Ebay Hike Fees Again!

Within hours of eBay announcing another increase in fees to sellers, Gary E. Sattler sent a forum I moderate this letter which he has given me permission to reproduce here.

Gary wrote:

For those of us who follow eBay (NASDAQ: EBAY) closely, it comes as no surprise that another user fee increase has been announced for the site. There is logic behind what they are trying to accomplish but that doesn't mean that it's good or that it will work... or that it's right. Simply put, I believe that eBay is attempting to accomplish their goal of driving the median final value of completed purchases higher. It has been rumored that the long range goal of eBay management is for the minimum final value of items sold on eBay to be pushed all the way up to $25. It would seem that they are just trying to wring more dollars out of their system without equipment or payroll increases. That's not a bad goal but are they collapsing the mine in pursuit of the gold?

Meg Whitman, Bill Cobb and a host of eBay proponents keep pointing back over their shoulders reminding us about where eBay has come from. Since 1998 eBay growth has been nothing short of phenomenal. In the past two years though, not so much. There are two very distinct schools of thought on the subject. Meg and crew in their arrogance believe that eBay has grown from the top down. The real truth of the matter is that eBay was built from the bottom up. Now, Meg and Bill think they can adjust eBay operations by placing small explosive charges at its foundations. I submit for your approval, if you want to see eBay regain it's strength and stature, you need to blast some crap off the top.

I'll just add a side note here because I think it's worth a mention; eBay sent out a site wide notice a few days ago that they have settled a class action lawsuit brought in the interest of their membership. It seems that eBay has allegedly bilked their membership for millions of dollars in the form of artificially increased final winning bids. In a nutshell, if I had a winning bid of $10.01, the eBay system would charge me $10.25 for the sale because that's the next natural bid increment. That results in higher final value fees for eBay. On it's face it's almost harmless. In cold hard reality it's (allegedly) fraud.

I have placed the appropriate language onto eBay which their members can use to opt out of the class action thereby retaining their rights of remedy in this matter. Yes, eBay I will opt out of the class action which you have settled. Please consider yourself on notice eBay: I retain the right to sue you myself and you just set precedence in the matter. You keep setting upon your history and laurels. Just remember who's back there.

If anyone would like to comment on the issues Gary has raised they can do so at www.PheeBay.com where they will be forwarded on.