eTRS in search results - this is only a test, but...
I haven't been able to reproduce it, but a reader sent in some great screen shots that show how the eTRS badge is being tested in search results.
I haven't been able to reproduce it, but a reader sent in some great screen shots that show how the eTRS badge is being tested in search results.
In previous posts on this blog and in the press, I'm on the record pointing out many eBay issues that we see with DSRs, BestMatch/Finding, fraud, eBay's overall strategy, how they treat sellers, etc. Like everyone in the ecosystem I am very concerned about the future of eBay.
Yesterday, we saw an interesting datapoint I wanted to share. Now it's one datapoint and I realize that, but it is a significant datapoint and could be an early signal that eBay's changes are working.
eBay: A mile wide and an inch deep.
For 8yrs+, ChannelAdvisor has been helping sellers of all sizes on eBay and we quickly learned that the eBay sweet-spot for sellers of any size is for wide (lots of SKUs), but not deep (lots of quantity of a single item). Back in the day (2001-2007), we worked with eBay to bring some manufacturers and retailers on the site and also with larger powersellers to test the depth of the platform. We've had IBM sell hundreds of laptops, Motorola sell hundreds of handsets, and shoe sellers sell hundreds of great-priced shoes, etc. While that sounds interesting, it's usually just a blip out of the total inventory available.
In fact most eBay sellers of scale ($2m/yr+) have to run a wholesale business as they buy in such large lots, they can only sell a small % on eBay so they end up wholesaling the rest. Large manufacturers and retailers turn to 'jobbers' or liquidators to move volume. Some of that product comes to eBay, but the bulk doesn't so there's a huge opportunity GMV out there of 'deep sku discounts'.
Companies like Overstock and smartbargains and liquidation.com fill some of the gaps there as well.
In retailer slang, it became well known that eBay is a mile wide and an inch deep.
Houston, we have a problem?!
Ok, back to today (December 12, 2008). 24x7x365 at ChannelAdvisor we have 2-3 people on-call watching our production systems. During the holidays we effectively double/triple that staff. Aside from the obvious benefits from doing this, we are also able to see unusual trends and monitor them and react if needed.
Last night around 6pm (start of ecomm prime-time), we started getting some massiver alerts from our systems that there was some unusual volume. One of our folks dug in and figured out what it was. We had a single eBay listing that was selling at a rate of one every 5-7 seconds on average, but at peak we were seeing several per second.
The system was keeping up, but it was actually causing some delays in the eBay servers (we were able to spread this around and avoid any latency).
eBay - no longer an inch deep?
It turns out that we have a customer, webbestdeals, that had an item selected by eBay for their new deal of the day program (you can read more about it here - clear your cookies if you don't see it). The item is a Logitech Harmony Advanced remote contorl - these are pretty popular and the low price on the internet is $40-50. This seller has it with free shipping for $29.99 - a SICK DEAL! (In fact, I believe the listing was hit on many of the popular sickdeal/fatwallet type sites as well).
As of this writing they've sold over 6000 of these and are on pace to hit 9-10k easily. At 6000 by $30 that's a whopping $180k in a listing. Sure there are cars and stuff that have achieved that, but this is 6000, $30 transactions in a 24hr period. click on 'purchases' if you don't believe me!
So while this is one datapoint, it is interesting to think about the implications. As we enter this tough economic climate, I'm sure there will be a LOT of inventory that needs to be liquidated. Historically a small % of this has made it to eBay. Imagine if eBay could take this model and scale it. There could be some pretty big opportunities out there with sellers of any size (webbestdeals is titanium PS, but not a 'diamond'/brand) that could bring some deep gmv to the 'new, deeper, eBay.'
A word of caution to my Wall St. friends
This reminded me that many of the analysts on Wall St. still try to calculate what's going to happen at eBay based on listings data. They frequently go to the browse all category page and count the listings. Then they look at completed listings to get an idea of conversions. In most of these listings historically the quantity is 1 or close it (dutch auctions, fp7 and others allow multi-quantity listings, but they were rare).
Well FP30 totally ruins that model. First of all you now have lots of 30-day listings out there with more and more quantity 'hidden' behind them. Take the example above. That would have probably been 9000 listings, now it's one listing, quant=9000.
Also, the conversion data is all wacky now too. The reason why is the fp30 doesn't show up in completed listings until it's life is over or it is sold out. So in the above example, you could have 30 days (you wouldn't 'see' until jan) before this listing shows in completed listings. Also, it only shows as 'one sold completed item' in completed search.
To see each transaction, you'd have to dig into the listing and get into 'completed sales'.
The bottom line is eBay is driving FP30 adoption HARD by increasing the mix of fp30 in search results (50% in most cases) and thus there are a material number of fp30's out there with a material quantity behind them and the old listing-count scheme is largely blind to all this activity.
In conclusion...
Yes it's one item and one datapoint, but I have to say I'm surprised and impressed that we're finally seeing eBay address the 'depth' problem. eBay Strategies readers, what are your thoughts? One-time anomoly, glimmer of hope, turnaround is working or rearranging deckchairs on the Titanic?
SeekingAlpha disclosure: I am long google and amazon.
Update: eBay has a recording of the webinar here.
Good morning eBay Strategies readers! Sorry for the little dry spell in posting. I always underestimate the amount of energy needed going into the holiday selling season and between some webinars we're doing, customer strategy meetings and ChannelAdvisor's big 11/8 release, (custom item specifics - hooray!). I got swamped which left little time for blogging. I think we're through the worst of it so I'll try and catch up on some topics I owe you. Specifically we've learned A LOT about fp30 at ChannelAdvisor and I want to share some cutting edge strategies we're seeing that give sellers a leg up on the competition which in this environment can be the difference between life and death. That piece will be a good partner to the eBay webinar...
**Update - several commenters have correctly pointed out that I neglected to mention that the criteria for a seller to use InDemand is that you have to be a PowerSeller with 30-day DSRs over 4.8. I agree this is a very high bar, and I'm already on the record with my top 5 reasons DSRs are broken here so don't shoot he messenger here. If you want access, might as well send an email to 'indemand@ebay.com'.
ChannelAdvisor and some of our eBay selling customers have been giving eBay some beta feedback on a new program they are calling InDemand. eBay was kind enought to let us blog about this before it hits the radar (with the stipulation that we didn't have to pull any puches of course).
"When do I receive the discount?
If an Insertion Fee discount is offered, you'll receive the discount at the time of the listing. If a Final Value Fee discount is offered, it will applied at the time of the sale.How long does a discount last?
A discount is valid if units are still needed and the promotional period has not ended.How do I find out the quantity needed for a certain product?
The first line of the listing requirements indicates the quantity of a product that eBay is looking for.Do I still receive my PowerSeller discount?
Yes. Any In Demand discount will be in addition to your PowerSeller discount."
**Updated to more correctly reflect the time of the outage. Details from eBay here.
Today eBay's search engine has been down for a couple of hours (see screen shot below).
The good news is that the paid-search advertising seems to be running just fine. Maybe this is just a test to see how the site monetizes with 100% ads vs. all those annoying listings+gmv and what-not?
What's also interesting is since the home page is very search driven it's causing all kinds of wacky behavior there too.
I'm getting increasingly concerned that all of the changes plus the influx of fp30 listings plus bugs upon bugs that are taking weeks to fix have so destabilized the search code that eBay can't get it stable for Q4. Wait, we're in Q4..., ok, Thanksgiving++.
My advice to sellers - go buy some Yahoo! keywords in the US if you want some eBay exposure. While search is down they are getting all the traffic you paid listing fees for.
Back in August, along with a host of other changes, eBay announced shipping maximums (caps) for the media category. They also published a checklist that pinned the date to October 5th. Well here it is October 6th and... nobody knows why, but it hasn't rolled out.
More details as they become available, but according to Reuters, eBay is introducing a .35, 30-day fixed-price listing (we call it 30fp) that I think is going to change the strategy of most sellers that do any fixed-price. The trade-off is 30fp will have a higher FVF, so once the rates are published officially we'll chime in here with some thoughts on the economics and how they impact sellers.
Check in for more as soon as it's available
(ok, maybe not entirely speechless)....
Today on eBay's Chatter blog/news site, they revealed the theme for this year's eBay live. The theme is "eBay Heroes" (see image at left - note this is not a joke).
"SCOT!!! Who are these eBay Heroes!?!" You ask, well according to the post:
"They're ordinary people who buy or sell extraordinary things!"
Based on this cover image, we have three eBay heroes:
This book is kind of a teaser. According to chatter, here's how it will work:
Here's how it works: at registration, you'll receive a small black-and-white comic book about the Heroes. It won't have the complete story in the book, only bits of what is to come. You can then collect colored stickers over the rest of eBay Live! to complete the story.
So if you didn't plan on attending eBay Live, you'll see me at the participating booths chasing down some eBay Heroes!
Phew, it's been a very busy couple of weeks here at ChannelAdvisor and my normal midnight-2am blog time has been occupied by a variety of other things and thus I haven't had much time to blog. A lot of time has been spent on two upcoming shows that I wanted to alert readers that we'll be at in full force:
So preparing for all of this has taken a big time investment, but I think we're ready. I'm definitely looking forward to meeting tons of customers, industry folks and blog readers. See you in Chicago!
P.S. I have a couple of pent up blog items I'll try and get out today/this weekend.
Over on our sister site, CSE Strategies, we have coverage of what's going on with Comparison Shopping Engines (CSEs) in the UK and EU that will be of interest to anyone selling in multiple channels.