eBay Or A Web Site? The Optimal eBay Strategy For Launching A New Ecommerce Web Site.
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I am a professional Internet marketer. I deal with the issue of driving traffic to web sites and converting that traffic into customers.My wife runs an eBay-based business selling vintage clothes. She likes using eBay. It has a built-in user base of well over 100 million users and offers the tools to allow her to accept several different forms of payment, including credit cards and PayPal. eBay also allows her to operate a Web store, while also selling items via auction. eBay allows anyone with a computer and Internet access to go into business for themselves. A lot of people are making a lot of money on eBay.
However, a letter my wife recently received from eBay has bothered her to the point where she is seriously considering pulling out of eBay and running her business through her own standalone site. eBay claims that it is losing money on the stores that it hosts, because so much of eBay's inventory is now contained in the stores rather than in the auctions. To counter this, eBay is dramatically raising its fees for items listed in eBay stores.
The argument that eBay is losing money by hosting stores sounds like crap to me. Web hosting is dirt cheap. Web hosting for a small business can be purchased for $5 per month, with more hard drive space and bandwidth than a typical web site would ever need. eBay store hosting starts at about $16 per month for the basic store, which is heavy in mandatory eBay-branded top level content. eBay is raising the base fee to list an item in a store from 2 cents to 7-10 cents - up to a 500% increase.
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