As promised a while ago I'll discuss eBay's powerseller program.
With the powerseller program the anointed powerseller receive certain extra benefits beyond a regular seller. Most noticeable is the powerseller icon that is optionally displayed next to the seller's username. Powersellers also have access to an exclusive powersellers only community forum. Then there is the prized powerseller certificate that eBay sends the powerseller via snail mail. Of more substance, eBay extends special customer service access to powersellers in the form of telephone access numbers that are not published anywhere on eBay. In my opinion if you're a seller then you're a customer and anyone doing business on eBay should have access to these phone numbers.
If a powerseller has their powerseller icon displayed, they will typically garner buyer trust because the icon is signifies that the seller is experienced with many transactions and maintains a decent level of positive feedback ratings. This definitely helps to convert browsers into buyers. On the flipside, not all buyers have benevolent intentions and look at a members powerseller status as a target that can be used as means to exhort favors from the seller by means of feedback exhortion. This technique is often used against sellers that have 100% positive feedback. Sellers with 100% positive feedback too often are so obsessed about maintaining their 100% that bend over backwards for buyers to avoid a receiving a negative. They also tend to succumb to ridiculous demands that were not part of the original auction and feedback exhortion.
eBay benefits from the powerseller program.
eBay benefits from the powerseller through Fees. Ebay is funded on the fees of sellers and advertising revenue, but sellers are far more consistent and controllable than advertisers. A powerseller is a member that averages at least $1,000 in transactions per month. This average monthly sales amount is a gross figure that does not take into account the possible wholesale cost of the items sold or the triple layers of fees that eBay takes as commission. This is illustrated in the examples below:
Achieving the minimum sales level to become a powerseller:
1. List 4 ebooks for sale in the informational products category for 3 months. It doesn't matter if they sell, this is solely to meet the program minimum requirement of 4 listing per month.
2. Buy 3 cars for $999 each ($2,997 total), and then sell 1 car a month at a price of $1,000 for 3 consecutive months ($3,000) in sales.
3. The seller now has made sales transactions of $3,000 for 3 consecutive months and meets the $1,000 average in the eyes of eBay.
4. The seller has only made $3.00 profit for 3 months ($1.00 per month average), but they are still considered to be a powerseller.
How fees affect the powerseller:
1. Ebay charged this seller $40 as an insertion fee for each car auction ($120 total).
2. Ebay charged this seller $50 as a final value fee for each car auction ($150 total).
3. Paypal (an eBay company) charged this seller $29.30 to process payment for each car auction ($87.90 total)
4. Ebay and Paypal have charged this seller a total of $357.90 while the seller only made $3.00 net in the same period. The seller loses $354.90 to eBay.
5. Ebay gives the seller a password for a forum (free), a powerseller icon (free), and a certificate (paper, ink, postage).
This example illustrated how you can lose money and still be considered a powerseller.
The powerseller program has nothing to do with the success of the powerseller. It has everything to do with how much money in fees that eBay can collect from the powerseller each month. Yes the example was fictional and many powersellers are profitable. Instead of powerseller program it should be called the power-fee-payer program.
