AuctionCut

Hello,

I would like to first introduce myself. My name is Daniel Odulo. I am the principal consultant/developer/architect at Odulo Enterprises, specializing in custom database application development, web applications, and e-Commerce solutions and consulting. I am also the founder of Flashing Panda, a mail-order online business which has been using eBay for many years as a supplemental sales and customer acquisition channel.

For the past ten years, I have ignorantly been a loud proponent of eBay, and also caused Flashing panda to establish some portion of it's business on the eBay platform. It wasn't until just a few months ago that Flashing Panda began to experience the infamous attacks from eBay and became another statistic in the enormous list of eBay's victims, toped off by an undisputable one month full account suspension. No one could believe that eBay would exercise such suppressive, unethical and predatory practices against its membership. Being a Power Seller and a long time eBay member, it was ignorantly assumed that in the partnership of a merchant and their solution provider, both parties would make efforts to work together, not against each other. Despite us continually going out of our way, trying to comply the best that was possible with their never-ending barrage of attacks, they blatantly refused to work with us. Their actions seem to aim to cause the maximum damage, with no regard for their core community, nor any willingness what so ever to resolve any issues outside of their mandated suspensions.

Doing some further research, I came to a painful realization that we were by no means an isolated case, and victims of eBay numbered in hundreds, if not thousands. Plenty of companies, many of whom had their entire presence on the eBay platform, found themselves wiped out overnight by having their account suspended or deleted without any recourse. We also found that the common resolution of these cases was for the companies to migrate over to Amazon. Flashing Panda was very fortunate in not depending too heavily on the eBay platform. Out of sheer ignorance we have been putting aside setting up on Amazon for years. This was a loud wakeup call and we got fully deployed on Amazon in only two weeks time.

It would be insane for any business to establish themselves in any significance on eBay, considering the enormous liability it creates for the company. Our only excuse was ignorance. Our eBay suspension is now over, but after much deliberation, we came to a conclusion that the liability of continuing with the same force as before on eBay is too great to ethically bear. While the extra sales volume would appear favorable to the company, over time it will require larger facilities, inventory and staffing. With the un-ignorable threat of eBay pulling the plug without notice, the liability is just too great. We were on track of quadrupling our eBay sales volume in 2009! We have been fortunate to be thrust into the reality of things before things got to a point of no return and the entire company got ruined by eBay's practices.

So, here is my question to the community:
Larger companies, (with legal teams reviewing all their contracts,) surely realize the liability being on eBay under a standard user agreement creates. Are they able to negotiate a different contract with eBay, where their business is protected from such predatory and unethical business practices, standard to eBay? If so, what does it take? We do realize that eBay has a monopoly, (where is the FTC when it is needed?) And we would very much like to continue to offer value shopping to customers via the platform, but are just not able to do it because of the enormous liability that would create for the company. If we are unable to secure an ethical service agreement, (where both parties are equally protected,) we will at best be able to offer a few limited items or product liquidations via the platform.

As for the damages caused to our customer base, we were able to email the 5 K plus of our eBay customers and explain the situation, (see our latest newsletter at http://Newsletters.FlashingPanda.com,) offering them a large discount on next order to make up for any damages or inconveniences caused by our former trading partner. However, all of the business people that I had personally consulted over the years is another story. I was not just suggesting eBay as a platform and solution, I was evangelically endorsing it, and encouraging businesses to use it in wholesale. I am afraid of the liability that I had created for myself. I have no good way to notify all these people to apologize for, and retract my endorsements. The only way that I can make up to the community is by turning around my presentation and, going forward, educating people of the hidden dangers of working with eBay.

Any suggestions would be greatly appreciated, as I have been oblivious of the grave liability of working with eBay for many years, and I am very much new to the reality of this situation. You can reply here or contact me via any of the sites referenced.

Sincerely,