By comparison, eBay seems confused as to its real business. It seems trapped in its original paradigm of being a cross between an auction house and a gigantic global flea market. But it is neither. Rather, eBay is a utility, whose business is to simply and accelerate the movement of goods from points of supply to points of demand.
In this new definition, eBay has three primary tasks: to maximize the number of items on its site at any one time; to speed and simplify presentations, transactions and deliveries; and support and empower its key "employees," its power sellers.
Right now, eBay is doing only the second moderately well, is starting to slip at the first and is a disaster at the third.
Stuck in the Past
Because it doesn't see itself as a utility, eBay doesn't see what its sellers do: that as the site has gotten bigger and volume grown, and because of Moore's Law, the cost per transaction is supposed to get cheaper, not more expensive. eBay can justify these new rates all that it wants to, the reality is that it violates the expectations of its leading "citizens." And that's why they are talking mutiny.
It's a new world of business out there. Google is preparing for it. eBay is still lost in the past.
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This rings so TRUE! Ebay is just a utility, it depends on the sellers and buyers. If they continue to do this crap to sellers then they will lose many. If they lose many and newcomers feel the fees aren't worth it, then they will start to lose buyers. What I can't stand about ebay is that they do think they are a NATION. I could not have picked a better description.
posted on March 3, 2008 06:54:24 AM new
What I don't understand about eBay's strategy is that they don't seem to be playing to their strength. There is no real competition in online auctions, but there are a million viable competitors in fixed-price. Do the math.
posted on March 3, 2008 11:06:31 AM new
Ebay has NOT been run by the sharpest crayon in the box, for a very long time. Every thing usually peaks and maybe ebay peaked a long time ago.
I buy more than I sell anymore, but once I buy from a seller, I will email them directly if I want more items and I do this quite regularly (hundreds of $'s). Tough cookies ebay. I don't care and NO I am not this ID on ANY other site.
[ edited by deichen on Mar 3, 2008 11:06 AM ]
posted on March 3, 2008 11:21:39 AM newThere is no real competition in online auctions, but there are a million viable competitors in fixed-price.
Except they did seem to get it around the time of the last Stores fee increase, which gave rise to the differentiation of core and Store. They seemed pretty clear that auction-type items were what brought people to the site.
That was, what, only two years ago? Now core sellers are dogmeat if they're not the size of Grapevinehill?
Has Donahoe (or anyone else) given any real-world interviews to explain this bizarre and troubling shift?
Whatever happened to the eBay that was going to offer health insurance plans to PowerSellers? That was an eBay who almost seemed to understand its key seller demographic: mature people 40 to 80. We're talking about people who are in some cases victims of ageism and can't get hired face-to-face.
fLufF
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