Thursday, June 21, 2007

Possible Fallout From The eBay adWords Withdrawel from Google.

I don't have any hard data but I am hearing from sellers that sell both on Amazon and eBay that they are seeing an increase in sales on Amazon while sales on eBay remain flat.

One eBay seller, who lists roughly 5 times the sku's on eBay than he does on Amazon, told me this past week he has seen his daily Amazon sales surpass those from his main eBay id for the first time ever and it has done it several days. It appears, to me, that Amazon is directly benefiting from eBay's pull back in Google adWords.

Of course, one seller's numbers do not make a trend but it does identify a potential problem for eBay. While they may not see a material impact on their own GMV the adWord program may have served as a dampening effect on their competition. Remove that barrier and Amazon among other sites receives higher placement and therefore an increase in traffic, buyers see that Amazon has great selection and they buy there rather than eBay. Some eBay sellers have seen a reduction in sales since the Google pull out.

If I was eBay I certainly would check the numbers.


Anonymous said...

Scott Wingo has a better "big picture" view of this situation you can read about here:

Randy Smythe said...

Scot, has a great read on the situation.

Are any other eBay and Amazon sellers seeing an increase in Amazon sales? I'd like to know. I'll send Scot a note to see if he has any data in this area. I'm only concentrating on this one aspect.