Monday, November 10, 2008

eBay's Coupon Strategy!

It may just work! 

While, I don't believe coupons are a viable long-term strategy for eBay or any online retailer for that matter, they certainly are going to be big this holiday season.

eBay just launched their holiday marketing campaign, which is heavily weighted towards coupons and Microsoft CashBack, following a trend on the Internet this holiday season.

According to ComScore, those shoppers  "who earn more than $100,000, "the market meltdown has simply hammered their confidence. They're on pins and needles," he says. About 85% of those in this higher bracket agreed with the somewhat apocalyptic statement "I am more afraid about the economic future than ever before." This group is driving the increase to coupon sites, with 37% more of these shoppers using them than before."

So the wealthiest online shoppers are flocking to coupons sites for savings. 

The nice thing about eBay's coupon program is that sellers don't have to discount their product, eBay, PayPal and Microsoft are paying the discounts. 
  • 30% off of an eBay purchase of $100 saves the consumer $30 (Through Microsoft Live's CashBack), but the seller gets the full $100.
  • Sure eBay is buying customers, but eBay sellers will benefit. At least through Christmas.
This Christmas, coupons may just be the right strategy to get buyers in the door.

Just my 15%

16 comments:

Scott Pooler said...

Hey Randy...

What the heck do you think this...

Wednesday 1:14

...thing is all about?

Henrietta said...

This is all just peachy as long as some $8 an hour clerical worker at PayPal doesn't pull the plug.

Paul said...

This is a very good idea for Ebay. With Christmas right around the corner middle class america will be trying to save money anyway they can. Randy do you think this will work and do you think this will drive more traffic towards Ebay and less towards Amazon?

Randy Smythe said...

Paul,

It probably will only work if the coupon's are sizable enough. Very few people are willing to pass up discounts of 30% or more.

I don't think eBay's coupons will keep buyers away from Amazon, they are mostly aimed at current eBay users.

I'm not sold on coupons but with the economy in the shape it is in currently every little bit helps.

Randy Smythe said...

Henrietta,

Yeah, there are lots of potential issues but on face value this may work.

tula said...

I think this will help in the short term. Amazon doesn't really do the coupon thing and they don't appear to be listed on cash back sites like eBates. They get enough traffic anyway without having to pay kickbacks like many other sites do.

As an eBay seller, I'm in favor of anything that brings traffic and doesn't cost me money. Long term, well, it's anybody's guess how things will go, but the advertising may just introduce a few new buyers to eBay. Whether their experience on the site will make them happy enough to come back is another matter.

ms.pat said...

Just bought Norton Ghost 14.0 from Amazon. It cost 41.00 and came lickety-split with free shipping and a form for a 20.00 rebate - which I already sent in ;-) I doubt Ebay is going to beat that even with its "coupons". They still fail to realize all those small sellers they've been driving off all year...were their buyers!

ms.pat said...

Oh...forgot this. Today a customer of mine spotted a painting I had up on Ebay. She contacted me saying she didn't want to deal with them anymore. I told her I had the same painting up on Bonanzle and she went over there and bought it. Sorry, Ebay, you lost out on that one ;-)

TwistedGrins.com said...

We have had several ebay buyers over the last couple of months contact us directly as they did not want to deal with ebay OR paypal for a transaction.

Josh said...

I just used mine today. 10% off and it worked like a charm.

Funny thing is I am doing all my shopping on eBay (and some on Amazon) this Christmas anyway so the coupon is simply less margin for eBay, which is fine by me.

Wish I could get more coupons!!

Anonymous said...

Why is Microsoft footing part of the bill for this eBay promo?

Anonymous said...

can you provide a link to 30% off offer? i searched live.com today and there is not such an offer! there is no ebay in the list of stores!

Anonymous said...

"Why is Microsoft footing part of the bill for this eBay promo"

Weblining... email harvesting... the usual.

Trent_T said...

These coupons make a lot of sense.

In times of economic slow down consumers are looking for deals or bargains and this might just be one thing ebay is doing right.

Several of us ebay sellers have been seeing the bargain hunters rolling through. Especially those with 'Make an Offer' listed on their products.

For all ecommerce sellers it might not be a bad idea to consider doing this themselves. It just ads more affordable advertising to their product lines and ads more traffic to their products or online stores.

Anonymous said...

There are no cash back savings right now through MicroSoft Live. Apparently we have to wait and keep checking!

Randy Smythe said...

Yep, isn't that wonderful. They were supposed to start this past week. Must be another glitch.