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February 19, 2008

eBay Sellers Strike, eBay Yawns

Ap_ebay_071114_ms Right now, in case you didn't know it, eBay businesses across the country are on strike.

Back in January John Donahue, who will become the online auction giant's CEO in May, announced changes to the fee structure for those who sell goods on the site (reported here a few weeks ago). While listing costs will be decreased, the fee percentage taken from the final sale will be increased. This means that bigger ticket items will have bigger slices taken out. But that's not all. eBay will also withhold some PayPal payments to sellers for up to 21 days and prevent sellers from leaving negative feedback about buyers.

For some eBay buyers, this is unacceptable.

In a Seattle Times article, Valerie Lennert of Anaheim, Calif.--who quit her job as a social worker in January to open an eBay business--said, "They're literally gutting the entire system we're familiar with." Seen by many as leading the charge against eBay, Lennert posted a video on YouTube calling for a week-long strike. More than 36,000 people watched it last week (see the video here).

Speaking with CNNMoney, she said the video is "a rallying cry for other sellers.... It was another way of letting people know that they were not alone. My inbox is overflowing with people that are ticked off."

Does eBay care, though? When asked about the strike, eBay spokesman Usher Lieberman said, "We've had hundreds of threats in the past, and they don't seem to have had much impact."

And as for the fiery response to the feedback change, Lieberman's response seems equally glib: "Feedback draws a lot of passion from our community. It's one of our great innovations, so it's going to elicit a lot of input."

Will the strike have an impact on eBay's bottom line? And will the eBay community define eBay's direction or the company itself. Only time will tell.

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