Comments on: The eBay Balance of Power http://www.vendio.com/vendable/2008/12/22/the-ebay-balance-of-power/ Driving currency from change - News and comment from the world of online multi-channel selling Wed, 18 Nov 2009 21:51:18 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: Nicinfumn http://www.vendio.com/vendable/2008/12/22/the-ebay-balance-of-power/comment-page-1/#comment-721 Nicinfumn Thu, 05 Feb 2009 21:38:44 +0000 http://www.vendio.com/vendable/?p=194#comment-721 Hi. Your site displays incorrectly in Mozilla, but content excellent! Thank you for your wise words:) Hi. Your site displays incorrectly in Mozilla, but content excellent! Thank you for your wise words:)

]]> By: nadine http://www.vendio.com/vendable/2008/12/22/the-ebay-balance-of-power/comment-page-1/#comment-431 nadine Mon, 22 Dec 2008 22:03:48 +0000 http://www.vendio.com/vendable/?p=194#comment-431 Of course the balance of power will change. Suppose Buy.com decides the eBay business isn't worth the hassle and decides to bail in Q1 2009. For whom would it be more embarrassing, Buy or eBay? Ans: eBay. Buy doesn't have an entire corporate strategy based on selling on eBay. It already has n selling channels; eBay is just n+1. But eBay does have an entire corporate strategy based on attracting Diamonds such as Buy.com. If the first and largest of the Diamonds jumps ship, this is very bad PR for eBay's "turnaround" story. Now let's posit an even more likely scenario: Buy.com finds it is making a profit on eBay, but it's only making 5% profit while it's paying 8% to eBay/Paypal (even with free listings), and its additional customer service costs are more than it had reckoned for, eBay customers being a relatively needy bunch. Unlike the little guy, Buy.com doesn't have to just take it or leave it. They can use their leverage to renegotiate. They're fools if they don't. I wonder when their initial contract runs out? I'll be watching eBay's reported margins with interest in 2009. Of course the balance of power will change. Suppose Buy.com decides the eBay business isn’t worth the hassle and decides to bail in Q1 2009. For whom would it be more embarrassing, Buy or eBay? Ans: eBay. Buy doesn’t have an entire corporate strategy based on selling on eBay. It already has n selling channels; eBay is just n+1. But eBay does have an entire corporate strategy based on attracting Diamonds such as Buy.com. If the first and largest of the Diamonds jumps ship, this is very bad PR for eBay’s “turnaround” story.

Now let’s posit an even more likely scenario: Buy.com finds it is making a profit on eBay, but it’s only making 5% profit while it’s paying 8% to eBay/Paypal (even with free listings), and its additional customer service costs are more than it had reckoned for, eBay customers being a relatively needy bunch.

Unlike the little guy, Buy.com doesn’t have to just take it or leave it. They can use their leverage to renegotiate. They’re fools if they don’t. I wonder when their initial contract runs out?

I’ll be watching eBay’s reported margins with interest in 2009.

]]> By: blarney_stone http://www.vendio.com/vendable/2008/12/22/the-ebay-balance-of-power/comment-page-1/#comment-429 blarney_stone Mon, 22 Dec 2008 16:20:44 +0000 http://www.vendio.com/vendable/?p=194#comment-429 I am not a Diamond seller, and have bailed off from the big e-train. I am now at home at BONANZLE.Com Us small guys, and former Power Sellers are landing at Bonanzle by hundreds per day. Come and look!! http://www.bonanzle.com/booths/blarney_stone I am not a Diamond seller, and have bailed off from the big e-train. I am now at home at BONANZLE.Com
Us small guys, and former Power Sellers are landing at Bonanzle by hundreds per day. Come and look!!
http://www.bonanzle.com/booths/blarney_stone

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