As expected eBay has announced increases to the US site Fee Structure to take effect January 30, 2007.
EBay Canada is also impacted by today's announcement with a similar Fee Increase
While eBay feels the increase is slight, and sellers can handle the impact with minimal effort, the overall impact may be devastating to the small seller. EBay fee Increases, cancellation of subscription plans at Overstock Auctions, UPS, FEDEX, and USPS rate increase are creating a snowball effect on small business owners.
Newspaper Headlines across the country have been detailing an alarming rate of Drop Off store closures, small Mom and Pop eBay operations, and traditional consignment and antique shops closing. Will 2007 leave online and offline store fronts vacant?
Auctionbytes has made a list of "Things to Watch in 2007"
Showing posts with label ebay. Show all posts
Showing posts with label ebay. Show all posts
Wednesday, January 3, 2007
Are you advertising effectively? Tips for Online Sellers
During the past several months we placed orders from several online sellers through both traditional auction sites and individual merchant sites. The quality of advertising, and quantity of advertising included with our purchases was interesting to say the least.
The Most effective, and one of the least expensive forms of advertising, came from Pennyworth sales along with our order. Pennyworth sales had combined purchases from various sites and direct sales into one order and included a nice and simple thank you card advertising all of their sales channels with URLs. Pennyworth Sales carries a variety of closeout and wholesale merchandise across multiple venues under the ID Bluepennylady
The second most effective advertising was from an eBay transaction from the store PCGS_SLABS. This seller effectively advertised their own web site through the use of a custom invoice included with the shipment. Custom invoices offer a very effective advertising method to direct customers to a sellers own sites where costs are more controlled.
Least impressive out of all was the shipment from Overstock.com. There were no promotional materials other than a standard white invoice.
Marketing to existing customers is a necessary part of business that can be conducted with minimal cost. Every shipment should include a minimum of one type of marketing, and it is often best if several types are used together.
Custom address labels on the outside of packages advertises to the customer as well as every individual that handles the package along the way. Catchy phrases or graphics will make your business memorable and lead to additional sales and customers.
Business cards and custom invoices inside shipments help the customer know which business to order from again. Browsing the Internet one can find low cost and often free marketing materials to help grow their business.
Free Deals of the Week
Jaxworks Free Small Business Spreadsheet Library
The Most effective, and one of the least expensive forms of advertising, came from Pennyworth sales along with our order. Pennyworth sales had combined purchases from various sites and direct sales into one order and included a nice and simple thank you card advertising all of their sales channels with URLs. Pennyworth Sales carries a variety of closeout and wholesale merchandise across multiple venues under the ID Bluepennylady
The second most effective advertising was from an eBay transaction from the store PCGS_SLABS. This seller effectively advertised their own web site through the use of a custom invoice included with the shipment. Custom invoices offer a very effective advertising method to direct customers to a sellers own sites where costs are more controlled.
Least impressive out of all was the shipment from Overstock.com. There were no promotional materials other than a standard white invoice.
Marketing to existing customers is a necessary part of business that can be conducted with minimal cost. Every shipment should include a minimum of one type of marketing, and it is often best if several types are used together.
Custom address labels on the outside of packages advertises to the customer as well as every individual that handles the package along the way. Catchy phrases or graphics will make your business memorable and lead to additional sales and customers.
Business cards and custom invoices inside shipments help the customer know which business to order from again. Browsing the Internet one can find low cost and often free marketing materials to help grow their business.
Free Deals of the Week
Jaxworks Free Small Business Spreadsheet Library
Saturday, December 9, 2006
Big O or O No! The sinking of a ship
Overstock Auctions, AKA The Big O Auctions, appears to be launching signal flares as their experiment from the primordial "OCEAN" begins to take on water.
For weeks Overstock Auctions has made changes to the site with some changes directly impacting the bottom line of many Overstock sellers. Normally the 4Th Quarter is a time of glee for online merchants, however Overstock merchants have not been experiencing positive growth.
The hopes of a wondrous Christmas selling season on Overstock have been suppressed with a site makeover removing individual seller branding, followed by a growth stunting Make It Mine policy revision, and finally today the removal of 60% of the subscription pricing plans.
Stormy Simon appears to be understating the impact of such changes as merely "frustrating", while many sellers have already purchased Q1 & Q2 inventory for 2007 based on prepaid subscription plan limits. According to Stormy's letter any prepaid portions of cancelled subscriptions will be credited to sellers accounts, however this does not address those payments made by cash, or interest accrued on prepaid contracts that will remain unfulfilled.
Like so many shopping centers around the country, Overstock Auctions can only maintain traffic flow on a limited basis without the Anchor Merchants. Small sellers will see sales continue to dwindle as Anchor Merchants take their customer bases to other venues, or even their own web sites. Overstock will in essence sink back into the primordial "OCEAN" project from whence came, and once again sell their returns on eBay.
For weeks Overstock Auctions has made changes to the site with some changes directly impacting the bottom line of many Overstock sellers. Normally the 4Th Quarter is a time of glee for online merchants, however Overstock merchants have not been experiencing positive growth.
The hopes of a wondrous Christmas selling season on Overstock have been suppressed with a site makeover removing individual seller branding, followed by a growth stunting Make It Mine policy revision, and finally today the removal of 60% of the subscription pricing plans.
Stormy Simon appears to be understating the impact of such changes as merely "frustrating", while many sellers have already purchased Q1 & Q2 inventory for 2007 based on prepaid subscription plan limits. According to Stormy's letter any prepaid portions of cancelled subscriptions will be credited to sellers accounts, however this does not address those payments made by cash, or interest accrued on prepaid contracts that will remain unfulfilled.
Like so many shopping centers around the country, Overstock Auctions can only maintain traffic flow on a limited basis without the Anchor Merchants. Small sellers will see sales continue to dwindle as Anchor Merchants take their customer bases to other venues, or even their own web sites. Overstock will in essence sink back into the primordial "OCEAN" project from whence came, and once again sell their returns on eBay.
Friday, December 8, 2006
eBay Cracks down on Designer Goods and Good Sellers
It appears that eBay has stood by the promise to restrict listings and activity related to highly counterfeited designer goods. Across the eBay boards there seems to be great confusion caused by restricted accounts and shipping destinations relating to designer brands.
On the Trust and Safety Board one seller experienced Restriction notices while trying to add a Counter to a listing for a "Tiffany" pin.
Several other threads exist throughout the site detailing shipping restrictions where listings are prohibited from shipping to specific countries such as Asia. According to one discussion among sellers excluding Asia from shipping destinations also excludes a large number of other countries under eBay's default regions.
Implementing such changes during the Holiday Season is impacting the Good sellers along with the Bad, and we all know the Bad sellers always find a way around such restrictions since they are not bothered by morals or policies.
On the Trust and Safety Board one seller experienced Restriction notices while trying to add a Counter to a listing for a "Tiffany" pin.
Several other threads exist throughout the site detailing shipping restrictions where listings are prohibited from shipping to specific countries such as Asia. According to one discussion among sellers excluding Asia from shipping destinations also excludes a large number of other countries under eBay's default regions.
Implementing such changes during the Holiday Season is impacting the Good sellers along with the Bad, and we all know the Bad sellers always find a way around such restrictions since they are not bothered by morals or policies.
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.
Sunday, December 3, 2006
Online Sellers Beware! Speed Bumps Ahead
As sales roll full steam into the Christmas Rush, online sellers should heed the cautionary road signs and route markers indicating "Speed Bumps Ahead". According to all sources there are many changes coming that will slow growth, reduce profit margins, and force many out of online sales all together.
Through planning and good marketing many sellers will be able to proceed without disruption. Staying up to date on current issues, placing cash back into depleted reserves and operating funds, and preparing back up plans will help in the coming months.
Upcoming Changes impacting online sales
Proposed 2007 USPS Rate Increases
2007 UPS Rate Increases take effect January 1, 2007. According to the UPS communication received November 17, 2006 rates are scheduled to increase as follows:
"UPS Ground service to commercial and residential destinations will have the same transportation charge, based on the lower commercial rate, and will increase 4.9%. The Ground residential surcharge that was previously built into the Ground residential rates will now appear as a separate charge on your UPS invoice. Air and International services will increase a net 4.9%, through a combination of a 6.9% increase in rates and a 2% reduction in the air fuel surcharge. In addition, the Delivery Area Surcharge and Residential Surcharge will both increase by $0.10."
Increased costs and decreased exposure across all venues are expected to continue in 2007. eBay has already announced plans to continue the "Disadvantaged" idea and decrease exposure to stores even more. To support continued revenue growth while their market declines eBay will have no other alternative than to raise fees again. Other venues are tossing around similar ideas.
Increased costs of packaging and shipping supplies are expected to rise between 3%-5% over the next 12 calender months to keep up with production cost increases. Given the increases in 2006 caused by Katrina and Petroleum costs the 3%-5% increase may be an underestimated figure.
Through planning and good marketing many sellers will be able to proceed without disruption. Staying up to date on current issues, placing cash back into depleted reserves and operating funds, and preparing back up plans will help in the coming months.
Upcoming Changes impacting online sales
Proposed 2007 USPS Rate Increases
2007 UPS Rate Increases take effect January 1, 2007. According to the UPS communication received November 17, 2006 rates are scheduled to increase as follows:
"UPS Ground service to commercial and residential destinations will have the same transportation charge, based on the lower commercial rate, and will increase 4.9%. The Ground residential surcharge that was previously built into the Ground residential rates will now appear as a separate charge on your UPS invoice. Air and International services will increase a net 4.9%, through a combination of a 6.9% increase in rates and a 2% reduction in the air fuel surcharge. In addition, the Delivery Area Surcharge and Residential Surcharge will both increase by $0.10."
Increased costs and decreased exposure across all venues are expected to continue in 2007. eBay has already announced plans to continue the "Disadvantaged" idea and decrease exposure to stores even more. To support continued revenue growth while their market declines eBay will have no other alternative than to raise fees again. Other venues are tossing around similar ideas.
Increased costs of packaging and shipping supplies are expected to rise between 3%-5% over the next 12 calender months to keep up with production cost increases. Given the increases in 2006 caused by Katrina and Petroleum costs the 3%-5% increase may be an underestimated figure.
Thursday, November 30, 2006
eBay Glitches add to Holiday Stress
eBay is experiencing technical issues this morning preventing some users from accessing their accounts and customer data.
Selling Manager, Selling Manager Pro, Seller's Assistant, and Seller's Assistant Pro are impacted by this system glitch. Sellers using those selling tools may be receiving a message that they are not currently subscribed to the tool.
eBay should take note! This is one of the reason's sellers repeatedly request no site changes during the Holiday Selling season. A system issue like this, even for short durations can delay order processing by days for some merchants.
Selling Manager, Selling Manager Pro, Seller's Assistant, and Seller's Assistant Pro are impacted by this system glitch. Sellers using those selling tools may be receiving a message that they are not currently subscribed to the tool.
eBay should take note! This is one of the reason's sellers repeatedly request no site changes during the Holiday Selling season. A system issue like this, even for short durations can delay order processing by days for some merchants.
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