Sunday, November 25, 2007

Just Another Cyber Monday!

Maybe the Bangles need to write a song about Cyber Monday. Is it really that big of a deal? When I was selling on eBay there was never a huge increase in sales on Cyber Monday but from what I'm hearing that's not the case over at Amazon.

If you are not familiar with Cyber Monday, it is the online equivalent of Black Friday in the Brick & Mortar world and supposedly the top sales day for online sites. So hopefully many of my readers will be very busy today getting orders ready. I would love to hear any of your Cyber Monday stories.

One seller I've been speaking with didn't need to wait until Cyber Monday.

They sell on both eBay and Amazon and their eBay sales were normal this weekend but their Amazon sales actually broke a company sales record on Black Friday and that record was broken again the next day and then again the next day (Sunday). With that kind of an increase this weekend I would expect that Cyber Monday would bring a new record.

Here is a direct comparison between the two marketplaces for this seller:

Fees:
eBay Store Listing fees: 150,000 listings - $7500 plus $49.95 store subscription per month
eBay FVF - 10%
Amazon Listing Fees: $0 plus $39.99 per month seller subscription.
Amazon FVF - 15%

Daily Sales
eBay - 500 sales a day (150,000 listings)
eBay NPB (Non-paying Bidder) 8% (40 sales)
Amazon - 750 sales a day (30,000 listings)
Amazon NPB - Zero

Customer Service
eBay - 300 emails a day
Amazon - 30 emails a day

This seller also says that Amazon sales are more profitable. A year ago this seller was selling 800 to 900 items a day on eBay with the same number of listings.

This is a snapshot of what is happening at eBay and Amazon. Who do you think is going to have a better Christmas?

When the 4th Quarter numbers are released it will be interesting to see the Y/Y GMV growth for eBay's US Marketplace compared to the Sales growth for Amazon's US business.

5 comments:

Jennifer said...

Hi Randy, I got here from your Spamalot Lens. I can't believe you put that much personal info about yourself on the internet. Being an ex-investigator I would rather conceal as much about myself as possible. But hey, you sure as hell should get a date one day soon, just from sheer exposure! :-) I'm interested in your ebay/Amazon comparison. I have a webstore where I sell the product I created and patented. I'm looking for ways to drive more traffic to the site. Maybe I will open an Amazon storefront as a portal and not an ebay store. What do you think?
Thanks for all your great content.

bonni said...

It's not true about "Cyber Monday", by the way. Just an urban legend:

http://www.snopes.com/holidays/thanksgiving/cybermonday.asp

Betty said...

Making a general judgement like this based on the experience of one seller that is exclusively focused on low-ASP media categories is foolish. I would have expected you to know better.

Also, GMV and sales are two very different things. You might want to compare apples to apples, unless you have an alternate agenda.

Randy Smythe said...

Jennifer, I wouldn't suggest using Amazon to drive traffic to your website, they have many rules in place to prevent that.

You could use their ClickRiver ads to do that though.

Betty,
You read too much into my post. I'm relaying one experience and then asking a rhetorical question.

You are correct that Sales and GMV are not the same but they are the best comparision between eBay and Amazon. BTW, I would love to hear seller experiences from a seller that was seeing that kind of growth on eBay. So please if you have such an experience please let me know.

Thanks

Randy Smythe said...

Also, if anyone would like to listen into a conference call on the ecommerce shopping season (Black Friday, Cyber Monday, etc)with Scot Wingo of Channel Advisor and Bob Peck of Bear Stearns please contact me.