posted on April 3, 2001 08:53:39 PM
Meg"Momma Ebay" give an interview with Motley Fools. I am pasting some of the interview.
Earlier this week, the wind told a story about how eBay may introduce storefronts, offering individuals and companies a place to put their goods for sale at a fixed price. Dame Rumor didn't elaborate on how eBay would charge these clients, by item as usual or a set rate. It's impossible, therefore, to comment on how such a move might serve the company.
It doesn't seem unreasonable, however, to speculate that eBay may offer its sellers a corner, in which they could sell stuff at a fixed price. It would give buyers confidence in the legitimacy of the sellers and
eliminate the hassle of the auction format. It would be a shame to see eBay abandon auctions entirely, but adding a fixed-price area would expand offerings without cannibalizing sales, which was the danger
with Amazon's zShops.
eBay is clearly out to overthrow Amazon as the premiere e-tailer. eBay CEO Meg Whitman said in a Motley Fool Radio interview that the company's strategy is to create "a global trading platform where practically anyone can buy practically anything." In order to reach this goal, she realizes that it is necessary to expand into other pricing formats, such as fixed or named prices, and make it easier and more reliable to make the trade.
If eBay can do those things, if it can add simplicity to the mindshare it has built on the back of its enormous range of offerings, then it can achieve ultimate destination status and its realm of operations will be limitless. At that time, all companies would do well to join eBay rather than fight it. It was to convey this vision that Whitman issued her revenue estimate of $3 billion in 2005.
