posted on March 8, 2008 08:01:55 PM new
once the Ebay sellers start to feel the impact from the higher final value fees on their monthly bills, they really will start looking around for other cheaper platforms. I believe that the unrest we see now is only the beginning.
If one of Ebay's competitors can create a hype around their site, we will see sellers joining them en-masse. Buyers will follow the product and the bargains (thats why they all went to Ebay years ago!)
The biggest challenge for Ebay will be to stay attractive for the buyers.
The fun of the auction with it's bidding wars has been gone due to the growing amount of 'buy it now' items and the 'sniping'. Ebay has become a huge shopping mall like the old mail order catalogs.
If Google or Yahoo (under the wings of microsoft) will come into the market with an auction-only system where 'sniping' will not be possible, they might take a huge chunk out of Ebay's business with lightning speed. Those giants can attract enough sellers right away, and the buyers will follow because the excitement of bidding at a real auction will be far more attractive than the shopping mall. Raising the final value fee was not a clever move from Ebay. Yes, it will raise their short term income, but they are losing the loyalty of their millions of sellers. The old lady is not attractive anymore, the boys are looking for a new girl to dance with. The chance to grab a big chunk out of the allmost 8 billion Ebay turnover must be tempting for several big players. The number of shortet stock has gone up, .....do they know something?
posted on March 9, 2008 08:02:21 AM new
Do you have any idea how much it would cost to develop a system like Ebay,hire and train all the workers and find the physical facilities to house them?
Do you know the software development cost of developing an Ebay like system?
PLUS the incentives to lure the high level Ebay talents to join them??
Once you come up with the numbers,come back and tell us which company is willing to spend that kind of money to host a venue for 99 cents items??
*
Lets all stop whining !
posted on March 9, 2008 09:09:00 AM new
As much as I agree with your post, I hate to say it, but it's been done.
Yahoo was Ebay's closest competitor and they went belly up.
When Overstock.com launced auctions, they already had name recognition and didn't even put a dent in Ebay. The sellers went, but the buyers didn't follow. I don't see that changing. Ebay has simply become to big of a monopoly.
posted on March 9, 2008 09:24:45 AM new
It is all about marketing and timing. To be successful a site like Google or Yahoo would have to offer free listings for sellers. Not a single penny for at least a year! Offer a seller contract for one free year worth of listings. Get millions and millions of sellers on the site selling tons of stuff for free. Then market the living daylights out of the website as THE PLACE TO FIND EVERYTHING. The marketing has to be catchy, fun, and attractive to potential bidders (unlike eBay's stupid commercials). I am talking Superbowl quality commercials... and launch the ad campaign during the Superbowl.
The biggest problem other auction sites have in competing with eBay is the lack of quality merchandise and name recognition. I don't think I ever purchased anything on yahoo b/c when I searched their site I wouldn't find what I was looking for. The quality and choices were significantly inferior to what was on ebay.
Obviously, it will take huge sums of money to start this type of venture... but it isn't impossible. Look at Vendio... It was free for how long when it was AuctionWatch??? They got us hooked and then started charging fees. This is no different. Look at Craigslist. That is about as basic of a website as you can possibly get. It took years for it to grow into the monster that it is... now eBay owns part of it and they charge sellers in certain markets to list real estate, rentals, autos, etc. Again... it isn't impossible, it just takes patience.
posted on March 9, 2008 11:05:45 AM new
HWAHWA you have no idea how powerfull the big-money companies are. Look at Ebay's stockmarket value. A Google or Microsoft could easily invest a few hundred million dollars and more to create and market a company that can bring several billion dollars in turnover. Attracting the talent, creating the software, and finding housing is only a question of money. Microsoft pays 40 billion for Yahoo and i'm pretty sure that they have plans for that company. Money is not a problem for those giant companies.
Long time ago people did not believe that pepsy had a chance. They are not number one, but don't do bad either.
posted on March 9, 2008 07:03:31 PM new
Sure,there are companies with deep pocket,GOOGLE and MSFT,even Yahoo but why??
The math just does not add up,too labor intensive,too tedious dealing with individual sellers and buyers and all that nickel and dimes coming in.
It may be profitable for one player say Ebay,but to split the revenue between Ebay and another newcomer,each would be making less and the expenses are not going to come down,not worth it.
Like the founder of Lotus spread sheet said,for heavens sake,we dont need another spread sheet,use your talents to develop something NEW!
If sales are slow now,it is just too many seller,too many listings and not enough buyers,people are strapped paying mortgage,losing money in stock market and possibly losing their job if they have not lost their job already,what good is another auction site,we have plenty already!
posted on March 10, 2008 04:50:07 AM new
Lets all hope Microsoft doesn't even try. They can't make a good operating system and I'm sure any attempt at an auction site will be just as bad. They should stick to making video game consoles, its what they do best.
Tony.
In a world without walls or fences who needs Windows and Gates?
posted on March 11, 2008 10:53:55 PM new
I really do think Google could do it, if they wanted to. They already have a payment platform in Google Checkout, and a (very basic) listing function in Google Base.
Google would offer buyers a trusted brand name (Google) and (most likely) a simple, straightforward site, with a FUNCTIONAL, ALWAYS WORKING search engine to look for items.
I think Google should even offer free listings on an ongoing basis, perhaps similar to the way they do with free Checkout for AdWords customers. Perhaps give AdWords customers some number of free listings plus no FVF on a multiple of their AdWords spend.
I think the listing fee should be a nickel, for any item at all. It would be part of the marketing for the site. "Got a nickel? You can sell an item on Google Auctions!"
Then, a reasonable FVF, say, half of what eBay charges. For that FVF, include a premium placement within Google Shopping search (not any other part of the Google network).
Here's the kicker: Allow sellers to optionally choose to pay a higher FVF to have their item automatically advertised on the AdWords network, on a cost per action basis (where the AdSense publisher would only get paid if someone clicks the ad and bids (and eventually wins) the item). Let publishers opt out of auction ads, but include them by default. Google would ideally generate a default text ad for each auction, using info already entered to sell the item, but sellers could edit the default ad as well.
posted on March 12, 2008 02:56:46 AM new
You, know, somehow I think it is just possible that Google has heard of eBay. In fact, I wouldn't be surprised if it crossed Google's mind to look into the on-line auction business. But the fact that a bunch of rinky-dink sellers don't like the idea of paying more than a minimal amount for service is not that compelling an argument for entering a marketplace.
Hey, wasn't there a plan here a few years back (several boycotts ago) for an auction sellers' co-op auction? Gee, I wonder how that worked out? Might be a good place to list.
posted on March 12, 2008 01:15:58 PM new
When pigs fly....
---------------------------
Internet Talk Radio
Everything eBay...and More. E-Auction-Air http://www.eauctionair.com
posted on March 12, 2008 02:13:24 PM new
To take this doomed train off on a siding for a moment...
Michael, you were absolutely right about Terapeak. It's a powerful drug. I can't get enough. I've already identified two markets I can steal; I even know where the sellers are sourcing their goods. Me being me, I even came up with a new slogan: Terapeak or don't compete.
We now return you to your regularly-scheduled trip to Nowheresville, already (perpetually) in progress.
fLufF
-- Now updated daily. Jewelry news, views and pretty baubles for those with low impulse control.
posted on March 12, 2008 04:26:10 PM new
So what's wrong with sniping?? No big deal, I would like to see the auction extended 5 or Minutes or more after the last bid
posted on March 14, 2008 11:26:47 PM new
Hi Fluff;
Gotta love empirical data...I'm glad you're finding it useful.
There is a mountain of fascinating research available there...all of which underscores something I've maintained for so long and that is how under appreciated the "transparency" of eBay is, given the proper analytical tools.
As for E-Auction-Air....the regimental bhisti's at my host,1and1, can't seem to figure out where or why my site went awol.
