Thursday, June 05, 2008

Buy.com's First 30 Days on eBay!

Well, I can't provide you with specifics, but I can say that as of the first 30 days here on eBay, under the eBay listing deal, Buy.com is now the #1 eBay Seller (excluding car sellers) in terms of GMV; nearly doubling the monthly GMV of CarPartsWholesale.

In fact Buy.com's eBay business is on a 12 month run rate that would make eBay sales nearly 6% of Buy.com's total 2007 sales.

It is difficult to tell if they are actually adding new GMV to eBay with the breadth of their product or just taking share from the thousands of eBay sellers in their categories.

The top three categories for Buy.com in the first 30 days were Computers and Networking, Books and Consumer Electronics. They were instantly the #2 DVD seller, in May (based on GMV not units sold) because they sold a lot of box sets, which other sellers can't afford to list in CORE.

While this information is certainly good news for Buy.com, I wonder if it is as good for eBay. If the GMV is just shifting from other sellers than the revenue eBay derives from Buy.com sales is at a much lower take rate than that of other sellers, so eBay would actually generate less revenue.

Most of the product that Buy.com is selling has always been in eBay Stores, so I just don't see how they are adding GMV to the marketplace and with a low STR they are only selling a limited number of their 500K sku's.

I'll keep watching this and let you know if I see any trends

7 comments:

Anonymous said...

What do you suppose is the buy take rate compares to the average take rate? what is the average take rate anyway?

Anonymous said...

posted from the ebay powerseller board by 'doctor-deals'.
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Buy.com "BUY" eBay Listings & Sales Data May '08

222,263,800 Items Listed in;

2,490,944 FREE Listings worth about,

$10,000,000.00 FREE Listing Subsidies - Fees any other seller would have paid - generating;

$2,585,917.00 In GMV - Siphoned away from eBay sellers that Pay Fees - stripping away;

68,057 Items sold to active eBay users that will now be bombarded with Buy.com marketing

0.03% Item Conversion Rate - Something eBay & Buy.com should be so proud of!!!

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BUY.COM has an under the table deal with ebay on listing fees. This is not a fair playing field.
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ms.pat said...

This kinda reminds me of when Sears sold only Kenmore (its own) products. They changed their minds after awhile and finally realized that variety is the spice of life ;-)

www.ACEOart.net

Anonymous said...

I won't be surprised to see some very, Very, VERY upset sellers at eBay LIVE this year.

Fights may even break out between management and top sellers.

On the other hand, maybe nobody will show up at all... :)

Let's hope John Donahoe has some Store into CORE fee changes to annouce at the Keynote. Free CORE listings for Anchor Store's seems about right.

ms.pat said...

LOL - anymore of his "disruptive innovations" announcements and I fear for his life!
:-o

www.ACEOart.net

permacrisis said...

Buy.com is just a trial balloon, I've been saying for 2 years that the end goal is ebay carrying 50% or more of site inventory itself (perhaps under assumed seller names at first).

For all we know ebay has acquired buy.com and not told anyone. Think it cant happen? YahooUS auction was shut down by mutual agreement in total secrecy. Only 4 months later in an earnigs report did ebay 'fess. They could already own buy and we'd never know it.

HippieChick said...

Ha ha ha too funny!

One of buys biggest categories is books, huh? Well thier millions of fake ads are doing a number on the sell through rate. Look at this garbage(click on "monthly" and then click June, over on the right):
http://www.medved.net/cgi-bin/cal.exe?SINDBooks