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E-Folder - eBay's Rate Increases Go Unchallenged
Today, August 22nd is the day of the new eBay store listing increases. I am betting, that last night, you saw a heavy increase in listing traffic to get one month of listings at the old rate. eBay store owners staying up late to get all the new listings According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product in place prior to the new rate increases, or increasing the cost of their merchandise in an attempt to absorb the rate increases. Will any stores shut down? Will we see a decrease in the store listings? Will we see prices driven up? Will buyers have smal ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug. Examples of combination products may in er selections? The next 45 days will tell. Auction format is the fuel that moves the eBay machine. Auction format is what eBay started with. Auctions, and selection are what brings the shoppers to eBay. Shoppers jump in the auction in hopes of getting m lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together. erchandise at a ridiculously low price. Store owners would often take a loss on an auction item as a strategy to promote their store listings. Relying on impulse buyers to use the buy it now button. This may no longer be a profitable strategy. Devina Me here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe ra, a lead analyst at First Global Securities, wrote a note to clients in which she voiced support for the rate hike. "We believe eBay is moving in the right direction towards restoring its growth trajectory," she said, as reported in a Seattle Times d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations. Combination pro a href="http://seattletimes.nwsource.com/html/businesstechnology/2003213757_btebayfees21.html" target="_blank">article. "Under the new fee structure, a $50 item sold through the store will generate $4.46 in fees for eBay, up from $3.27 before the c ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc hange," wrote Ben Charny, the author of the article. "Under the old rules, store items cost 27 percent less to list than auction items . . . . As of Tuesday, however, the difference will be just 3 percent." eBay hopes to encourage high volume sellers easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi to go back to the auction listing format, or, at least collect the full revenue no matter how the item is listed or sold. This move has caused one group to call for a boycott of eBay, and another group has reportedly written to Google in hopes of them g nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically tting an auction site up. There in lies the problem for sellers, no viable place to migrate to. The timing of this move was perfect. The busiest time of year is just starting. Back to School, Halloween, Thanksgiving, and the ever profitable Christmas se and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ ason is just starting. Merchants have to sell during this time of year in order to make a profit. From September to December is the make or break quarter for most merchants. If they don't make huge profits during this quarter, then they are not likely to ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi have the finances to carry them through the remainder of the year. The question then is, will they still be able to generate a profit? A 27% loss in profit is a big hit. Let's say I am a merchant that deals in Woman's Clothing. I want to sell a $50.00 d ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it. Following aspects would a ess on eBay. I have to purchase that dress for $25.00. That is a typical mark up of 100% . In order to offer a selection, I have to purchase each size. Small, Medium, Large, and Extra-Large, and each color, Blue Red and Green. Seven dresses so that a sho dd to the challenges in developing combination products: Which markets to tap where the combination products can do fairly well? Which combination prod pper can find the one dress in their size and color. That's $175.00 invested in hopes of doubling my money. Now I pay for store fees, picture storage fees, listing fees, promotional fees, a fee if I want a gallery picture, and when it sells, I get hit wi cts are meaningful and rational? Which therapeutic categories to select? Which Combinations can address unmet needs of the patients? Do combin h final value fees, and Pay Pal fees. Let's say I sell 4 of the 7 dresses in a month. That's $200.00. Wow, I'm up $25.00.. No, the Store fees alone were $15.00 for the most basic store. And after all the other fees, you are very likely to be out of some tions increase the patient compliance? What would be the developing cost? How to tackle the risks encountered during combination product developmen ash. At this point, as a merchant I have three choices. Get out of business, increase my prices, or find a place to sell with a lower overhead. The places to sell with lower overhead do not have the traffic (yet). So I increase my prices. If I increase t? As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel my prices, then why buy my product on-line? You can find it for the same price in a retail store, and you don't have to pay for shipping. So, my sales are likely to go down anyway. Has everyone forgotten the benefits of selling and buying on-line? Large ping new procedures for reviewing their safety, efficacy and quality. Professional from academic institutions, pharmaceutical industries, health care indust Selection at better than retail pricing. Selling with low overhead means better profits, and reduced prices to the buyer. One blogger wrote "I think you have it upside-down when you state: The success of their initiatives will be measured by the actio y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products s of their sellers. The actions of the buyers is what is driving eBay. As long as the buyers show up, the sellers will follow." eBay got to where it is today by first attracting sellers. Buyers come for the large selection, and the impression of low . As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de prices. When they start finding out they can get it cheaper somewhere else, sellers will follow the buyers, and eBay will start scrambling to solicit sellers back. The next 45 days will tell. If we can get MSN, Yahoo, Google, Amazon, or some other large elopment. They need to be wiser in analyzing the market trends and the regulatory requirements. Companies that provide selfless information through particip player in the game, then auction format shopping will continue to dominate e-commerce, and eBay losses it's monopoly. If not, then the way people shop on-line will switch to specialized web sites, and auction based shopping no longer dominates e-commerce tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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