Yes, eBay is great, but there are things for concern from a merchant’s perspective.
eBay’s main advantage is its large number of customers. What merchant doesn’t like a large gathering of potential customers? That’s what eBay provides.
But what use are those sales if eBay fees and dispute costs wipe out the profits (because many merchants feel eBay kowtows to customers in disputes)?
Advantages of selling on eBay
- Large customer base: eBay has millions of active users worldwide, offering access to a vast audience for your products. As a well-known platform, eBay provides trust and credibility to new sellers.
- Global reach: You can sell locally or internationally, expanding your customer base beyond geographical limitations.
Disadvantages of selling on eBay
- High fees:
- eBay charges listing fees and final value fees (ranging from 10-15% of the sale price).
- Additional fees apply for promoted listings or optional upgrades (e.g., bold titles, international visibility).
- PayPal or other payment processing fees further cut into profits.
- Fierce competition:
- The marketplace is saturated with sellers, often driving prices down.
- Established sellers with large inventories or premium listings can overshadow smaller merchants.
- Limited branding opportunities:
- The platform emphasises eBay’s brand over individual sellers, challenging the building and promotion of your brand. Customers remember buying from eBay, not your store, which suits eBay.
- Dispute resolution:
- eBay’s customer-first approach means sellers often lose in disputes, even when buyers are at fault. There’s been seller disquiet for over a decade when eBay noticeably shifted its favour greatly towards the buyer.
- Sellers are penalised for late shipments, negative feedback, or policy violations, sometimes unfairly.
- Returns and Refunds:
- eBay encourages free returns, which can lead to abuse by buyers.
- Costs of return shipping and restocking can erode profits.
- Scams and Fraud:
- Sellers are vulnerable to fraudulent chargebacks, false item-not-as-described claims, non-paying bidders, and eBay’s protections, which don’t often cover seller losses.
- Price Sensitivity:
- eBay is known for bargains, attracting price-sensitive buyers who may not value premium products or services.
- Reputation Risks:
- Negative reviews or poor ratings can quickly harm a seller’s reputation, directly affecting visibility and sales. Unreasonable buyers can also exploit the feedback system.
In summary, although eBay gives you buyers, it comes at a big cost in terms of money and hassle. Many merchants try to move buyers from eBay to their website by sending them a voucher for the following order. They can use eBay as a marketing cost by converting their eBay customer into website customers. Using an Ecommerce platform like Uptivity’s JustSell, you can manage your website and eBay listings from one place.
