ICYMI - Last Minute Buyer Fee Change, Will Be Phased In Starting With Electronics

[valueaddedresource]

In case you missed it - eBay will *not* be adding Buyer Fees in all categories tomorrow, instead opting for a phased rollout starting in Electronics and then expanding to other categories "in the following weeks."

The update was tucked into a broader announcement posted to the community earlier today:

https://community.ebay.co.uk/t5/Announcements/Buyer-Protection-Pok%C3%A9mon-Day-VAT-invoices-amp-oth...

Starting from 4 February, Buyer Protection will be live to give buyers more peace of mind when shopping on ebay.co.uk. To minimise any potential disruption on our platform, the Buyer Protection fee will be gradually rolled out across items listed by private sellers, starting in Electronics and coming to all eligible categories in the following weeks.

[valueaddedresource]

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@doumind_7 wrote:

Spot  on and most interesting. I think they are already backtracking. They've got themselves in an unholy mess with this. You don't make an announcement of "phasing it in" over a major policy decision hours before it starts.  Or are they that incompetent? 

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@doumind_7 to be clear, I'm not saying I think they are backtracking - I think it would be premature to assume that.

But I do think market conditions are such right now that investors may be a little spooked, or at least closer to that edge, and that is likely a significant factor in the decision to move forward more cautiously than they had originally intended.

[valueaddedresource]

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@vinylscot wrote:

I agree it's possible, but don't you think eBay would have put out some sort of notice saying they had taken notice of member sentiment, so had decided to phase in the buyers' fee gradually, to minimise disruption, or some other corporate word salad? I'm sure they would want to take some credit, which they badly need.

Their failure to do something like that is what leads me to suspect incompetence as a more likely cause.

If there is a nod to the possibility that it may never be implemented, that is obviously a good thing. Perhaps they are now going to invest some time to work out how they can undo it, if necessary, once it has been implemented, as that will be another huge task.

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@vinylscot if eBay's concern was to make users feel heard, then yes I agree they would have likely added some feel good buzzword salad with those kind of sentiments.

If the concern/goal is to mitigate risk while keeping investors happy though, that's a much tighter rope to walk from a comms perspective.

eBay has painted themselves into a bit of a corner here - the stock price dropped after Q3 earnings largely due to their guidance for lower Q4 revenue, which was primarily being driven by fee-free private selling in the UK and the fact they had not yet put in place buyer fees and mandatory Simple Delivery to remonetize those sales.

Interestingly, the Q4 call is scheduled for February 26, which is later in the month than had been expected based on historic timing - though it's hard to say exactly what to make of that, analysts I've spoken to are generally not viewing it as a positive sign.

So eBay has to thread the needle very carefully here with communications. If they were to have added in all the usual word salad about listening to feedback etc., that could give a signal to investors that there is more of a possibility they won't move forward with it or they aren't confident in the plan - which of course would not go over well.

Phrasing it as they did makes it sound like they are simply being cautious as they move forward, while still committed to the plan and giving a seemingly short sounding timeframe (following weeks). From an investor perspective, that would likely be less unsettling....unless of course those "following weeks" turn into months, but that will be a problem for the next earnings call at that point and yes, in my experience eBay often really is that short sighted in just trying to get through to the next quarter. 😂

[*vyolla*]

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@vintique*violet wrote:

Now that is interesting as Vinted are introducing electronics sales to start  their expansion to include different items other than clothing. @valueaddedresource

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It's been possible to sell electronic items on Vinted for a couple of years, but last September they introduced a specific category for them (Electronics, obviously!).

It's not just a clothing site.

Bizarrely, sellers can list items that aren't permitted on eBay unless you're a business seller, such as used cot beds, car seats, childrens toys - items that eBay have restricted due to health and safety reasons. 

[theelench]

As you say "there are maybe 100 upset members who are posting on these boards."  It's also true that these boards are only a tiny percentage of the membership.

So isn't it safe to assume that there are likely to be many more who are just as upset, but just quietly thinking through the implications and their options.

And then there are probably as many or perhaps even more that have somehow missed the whole issue and its publicity entirely.  For them it will be a shock when they first meet it and the rest of the recent changes.

I think it's a certainty that there will be far more than the few we see here that will be upset and like so many private sellers before them, they'll just silently melt away taking their sales and more importantly, their purchases with them.

[slxhawk]

Ebay is a business it needs to make a profit, so it is either seller or buyer fees you can't have it both ways. 

[papso22]

I agree that there will be more than we see here, but there is no evidence that 'most' sellers are upset.

Or indeed evidence that they are not.

I just don't like it when people state things as if they are facts when they are just personal opinion, or assertions.

[drgwalker]

I invested in eBay stock in 2012 and 2014. Share price then was around $25 a share. I've traded in and out since and made some tidy profit and I'm not holding too much stock now (less than $4k).

The company is so poorly run and I could write chapters on customer service (lack of) and continual glitches with their software.

A peek at the sock puppets who answer the Q&A's every week tells you everything you need to know about the firm.

[slxhawk]

I did not say that sellers or buyers are not upset and what I say about ebay is a fact. 

[papso22]

I wasn't responding to you.

[jjambadger27]

Come on, it would be a total eject of a seller who'd be clapping their hands in glee at all of this. 

[papso22]

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@jjambadger27 wrote:

Come on, it would be a total eject of a seller who'd be clapping their hands in glee at all of this. 

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Reactions are not polar, you don't have to be upset or gleeful, you could just be indifferent.

And so far no-one has any idea how 'all of this' will actually pan out.

[jjambadger27]

The only sellers who would be indifferent about this must have a massive Valium habit. 

My take on it all is that it's only to be expected that there'd be a seller fee in some form or another, because that's what it is in a "backdoor" way. I'd just sooner have an actual seller fee than this obfuscation. 

[papso22]

So anyone who is not upset is either an idiot or on drugs, according to you. 

What rubbish.

[valueaddedresource]

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@drgwalker wrote:

I invested in eBay stock in 2012 and 2014. Share price then was around $25 a share. I've traded in and out since and made some tidy profit and I'm not holding too much stock now (less than $4k).

The company is so poorly run and I could write chapters on customer service (lack of) and continual glitches with their software.

A peek at the sock puppets who answer the Q&A's every week tells you everything you need to know about the firm.

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@drgwalker I've had several recent occasions to go back and read the 2019 Enhancing eBay plan from when activist investor Elliott Management secured a seat on the board and started pushing for change at the company and...it's really kind of shocking how much of it still rings true, especially the parts about misexecution and technical mismanagement. 

https://www.businesswire.com/news/home/20190122005513/en/Elliott-Management-Sends-Letter-to-Board-of... 

Substitute AI for machine learning and augmented reality in that last sentence and it's exactly where eBay still is today.

In my opinion, CEO Jamie Iannone has been holding off the inevitable for a while now with stock buybacks but he's quickly reaching the end of that trick and clearly has no clue how to actually fix the many site issues, bring in more buyers, and grow GMV.

[jjambadger27]

Go and find me a seller who's happy about all of this, then. 

[department28]

Whatever changes are introduced, I do wish eBay would just say something straightforward, like 'here are the upcoming changes for this month', instead of calling anything new 'exciting'. 

The changes on eBay over the years could be described in many different ways, but I can't recall finding any of them 'exciting'....

[bittyboy101]

Wanted to give you kudos for this post but was sadly blocked by eBay - Apparently there is a 100 kudos limit per day ! - Honestly eBay what do you get out of this ?  😞

    

[vintique*violet]

Correct only 100 per day allowed, thank you anyhow - it is  noticed they also reverse  helpful " kudos" not that I am here for any " kudos" just factual communication. Have a lovely evening. 

[vintique*violet]

😂🤣😃oh that did make me laugh, but I " assume" that you knew that already. 

[doumind_7]

Thank you for your support.

Statistically for every person who takes the time to complain 10 do not.

EBay are really getting themselves in the ***t over this. They've lost the plot.

Keep up the pressure!