Auctiva Auctiva – Why all the drama? It’s a Mad Mad Mad eBay World!

Posted on June 10, 2009 by Scott Pooler

Warning....

If you are an Auctiva fan - You may not like this article....
If you are an Auctiva basher - you also may not like this article....
Read on, if you dare - or care either way!

Ok, the drama started June 1st when Auctiva sent out an email to anyone and everyone who had ever done business with them. I know this because I received one of those emails and I have not done business with them in like - oh I dunno - 4 years maybe? In any case, it was a sweet hello and by the way, we now have to charge for the services that we have been providing for "free" all these years.

Why? you ask? Well, simply because the eBay Partner Network is so screwed up that we no longer generate enough revenue from our affiliate plan to support giving away the software for free. Oh, and we have been cut off, because - well we don't really understand why, with 20% of the eBay sellers using our tools, but our revenue stream just dried all the way up with 30 days notice! (I am paraphrasing).

OK - from my point of view - no surprises here... I had always known that Auctiva was simply a huge eBay affiliate and I also knew that the eBay Partner Network has been cutting affiliates to the bone since it was created. This is, in my opinion, one of the many reasons why eBay has less traffic now than they did when Commission Junction was running the affiliate program, a point I have made in the past.

So whats the big surprise? Auctiva must make money, they are a business and can not be expected to give away services without compensation, if that compensation does not come from affiliate revenue, it can only come from the user. - No story here - right?

Not So Fast...

It seems that while I did not immediately follow the reaction which developed from this revelation from Auctiva's announcement it seems that the world went mad... The eBay world that is...

Big News - Auctiva - No Longer Free - Aren't all good things in life - FREE?

In a Word - NO!

That's it in a nutshell, all good things in life are not free and to expect them to be free, especially in regards to a tool or service used for the advancement and management of an online business... is a myopic and naive point of view. I am so sorry eBay sellers, but to gain access to the very complicated software required to transmit secure information back and forth between your computer and the eBay API you can not expect to not pay one red cent. I know, I had my own eBay management software brand, this is not childsplay - it is labor intensive hard work to keep up with the eBay API.

eBay charges you for almost everything that they can get away with and you gladly come back to the trough time and again to contribute, but when a third party software company expects to be paid for making your life easier - Wo Nellie! We are off the Tracks!

What is that?

I understand all of you Auctiva users became spoiled by the free bandwagon all of these years and in exchange for the free nature of the product you put up with some of the major drawbacks of using the Auctiva tools, it was a tradeoff... Free listing tools and management for almost no support and a very clunky program, but hey - you loved the free part.

Now you find out that - oh my gawd - Auctiva was making money after all... and even worse than that, they made this money through what? oh please don't tell me, AFFILIATE commissions off of the sale of my products listed on eBay? Oh the horror - How dare they?

Get a Grip People! - There is nothing wrong with being an affiliate - without the affiliate program developed under Commission Junction for eBay, the place would never have had as much traffic as all of you so love to quote that it has (or had before CJ got the boot).

Auctiva - Free - on the surface - in the past

My experience with using Auctiva has been limited, I checked out the listing tool in the past, did not like it, and moved on.

I knew enough back then to realize my business needed a paid solution which had reliable support and which worked more smoothly.

(I went with AuctionSound by the way, a software I highly recommend but no longer use).

The time saved by using a reliable and well thought out program to automate my selling on eBay, more than paid for the software expense. I will never agree that a free offering could be as efficient as a paid solution. Especially when dealing with eBay listing software.

Of course Auctiva has updated the program since my early trial so I can not say how it works now but for my MONEY, trusting my business operations to a FREE software package did not make sense.

Thousands of eBay sellers disagreed with my assessment however and happily dipped in the trough at the Auctiva soup kitchen to operate small eBay businesses or hobby selling activities for free (plus eBay fees - always remember the eBay fees).

Great, no argument from me, but for those same people to now act as though this "Free" status was somehow an entitlement that would last forever just tends to offend the business person inside of me.

I have no trouble with paying money to help me make money - this is hurdle many eBay sellers need to overcome!

The Dogs of War...

This last week has been a maelstrom of attacks upon the management team and CEO of Auctiva. From bloggers and journalists to customers and competitors - it seems everyone felt that Auctiva had somehow ripped them off or personally attacked the eBay world by actually proposing to charge for services.

Sure - the fee structure could end up costing a pretty penny but it was not unlike several other paid software plans.

Many good quality eBay listing platforms such as InkFrog, Vendio, and MerchantRun-Globallink charge for their services and does anyone in the room think that Channel Advisor or Infopia will offer a free software or eBay listing services any time soon?

It is up to the merchant to evaluate the features, service, and workflow of each software package or vendor program, then select the one that fits within their business plan, their user/operator needs and capabilities and the businesses budget. Free should not be the deciding factor!

uncle The attacks have been merciless and after a week of soundly being beaten up from all corners of the eBay universe, Auctiva has cried UNCLE!

Today, I received, along with millions of other former Auctiva users, another nice little note from Auctiva and it's CEO Jeff Schlicht.... It said... Basically...

Pardon the Paraphrase here Jeff....

UNCLE - WE REPENT!

Auctiva will NOT charge high fees for the software used by thousands to list stuff on eBay, we will however charge $9.99 a month just as InkFrog does! We are sooo sorry, we dared to try and remove your eBay entitlement to free software, but seriously - this whole eBay Partner Network thing is not working out for us... We gotta charge something... like please let us charge something, won't you?....

Quoting from the email:

Since we first announced our new pricing structure, I've been listening to the community's concerns. Considering the frank feedback you've provided, through email, surveys, customer support cases, our community messages boards and other forums, a few facts are abundantly clear:

You'd prefer a simple, no-surprises flat-rate pricing structure.

You don't want to pay any additional FVFs.

You want image hosting included.

Your margins are tight.

If you are asking yourself, "Why didn't they just use this pricing in the beginning?" the answer is that I thought our customers would like to have the choice of picking a tailored plan based on usage. Clearly, I was wrong.

I don't know if it was actually wrong Jeff, but it did create quite a hubbub!

At least you got Auctiva's name mentioned on the Internet about a bajillion more times than this time last year with your "free" program. (Always looking for the silver lining). More people know about Auctiva today than when the product was free, so seriously ... was this some sort of master PR stunt or marketing plan? I mean, eBay has not upset the masses lately and they have stayed out of the daily news cycle for several months, pretty much licking old wounds, could it be that you learned from the eBay induced turmoil of last year and decided to get a little negative attention flowing your way? Just for Grins and Giggles? Maybe?

Naw, I doubt that....

I think Auctiva sincerely is trying to survive in an ever tightening eBay solutions marketplace and I think the eBay community should cut them some slack. They may have not been one of my favorite software packages in the past, but there is no reason to beat them into submission when times are tough. (Hmmm, I guess this article to too little too late - job done).

A lot of people are familiar with the Auctiva system and is it really too much to ask to give them a break?

I mean $9.99 a month is a small price to pay, unless you can get it for free.

Hmmm Vendio, did you say something? (Vendio is offering a free solution throughout 2009)

eBay Third Party Providers Experiencing Fall Out? Frooition Loses Managing Director

Posted on February 10, 2009 by Scott Pooler

Recent earnings announcements along with this last years alteration of the core philosophy at eBay seem to have had a negative effect on many of the third party solutions providers who have built businesses upon the foundation eBay created in the late 1990's.

Rumblings and rumors always abound in a industry such as this, but recently changes made at the top levels of some of the most prominent 3rd party providers seems to predict a consolidation and possibly belt tightening within the firms who revolve around and depend upon the eBay brand.

It is true that some new players are entering the market with interesting solutions, software and services yet at the same time, are the executives at older and more established companies making what could be considered exit strategy moves?

From the announcement of a new CEO at Infopia, Coleman Barney, which in and of itself is seen as a move towards new blood and not a barometer an industry crumbling, to the recent departure of the managing director of Frooition, a UK based eBay stores and template design company, changes at the top of several eBay centric service providers seem to be occurring at a faster rate than normal.

I was quite surprised when I noted earlier today that Grenville Wheland had left Frooition and is now seeking new opportunities through LinkedIn (see Below). Grenville had been purported to be one of the financial backers of Frooition and while his skills as a start up entrepreneur were also touted, on the outside we can only wonder if his reasons for departing may have included deeper financial concerns for the future of the business model.

No Longer With Frooition

Frooition grew very quickly into a multinational marketing powerhouse for eBay based design work and is still strong today yet they have relied upon eBay as the basis of the business strategy for what seems to be too long when branching out into eCommerce was an available avenue for expansion. My readers will know that I have worked with Frooition as a representative in the States since mid 2007, My dealing with Mr Whelan have always been cordial and above board. I am sure Frooition will notice his departure.

eBay Live 2008 Karl, Ciz, Grenville Whelan, David Sullivan Fooition

eBay Live 2008 - Karl, Ciz, Grenville Whelan, David Sullivan of Frooition

Channel Adviser, while not changing the steadfast leader of the pack Scot Wingo, has had some major personnel cuts in recent months. As eBay has itself, a Rolodex or Blackberry full of contacts at eBay in 2007 would be suspiciously empty today.

The industry that has based itself on the largess of this giant we call eBay is morphing into a new animal. Eventually changes beget changes. While we all wish the likes of Grenville Whelan and Bjorn Espenes of Infopia the best (Bjorn is now the COB), we only have to wonder... who is next?

While riding the gravy train of eBay can be a sound business decicion (at least many of us thought it was), the hard crash at the end of the tracks can be just as abrupt. Other have noted that eBay may be on a uncontrollable death spiral (i.e. Scot Wingo) into the abyss that some great companies (AOL) fall into.

Is it possible that some of these highly placed executives see a bad wind a blowin and have chosen to diversify before the end comes?

I know that even though my heart will always have a place for eBay and I still promote the site and services surrounding its capabailities, I myself have diversified and are very glad that I did. I no longer depend completely upon eBay as a seller or a service provider. Having options for myself and my clients is what I am all about now.

Some other service oriented eBay centric companies could take a note...

eBay Live 2008 Chicago To Do List – Are you ready?

Posted on June 15, 2008 by Scott Pooler

eBay Live 2008 in Chicago is just around the corner - Next week eBay and eCommerce buyers, merchants, software and solutions vendors, marketplace merchants, media and of course the normal crowd or crazed eBay fans will be making their way to McCormick center.

What will you be looking for at this, the last eBay Live, possibly ever?

News of more changes at eBay? - Rumors abound with possible shocking announcements on the horizon at eBay. Will these changes be announced next week?
New Connections? - Are you looking for networking contacts in your niche or related to your business? eBay Live will provide a great opportunity to meet new people and forge long standing relationships with them.
Reconnections? - Meet with people who normally only appear in your email or on the telephone.
Technology? - Looking for new cutting edge technologies to help your business? Software, Hardware, Shipping Systems or....? Find it on the solutions floor.
Ideas? Ideas abound at conventions like this... open up and ask your questions of the merchants and experts and in turn share insights with them. Learning can never end in this or any other business.

Preparations

Are you ready? Prior to arriving at McCormick Center in Chicago I suggest taking a look at the eBay Live 2008 exhibitors list.

Make a list of must see vendors and then make sub lists of questions you want to ask these vendors. Bring your questions list with you - in the rush of the crowd and the flow of the convention traffic sometimes it is difficult to remember who you wanted to see and what you wanted to learn. Crib notes are no problem here.

Here are the vendors I plan on visiting (no particular order): Continue reading “eBay Live 2008 Chicago To Do List – Are you ready?” »

Review – eCommerce Summit ECMTA PeSA 2008 vs Catalyst Pinehurst 2008

Posted on April 25, 2008 by Scott Pooler

The eCommerce Summit in New Orleans wrapped up the event today with a Habitat for Humanity volunteer workshop.

More than 100 of the over 500 eCommerce Summit 2008 attendees and journalists who attended this year's 3 day long conference in New Orleans, dedicated time and elbow grease to help this worthy charity build homes for people in need in New Orleans. Final numbers have not been tabulated yet, but at last count the event raised over $80,000 for Habitat for Humanity.

eBay Donation Habitat

On the first night, Frontier Marketing (one of the main sponsors of this Summit) presented a check for over $30,000 to benefit Habitat for Humanity. Frontier requested $1.00 donations from each active customer and over 15,000 customers joined the cause. To make the gesture twice as impressive Frontier offered a dollar for dollar matching donation. Frontier, together with their customers raised over $30,000 to help Habitat. eBay surprised the crowd prior to Lorrie Norrington's keynote address with a $50,000 donation for Habitat in the name of all eBay sellers. In addition, Genco Marketplace donated many fine prizes for a silent auction benefitting Habitat as well.

eCommerce Summit vs. Catalyst Pinehurst?

Recently (yesterday while in the NOLA airport via a Twitter Tweet from a friend) I was asked to compare this year's Summit event with the recent Channel Advisor Catalyst conference held in Pinehurst, NC.

On the surface one could say two events do not match up - based on the premise that Catalyst is primarily sponsored & promoted by a single multichannel solutions provider and the eCommerce summit is sponsored by two connected trade organizations with additional corporate sponsorship from multiple solutions providers. There is an overlap of sponsorship for each event, yet each event had a different look and feel.

Some points of comparison are available to informed observers, I am sure many of my readers could easily chime in with comments regarding the differences, I met with many of them at both events.

Trading Assistant Journal

eCommerce News & Internet Marketing Commentary by: Scott Pooler

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