3 ms·

Why is this a good time? User acquisition in this space is expensive, and I don't think eBay raising their sell side fees makes a huge difference in bringing in

Why is this a good time? User acquisition in this space is expensive, and I don't think eBay raising their sell side fees makes a huge difference in bringing in consumer traffic. Sellers still have to list on eBay due to sheer volume. eBay may lose some sellers who no longer have a profitable margin, but I don't think you lose an equivalent amount of buyers in the process.

prawn 14y ago
Drive a niche wedge in. Easier/cheaper to gain traffic in a niche, but they're still going to be potentially disgruntled if fees are frustrating them. If there is a real issue with high value items, that might be a way to select a niche.
anigbrowl 14y ago
Well, that's sort of a rhetorical flourish, but I expect this to result in a fair degree of backlash. I trade synthesizers and high-ticket audio gear fairly regularly, and I feel comfortable calling myself an expert on that market. It's not a business for me, but I make my living working with pro audio so it does have a professional dimension. I think a lot about pricing strategies, and incline towards building listing and shipping fees into my price - I make a bit less, but my trades move quickly and a single all-inclusive price creates goodwill with buyers. But there is no way that I'm going to just silently eat fees of 12-13% (including Paypal transaction charges), when I also pay shipping, insurance, and signature confirmation fees to minimize the risks of chargebacks on items costing hundreds or thousands of dollars. I have other markets I can sell in, of people who I've known for years on pro audio forums and a moderately active electronic music scene where I live. I liked selling on eBay because I could usually get a 10% premium or so over a local sale, but now that margin has disappeared. bulk dealers will just treat it as a cost of doing business, but traders in specialty markets like myself will just raise their prices or sell in informal markets. As a buyer I'm also much less inclined to subsidize ebay. User acquisition of auction customers is indeed expensive, but I bet there are opportunities in peer to peer trust arrangements similar to escrow transactions.
- salman89 14y ago
  "User acquisition of auction customers is indeed expensive, but I bet there are opportunities in peer to peer trust arrangements similar to escrow transactions." I like where you are going with that. I can envision a marketplace that is built around consumer trust and seller expertise, I just don't think that eBay is that marketplace.

prawn 14y ago

Drive a niche wedge in. Easier/cheaper to gain traffic in a niche, but they're still going to be potentially disgruntled if fees are frustrating them. If there is a real issue with high value items, that might be a way to select a niche.

anigbrowl 14y ago

Well, that's sort of a rhetorical flourish, but I expect this to result in a fair degree of backlash. I trade synthesizers and high-ticket audio gear fairly regularly, and I feel comfortable calling myself an expert on that market. It's not a business for me, but I make my living working with pro audio so it does have a professional dimension. I think a lot about pricing strategies, and incline towards building listing and shipping fees into my price - I make a bit less, but my trades move quickly and a single all-inclusive price creates goodwill with buyers. But there is no way that I'm going to just silently eat fees of 12-13% (including Paypal transaction charges), when I also pay shipping, insurance, and signature confirmation fees to minimize the risks of chargebacks on items costing hundreds or thousands of dollars. I have other markets I can sell in, of people who I've known for years on pro audio forums and a moderately active electronic music scene where I live. I liked selling on eBay because I could usually get a 10% premium or so over a local sale, but now that margin has disappeared. bulk dealers will just treat it as a cost of doing business, but traders in specialty markets like myself will just raise their prices or sell in informal markets. As a buyer I'm also much less inclined to subsidize ebay. User acquisition of auction customers is indeed expensive, but I bet there are opportunities in peer to peer trust arrangements similar to escrow transactions.

salman89 14y ago
"User acquisition of auction customers is indeed expensive, but I bet there are opportunities in peer to peer trust arrangements similar to escrow transactions." I like where you are going with that. I can envision a marketplace that is built around consumer trust and seller expertise, I just don't think that eBay is that marketplace.