Monday, December 04, 2006

Promotions and More Promotions!

I have been around eBay since 1999 and I have never seen this much promotion activity. Ina Steiner mentions three more promotions for eBay sellers this week.

It is clear to me that eBay has hit the wall or ceiling if you will. They must now prop up CORE listings by discounting not because of competition but because their marketplace is in trouble.

I could see this approach if there was a major competitior out there but there isn't. eBay controls the Auction business on the web. So what is the problem? Apparently there are some serious problems with the CORE marketplace. The 4th quarter earnings report will be very interesting.


bonni said...

I hope that very soon, eBay management will come to regret their poor decisions and, especially, the alienation of tens of thousands of members, particularly sellers.

I'm waiting for Q1 2007... An awful lot of sellers are hanging on only through the final quarter of this year and are actively making plans for setting up their own sites or going elsewhere, etc. I wonder what eBay will do to try to get them back, or do they think there's an infinite number of suckers willing to pay eBay more than they, themselves earn?

Randy Smythe said...

Bonni - unfortunately I don't see eBay making any changes in how they relate to sellers until there is a competitior in the marketplace that forces the change.

You are correct, eBay has alienated thousands of sellers who would jump ship immediately if given a viable alternative.

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