Outraged eBay sellers plot strike week - Feb. 7, 2008
     
      (FORTUNE Small Business) -- Ever since eBay (EBAY, Fortune 500) announced
      changes to its feedback rules and fee structure last week, sellers have
      been irate, exploding onto message boards and blogs with discussions about
      how the new policies will affect their businesses. But when the idea of a
      strike was floated, some sellers and buyers decided to get more organized
      about expressing their displeasure.
      A discussion thread on eBay's own forums with the title "Sign the
      pledge_no sales Feb 18-25!" has received 4,000 posts in nine days, many
      expressing members' intentions to join the boycott. The strike is
      scheduled to overlap eBay's planned Feb. 20 launch date for its new
      policies, which include fee hikes, a 21-day hold on some funds sent
      through its PayPal payment service, and disallowing sellers from leaving
      negative feedback for their buyers.
      Facebook and MySpace pages dedicated to the strike are circulating, along
      with an online petition, and a mailing list called the Online Seller Cyber
      Union has gathered more than 700 emails in a week. A YouTube video on
      Google (GOOG, Fortune 500) entitled "Feb 18-25th 2008: Worldwide Ebay
      Strike" has racked up more than 16,000 views since Saturday.
      "It's like a rallying cry for other sellers," said Valerie Lennert,
      creator of the YouTube video. "It was another way of letting people know
      that they were not alone. My inbox is overflowing with people that are
      ticked off."
      Past boycotts fizzled
      EBay boycott attempts are hardly a new phenomenon. The eBay community has
      always been stridently vocal about the fee and policy changes that the
      company introduces nearly every January, and previous seller strikes, such
      as one protesting eBay's 2006 fee hikes, were largely ineffective.
      "We've seen a lot of these. They haven't really changed eBay's mind
      before," said David Steiner, president of AuctionBytes, a trade
      publication for online merchants that has followed the online auction
      industry since 1999. "But this is a pretty severe one. People are much
      angrier than last year."
      EBay says it's unworried by the rebellious rhetoric.
      "We have a passionate community, and we are not surprised to hear them
      voicing concern," eBay spokesman Usher Lieberman said via e-mail.
      "However, when our sellers have had ample opportunity to evaluate the
      entire package we now offer and consider the traffic and trading velocity
      we deliver every day, we are confident that they will conclude eBay
      remains their best business partner."
      Nonetheless, support for the planned strike later this month seems to be
      snowballing. Some sellers see it as their last resort for protesting
      changes more drastic than any eBay has previously unleashed.
      Joe Hackney of Sadetha, Kan., has run a business selling used motorcycle
      parts through eBay auctions since 2002. His decision to take part in the
      boycott means losing a week of business: about $6,500 in gross sales, plus
      the cost of wages for two employees who will be sent home on paid leave.
      If the action is successful in persuading eBay to change its new rules,
      Hackney thinks it'll be worth it. Otherwise, he expects the new fees to
      cost him an extra $4,000 a year, an expense he says he has no choice but
      to pay.
      "I'm scared because there isn't anywhere else to go," he said. "I've
      looked at other sites and there's no one there."
      Other upset sellers are hoping to colonize new sites with a fresh influx
      of fleeing eBay merchants.
      Joyce Wilson of Marion, Ohio, makes scrapbooks and sells them on eBay
      through auctions and a storefront. She plans to boycott eBay, but she's
      also already moving her products to Etsy.com, an online store for handmade
      items. She knows that she won't get as much traffic as she does now, but
      she's confident that she can start bringing some of her eBay customers to
      the new site.
      "I'm in the process of looking into other options," she said. "But I'm
      going to see what eBay's reaction is. It's up to their reaction whether I
      stay or not."
      YouTube videomaker Lennert, who has also been handing out boycott fliers
      at her local post office in Anaheim, Calif., feels she has no choice but
      to protest and hope eBay takes note. Last month, she quit her job as a
      social worker to instead sell doll clothing on eBay full-time. Less than a
      week later, the fee changes were announced, and Lennert realized that they
      would put too much pressure on her bottom line.
      "Now I'm interviewing for another job because I don't think I can pull it
      together enough to make a profit on eBay," she said. She plans to boycott
      eBay both as a seller and as a buyer.
      "That's it. No more, until something is done about these changes," she
      said.