"EBay's senior ranks, in true management-consultant form, worship data above all, even when it steers them wrong. A glaring example of the perils of data-driven decision making still haunts eBay. Around 2002, executives hired McKinsey to answer a crucial question: Is Google a threat? After months of data mining the consultants concluded not really. The company stuck with that flawed insight for too long. Search technology remained a rump effort inside eBay until 2006, when it began investing more heavily in search. EBay's search still lags behind Google's and, arguably, Amazon's. It gets 15% of its traffic via paid search results from Google. If it had aimed to be the search site for online commerce, it wouldn't be paying a competitor for traffic."
Wednesday, October 08, 2008
This is a great read! Just click on the title to link to the post. I spoke with Victoria for about 30 minutes about the many issues eBay is facing and she has done a fantastic job getting to the root of the problem.
This quote says it all:
This article is well worth your time and will be run in the print edition of Forbes as well. I know eBay folks are reading my blog. Please consider the points being made in this article -- they are very valid.
Just my 15%