A Conspiracy Theory

[rugbyguy1960]

Hi everyone.

I had to post this to get the thought off my mind.

When Simple Post is compulsory what is stopping ebay from their postage rates being slightly inflated.

They could then pay the companies they have contracts with the normal rates and pocket the difference on every item posted.

This might sound far fetched but not impossible.

Private sellers would have no choice but to comply or stop selling as this would become policy.

At the moment a postman collects items I send which is great.

There is no way something like the O2 bot would collect packages sellers send.

I would be interested in your views and your comments.

[papso22]

I don't see why you think it's a conspiracy theory, it's just business.

Of course ebay will have commercial arrangements with carriers whereby it makes money out of SD. 

This could be by inflating prices to buyers, or getting a discount from the carrier, or both.

[1956glyn]

Hi

This is my opinion and experience ....

When large companies negotiate postage rates with major carriers then yes the the company  does usually add a nominal amount to postage costs  .

These contracts are not negotiated at the same price for the average person in the street .....due to volume they are heavily discounted..most of which is usually passed on to try and boost business.

With SD i think that the postal rates will be more than the actual contract prices to cover any additional costs/claims that the site is/will be liable for.    Yes they will be making a lot on postage but i do not think the rates offered will be extortionate.

Hope the above makes sense.   It is just business and businesses do tend to try and make money on everything.

[theelench]

I would have thought that in most cases in business a customer who is negotiating with a supplier would ask for a price reduction below the normal rate.  Something the supplier would consider if the buyer is bringing them a large enough increase in their business to make a reduction in the price worthwhile.  If a carrier is (say) charging £2. and making £1 profit at full price, they might consider charging the the customer £1.50  if they can add another million parcels to their business.  They are still making another half a million in profit.

So I would start from the premise that ebay will negotiate the carrier down, to a price below their norm and keep the difference.  Ker-ching for ebay.

But as always with ebay, will they stop there?  Probably not.

For providing the 'service' of restricting private sellers delivery options and controlling which they are allowed to use ebay will add a 'cost covering' premium.

That's what the mumbo-jumbo about calculating which carrier and service is 'appropriate' and 'convenient' and why there are (probably) mysterious 'other factors' that come into the equation, is all about.  It gives ebay the excuse to to insert its bit of string into the equation and start stretching it for all they're worth.

No-one will benefit from this except ebay.

[rugbyguy1960]

Hi.

Thanks for posting.

I knew that ebay would negotiate rates that would be reduced but it's the underhanded way they are going about things.

Their transparency is about as transparent as a brick wall.

They know that some sellers use eBay just to get a bit of extra money.

So they decide to make using SD compulsory knowing they can start their prices at whatever level they want.

Only giving sellers the choice of like it or lump it because once it's policy they've got sellers where they want them.

[rugbyguy1960]

You are absolutely right.

I knew they'd negotiate favourable rates for themselves but once it's policy they can start their charges at whatever level they want.

Yet again it's a case of a puppet master wanting things on the end of a piece of string that they have total control over.

[carbtec]

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@rugbyguy1960 wrote:

Only giving sellers the choice of like it or lump it because once it's policy they've got sellers where they want them.

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As has been said, it is the way business works.

When ebay was rapidly expanding its market & its revenue (& profits) was growing, its shareholders were happy. Now that expansion is saturated & it is no longer a growing marketplace it still has to keep its shareholders happy. It does this by squeezing more revenue from its existing customer base, always increasing & always squeezing. As its customer base dwindles . . . The sqeeze will get tighter.

[rugbyguy1960]

I know they will have negotiated favourable rates but it's the under handed way they have done it.

Try making sellers believe its in their interest then make it policy then make it compulsory and the icing on the cake for ebay is knowing they can charge what rates they want.

[insidethe93]

papso22 wrote: "I don't see why you think it's a conspiracy theory, it's just business..."

It's eBay's own kind of "business". Of course the word "business" doesn't mean it has to be fair just legal, even just barely legal. Thankfully eBay's kind of business isn't common (yet).

Below is from googling and looking at the Advertising Standards Authority's website. My own comments are within square brackets - if wished, skip them!

UK law does not explicitly prohibit inflating postage charges for profit provided the charges are clearly communicated to consumers and comply with advertising and consumer protection regulations. ["clearly" is unfortunately very open to interpretation.] But there are guidelines [unfortunately only guidelines] on how such charges should be presented:

[Even if things are legal and "just business" doesn't make something right nor is it sound business sense. Rile people enough and they'll spend less or leave, and they'll complain to friends/family/colleagues and on social media. eBay's charges look oppressive and greedy; never mind legal technicalities, it's what it looks like which influences people. A savvy business not only does right by its customers but is SEEN to be doing it. A business with a bad rep won't be afloat for long.]

1. Delivery or postage charges must be clearly stated and not be misleading. If a delivery charge is unavoidable, it should be included in the total price or prominently disclosed as a separate cost.

2. If a product is advertised as "free" any associated postage charge must reflect the true, uninflated cost of postage. Adding handling or administrative fees would disqualify the claim of the product being "free".

3. Businesses may include VAT in delivery charges, but this does not regulate whether the charge can exceed actual postage costs to include profit.

4. While businesses can set their own delivery fees, they must ensure these charges are not misleading or unfair under consumer protection laws.

[I hope the time will come soon when the government overhauls charges for postage, to clarify things and hopefully legislate for a fairer system for consumers.]

[rugbyguy1960]

True but not every business do things so underhanded to the point where they control people this much.

I Want to reach 20 years as a buyer and seller on ebay in April and then ebay will be a buying platform only for me.

[theelench]

Out of interest.

Were you selling here when Managed Payments were rolled out?

The pre-roll-out announcement stressed that (something like) "most sellers will be better off under MP as it will be cheaper than paypal charge."

And it was.  Paypal charged (if memory serves) 2.9%.  Managed Payments came in at 2.8% but with payment delays for ebay to make up the difference in accrued interest on the funds.  Ebay made billions and still does from payment processing.  Their 'generous' fee reduction was so small it didn't even register on some of my sales break-down of fees!!

[rugbyguy1960]

That's a good post.

It's just the way ebay are shoving things down the throats of sellers and being so underhanded.

No transparency. Making new policies and then making things compulsory to then have total control over users.

[insidethe93]

Thanks but I think yours (message 10) is better and also succinct.

[rugbyguy1960]

I remember the good days of paypal.

I never had any issues while they were doing payments.

I know times change but getting rid of paypal was the beginning of the ebay control factor.

They took over managing payments. Imminently they will take control of postage choices and charges.

I hope the dictatorship of ebay comes to the same sticky end like a famous dictator in the past did.

[lucy_farmer]

'......but it's the under handed way they have done it. Try making sellers believe its in their interest......'

_________________________________________________________________________________________

But this is just business 'spin'. Business bullsh**. Advertising speak. All big business do this.

There is a bank, for example, that is  'By your side' ..... are they my a*s*.... They will cheerfully throw their customers under the bus if it makes their shareholders another 20pence.

This is the reality of big biz.  

(And yes I hate it too :  I can't watch adverts (sound down and have to physically turn away!) and will not go to any website that tells me to switch off my ad blocker. The patronising of companies expecting me to believe their bull makes me grind my teeth..)

[rugbyguy1960]

Hi.

Love the post.

It's just all so underhanded.

It's got the transparency of a brick wall.

All based on greed and squeezing as much as they can.

The worst of all is the control freak and power crazed they want to be.

Hopefully like past dictators and dictatorships they'll come to a sticky end.

[lucy_farmer]

'It's just all so underhanded.'

--------------------------------------------

Yes it is, but it seems to work or they wouldn't be doing it.

(Right ; I'm just about to be very rude here to the general population, so I apologise in advance..!)

This stuff works because most people do not think.

Lots of people don't think because they're dim.

Ask youself how intelligent the average person of your acquaintance is. Then realise that half  the population is dimmer than that (that's what 'average' means) 😮

[rugbyguy1960]

Ebay won't do anything in anyone's best interest unless it's their own.

Greedy, unscrupulous, underhanded, and no transparency are a few things that spring to mind, oh and untrustworthy.

I may not be a rocket scientist, but my life experience has taught me to think and read between the lines before believing the utter rubbish they come out with.

[henry_tree92]

Isn't that what eBay are already doing with their Global Shipping Program or whatever it's equivalent is now?I've never used it but from what I understand from some of it's prices and stipulations they are completely ripping people(the customers) off.

[rugbyguy1960]

That really doesn't surprise me.

It's got to the point where I'm no longer shocked by ebays tactics.

I don't trust or believe them anymore.

I stopped selling things abroad and only sell within the UK.

I'm not a business and when SD is compulsory I will not sell another thing on ebay.

I'm looking into info on Marketplace. 

I will not be told who I can use for postage.

RM and the service they provide me works and I don't try fixing what's not broken.