Thursday, September 13, 2007

Scot Wingo Speaks!

Scot Wingo was part of the Bear Stearns conference call today and made some great points about the data he is seeing regarding eBay. According to Wingo, the "eBay portion of CA's business in the 3rd Quarter is growing at about a 9% clip Y/Y" which seems to mirror eBay's own GMV growth. Though this growth rate was in stark contrast to last year where CA saw Y/Y growth in the 3rd Quarter of "19 or 20%". Scot did go on to say that eBay was a drag on the overall business. (or something close to that).

I commend Scot on his strategic choices and the fact that CA often executes their initiatives flawlessly and I can't see any downsides to the purchase of Marketworks. It does feel to me that it was a move brought about by timing and market conditions and unlike the big companies I talk about regularly they acted quickly and decisively.

I often comment on posts from some of my favorite eBay blogs like Tamebay, Auctionbytes, OnlyeBay and Trevor Ginn's blog and was surprised to see Scot comment on Trevor's blog with the following comment.

Hi Trevor,

Thanks for covering the story. We plan on keeping the MW platform. As you point out, customers are ‘telling us’ that there’s a need for a robust £20K side of things with Merchant. Thus we see this as a great way to provide a “cradle to adult’ solution for sellers that are ramping their business and want a clear path to further growth on and OFF eBay.


Its good to hear Scot come out and say they plan on keeping the MW platform as a “cradle to adult’ solution to CA's Merchant Program. BTW, I love how he capitalized OFF eBay.

I would be curious though, to hear what they plan on doing with CA Pro and the smaller Sellers coming on board from Marketworks. CA has never really put much of an effort into the small seller so I'm not quite sure what direction they will take with that segment of the business. Maybe Scot will drop on by to leave a comment.

I have fond memories of starting my business using Scot's original eBay solution called Auction Rover and then moving to CA Pro. I was also one of the first users of CA's Merchant program.

ChannelAdvisor is a great company being run by some great people and Scot is a visionary even though some at eBay call him "Wingnut".


ONLYEBAY said...

Hi Randy, thanks for the replay number!! Interesting comments from Steve and Scot.

Incredible that Steve's Amazon business has tripled in 1 year and that Scot says that is not unusual. Amazon is becomming the new eBay. Eventually, I could see Amazon only having 3rd party and fullfillment businesses.

Ebay need to get their act together quickly if they want to compete.

Randy Smythe said...

Amazon has some major advantages over eBay. They can control the buying experience because they don't charge listing fees. They can play hard-ball with bad sellers because they are not a "Venue". Amazon knows retail -- eBay knows online auctions.

With greater than 40% of eBay's CORE purchases coming via BIN (Buy it Now) or FP (Fixed Price) eBay better learn retail pretty fast.

Amazon is still a marketplace that is expensive and controlled but sellers really don't care becasue they sell their product at a higher ASP and they know what their costs will be. (No need to worry about conversion rate).

Radical move here. If eBay gets rid of listing fees they can control the buying experience. They can't "have their cake and eat it too".

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