Wednesday, December 20, 2006

How eBay Sellers can offer Google Checkout!

This article is an example of how one eBay seller was able to utilize Google Checkout's $10 off promotion to more than triple activity on his website.

"Steven Grossberg, who sells video games online from his home in Wellington, Fla., recently sent an enticing offer to 20,000 customers: $10 off any purchase over $30 using a new payment service, Google Checkout.

Traffic on his site more than tripled, and best of all, he said, Google picked up the tab for the promotion."

Scot Wingo of ChannelAdvisor is helping his customers implement this Google Checkout strategy and makes a very astute observation "So ironically by banning Google Checkout on eBay, eBay is pushing sellers to promote it heavily off-eBay, so it's a double whammy (no eBay rev, no Paypal rev). It will be interesting to see how long eBay can go with this "GMV leakage' going on."

Wake-up eBay! The solution to turning your marketplace business around is right in front of you but you won't listen to anyone. Protectionism does not work, instead of fighting so hard to protect your marketplace you need to embrace the changes in ecommerce and facilitate sales wherever they can be made. eBay 2.0 needs to be a radical departure from the version we see today.

I feel sorry for Michael Linton as he takes over the fixed price marketplace business at eBay. Michael will soon be saying "Toto we aren't in Kansas (BestBuy) anymore." Michael certainly brings a different perspective to the position but can he mesh with the current eBay culture? eBay has had a difficult time meshing with Skype Management and obviously didn't have a clue how to make China work (to be fair very few people know how to make China work)

They are spending so much time bailing out water that they can't fix the gaping holes in the hull of the ship. I’ve often used the analogy of eBay as a ship without a rudder and now you can add that the ship is taking on water.