eBay partners with Buy.com, gives large sellers the finger
Kevin Harmon is the CEO of Red Shorts Media LLC, which owns movie and music trade-in/buyback websites. He is the former CEO of Inflatable Madness, LLC, one of the largest DVD and CD resellers on eBay and Amazon.
Kevin has appeared on Startup Nation Radio multiple times, has been featured in The Wall Street Journal, has been a featured speaker at eBay Live, and has appeared on Fox Business Channel.
Latest posts by Kevin Harmon (see all)
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- Hey Used Video Game Sellers: The XBOX One Just Pooped In Your Sandbox - June 3, 2013
It’s being widely reported this weekend that eBay has entered into a partnership with Buy.com to allow Buy.com to sell lots and lots of product on eBay.com. As of this moment, Buy.com has over 140,000 3-day listings active on the site. In April Buy.com did roughly $700,000 in sales on eBay.
None of that matters to me.
What matters to me is that eBay, for the first time, has cut a deal on listing/final value fees for a seller. That’s right gang – eBay is finally behaving like every other company on Earth. Companies that sell more product pay less for fees – what a concept!
Of course, the other side of this coin is that eBay just flipped the bird to its own large seller base. In my opinion, what eBay just said to us is this: “Hey large seller, thanks for the $2 million in fees you’ve paid us over the last 5 years – you really kept the fuel in Meg’s private jet! As a thanks, we’re going to cut deals with companies who have never even sold on eBay and allow them to compete directly against you at a significant cost advantage because, well, you simply can’t meet our impossibly high standards! We’re not asking you to leave of course, but here’s your hat”
What eBay has never got – and this company is filled with very smart people – is that we can’t provide Tiffany’s level of customer service, sell at below wholesale, and pay 20% gross sales to eBay. That’s a perfect storm of impossibility, my friends.
Good for Buy.com, and good for the other companies that will be selling soon I’m sure, but eBay, please realize that if you cut me a deal, I could also list 150,000 3-day auctions on your site AND afford the CS to make it flawless.
Make me prove it to you.
Go read the post that broke the story. Way to go Randy!: