posted on October 16, 2002 07:30:54 PM new
It costs 15 cents a day to be in that showcase. The 60% that weren't successful lost their money at a rate that was up to 30 times the regular rate $1.50/10days vs .05 for 10 days.
posted on October 17, 2002 11:36:48 AM newNow the question remains, why would Yahoo even bother with that kind of response rate?
Because every dollar they make counts. 2 years ago they were making no profit on auctions. When they made many free services fee services their profits went through the roof. Auctions is a small part of the shopping portal. Go to yahoo shopping and look at the big retailer advertising. Used goods was a warehouse site, and they dont make money. Just take a look at bidville!
40% bidrate is great for yahoo, and proves there are bidders. Its a great bargain for sellers to.
posted on October 17, 2002 01:59:49 PM newUsed goods was a warehouse site, and they dont make money.
I wouldn't exactly call a 10% FVF on every item sold small change. If Yahoo can pull the plug on a Shopping unit that produces 10% FVF revenue then it can also pull the plug on a Shopping Unit that produces only a 2.5% FVF and tiny listing fees.
