Thursday, October 19, 2006

The Day After

I am digesting the eBay earnings report bit by bit and will post comments throughout the day. One of the first things that stuck out to me was regarding eBay Express: Quote from transcript: "During Q3 we continued to work on tailored shopping experiences that meet diverse buyer and seller needs and increase activity across Marketplaces. eBay Express, which debuted in Q2, offer buyers a great source to find new items they might otherwise search for elsewhere. Early results show eBay Express is having the intended effects. 89% of shoppers who have made a purchase on eBay Express say the experience met or exceeded their expectations. And buyers who shop both eBay.com and eBay Express are spending significantly more time, and nearly 25% more money with eBay, than those who have yet to try Express."

First, all of these "New" items listed on Express come from the eBay.com site so if customers search elsewhere wouldn't they search eBay.com. Or is the buying experience on eBay.com less satisfying then Express.

Second, eBay is touting an 89% Express satisfaction rating as if it is a good thing. On eBay you can't even maintain Power Seller Status unless you have a Feedback rating of 98% or greater.

Third, “buyers who shop both eBay.com and Express are spending more time and 25% more money.” Once again all of the product on Express comes from eBay.com listings so if they are spending 25% more money what is wrong with eBay.com. Could it be that customers prefer a fixed price marketplace to an auction marketplace?

2 comments:

Frank Ross said...

Interesting take Randy, I cannot speak on eBay Express since I cannot see any sales coming from it. I do know our store listings appear there because I've tested them and there have been a 'few sales' sneaking out of our store lately. But I promote them in the core listings, so I have no idea whether they're coming from eBay express or not. That aside, all they gave is a percentage? I'm not sure if they gave hard numbers of Express users in that report (have not had time to comb it as thoroughly as you), but '89% of shoppers' is not very meaningful unless we know of what total.

Randy Smythe said...

Frank, according to the transcript that 89% number is the % of shoppers who have made a purchase on eBay Express. We don't know that number (They won't provide Express Specific numbers) but 89 out of 100 customers is not good and neither is 8900 out of 10,000.