Interesting slide/marketplace dynamics graphic from eBay's Q2 results

Below you see a snippet of the eBay Q2 results presentation.  It is an interesting visual way to show the different levers that exist in the eBay marketplace business.  This graphical representation of how listings/conversion rates/ASP intereact to drive GMV is a great way to understand how the eBay changes are moving the various needles and as an eBay seller an interesting way to think about your business.

Comments

[Jose Flores]

You can tell, eBay executives are completely new to commerce. They seem to come from the banking industry. They will remain in power while their changes take place, but once their changes are done and the loses persist, the board will get rid of them. The question is what will happen with ebay by then? What channel will take its place? Amazon is not the answer to entrepreneurs because newer products require more explanation that is allowed by amazon. eBay was the only channel where one could offer solutions rather than just products. Yes, it was chaotic, and yes, it had little level of risk for all but everyone seems to agree that that offered a better more exciting experience (spiced up with an element of surprise). As ebay kills all the smaller sellers and scare away buyers with GUI changes beyond the 60 year old average brain, they will realize that they have also killed one of their biggest assets: variety.
Because a new channel can't really grow organically at this point in time (No, social networks are not a place for shopping). I am keeping an eye on google shopping - they just need categories to be at-par with ebay and amazon. But that again, is not for the average Joe, and they know it. So if I know google, they will soon come up with a listing tool for the average joe and that will be the end of ebay -- simple as that. So the new channels will result in marketing agents outside the big place where everyone can find "it". Probably by the end of next year ebay will go back to simple auctions for the people, which by then, will be out of pace with the new big boys and internet agent marketing reality; as a result, they will become more of a flea-market than they ever were. That's the way I see it, unless the board takes action within two months...

[ex eBayer]

This is how eBay has always thought about the business. It's a brilliant slide that articulates the business simply and effectively. Man, no one does power point better than eBay. ;)

[nadine]

Okay, so Ebay can see what higher FVFs, more supply, lower conversion rates, and lower ASPs are doing to their FX neutral GMV. What they seem rather oblivious to is what all these things are doing to the profits of their main customers, the powersellers, who are cutting back and leaving Ebay at an ever-increasing rate, if the latest Sellerdome figures are to be believed.

The lower ASP items that would sell great in this downturn can no longer be sold on Ebay because of the fees. Many of the higher ASP items bring better prices elsewhere anyway. What percentage of their GMV do they think will still be paying full freight on Ebay come this Christmas?