :)
gm0n3y 07/16/2008 11:34 AM
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gm0n3y
EBay is evil. They are a terrible company that screws buyers to some degree and sellers to a much larger degree. I work with them every day at my job and they have been going downhill for the past 3 years or so. If I owned their stock, I'd be dumping it right now. I predict that they will become a nobody in the marketplace within the next 2 years.
master9716 07/17/2008 2:05 AM
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master9716
Ebay has better prices than newegg . mwave and tigerdirect on new items . Buy.com prices are stupid .

Ebay 2gb crucial ballistix tracer 35+shipping
newegg 60+ shipping

this means that newegg can actually lower their prices but they just dont want to.
gm0n3y 07/17/2008 7:48 AM
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gm0n3y
master9716 :
Ebay has better prices than newegg . mwave http://en.wikipedia.org/wiki/IBM_Mwave and tigerdirect on new items . Buy.com prices are stupid . Ebay 2gb crucial ballistix tracer 35+shippingnewegg 60+ shipping this means that newegg can actually lower their prices but they just dont want to.



Or its a seller that bought a bin of chips that didn't pass the quality control tests and they're trying to dump them on eBay. Of course on eBay the "plus shipping" could also mean plus $50.

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