If current trends continue across multiple venues there will be Bad Days Ahead for online auctions sellers. Many sellers have complained for years over eBay's VERO program and false claims against licensed merchants, now the stakes have increased and sellers are feeling the pinch across multiple sites.
Overstock Auctions began enforcing wide spread infringement rules this week by completely removing all records of suspect auctions. Impacted sellers have posted to the Overstock message boards requesting help or information on the sites policies.
According to one user in a thread titled "I Need Help Right Away! Where's Live Chat?" the site is not only requesting copies of vendor transaction records, and proof of authenticity, but item numbers and actual URL's of the removed listings along with a sworn statement.
Patrick Byrne's Open Letter addressed the issue of counterfeit merchandise as "Fugazi Handbags" (Possibly named after the song "Epic Problem" by the band Fugazi) stating there would be zero Tolerance on the matter. According to Patrick an Overstock staff member who has sold thrift store merchandise on eBay for 3 years was helping review the listings.
Also this month eBay has announced a tougher stance on high fraud areas of the site with increased scrutiny of sellers with periodic reviews according to an unknown set of standards. Ebay also announced that the Pre-Approved bidder feature will be going away after the Holiday Selling Season.
Many sellers within high fraud categories such as Coins use the Pre-Approved bidder feature to prevent fraudulent dealers from purchasing properly graded materials at market value, and then reselling them at highly inflated grades and prices.
Another preventative measure being implemented by eBay is the Safeguarding Members ID's initiative that rolls out site wide soon.
While measures such as this will reduce the fraud rate for a while, it will also impact the small seller who occasionally lists a used designer item at auction. How many small business owners will be forced to shut down while going in endless circles to comply with unknown standards?
Thursday, December 7, 2006
Wednesday, December 6, 2006
Overstock Auctions or Lets Make a Deal?
In a peculiar twist of events Overstock Auctions CEO Patrick Byrne has made a deal with sellers by reducing the new MIM pricing strategy from Twice the opening bid to 1 1/2 times the opening bid.
Such pricing strategies may work for some sellers, however it will be unacceptable to others. Many of the merchants operate within certain Industry guidelines that prevent 50% profit margins due to market conditions and pre-existing contracts.
While Overstock believes such a move will bring stability to the marketplace, many business owners will be moving their customer bases elsewhere without pricing restrictions.
Implementing a policy such as this is considered by many to cross the "Just A Venue" line from the User Agreement and possibly lead to Federal Regulation of the Online Auction Industry.
Today's post to the Overstock Auctions message board also includes a poll requesting user input as what features users would prefer to see next, One day auctions (With seller restrictions), or possibly a Fixed price or Make It Mine Only format.
Overstock has yet to address features that were requested by users in 2004 such as the Blocked Bidders List, and the ability to respond to Ratings. Both of these features were promised in 2004 and have failed to be implemented by Overstock.
Such pricing strategies may work for some sellers, however it will be unacceptable to others. Many of the merchants operate within certain Industry guidelines that prevent 50% profit margins due to market conditions and pre-existing contracts.
While Overstock believes such a move will bring stability to the marketplace, many business owners will be moving their customer bases elsewhere without pricing restrictions.
Implementing a policy such as this is considered by many to cross the "Just A Venue" line from the User Agreement and possibly lead to Federal Regulation of the Online Auction Industry.
Today's post to the Overstock Auctions message board also includes a poll requesting user input as what features users would prefer to see next, One day auctions (With seller restrictions), or possibly a Fixed price or Make It Mine Only format.
Overstock has yet to address features that were requested by users in 2004 such as the Blocked Bidders List, and the ability to respond to Ratings. Both of these features were promised in 2004 and have failed to be implemented by Overstock.
Tuesday, December 5, 2006
Ebay reorganizing and Overstock Recycling
eBay North America offices in San Jose will become the new home of one very well known European executive Philipp Justus in the coming months. Philipp has done wonders for the eBay Germany site and many sellers believe a much brighter future is ahead in the US eBay.com Marketplace.
Philipp will head up a special team, reporting directly to eBay North America President Bill Cobb. Philipp's team will focus on the re balancing efforts at eBay core Auctions.
Similar to eBay's move of reorganizing Overstock Auctions has apparently began a recycling program, launched with a full banner ad for (You Guessed It) Pre-Chewed Gum. According to the Listing this is no ordinary pre-chewed gum, but that of Guy Yovan of ivillage Live complete with a letter of Authenticity. Bidding has already been vigorous with 23 bids from 3 Unique Users, two of which are from Salt Lake City! I guess Guy has a Fan club in Salt Lake with at least two members.
Will the Chewing gum loose it flavor on the Overstock Homepage Over night, or will it be the High Profile Auction that Determines Overstock's dominance in the Online Auction Industry.
Philipp will head up a special team, reporting directly to eBay North America President Bill Cobb. Philipp's team will focus on the re balancing efforts at eBay core Auctions.
Similar to eBay's move of reorganizing Overstock Auctions has apparently began a recycling program, launched with a full banner ad for (You Guessed It) Pre-Chewed Gum. According to the Listing this is no ordinary pre-chewed gum, but that of Guy Yovan of ivillage Live complete with a letter of Authenticity. Bidding has already been vigorous with 23 bids from 3 Unique Users, two of which are from Salt Lake City! I guess Guy has a Fan club in Salt Lake with at least two members.
Will the Chewing gum loose it flavor on the Overstock Homepage Over night, or will it be the High Profile Auction that Determines Overstock's dominance in the Online Auction Industry.
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