Ebay Australia - WTF?

[comicmankev]

Taken from the AuctionBytes NewsFlash received today:

 

eBay Australia will remove the option to set reserve prices on

auctions. Beginning August 10, eBay.com.au will be removing the

ability to use Reserves for all categories except Cars, Boats, Other

Vehicles and Motorcycles.

 

The Reserve Price feature puts a hidden minimum price on an auction.

If an auction never meets the Reserve price, the seller is not

obligated to sell the item to the high bidder. Many eBay sellers use

Reserve Price feature to ensure that their item does not sell for a

price lower than they wish. (There is an additional fee for using the

Reserve Price feature.)

 

Why not just start the bidding price higher? Buyer behavior, or the

psychology of auctions, say some sellers. Buyers are attracted to

listings with a lower price. Once they have bid on an auction, sellers

believe they are then invested in that auction and will follow it

throughout the duration.

 

According to eBay's announcement, "This change is designed to help the

small number of sellers in Australia who currently use Reserves to be

even more successful. There is strong evidence that Reserves restrict

the bidding activity on an item. eBay research has shown that sellers

who don't use a Reserve on their listings experience a 34% higher

sell-through rate than those sellers using Reserve."

 

Some eBay users are speculating on whether eBay's policy change in

Australia will spread to the rest of the world.

 

 

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Good idea says the comicman - whats your input

[goldust40]

Sellers may experience a 34% higher sell through rate without a reserve, but the price realized may not be to their liking.

 

In my opinion this is a restrictive practice - even though I don't like reserves it may cause certain high end sellers who rely on this feature to go elsewhere.

 

Ebay Aus may have shot themselves in the foot there.

[Aces]

[comicmankev]

Some eBay users are speculating on whether eBay's policy change in

Australia will spread to the rest of the world.

 

 

What about this

[goldust40]

Some eBay users are speculating on whether eBay's policy change in

Australia will spread to the rest of the world.

 

 

What about this

 

You reckon they're just testing the waters with ebay Aus? Hope it ain't successful - it doesn't make sense though, unless they feel that the loss in revenue from reserves will be made up for in FVFs.

[joe_collector]

If you read between the lines, EBay is finally admitting they have a problem with their secondary customers (buyers) who really drive their business model. Too many 'reserve not met's" and customers may just give up, or wonder "why don't they just list it at the reserve price, and save everyone a lot of time?".

 

One thing is for sure, the buying frenzy is no longer there in most parts of EBay, and something needs to be done.... other than adding more and more and more and more seller listing fees, options, features, services, etc. which have scared away many a "general public" seller. EBay really needs to simplify its business model, not add on layer after layer of complexity.

 

This is a small step in the right direction to "bring the buyers back to EBay", but getting rid of blatant seller loopholes (like sellers cancelling auctions a few seconds before they end), would be a far more important move.

[Darthdiesel]

I find reserves scare off my bidders from my auctions, but then again so do my high starting prices Oh well...

 

If it spreads to ebay USA/UK/Canada/Europe then at leaast for comics, you'll probably see more listed at higher starts, and less high end/lower demand material being sold; plenty of readers at bargain prices to be had so good for comic buyers, bad for high grade sellers...