eBay has one major goal in mind right now and that is to have less small sellers and attract more large sellers. This is similiar to how Amazon caters to Target and Macy's. The problem is that eBay has a bad image and reputation when it comes to product quality and integrity. The good news to small sellers is that these large mega-sellers don't typically price very competitively and are easy to out-price. What they do have is the "image of trust", which can be more important than price to a nervous buyer. One has to wonder what kind of fees and prices that ebay user "buy" aka buy's internet superstore" is paying eBay. They have a sell-through rate of less than 2%. Any seller on eBay knows that at a 2% sell-through rate, you can't possibly be profitable. Unless, you are getting a discount. Also, when you sell a cell phone at $520.00 which wholesales at $470.00, you can assume they are getting a price-break on final value fees as well. One might argue that buy is getting a volume discount from their supplier or going direct to the manufacturer. Neither is likely true when it's well known that "buy" uses a distributor to act as their dropshipper.
Orignal From: eBay: The Internet Shopping Mall
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