A Possible Connection Between the Stores Fee Hike and Yahoo Sponsored Ads

[mandy]

Another article from former eBay seller Randy Smythe (GlacierBayDVD):

The Real Future of Ebay; After Their Recent Agreements with Yahoo and Google!
Is EBay Trying to Become a Shopping Portal?

I didn’t see it initially, when the announcements were made, but it has become very clear to me now. Ebay appears to be modifying their business model; they are moving towards an advertiser supported shopping portal rather than a shopping destination. To be fair I see a hybrid of the two models, and I think investors will like the move if they only think short term. From the Store Sellers standpoint I would prepare for life outside of eBay. More on that later!

What has me intrigued is how this introduction of sponsored links on eBay dovetails with their fee increase in stores... Ebay is now serving up ads when there are limited search results and there were far too many items showing up in search with the flood of store inventory, limiting the number of sponsored ad possibilities. Stay with me here. A reduction in slow moving search hogging listings will open the door to more sponsored links, therefore more incremental revenue for eBay. With fewer items listed on the site (In Ebay’s view, the items that weren’t selling anyway) there would be an even larger number of null or limited items searches for Yahoo-sponsored Ads. Brilliant! Brilliant! I’m not suggesting this was the sole motivation for the fee increase but I do believe it was part of the discussion...

full article: http://www.associatedcontent.com/article...their.html

[cranky_hippie]

Randy may be on the right track, IMO.

I've been telling friends that a year from now (or sooner) we won't recognize Ebay. It will be a totally different site than the one we know today.

Folks on the Ebay discussion boards have speculated that Meg and Bill have lost their minds with all the recent seemingly senseless changes, such as Sponsored Links. But I don't think so. I think they know exactly what they are doing. Whether its to become a shopping portal or something we haven't thought of yet, I think there IS a plan and the changes are leading up to it.

"Get out while you can" should be the new motto for serious sellers on Ebay. Trying to stick it out and hoping for a miracle will only cost you more money and wasted time.

[xppman]

Oh go get to work on your website before I come over there and and well never mind.  ;D

[cranky_hippie]

[quote author=xppman link=topic=5325.msg25963#msg25963 date=1159792729]
Oh go get to work on your website before I come over there and and well never mind.  ;D
[/quote]

If you come over, I will put you to work. I am cleaning the basement to get all my website merchandise in one room. Can't even find it all at the moment so I have to do that first. I could use some help. 

[xppman]

um Oh umm hey I gotta run umm yea...
I just remembered umm yea... I gotta go umm do something yea. 

C Ya  ;D

[BellisimaJ.]

Go get a room.


I disagree with Smythe's premise that ebay is planning to become a shopping portal more than a destination.
But bear with me on this one. I'll be back to tell you more.



Edited to add: I am sorta quoting Smythe here, for those that didn't read the full article.

[landofsmiles]

I don't see it as much of a destination anymore. Neither do I see it as a shopping portal, either. Too confusing already and too much reliance on PayPal. And too much of a bad reputation that won't be easily repaired.

[maggie777]

Is EBay Trying to Become a Shopping Portal?

eBay is trying to become Amazon.com which transformed itself from a store to a shopping portal.  Amazon made the transition without losing its identity, can eBay?

[thentavius]

Ah hah! Very interesting... Good points.

[bargainbloodhound]

[quote author=maggie777 link=topic=5325.msg26521#msg26521 date=1160000912]

Is EBay Trying to Become a Shopping Portal?

eBay is trying to become Amazon.com which transformed itself from a store to a shopping portal.  Amazon made the transition without losing its identity, can eBay?
[/quote]

Amazon placed the "portal" within the confines of their store.  There are many categories where 3rd party merchant's items are featured over Amazon's own items but to the shopper it's all Amazon.

eBay can't create the same type seamless portal on their "core" platform (umm, it's a friggin' auction) but they could do it make a feeble attempt to do it using Express.  They are already including "core" buy-it-now and fixed price items in Express and I could have sworn I read a rumor that they are planning to include some Shopping.com listings in Express at a latter date. 

eBay can try for a portal, but it'll be a second rate imitation of Amazon.

Yahoo-sponsored Ads.

I believe at the Town Hall Meeting Bill Cobb said that even if a buyer clicks on a link to an outside store they'll come back to eBay the next time to search because they found  "it" (the link to the store) on eBay.  Verrrrry wishful thinking on Cobb's part that a buyer will return to the site where a banner ad was shown. In the 8 1/2 years we've run ads on our sites I've yet to have anyone say "I visit your site for the banner (or Google) ads"  :