Thursday, April 19, 2007

Follow Up - To eBay Getting out of the DVD Biz!

I was able to get an actual transcript of the conference call over at Seeking Alpha and found the section where meg was speaking about the problems with the US and German sites. Here is the actual quote Meg made.

"First, as we told you last year, we continued to focus heavily on improving the buyer experience by advantaging our auction listing and discouraging lower quality, poorly-priced listings. This is absolutely having the desired effect of a cleaner site; however, as expected, this is putting some pressure on our listings and GMV growth in the U.S. and Germany; but, we still think this initiative will continue to substantially improve the buyer experience.

Also, in line with the evolution of the Internet and the changing environment around trust and safety, we have aggressively stepped up our efforts around the identification and removal of bad sellers with a variety of new measures. Some of these initiatives are impacting GMV growth, but based on feedback we have heard from our buyers and rights owners alike, they are having an overall positive effect on the health of the marketplace. "

There is no specific mention of DVD's, books or any other product category. It appears the Business 2.0 blogger I referenced added those product types.

I am seeking clarification from eBay that they are not singling out the Media category in there references to "unproductive listings"

UPDATE: Here is a response I received from eBay. This did not come from the PR department.

The question I asked was, is the quote from Business 2 accurate? Here is the response.

"I did not hear the quote or know the context of what she was communicating. As a part of improving the buyer experience though we are looking to improve the quality of the inventory on the site. What this means is removing low ASP BIN items with high shipping. Since most of this product is concentrated in media categories, her quote seems in line with where we are concentrating this effort."


Biddy said...

Hmmmm.... interesting.

Anonymous said...

Nothing new happening here, she was just referencing the fee hike from last summer.

Of course, they have to weed out all the media sellers, the market is too price depressed and nobody actually carries any inventory. These are data marketers, not retailers or merchents in any real sense. doesn't charge a customers credit card before the order is filled and shipped (unlike Moviemarz, or Inflatablemadness, and all the other shameful sellers who keep your money and don't reply to customer service unless forced by a Paypal refund claim)...

I saw ebays stance toward stores as inevitable. Far too many people all entered the media market, all at the same time (2004/2005), all listing thousands and thousands of SKUs for product they couldn't get in a reasonable fill time, with no regard at all to customer service or ethical business practices to customers. Everyone read all those magazine and online articles about Glacier Bay's success and look what happened....get rich quick guys who saw and easy buck and don't care if they get upwards to 500 negative feedbacks every month....greed will reapth what it sows, sellers need to take responsibility for being bad sellers and not blame ebay for everything....

Randy Smythe said...

eBay created the marketplace problems! You mentioned 2004/2005 and thats when Glacier Bay started to see a leveling of sales.

eBay launched prefill in May of 2004 which made it easy for anyone with a SKU to get into the business. I was short sighted at the time because I wanted to sell CD's and I didn't want to spend the time and money developing the content database, so I backed the move to prefill. It was going to happen with or without my backing and it was the reason the category is now a problem.

eBay created the tool and sellers used it. Who is more to blame. The sellers who used the system or the marketplace that created it in the first place?