posted on April 15, 2008 01:51:17 PM new
[LINK]http://sanjose.bizjournals.com/sanjose/stories/2008/04/14/daily32.html?ana=yfcpc]EBay to drop live auction format[/LINK]
EBay Inc. said Tuesday it is eliminating live auctions as part of its company restructuring.
The San Jose-based online marketplace (NASDAQ:EBAY) said it plans to close down the eBay Live Auctions business as of Dec. 31.
Live Auctions links users remotely to auctions with live auctioneers.
Several hundred sellers who list items directly using the Live Auctions format will be affected, the company said.
[LINK}http://biz.yahoo.com/ap/080415/ebay_live_auctions.html?.v=2]EBay says it will end auction house collaboration[/LINK]
Tuesday April 15, 4:10 pm ET
By Amanda Fehd, Associated Press Writer
EBay says it will end auctions hosted by outside houses
SAN FRANCISCO (AP) -- EBay Inc. said Tuesday it will discontinue by year's end the section of its site that allows users to participate in live auctions hosted by other companies.
The company said the move will not materially affect its business -- though millions of users patronize eBay's partner auction houses.
EBay's vice president of seller experience Jim Ambach said maintaining and improving the 7-year-old Live Auctions platform falls outside the company's current focus on boosting listings, improving buyers' experiences and making the site safer from fraud.
"As we work to improve the buying and selling experiences ... we need to make sure our resources are aligned with our priorities," Ambach said in a company statement on Tuesday.
The move follows changes eBay made to its fees and its feedback system in February and the layoff last month of 125 people.
In conjunction with eBay's announcement Tuesday, five-year eBay partner LiveAuctioneers.com said it plans to launch an independent online marketplace of art, antiques and collectibles for its 700 auction house clients.
LiveAuctioneers Chief Executive Julian Ellison said the transition would not interrupt that company's services.
LiveAuctioneers claims a database of 2.5 million active buyers, and the auction houses it works with list 60,000 to 100,000 items on eBay at any given time. Currently listed items are valued at more than $2.2 billion, according to LiveAuctioneers.
San Jose, Calif.-based eBay is expected to announce its first-quarter earnings after the market closes on Wednesday.
posted on April 15, 2008 01:59:23 PM new
For once eBay is actually doing something that makes sense. It still don't fix the overall eBay experience though.
posted on April 15, 2008 02:02:48 PM new
Very interesting!!!
I understand there are a lot of complains that the ebay bidders get out bid by the floor bidders even when their bid is higher. I never understood how that could be but it's a problem if true.
posted on April 15, 2008 02:38:04 PM new
This was one area that I just couldn't figure out. This service may have worked when internet business was still fairly new, but most of the larger auction houses can handle this on their own (and keep all the fees instead of splitting with eBay), and smaller auctioneers probably couldn't afford the overhead for live auction setup when only a small percentage of the lots were appropriate for on-line selling.
People used to going to auctions will not be surprised at the terms and the buyer's premium, but regular eBay customers were probably terrified at the 20% or higher premium, shipping expense (believe me, these people don't scrounge boxes from the back room), and the disclaimers regarding condition, etc.
This may be good for "specialty auctions" (as opposed to random estate sales), but I am sure there will be some niche providers for this type of service if eBay drops it.
posted on April 15, 2008 02:47:42 PM new
There is a lady who posts here ,she has conducted some live auctions,off hand I cant recall her username.
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Lets all stop whining !
posted on April 15, 2008 03:37:14 PM new
I remember someone here doing it too; I don't think it was all that successful for her. Was it Caroline Tyler? (I wish you could still search message boards).
I think the services like Igavel and Proxibid will cover this market since this is a niche for collectors, and was probably just a distraction for eBay.
One big difference that I have seen is that sellers of individual items on eBay tend to be very good at describing item condition. Some of the auction houses do not. A while back I went to look at something for a friend. She had seen it on eBay, and since I am not far from the gallery, went to look. Their description did not mention the large chunk out of the edge. And their disclaimer is to the effect that "even if we tell you something, don't believe it". Now, I know that in actual practice, they would make good on it (which is why their feedback was actually far better than I thought it would be), but they still leave themselves an out. Add to that the fact that they usually do not own the merchandise, it seems like a train wreck waiting to happen.
As to whether eBay bidder or floor bidder takes it, live auctioneers will usually try to favor the floor bidder over an absentee bid. For one thing, it means the merchandise will leave their premises that day. And if the merchandise is consigned, they probably would often make out better selling it on the floor, and not giving a cut to eBay.
posted on April 15, 2008 04:46:25 PM new
thats a good point,if a bidder on the floor gets the item,they can save on Ebay fee.
Yes,they do not describe the condition of the item that well.
On Aspire auction which have some nice pieces,they will not mention like this Gucci watch has some scratch marks on the surface and the battery would have to be replaced.
Both Igavel and Aspire host online auction,but viewing is available in their shop.
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Lets all stop whining !
posted on April 15, 2008 05:43:39 PM new
I also found out from local bidders is that if an item does not sell,you can get it for less after the auction.
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Lets all stop whining !
