eBay Power Sellers

Serious I-netters use eBay to buy items, sell them, or both. Frankly, eBay evolved into a microcosm of the larger Internet. Like the overall Net, eBay enjoys wild growth, has suffered with bouts of outages and downtime, offers unusually good value for circumspect patrons, can victimize the naïve, and has developed into a true cyber-community. In addition, the mass media relishes portraying outlandish tales of pranksterism and mischief rather than painting the mundane truth: overall, eBay, like the Net, works rather well. Will the body parts stories (human kidney for sale) ever go away? As one story fades, another takes its place. The current outrage du jour involves selling University of South Florida blank diplomas and transcripts. The Tampa Tribune ran with this item September 11.

With this as a backdrop, it was surprising to read in the Sunday, August 20, 2000 Money & Business section of The New York Times a somewhat balanced article, “The Powers Behind the Auctions.” Avoiding some of the past rhetoric of phony eBay addictions and other outlandish cyber-antics, the author, Lisa Guernsey, investigated four high volume vendors termed eBay Power Sellers (PS). Briefly, to qualify for PS status, the seller must generate over $2,000 in monthly sales and enjoy a 100+ FB (feedback) rating with less than 2 percent negatives. Guernsey quickly ran into eBay’s policy of maintaining buyer/seller privacy. Consequently, eBay only disclosed fuzzy figures of 20,000 to 25,000 power sellers without the benefit of finer detail. Guernsey then supplemented the data with information obtained from an auction management company, Andale Inc., which speculated that 10 percent of eBay’s sellers generate 80 percent of the sales totaling $1 to $1.3 billion. While these figures violate the normal industry standard 20:80 rule of thumb, the numbers should be viewed as… well, crude.

The article continues on to profile several entrepreneurs who have turned hobbies (collecting toys, dolls, coins, and cards) and closeout apparel into bustling eBay cyber-enterprises. On a sour note, The NYT included a story by Barbara Whitaker, “If a Transaction Goes Sour, Where Do You Turn?” It outlined two sides of a dispute of a couple who purchased a 1.41 carat diamond ring with “a small flaw” from an eBay “Power Seller” for $2,950. Frankly, if the late Cecil Rhodes could somehow magically return from the grave and offer jewels on eBay as a “Power Seller,” I would not buy a diamond from him or anyone else. Call me cautious, but the Internet (and eBay in particular) is just too risky for this particular type of sight unseen transaction. The NYT, in my view, slipped back into cheap sensationalism with the Whitaker piece.

In My Experience

Since eBay started offering Pez dispensers five years ago, the level of expertise required to sell successfully on eBay has transitioned upward several levels from the early days. In today’s skeptical climate, an image of the item becomes a necessary part of the offer. Many items do not receive bids because a photo is not included. Detailed descriptions and low (or no) reserve prices do not assure bids either. Without the expectation of unusual value, bidders stay away. Often, e-mail requests for additional information greet potential sellers. Lacking prompt, candid e-replies from sellers, many items go begging for bids. Sellers having low (under 10) FB ratings must be especially responsive. The days of slapping together hasty descriptions of items from local tag sales, throwing them on eBay, and waiting for the money orders/checks to roll in are over. Selling requires research, attention to detail, hard work, and a bit of luck. Having earned an FB rating of 27, I have the utmost respect for all honest eBay sellers – large and small.

The Next Level

The availability of low cost broadband access and inexpensive Webcams will impact the Net and eventually eBay transactions. Do not be surprised when sellers start offering live audio/video views of auction items. This type of intimate interaction, pioneered on a limited basis on the Home Shopping Network, would elevate eBay’s virtual “touchy-feely” auctions to a brand new level. Watch for it. The secret to eBay’s popularity lies in the community of interpersonal relationships. While the level of fraud and misrepresentations from cyber-auctions rise, like airplane crashes or amusement park accidents, they are few. However, they receive sensationalized coverage by the press. The Internet (and eBay in particular) can be a dangerous place. But so is I-84.

A Reminder

My Internet Intermediate class this week (C.H. Booth Library, September 23, at 10 am) will focus on buying on the Internet with a special focus on selling items via eBay. Please join me.

URLs (Uniform Resource Locators) of interest:

http://www.ebay.com

(This is the 224th of a series of elementary articles designed for surfing the Internet. Next, “Upgrading to IE 5.5” is the subject on tap. Stay Tuned. Until next week, happy travels through cyberspace. Previous issues of Internet Info for Real People can be found: http://www.thebee.com. Please e-mail comments and suggestions: rbrand@JUNO.com or editor@thebee.com.)