When Egos Fly! 3 Jerks and A Lady March 19th, 2009 2 PM ET
Listen live Thursday March 19th at 2 PM ET
Small Ecommerce Business Get’s The One Two Punch From Google And eBay In One Day
eBay Analyst Day
Much has already been and more will be written about the first eBay Analyst Day held in 3 years. eBay executives did their best to put on their smiley faces in an attempt to encourage the folks from Wall Street. I will not attempt to regurgatate most of what is already out there, however here are two things that I took away from the event:
- PayPal is the leading money maker of the company. Some of you will remember I wrote about this last August in a blog post. One of the things I found almost laughable was the talking point eBay made that PayPal’s integration into the eBay platform had risen several percentage points over the past 6 months. Of course it did! eBay made it almost (this is as close as I can come to saying Monopoly) mandatory. Who were they really trying to kid?
- eBay will now be focusing on the “Secondary Marketplace”. First this is not a term that has been used before that I am aware of. What it really means is the liquidation marketplace. Out of season or end of live product. It was said, and I paraphrase here, “We are interested in attracting those businesses that have stuff in warehouses that they need to dispose of”. This certainly does not seem to include the small sellers that have one of’s.
While eBay continues to state that they embarce the small seller, in my opinion the only reason for this is the increased search engine visibility they receive by “allowing” these sellers on the site. Once buyers are on the site they are directed to the sellers that eBay wants them to see, not necessarily what the buyer wants to see.
eBay told analysts that 2009 would be very difficult on the eBay site, only slightly better in 2010 and incrementally better in 2011 IF the economy improves. eBay also said that it’s focus is now on the current customers and less on attracting new buyers.
Bottom line is lower volume sellers are in for a tough couple of years based on the current direction of the company.
For complete analysis of the eBay Analyst event check out http://www.ebaystrategies.blogs.com by Scot Wingo CEO of Channeladvisor.com
Google announced yesterday, during the eBay Analyst event (maybe to hope to sneak it out there with little attention????) that effective in May 2009 there would be a significant increase in fees for those merchants using Google Checkout.
Again, the small seller takes it on the chin with these fee increases.
Colderice did a fee increase comparison on his blog, and I think it brings home the point very well.
Every company needs to make a profit. I do not blame either eBay or Google for making these moves. They need to do what they think will improve their position in the marketplace and ultimately their bottom lines. This is what their stockholders expect.
All users of either eBay or Google need to decide whether their businesses can adapt to the changes or not. If not, the answer is simple. Change your marketing strategies to other venues or payment options.
3 Programs Rank In The Top 100 on Small Business Trends Radio
Small Business Trends Radio
Congratulations AuctionWally, ebay & Beyond: Basics To Business and Tips From The Top
Anita Campbell host of Small Business Trends Radio has posted her Top 100 Podcasts For 2009 and I am very pleased that 3 of the podcasts endorsed by Ecommerce marketing Radio Network have been selected into this elite group of podcasters!
Walt Kolenda aka AuctionWally and Marlene Gavens (pronounced Gay-vens) host of Tips From The Top along with yours truly Dave White Host of ebay & Beyond: Basics to Business have all been included in this prestigous list along with eBay Radio, CNN Money and many more well known podcasts.
I am extremely gratified to know that the work these and all the hardworking podcasters is gaining attention.
Are Forum And Discussion Boards Really Needed?
Everyone Has One
While listening to the Brainstorming Bonanzle internet radio program last night an interesting discussion regarding the forums and discussions ensued. The focus of the discussion was how to improve the discussion or forum boards on Bonanzle. While a lot of great ideas were brought forth, it got me wondering if ecommerce sites really need them?
What Are The Boards For?
Before we can think about whether we need these discussion boards we need to understand what the intended results or purpose will be. Some sites have created the discussion boards for the exchange of ideas among users. While I agree with this concept, I wonder how many users of a site actually participate on the boards, and if users really do share valuable ideas? My personal experience has been that a small percentage of the sites users actually particpate on these boards. My guess is less than 5% of registered users actually participate on most site discussion boards on any sort of regualr basis.
A Place To Complain
While I admit wholeheartedly that the prospect of a place to share ideas and strategies would be most useful, the sad truth is that a significant portion of the forum or discussion boards I have looked into are merely a venue for users to complain. Whether it is to complain about the site or other users, this situation is rampant across the internet. The problem is that these comments are seen internet wide, not just by the users of the forums. The majority of these discussion or forums are indexed by search engines and these comments viewable by anyone.
While I truly believe in there being a place for open honest discussion the truth is that is not happening. When discussion boards allow unrestricted access without moderation they very very frequently become a free for all. Forums are in my opinion NOT the correct venue to voice complaints about a site. There are customer support channels to do this. Call the company, email them, write snail mail, or just leave the site. What I really don’t understand is the person that posts the same complaint day in and day out! If they are that unhappy with a site they should simply LEAVE.
Moderated Boards
Some ecommerce sites discussion boards are moderated. Some by staff, some by volunteers. This often leads to complaints of censorship. While I don’t like censorship any more than the next person, it occurs to me that the site owners have EVERY RIGHT to protect themselves. I moderate my chat boards for my radio program, why should discussion forums be any different?
Do Site Owners Really Need Forums?
I believe that if regulated correctly there is a very significant benefit to these boards, yet if unregualted or unmoderated they lose much of their usefulness.
eCommerce Marketing Radio Network Takes It To The Next Level
Janaury 23, 2009
Sherman, NY- eCommerce Marketing Radio Network announces today the beginning of a new era in live talk radio! Beginning Saturday January 24th 2009 ebay & Beyond: Basics to Business the longest running independent live weekly interactive talk radio program for ecommerce sellers will be simulcast live on both Talkshoe.com and live video on Ustream.tv.
As a pioneer in ecommerce news radio, the next progression is to provide live video streaming for better listener, (and now viewer) interaction. Using the wonderful technology of the internet, ebay & Beyond will now be able to demonstrate visually the products, software and techniques to improve ecommerce.
Initially we will provide live streaming video of the program and in the very near future, provide live screen shots of software, products and services that will enhance the listeners understanding of these items.
ebay & Beyond: Basics to Business is heard every Saturday morning, 10 AM to Noon ET.
eBay To Offer Sellers AdCommerce To Promote Their Own Listings?????
What is eBay Thinking?
Today eBay announced their newly planned eBay AdCommerce program for German and US sites. Their plan as outlined in the announcement will allow eBay sellers the opportunity to bid on the reported 4 billion keywords in their database. Based on how MUCH sellers are willing to pay per click will determine whether your ad will appear at the bottom of the search page.
eBay Has Been Selling Advertising For Years
eBay has been selling advertising on search pages for years. This has caused significant concern amongst sellers for the entire time. Now eBay is apparently telling sellers that paying for listings is not enough to get attention to their listings. Now in order to be visible eBay wants sellers to pay more money to attract more buyers. According to the announcement from Caroline Malifaud of eBay’s advertising team, these ads will be text type with a small logo and can only link to specific items or eBay Stores. Here is the link to the AdCommerce Info Page.
Why would eBay sell advertising to 3rd party companies linking to competing websites drawing buyers away from sellers listing and not allow sellers to create ad campaigns to their own websites? It would seem that eBay’s links policy is for everybody else but eBay itself.
Brain Drain Continues! Is It Time To Punch Out At eBay?
Just The Latest Loss
Eric Shoup is just the latest manager that we are aware of who has “punched out” from eBay in the past 8 months. As has been well chronicled by Scott Pooler of TradingAssistantJournal.com, Scot Wingo CEO of Channeladvisor.com and Randy Smythe of MyBlogUtopia.com among many others, it appears that there is significant change taking place at eBay. Scott Pooler wrote a blog regarding eBay’s loss of talent and his latest post today which asks the question
Is the management team forcing new and untested technical challenges down the throats of the engineers just to make changes in a panic?
On my ebay & Beyond: Basics to Business blog today I wrote about the 28 % internal approval rating of John Donahoe CEO of eBay. I have to question whether the number of managers “punching out” of eBay is directly connected to the concern over the rapid and drastic changes ebay is undertaking or if this is just normal attrition that occurs after a change at the top?
Based on the number of employees changing jobs and the rumored impending layoffs at eBay coupled with the significant drop in eBay stock, I feel the answer is clear. Staff, users and investors are not pleased with the the direction the company is taking.
What do you think?
eBay Rumored Ready To Cut 10% of Workforce
In an article published last week in Barrons Weekly based on a report from Wedge Partners, Reuters today published a very short article on the rumors. 10% of eBay’s worldwide staffing would peg the number of layoffs at approximately 1500 staffers. eBay has not responded to requests for comment on this report.
With eBay stock reaching a 52 week low of 22.16 which is also a 5 year low, and ending the trading day Friday at 22.55 the company has lost just over 40% of it’s value in the past year.
Analysts are describing seller unrest and poor returns on eBay’s purchase of Skype along with the declining US economy and strengthening of the dollar as possible reasons of this decline.
Seller unrest has risen drastically since January when incoming CEO John Donahoe referred to the seller concerns and complaints to announced site changes as “noise”. eBay has made significant changes to it’s pricing structure including negotiating formerly unheard of reduced or free listing fees and reduced Final Value Fees for large volume sellers, restrictions on payment methods disallowing payments on the site by check, money order or cash, and placing limits on shipping fees sellers can charge in certain categories. Last week eBay announced more changes to the site including changes to the search engine on the site and changes to the Items pages that have sellers scrambling to ensure their listings can be seen by buyers which has increased seller concerns. Sellers cite bugs in the eBay Best Match search engine and concerns that the planned look to the items pages will be glitch ridden and confuse and frustrate buyers.
Sellers Moving to Other Venues
Thousands of posts on blogs and even the eBay Discussion Boards seem to indicate that ecommerce sellers who once believed that eBay was THE place to market are now looking at other venues such as Amazon, Overstock, Bidtopia, eCrater and Etsy and many others. In addition many sellers are ramping up their own websites as marketing venues. Unfortunately especially now as sellers and shoppers get ready for the very busy Q4 shopping season, many of the sites sellers are moving to with the exception of Amazon simply do not have the buying traffic coming to the sites.
Bidtopia CIO Paul St. James on ebay & Beyond Radio Today
Paul St. James CIO of Bidtopia will be our guest this morning on ebay & Beyond: Basics To Business. Join us at 10 AM ET from our website streaming live on the internet.
Best Match Is The Small eBay Sellers Demise
eBay’s Best Match Favors Fixed Price Sales
eBay has for some time been making concerted efforts to wean it’s sellers away from auction format sales even though continual denials come from company officials. From John Donahoe to Lorrie Norrington to head cheerleader and eBay Ambassador Jim “Uncle Griff” Griffith all say that there will always be auctions on the site. The small seller is the thing that make eBay unique is what they say. One only has to look at the number of Fixed Price (FP) or Buy It Now (BIN) listings on the site to see that these make up the vast majority of the items listed on the site. This in my mind is due to the effectiveness of instant gratification for buyers who do not want to wait for auctions to end or lose out at the very last second by snipers. This is a valid point and I agree to some extent.
However this situation is percipitated by eBay’s refusal to institute the automatic extension of auctions that receive bids in the last minutes. Live auctions do not end until the bidding stops, other online auction sites extend auctions that recieve last minute bids to give bidders an opportunity to act so as not to be outbid. But this is another issue.
The point of this article is to point out that small sellers who sell unique items really will have a very small chance of success with the new Best Match search criteria.
Best Match Is NOT Simple
Just when eBay sellers thought that maybe, just maybe they had a handle on the way eBay was going to be using Best Match to sort listings, reality sets in. According to a post on the eBay Developers website there is really no way small sellers can determine what will be used in the Best Match algorhythm. In the article eBay clearly states the factors used in the search criteria are NOT LIMITED TO those listed. eBay is very practiced in the things they do say but more importantly what they don’t say!
Recent Sales
Recent sales of identical items by the same seller will be used in the Best Match for FP sales. What this means is that if you as a seller bring on a new product line, you will not be ranked high in search regardless of your price, feedback or DSR’s until you sell some of these items. eBay’s rationale is that “a recent purchase from a buyer is a great way to measure satisfaction”. Ok, I as a seller will simply put a few items up at a slightly lower price to draw attention to my items, sell some, then increase the price to my normal selling price and I will be advantaged in search.
Not so fast! eBay says that one of the other criteria is that the prices must be the same. So this strategy will not work.
Sellers Really Don’t Know
There are certainly many more factors that go into Best Match, including what category you list in, time ending your feedback and DSR’s etc. Sellers will know what categories will have different criteria for BM but since eBay does not give out propriatary info on the search algorhythms sellers will not know all the information they need. At least not the small sellers. Big Box sellers will know. Software developers will know, but the little guy won’t.
In my opinion eBay has made it impossible for the small seller to compete and that is the reason for the continuing decrease in growth and eventually it will be nothing more than Wal-Mart.
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