eBay Charity Efforts Draw Cynicism, Complaints

[lori]

Some eBay sellers are complaining that the company's Auction for America charity initiative will hurt their sales and cost them money

Some eBay (Nasdaq: EBAY) users, questioning both the auction giant's motives and requirements for a charity auction benefiting victims of last week's terrorist attacks on the United States, are accusing the company of building its corporate image at their expense.

"How dare eBay ask we small sellers to bankroll their generous contribution to the National tragedy," one eBay user said in a message posted at AuctionWatch. "I will do it my own way, thanks so very much eBay! And the kicker -- we as sellers just pony up the shipping and insurance."

eBay spokesperson Kevin Pursglove told the E-Commerce Times that "when you are a company the size of eBay and in the media eye, there are always people who will question your motives."

Launched earlier this week with the support  and praise of New York Governor George Pataki, eBay's Auction for America aims to raise US$100 million in 100 days. Sellers who choose to participate in the charity auction donate their merchandise and agree to pay the cost of shipping. eBay is waiving all transaction  and listing fees, and the major credit card companies have agreed to waive their fees as well.

As of Wednesday morning, 71 percent of eBay's users said they do not plan on participating in the Auction for America because they have donated in other ways, according to a poll on the Web giant's site.

Unfair Competition
One of the biggest complaints that eBay users have about the Auction for America is that the wave of patriotism sweeping the country will cause buyers to choose to buy Auction for America items instead of other items listed for sale at the site.

"As I see it, my auctions that I depend on to feed my family will not be looked at," AuctionWatch poster Tree 411 wrote. "The (charity auction) box even has an American Flag. It is a lot of pressure being put on both the buyer and seller to purchase only for those sellers in the program. A program like this would be good but not if it eliminates all the eBay auctions we as sellers offer."

Some eBay users also believe buyers will choose to bid on Auction for America items because eBay is requiring all sellers, instead of buyers, to pay for shipping.

Shipping Dilemma
"There are many sellers that depend on their income through eBay to support them and put food on the table," Dawna34 wrote at AuctionWatch. "What I am seeing is that if a charity auction has a widget selling for $20.00, and a regular auction has the same widget for $20.00 plus $5.00 shipping, why would a buyer bid on the regular auction when they can get the charity widget for $5.00 cheaper ... and they can feel good about buying the widget because the amount went to charity."

Pursglove said that eBay "worked all weekend on a way around that" but couldn't find one.

"We wanted to make sure every single penny went to charity," Pursglove said.

Building Billpoint
Users are also complaining because eBay has said that the only acceptable payment form for Auction for America items is Billpoint. Some view the charity auctions as a mere ruse to gain users for Billpoint.

"This just seems like a way to get more users to join Billpoint by making them feel bad if they can't participate," Alanuk wrote at AuctionWatch. "There are more ways to make donations and I for one will not be joining Billpoint just so I can do this."

According to eBay's announcement board, payments must be processed through Billpoint because a special version of Billpoint is being used to "ensure all funds go to the charity and to give the seller a charitable donation receipt."

Going On Their Own
Some eBay users who took the initiative to run their own auctions and donate the proceeds to charity also complained that eBay cancelled their auctions without explanation.

Pursglove said that some independent charity auctions may have been cancelled because the sellers mentioned the World Trade Center in their headline, causing the auction giant to believe the items were in violation of eBay's temporary ban of listing World Trade Center memorabilia.

However, Pursglove said that if the descriptions, and not the headlines, say that proceeds will be donated, eBay will allow the independent auctions to stand.

"There are those who would like to contribute in other ways and we respect that," Pursglove said, adding that participation in Auction for America was strictly voluntary.

In eBay's Defense
Other eBay users applauded the company for donating $1 million of its own money and for giving them an easy way to contribute to the relief efforts.

An AuctionWatch poster named Thedeway chose to auction off handicrafts through Auction for America. The poster wrote that the auctions had already resulted in $300 being donated through his auctions.

"I could not have afforded to donate $300 out of my own pocket," Thedeway wrote. "So even though I don't always approve of the things eBay does, and I'm no means a 'cheerleader,' I am glad to be able to do this in order to help those who are in need. And that's what counts, right?" 

[lori]

eBayers have found a way to counteract (to some degree) the effect the A4A - Auctions 4 America Program is having on their sales.
They have started S4S Program - Sellers 4 Sellers.

If you're a Seller, when you list your auctions put at the end of the title s4s. Also include it in your item descriptions. Upper and lower case S4S and s4s.

Buyers - when shopping eBay, if you too, feel this A4A Program is unfair to the average seller, please include s4s in your search title, and check the box that reads "Search title and description".

It's a start, I hope it helps some of us make ends meet. Good luck!

[Jeff]

priscilla - that was wonderfully and very accurately stated. Thank you. I'm also disabled and retired. Until recently, Ebay was supplementing my income so I could make ends meet. I do not know where I'll be at the end of their 100 days of charity. So far, I've received just 1 bid in the past two weeks. Bidders are so hyped up on giving that they comb the A4A auctions only! Ebay has no heart - so they really don't care - but you're correct - we are the ones who will be in dire need and very soon!

[jackky]

You are correct about the wonderful way corporate america works--most Americans applaud it. Where you are sadly mistaken is marking sellers' valid concerns about feeding their families as 'whining'. You are completely correct that sellers will have to revamp their listings to compete...but it will be hard when eBay directs all visitors to the charity auctions. One seller has already tested the market. She was selling the same item in charity and one in regular auctions. The charity was at $66 and 24 hours left in the auctions, the same ended without a bid-with a starting price of $19...facts be told eBay is not separate from their sellers. Ebay is not department store number one and sellers department store number two. What they have done would be like a company cancelling all insurance plans and telling you you're on your own now.
jenn

[Hoss]

I have seen the light! You are right Anne! eBay is shamelessly upping the participation in an auction that goes 100% to the victims. And, to make matters worse, according to you they are not allowing non partipating sellers to profit from this. How dare they!
In response to topics you brought up regarding my original comment...

You asked if I were willing to give up my salary for 100 days. No, I can not. However, if my company asked if any employees were willing to give up their salary, they are entitled to do as they wish. I would choose not to. If, by others giving up their salary, it makes it difficult or impossible for me to earn my entire salary, then I have many avenues available to me.

I may choose to continue on for 100 days knowing my income is being limited. Or, I can choose to leave my company and work somewhere else.

The thing about those selling on eBay is that they are not contractually obligated to ONLY sell on eBay. The thing about the internet is that it is crawling with auction sites. Put these two together and guess what?! As a seller, I could sell my goods on another site! What a concept!

Also, you keep mentioning the almighty dollar comes before the victim for eBay. How do you figure? eBay is not profiting-they are waiving all transaction and listing fees. You are complaining about your money being lost because someone will buy from the "Auctions For America" program instead of from you. To correct you, I think you meant to say "My Almighty Dollar comes before the Victims!"

For me, I say again: God Bless Freedom and Free Commerce! God Bless America!

[fuel]

Disney refuses to participate in AFA auctions.
The Disney co. has put their stamp of disapproval on Ebay's AFA. Disney has offered to run their own private charity auctions in conjunction with the AFA, but refuses to actually sign up for the program.

Disney will only run their charity auctions for the first 7 of the 100 days.
Disney is also permitted and requiring buyers to pay for their own shipping, but ordinary sellers are refused these same options.

Additionally, Ebay is limiting WTC and pentagon items to ONLY AFA auctions. Previously ebay had pulled these auctions saying that they were in bad taste.

Paypal is used for more than 70% of ebay on-line transactions. Though paypal has offered to waive all their fees in an effort to help with the AFA fund raiser, they have been repeatedly declined by Ebay. Ebay has very effectively cut paypal out of the ebay community for this program.

Many sellers see possible financial ruin as a result of the down turning economy combined with the effects of having to directly compete with AFA charity auctions through the next 100 days, including the whole retail christmas season. Many are single Moms and can not afford to gamble on uncertain sales in the future. They are already looking for new jobs to support their families as their ebay income becomes less reliable.

[power]

eBay's chosen a new way to handle the criticism to their AFA Program, they yank any Threads which are not "pro AFA". Read more about this problem

[bazak]

it was the sellers & buyers who took ebay to their almighty heights and ebay seems to not care about those who made their climb so successful.
at a time when charity is needed it should be done in a way where it doesn't hurt those that are doing the giving, which in this case it does. it is unfair the way ebay is forcing the issue.

i feel for those in NYC and applaud the efforts of America in pulling together to help those who were affected, but the spirit of america is to pull together not to pull apart, which before anyone says i am uncaring, i have donated to a lot of different charities, my wife and i donated blood, and we will continue to do so if we can afford to after ebay's fiasco.

i am handicapped and cannot work outside the home so Ebay was a godsend to me.

it would have been nice for ebay to put a box on every listing saying would you like to donate 10%-20%, 50% or all of this sale's final sale price and put that figure on their bill just like they do their percentage of sale price commission. that way seller could have had the opportunity to give and still be competitive with all sellers.

[roxy]

As sellers we certainly don't object to eBay raising money for the victims and family. It is the method by which they're going about it that we object to. Just this morning the eBay CEO (Meg) was on T.V. bragging about the $100M that eBay is contributing. The truth is that it's the SELLERS who are donating the items, providing the labor to list the item, and THEN paying to ship the item. So eBay provides that venue...good for them, but THEY are not the ones handing over $100M, which is apparently what they want everyone to believe in order to enhance their image and get a lot of free publicity. They have gone about this with a complete lack of integrity.

Please remember that the END does not justify the MEANS. Don't think they (eBay) won't profit from this with all the new Billpoint users they plan to get by restricting the payment option to Billpoint only. PayPal offered to waive all their fees so that more sellers would be able to participate and eBay turned them down flat. Most Sellers (and Buyers) who've been around a while can see right through their so-called "charitable" program.

[hotan]

Not many sellers I have talked to are speaking of boycotting eBay. Nor do we deny that we need eBay. The whole point is that it is sad that a charity to benifit those in need could be hurting many people over the next three months. Yes, participation is voluntary, but eBay is going to great lengths to ensure a buyers first stop is the afa auctions...We are the ones who generate their amazing profits and they are accountable.
hotan

[Arash]

Also, ebay has just pulled the poll. But people do have screen shots of the results and how badly ebay stuffed the ballot box. Shame on you ebay!