Saturday, December 06, 2008
eBay's Version of Woot! -- The Daily Deal - Updated!
On eBay's Insider Deals page in the top left portion of the page you will see a Daily Deals ad (see image in this post).
The Daily Deal is a single low priced item that has free shipping and is listed for a 24 hour period. If you check this page every day at 8:00 am PST you will see a different item so it is basically limited to 365 different items per year. I'm sure eBay is trying to figure out how to maximize this of course.
The approach is very similar to Woot! which has a single daily deal and when they run out of stock there are no additional items available until the next day. Woot has become so popular that they have buyers waiting for the clock to change to the next day and thousands of customers are waiting to buy the next day's item. (All without trampling an employee at the door.)
eBay's version, of course, is really not overly exciting; they do give each item 24 hours beginning at 8:00 AM PT each day. For instance Buy.com had a Daily Deal that began on Friday (Dec 5th) at 8:00 am and ended today (Dec 6th) at 8:00 AM for a Nokia 500 4.3" Touchscreen Auto Navigation GPS.
Brief editorial comment:
Now, I know I write about Buy.com a lot and I want you all to know that I actually like the folks at Buy.com and I don't think they are an evil company. I've spent some time with the CEO Neel Grover and toured their offices here in Southern California. I honestly think of them, just as a really big independent seller. They are not a Wal-Mart or Best Buy. That being said, I still write about them and their affect on rank and file eBay sellers, because it helps explain things. (To date they feel I have been fair.)
[ This section removed because I pretty much didn't think it all through and there were some errors. Rather than confuse everybody I felt it would be best to remove it.]
If the Daily Deal is executed properly, this could bring additional sales from the seller's regular listings. It is similar to a loss-leader approach in retail. I'm not yet sure it will work for eBay but it already appears to be helping Buy.com. I will follow this for as long as the program is in place o until Christmas and then give you an update on the programs effect on Buy.com's sales.
Just my 15%