02-04-2008, 02:58 PM
Bolding is mine.
eBay is not a very ethical company, IMO.
Quote:STEVE GROSSBERG: eBay also mentioned at the conference several times that there is 7 million items listed to the site daily. Okay this is the US site. So if you take that 7 million listings a day times 6% of them ending in nonpaying bidders, it's 420,000 nonpaying bidders a day. If you look at the average listing fee, let's assume that it's $.70, you are talking $300,000 a day, multiply that out by a year, it's over $100 million in revenue for eBay.
AUCTIONBYTES: And your point is that eBay still gets those fees. Even though the buyer doesn't pay, the seller still pays those listing fees.
STEVE GROSSBERG: We are still paying those listing fees, absolutely, and the other thing is you're tying up your inventory for tremendous amounts of time, okay? But let's look at the hundred million dollars in revenue. eBay reported $4.7 billion in gross revenue last year, and that eBay as a company combined with PayPal and everything. This would take a hit of 2 1/2 percent of the revenue. There was no financial incentive for eBay to get rid of these nonpaying bidders. They need to get some more skin in the game and stop putting the burden on sellers to handle their issues.
eBay is not a very ethical company, IMO.