Small Business Resources, Business Advice and Forms from AllBusiness.com
 

Can You Really find Everything on eBay?

Thursday, December 20 2007

There's a notion that anything you want can be found on eBay. Is that really true?

What about the ultimate eBay control from product suppliers - no selling on eBay period! This is how many suppliers deal with eBay selling now days. It used to be an occasional thing but now I'm seeing it more and more in my product sourcing adventures and online selling ventures. Wholesale suppliers simply forbid selling on eBay.

Why do they do this? One part of it is that they can't guarantee profit margins in eBay auction listings. In eBay auction listings, the pricing starts from the low end up. Sellers usually start pricing on auction listings as low as possible and let the bidders work their way up to the final price. The final price may or may not provide a healthy profit margin. This is a problem for set pricing models because the actual ending price can't be determined in advance in auction listings. So suppliers forbid eBay as a selling venue in order to protect their pricing structure.

Another side of that is that many suppliers see eBay as a 'bargain basement' marketplace and they don't want their products associated with this marketplace. They see eBay as somewhat of an erosion of their brand. While some large brands (like Apple) can afford not to care, other smaller brands simply don't want to be part of the eBay marketplace.

I recently ran across a supplier who had only one selling restriction in their terms: No Selling on eBay. Period. They didn't mention any pricing or other restrictions, just eBay by name. So if you plan to sell on eBay as your home based business, you may find your supplier pool getting more limited in the future. When you do contact new suppliers, make sure to check their Terms and Conditions about eBay selling.

Latest Comments in  posts

No Comments Yet.

You must sign-in or sign-up to comment on this post.

Franchising Expert
mleonard_80
Ask Mark Leonard, Our
Franchising Expert,
Your Question
Small Business Expert
rlesonsky_80
Ask Rieva Lesonsky, Our
Small Business Expert,
Your Question
B2B Sales Expert
jkonrath_80
Ask Jill Konrath, Our
B2B Sales Expert,
Your Question
Sales Expert
krosen_80
Ask Keith Rosen, Our
Sales Expert,
Your Question
Business Travel Expert
krosen_80
Ask Ken Walker, Our
Business Travel Expert,
Your Question
Finance Expert
sthacker_80
Ask Sam Thacker, Our
Finance Expert,
Your Question
Invention Expert
Ask Stephen Key, Our
Expert on Licensing Your
Invention, a Question