Ebay is a relatively new
phenomenon, but the company feels like it has been around for decades and has
taken the web world by storm. Here are some brief stats:
·
eBay was founded in 1995
·
eBay has a global customer base of 181 million
·
eBay has a global presence in 33 markets including the UK and
USA
·
eBay UK was Launched in 1999
·
eBay in the UK's number one ecommerce website
·
eBay UK has 3 million items listed at any given time
·
eBay UK accounts for 10% of all the time UK users spend on the
internet
We could go on and on
discussing the merits and stats of eBay, but the one that sticks out for me is
number 5: eBay in the UK's number one ecommerce website!
All ecommerce websites endeavour
to get customers through online marketing activity like search engine
optimisation and paid for marketing without ever considering a mechanism that
is already in place to help them - eBay!
There is a misconception within
many businesses eBay is not for businesses (The term beggars has been used
often). However, they should consider these startling statistics:
·
Profitable since its launch, eBay net revenues totalled $1.329
billion in Q4-05 and $4.552 billion in 2005.
·
eBay International achieved net revenues of $604.1 million in
Q4-05 and $2.081 billion in 2005.
·
In Q4-05, gross merchandise volume (GMV), the total value of all
successfully closed items on eBay's trading platforms, was $12.0 billion. In
2005, eBay's GMV totalled $44.3 billion.
·
eBay users worldwide trade more than $1,511 worth of goods on
the site every second.
·
There were 546.4 million new listings added to eBay worldwide in
Q4-05. At any given time, there are approximately 78 million listings
worldwide, and approximately 6 million listings are added per day. eBay users
trade in more than 50,000 categories
·
Based on Q4-05 GMV, the following categories delivered $1
billion or more in worldwide annualized GMV: eBay Motors at 13.0 billion;
Consumer Electronics at $4.4 billion; Clothing & Accessories at $3.9
billion; Computers at $3.4 billion; Books / Music / Movies at $2.8 billion;
Home & Garden at $2.7 billion; Collectibles at $2.6 billion; Sports at $2.2
billion; Toys at $2.1 billion; Jewellery & Watches at $1.9 billion;
Business & Industrial at $1.6 billion; Cameras & Photo at $1.5 billion;
and Antiques & Art at $1.2 billion.
·
While eBay is well-known for its auction format, users can also
buy and sell in fixed-price formats, which accounted for 34% of total GMV
during Q4-05.
·
At the end of Q4-05, eBay hosted approximately 383,000 stores
worldwide, with approximately 212,000 stores hosted on the U.S. site and
171,000 stores hosted on eBay's international sites.
·
More than 724,000 professional sellers in the U.S. use eBay as a
primary or secondary source of income. In addition, 1.5 million individuals
sell on eBay to supplement their incomes. (Source: ACNielsen International
Research, July 2005)
·
As of December 2005, eBay members worldwide have left more than
four billion feedback comments for one another regarding their eBay
transactions.
·
The most expensive item sold on eBay to date is a private
business jet for $4.9 million.
Makes interesting reading
doesn't it and begs the question are online product based businesses missing a
trick? In our opinion the answer is yes and it about time businesses cottoned
on to this fact and started embracing the eBay concept with open arms.
How do you take advantage of
eBay?
Millions of listings on eBay more or less look the same and say the same thing. However, by delving a little deeper, you start to unearth some gems that are excellent benchmarks for you or any business to follow. Listed below are 2 eBay considerations:
Millions of listings on eBay more or less look the same and say the same thing. However, by delving a little deeper, you start to unearth some gems that are excellent benchmarks for you or any business to follow. Listed below are 2 eBay considerations:
1. Selling Manager Pro
Selling Manager Pro is an
online selling tool to help you create listings, manage post-sale activities
and manage your inventory. If you are a volume seller who wants a robust,
web-based eBay tool then this is the one for you. It's cost - £4.99 per month.
It will.
·
Automatically list and re-list items for you
·
Inform buyers by auto notification
·
Let you know when payment has been received
·
Tell you what items you have shipped
·
Provide Auto feedback upon buyer payment
·
Allow the scheduling of items
·
Offer Reporting
·
Allows you to Design Professional Listings
·
Restock alerts
This is a fantastic eBay tool
that automates much of the information for you and helps you engage and
interact with your eBay clients. Everything is controlled from one area and is
generally easy to use once you get the hang of it.
The best things about this
facility is that it allows you to create professional and business like
listings that when displayed on eBay provide a look and feel that can be
similar to your company's website. For example, our client the Funky Group is currently using this facility to list
all products with a branded and professional look and feel that mimics the
company's actual website. This has resulted in the first month of going live in
well over 4 figure sales with over 300 products sold!
Our tip for this facility is to
brand it as your business and to produce something that uniquely reflects you
and allows you to stand out from the crowd and at the same time maintain very
professional image. Granted there are eBay fees and costs but these are reduced
once you start to receive higher volumes of sales. The more you sell the less
you pay!
2. EBay Shops
Creating a successful eBay Shop
involves four basic steps: building and customising your shop; managing your
listings and sales; promoting your Shop; and tracking your shop traffic and
sales.
An eBay shop allows you to
·
Set up, brand, and customise your shop to maximise success.
·
Save time with powerful tools to manage your listings and sales.
·
Drive traffic to your shop and trigger repeat purchases from
your customers.
·
Optimise your sales strategy with advanced reporting tools.
An excellent benchmark for a
company that does this well and takes eBay shopping to a new level is online
shoe retailer Schuh. This
eBay shop is an excellent example of how to do it right and well and is worth a
visit at Schuh
eBay.
Why is Schuh such a good
example? Well for starters, the eBay shop is branded with the Schuh logo and
includes professional graphically designed images. Additionally, the eBay shop
is very similar to the official Schuh retail website! EBay acts as a tool to
promote the Schuh brand, even increasing sales activity on their own official
website.
Each individual pair of shoes
has 6 images of it from varying angles that help highlight and sell the shoes
to potential consumers. The Schuh eBay shop works just like a well designed
ecommerce website should- with simple navigation to the product of your choice
with the main difference being you can bid on the product first before you buy
it.
Consider
·
eBay hosts approximately 380,000 stores worldwide (2005), with
approximately 212,000 stores hosted on the U.S. site and 171,000 stores hosted
on eBay's international sites.
·
More than 724,000 professional sellers in the U.S. use eBay as a
primary or secondary source of income. In addition, 1.5 million individuals
sell on eBay to supplement their incomes. (Source: ACNielsen International
Research, July 2005)
Still not convinced? I do agree
that eBay has certain pitfalls for business and individuals to consider
together with some expensive fees that can be off putting. However, in our
opinion it does make sense to consider eBay. Put it this way, your target
market may be already using eBay and you could use it to reach these customers
that you have never engaged with before - increasing sales and turnover.
Additionally, having an eBay
presence can lend itself to search engine optimisation because - eBay listings
appear in Google and Yahoo for consumer searches! Consider Schuh - try a Google
search for some of their products!
So to summarise - is eBay an
opportunity or is it something to be dismissed? We think that it is something
that every business that is selling online should consider as part of a range
of online marketing activities.
Com.Motion would like to thank
EBay, Nielsen/NetRatings and Econsultancy for the statistics in this article.
Com.Motion Consulting
[http://www.com-motionuk.com] is in the business of internet marketing -
ensuring that your website appears on the top search engines including Google,
Yahoo, and MSN.
We provide effective internet
marketing solutions to ensure that customers find you and the products you sell
on the web, and work with you to increase your profit through your online
sales.
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