SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?

Hi there I have had a fancy dress shop on ebay for some years, and have done surprisingly well. Until last month... Some people are telling me it is the time of year, but January/February last year were really busy!  I do not understand.  In October I started to sell some craft items too and although they sell considerably well, the profit is almost nothing (about $1 per sale!)  I added them for fun and also to give customers more choice but have since noticed a HUGE drop in sales for costumes.


 


It may be just a coincidence but I am wondering if anyone else is experiencing this or does the fact that I do not specialise only in one niche market put people off?


 


I really cannot drop my prices any lower, on a lot of items I offer postage (including REGISTERED international post which is about $30!) and some items I am selling at cost - but they still do not sell, yet other costume businesses on ebay seem to be doing well?


 


If anyone wants to see my store and comment PLEASE do so.  I also have a private website which I have no idea how to market.. without giving google adwords mine and my husband's monthly salary for a few clicks... HELP   I would hate to close shop! 

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Re: SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?

The global platform allows me to sell to overseas clients and this is growing segment of my sales.

 

And with Paypal extending chargeback times to 180 days for all purchases made from the UK, your overseas "rental" business will undoubtedly continue to grow.

Hopefully, your domestic cash flow will be great enough to cover the $$ that Paypal will be withholding for 180 days to cover any possible claims .... for both the item & the shipping cost, inclusive of FVF.

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Re: SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?

Very true, diamond ...

2012 profits for ebay failed to reach targets, which meant that the only overhead to come down in the last decade would be the 2012 remuneration package for the senior executive team, something they now appear to be in the process of remedying ....

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Re: SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?

Sorry Halo, I cant agree with the basic premise of your argument. You say because ebays and general business costs have increased, ebay should substantially increase the percentage fee it charges. You are forgetting the most important basic fact that ebay sales are also growing ( at a higher rate than B & M stores ) and that in the last ten years average item prices on ebay should have increased in line with inflation. I certianly charge more for items now than I did a few years ago and the general trend, ( pushed by ebay ) is for more expensive items including electronic goods that people would be wary of buying in the past. With this in mind there is no justification for ebay to increase the % of fees it charges on items except to increase ebays profits. The question we are all asking is how far can ebay take this before sellers say enough and find something else to do. In my case I have reached the point where I may be able to make more money doing somethjing different and I am currently spending a lot of time developing a new venture, completely unrelated to ebay or online sales. I will continue to sell here, but spend more time in the new business as it starts to get going. Its all simple ecenomics really. 

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Re: SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?

eBay sales may be growing, but with that comes a greater cost to service those sales.

 

I have 2 ice cream machines capable of producing about xx litres each of icecream every 4 hours. If I want to make and sell more icecream than that, I have to buy more equipment, employ more staff, upgrade my infrastructure and buy more coffee for the tea room. I might also need to consider the expense of more specialist advice such as higher accountancy and legal fees etc.

 

and before I can even generate more money by making more icecream, I have to outlay the money to buy the equipment and staff etc, and then the period where I have the extra staff in preparation for the larger output.

 

Now transpose those kinds of expenses into the eBay framework.

 

 

Plus why is it that it is ok for a lawyer to increase their prices and not eBay?

 

 

Apart from all that, why does eBay need to justify anything? It's their business. Surely they get to determine how much revenue they wish to generate? Isn't that kind of the whole idea of being in business?

 

If eBay determines that they can charge 10% commission and the market will bear this, then why would any smart business entity charge 5%?

 

eBay are not a government organization or a charity. They are in business to make money. just like you and I.

 

Oh, and it makes sense to me for eBay to promote the sale of more expensive items (not asying I'm happy about it) but it is easier and more cost efficient for me to sell a 2 litre tub of icecreram than it is to sell one cone, ebay is no different.

 

If they can generate $50 from one sale, why do the hard work of 50 sales to raise the same revenue?

 

It balances out the high turnover $1 items which costs the same for them to host.

 

I.e. it costs them the same to host an item worth $1 as it does an item worth $100.

 

I'm not saying I like any of it, but it makes good business sense to me.


Some people can go their whole lives and never really live for a single minute.
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Re: SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?


@ejholden1963 wrote:

Very true, diamond ...

2012 profits for ebay failed to reach targets, which meant that the only overhead to come down in the last decade would be the 2012 remuneration package for the senior executive team, something they now appear to be in the process of remedying ....


well yes, although the dude who wrote Rich Dad Poor dad would disagree as he says to pay yourself first, but it is my income that gets cut first before i look to cut that of my staff or make cutbacks in other areas.

 

Then I look to ways to generate more revenue or places where I can either scale back on expenses or streamline operations more effectively.


Some people can go their whole lives and never really live for a single minute.
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Re: SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?


@chameleon54 wrote:

Sorry Halo, I cant agree with the basic premise of your argument. You say because ebays and general business costs have increased, ebay should substantially increase the percentage fee it charges. You are forgetting the most important basic fact that ebay sales are also growing ( at a higher rate than B & M stores ) and that in the last ten years average item prices on ebay should have increased in line with inflation. I certianly charge more for items now than I did a few years ago and the general trend, ( pushed by ebay ) is for more expensive items including electronic goods that people would be wary of buying in the past. With this in mind there is no justification for ebay to increase the % of fees it charges on items except to increase ebays profits. The question we are all asking is how far can ebay take this before sellers say enough and find something else to do. In my case I have reached the point where I may be able to make more money doing somethjing different and I am currently spending a lot of time developing a new venture, completely unrelated to ebay or online sales. I will continue to sell here, but spend more time in the new business as it starts to get going. Its all simple ecenomics really. 


no need to be sorry.

 

We think differently.

 

eBay just suits my purposes so I pay what they ask to use their platform.

 

Not too many ways to generate income or rid the house of excess or fund my latest buying spree that are as flexible timewise as eBay is.

 

I have to do no grunt work or assume no risk, but at any time of the day or night I can offer things for sale and have people buy them, even when I am asleep.

 

I don't have to work 8 hour shifts 5 days a week, I can pop in for 10 minutes and load up a few listings, inbetween doing other things. heck this morning I made a few listings whilst sitting in a class at uni. or if I am at work, can often knock up a few whilst waiting on other ph9onecalls etc.

 

If something breaks down, i just either wait a while or ring eBay and if I need help, it costs me nothing.

 

It's an easy, no stress, no risk platform. You just have to find the right product to sell to make sure you get the income you desire to make the eBay Business model work for you.

 

yada yadas etc etc


Some people can go their whole lives and never really live for a single minute.
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Re: SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?

We do agree on some things ( re. your last post ). I have enjoyed my time on ebay for similar reasons. I do find the latest rounds of ebay machinations, interesting as a case study in supply & demand. How high can you lift prices before you crush demand ( for your supply of your services to sellers ) ? In my case, ebay has probably gone just over the tipping point. As I use ebay for my main souce of income I need to make $35-$40 profit an hour to be here. Once it drops below this ( due to higher fees ) I start to shift my focus and labour to something else that will generate a reasonable income. Once sellers start to leave, range, quality and supply of goods drops and buyers start to look elsewhere too. Ebay is running the risk that the business could stagnate and begin to decline if it continues down the current path. Of couse ebay may have much bigger plans, such as turning the site into a huge online shop for new items only from large suppliers who recieve discount fees for services. If this is the case, ebay may still go on to better things, its just all the small sellers who will be left behind under this scenario. 

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Re: SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?

I actually considered the possibility that eBay may be trying to build a second ebay - ie Gumtree. (for example)

 

They have got their first "businerss" up and going and seem to have a Business Model they are satisfied with, so why not duplicate it and expand?

 

It's what many do in Bricks and Mortar, Even Coles and Myer etc started out with just one store.

 

Maybe they do want to build a separate site for smaller sellers or for second hand or specialty items?

 

Not sure, but that doesn't make sense to me in the online world - they could just have the different sections in one big cyberdoobie platform/

 

But on the otherhAND, MAYBE THE SECOND HAND OR LOWER PRICED ITEM AREN'T COST EFFECTIVE FOR EbAY (oops sorry about that) Maybe the fact they cost just as much time and effort (and maybe even more) to generate the same income, so eBay have decided to cut the bleeding to increase revenue.

 

a) Aus Post recently said they couldn't update the eBay postsystem and Click and send at the same time due to infrastructure limitations, so maybe it's not all as easy as pushing a few buttonsd - and maybe the cuirrent infrastructure that ebay has, they want to utilize more efficiently without having to upgrade anything and spend more money?

 

b) It is my unresearched and unsupported opinion that infrequent sellers cost eBay more to service, as it is they who probably require a greater level of support to work out the system and understand what they have to do to comply etc. Asking questions and making mistakes, costs eBay money. A regular seller tends to know the system and is generally up to date with the changes eyc, so once they have gone through the initial "training period" they are much more cost effective.So it does make sense to me, from a business perspective, to cater for the casual user, but to focus on and promote the regular one iykwim.

 

The above ios for sellers

 

as for buyers - eBay just has to absorb the costs associated with NOOBs and irregulars, as buyers really are what it is all about.

 

You can have the best sellers in the universe, but if they have no buyers, there is no point having them or providing the framework for them.

 

Now that eBay is an established brand, sellers wanting to clear out the shed or make a fe3w dollars will always come here.

 

Kind of like the same principle with the Party Plan Tupperware. Or the Amway selling thing. Both these are arguably the most well known brand frameworks of their types, so people keep using them and some people even manage to make a few dollars.

 

It's an illusion that Tupperare sells plastic bowls, what they really sell is membership. As every new member generates them about $2000 in sales minimum. (of course there are excpetions). Sometimes they stay and keep buying and selling more, but often, as soon as their kit is paid for and they have purchased all they want for personal use, they leave. but you would think after 50 odd years, that they must have run out of new dealers by now, or with all the alternatives available and increased competition that they would be struggling, but aopparently not. For some p[eople people still buy plastic bowls at much higher prices than in the stores (I see K Mart now stocks similar stuff)

 

In reality, eBay is doing nothing different to the likes of Tupperware or Amway etc... they keep charging more money, but people keep on coming and occasionally, some of them stay. From memory, for every 7 new dealers that Tupperware recruits, only one stays longer than 2 months. and there is a return rate where 3 of those 6 dealers either stay on as cistomers or return to sell more plastic bowls again in the future.


Some people can go their whole lives and never really live for a single minute.
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Re: SALES DOWN ALMOST NON EXISTENT - anyone else noticing this?


@diamond-halo wrote:

I'd say wages have increased over the last 10 years.

The cost of infrastructure.

Cost of leasing

Cost of buildings

Cost of office expenses for furniture and equipment and things like stationery.

Legal costs have risen.

Market research costs have risen.

In fact, I can't think of one aspect involved with running/owning and operating a business where the costs haven't increased.

Maybe phone calls are cheaper now if you have a good phone plan, and maybe internet costs. I don't know.

But even the tea and coffee in the staff tea room costs more now than it did ten years ago.

And in the last 10 years eBay made unsuccessful attempts to enter other markets and expand their business which would have cost money they now need to recoup.


but diamond-halo, you are missing the point . . . . . . eBay is just a virtual entity!  Those things that you listed do not cost eBay anything as they are 'virtual' as well !!!!!  eBay is just a 'platform' with no operating costs or overheads that are real, just virtual!  There are no real eBay employees drawing a wage or salary, they are virtual as well.  They also have no shareholders that expect a return on their investment.  They are really a philanthropic organisation who do good for strangers with no expectation of making a profit!

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@k1ooo-slr-sales wrote:

but diamond-halo, you are missing the point . . . . . . eBay is just a virtual entity!  Those things that you listed do not cost eBay anything as they are 'virtual' as well !!!!!  eBay is just a 'platform' with no operating costs or overheads that are real, just virtual!  There are no real eBay employees drawing a wage or salary, they are virtual as well.  They also have no shareholders that expect a return on their investment.  They are really a philanthropic organisation who do good for strangers with no expectation of making a profit!


my mistake, I was having a dream and now I am awake.  eBay is not just a virtual entity, it does have overheads, operating costs, real employees that need to be paid, advertising that costs real dollars and shareholders that expect a dividend each year.

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