posted on February 18, 2006 12:25:59 AM
Take a look at this guy and also look at his FB - 650,000 items listed and FB of only 1,000 last month - try to figure his sell through rate!!
Yikes! Most of his listings are in quantities of 7,000 - so multiply 650,000 x 7 for total (too late for me to think)!
http://search.ebay.com/_W0QQsassZpass-alongQQhtZ-1
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posted on February 18, 2006 07:13:15 AM
Watch that feedback percentage keep dropping as more people find out the downloads are incompatible with iTunes.
posted on February 18, 2006 07:16:32 AMThat's one heaping helping of items they have for sale. I wouldn't even want to think how long they have spent creating listing's even if it is a template.
neglus - They don't actually have 7,000 of each item in a real inventory. They are afterall only selling music downloads. I bet they do have one hell of a computer storage bank though.
It does make one think though. They have over 651,000 active listing's. Even if ebay's fee is only .02 cents per month per listing that's still $13,020 in fee's per month just to keep the store listing's. There total feedback is over 11,000 so I would think each person buys on average two items. So if they have 1,000 unique + feedbacks from last month that's still only 2,000. What kind of profit margin are they running. I would think they have to pay some kind of license fee for each music download they sell.
They say your memory's the second thing to go, I just can't remember what the first thing is.
posted on February 18, 2006 08:37:47 AM
The Apple iTunes store is barely profitable, there is no way this seller is if they are actually paying their licensing fees. Apples profit margins on songs range from 4-15 cents. The only conmpanies seeing profit on downloading sites are the ones that charge membership fees. In order to show a profit after paying fees, even at 15 cents per song, they would have to sell nearly 87,000 songs a month.
Thing is, I think they have probably negotiated a different deal with ebay in terms of fees.
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Never ask what sort if computer a guy drives. If he's a Mac user, he'll tell you. If he's not, why embarrass him? - Tom Clancy
posted on February 18, 2006 10:21:59 AM
They've always had massive amounts of listings for their downloadable songs.
Initially, they received many complaints of the poor quality (most likely poor computer speakers were to blame), and the songs were only playable with their software (still are, I think).
I don't know how their business model supports their listing fees - I would guess ebay cuts them a deal.
posted on February 18, 2006 10:52:22 AM
The problems with the songs is that they are Windows Media Player (wmp) format songs rather than the more users friendly, cross playform MP3 format.
~~~ • ~~~ • ~~~ • ~~~ • ~~~
Never ask what sort if computer a guy drives. If he's a Mac user, he'll tell you. If he's not, why embarrass him? - Tom Clancy
That's one heaping helping of items they have for sale. I wouldn't even want to think how long they have spent creating listing's even if it is a template.