The problem with running a site that relies heavily on users to generate content, is that it puts a disproportionate amount of power in the hands of those users (in relation to the site owners). If users are unhappy with something about the way a site that relies on user generated content is run, they can theoretically hold the site hostage until they get what they want. This week, eBay sellers unhappy with the auction giant's recent change in listing prices and policy, launched a week-long boycott of the site. So far, the impact appears negligible, but the action highlights a risk that any business that relies on a UGC-centric model takes.
Fortune Small Business reports that in the first few days of the eBay seller boycott listings are down about 3%, according to third party tracking firms (eBay says that the boycott has had no impact). A 3% drop is probably within the margin of error -- that is, it isn't necessarily something we can attribute to the boycott and may just be the result of a normal, seasonal swing. Further, FSB points out that eBay recently ran a listing fee special that caused a spike in listings that have muddied the numbers.
FSB expects the results of the boycott will be clearer later in the week, especially after the listing fee changes take effect tomorrow. "If [eBay's listings total] falls below 12 million we've made a pretty good impact," eBay PowerSeller Nancy Baughman told Fortune Small Business. "I'm hoping that it goes down below 10 million. If that happens, we will have made a huge impact."
What eBay sellers are trying to do is not new. We saw a similar user revolt take place at Digg last May. That brouhaha was the result of users responding to what they felt was censorship by the social news site over the release of the AACS encrypition key. In the end, after users effectively took over the site, Digg caved and the users got what they wanted.
Unlike a traditional product boycott, when the users are integral in creating the product being boycotted, the results are felt more acutely. If you boycott a certain type of candy bar, for example, the candy bar will still exist on store shelves for others to buy and the company can throw additional marketing muscle behind it to offset the boycott. If, however, you get enough people to boycott the creation of content on a site that relies on users for content, then the site is effected for everyone. The candy bar is no longer on the shelves because the boycott leaves the shelves empty.
While it seems unlikely that what happened at Digg will happen at eBay -- which has a much larger and more mainstream (and thus less tightly connected) user base and would require a much bigger movement than on Digg to effectively damage the site -- both instances illustrate how much power users have when sites rely on user generated content.
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I sell on Ebay for part of my day job. I didn't even know about this one. It's not just the increase in fees but the fact that seller's can no longer leave negative feedback for buyers.
To me, being a seller, this means a buyer can literally hold your feedback hostage until you meet their demands without an way to fight back. I have had buyers refuse to pay on multiple occasions or ask for lower prices after they bid a product to the ceiling.
Ebay has historically had something against sellers or so it seems from my POV. If it wasn't part of my job, I would be behind this boycott also.
Posted by: Stephan Miller | February 20, 2008 11:41 AM
My wife sells on ebay and does quite well. I don't know if she joined this boycott. She said the changes ebay made might benefit her, but she is part of some trade organizations that were furious with ebay. I think it comes down to profitability. If you can make money on ebay, people will keep selling, if you can't they'll leave. Digg isn't like that, the users don't do it to make money. Well some probably do, but that is black hat stuff, not the business model.
Posted by: Steve Olson | February 20, 2008 12:16 PM
So while we might get our Net Neutrality it looks as though we will have to eventually suffer proverbial "Labor Unions" of sorts for the amoeba like uber-employee known collectively as "the community" though internally called by the powerful pronouns "Us" and "We" (the latter of which has already been abused twice in this very run on sentence).
In the E-Bay example we would see clashes between different factions of these "Unions" and really, in a self-destructive civil war among "the community". As it's two main sources of activity refuse to deal with one another the site will be unable to operate... in worst case scenarios the factions will actually use the service against each other, also causing major disruption to the services operations and ultimately the failure of the entire "internets". we'll wonder why we couldn't get along. we will eventually blame digg.
I, for one, am excited to welcome another ridiculously divisive and controversial dimension into our very mundane and eventless industry. :) (sarcasm.)
Posted by: Matt | February 20, 2008 12:24 PM
http://www.google.com/base/a/3414735/D7546635244195790935
Posted by: Mechelle | February 20, 2008 6:26 PM
Well put, for me it started as a boycott but the more I see Ebay having no regard for the people who helped make the site so big the more I believe we need a true site devoted to bringing back the true spirit of Online Auctions.
Give your opinions, thoughts and VOTE at:
Freedom to Bid
Posted by: Ilovecats | February 21, 2008 6:34 AM
Does anyone want a new proper place to bid?
Well then go to http://www.squidoo.com/NOTEBAY and post any and all things you are looking for in a proper auction site. You can VOTE on some basic things too.
Posted by: ilovecats | February 21, 2008 8:17 PM
I think that the strike will have a negative effect, regardless of any previous listing sales by ebay. But for any strike to have a real impact, it will have to last longer than a week. Ebay has become the wal-mart of the internet, and they aren't going to be impacted in that short of a time. And they have already said that the sellers will just come back or be replaced by other sellers.
I hope they replace me. I do not intend to go back, not to list the 1st item. Yes, I need the money, yes the extra income makes my kids happy.
But there are BETTER venues than ebay. I encourage everyone to go to www.onlineacution.com for listing your items. It's not ebay, doesn't yet have the traffic, but it has the potential to be what ebay could only dream of.
Posted by: tamancam | February 21, 2008 9:28 PM
The problem facing eBay sellers is a collective problem, and therefore requires a collective solution.
Only the eBay users themselves can truly break the eBay Inc. monopoly, rescue our auction businesses from destruction at the hands of corporate greed, and save the original eBay person-to-person trading concept as an open marketplace of equals.
The eBay users—united, in our millions—can make a new fee-free home for ourselves on the Web and simply move there en masse, replicating the traffic of the eBay.com site.
Together, we can recreate the eBay Community, beyond the reach of eBay Group, Inc. The users made eBay the first time, and we can do it again—this time to suit our needs, rather than just line the pockets of FeeBay executives and shareholders.
Visit www.thepoint.com/campaigns/subat
Posted by: ssandee | February 22, 2008 9:14 AM
Many angry eBayers launched a boycott against eBay or feebay as they would call it. You can view full details on the boycott here at WebPro News Long term eBay users are just plain fed up with eBay's greed. Since eBay started many people have been loyal customers but now eBay wants to get greedy and give their LOYAL customers less bang for their buck! The constant raising of fees and the limitations they are putting on feedback is a big slap in the face for everyone. They tend to forget who made them what they are! They are trying to run off the little people and only keep the customers who are "power sellers" who spend a fortune with them. This is wrong on so many levels! Ebay will crumble and in time just become a faint Internet memory!
So many people are turning to Craigs List. But, what most don't know is that Craigs List is owned by eBay. Sure you can list certain thing for free, but you have to list it city by city. There isn't a store option or any other options for that matter. Lets face it how long do you think it will take for eBay to make Craigs List completely overpriced as well?
There are alternatives. We at USAuctionsLive.com have seen this coming for a long time. And like many of you we too were tired of being ripped off by eBay! We decided to take it to the next level and create an auction site that allowed live auction to be enjoyable once again. The sheer thought of having to pay out a percentage of your hard earned sale is sickening! And what you want your own store but you have to pay a monthly fee PLUS pay for every listing? It's obsurd; you should be encouraged to do so by receiving a huge price break! And that is exactly what we have done. If you take a look at our store prices you will see you only pay a SMALL flat monthly fee and you can list UNLIMITED items in your store. We don't charge additional listing fees, and close of auction fees. We believe it should be affordable and our customers should actually make a profit, not give it all to us.
We want encourage people not to give up on live auctions. So, for all of you former eBayers we want to let you try our sit for free for a month a test drive if you will. List what ever you want for free and utilize all of our features and see that the auction world can still be enjoyable. just go to www.usauctionslive.com and insert this voucher code: 8A156D26C5D4 for all of your listings. Then sit back and see it is possible to get back in the game.
Posted by: Melody | February 25, 2008 11:27 AM