- How are they going to get product? Just saying you have 3 million unique visitors each month and throwing a 10% FVF on each sale isn't going to entice sellers to sell on the platform.
- Perhaps they can bring on related product that would make sense to their current user base. GoDaddy users are tech oriented and dominated by males, just look at the GoDaddy.com ads at the Super Bowl in two weeks to identify who their market is.
- A marketplace needs much more than traffic. They would be much better off selling sponsored links and advertising to online sellers than to facilitate the sale of real product on their site.
- If they do not get to a critical mass of product selection, users will just pass over the marketplace.
- Online merchants want to get eyeballs in front of their items, but they have limited resources so dealing with another marketplace with dubious credentials for selling product won't be high on their list.
- Competing with the "Big 2"; eBay and Amazon and the "Little 2"; Buy.com and Overstock not to mention all the specialty sites doesn't make much sense to me.
Monday, January 19, 2009
UPDATE: Everyone Wants to be an Online Marketplace.
The King of all online marketplaces (eBay) is wounded, so it makes sense that competition would rise up to take some of their business away, but when GoDaddy.com announces they will be launching a marketplace, it is getting ridiculous.
GoDaddy.com has lots of traffic, roughly 3 million uniques a month, but how much of that traffic is going to GoDaddy for anything other than domain names and related services. There are some serious issues to consider:
I haven't seen their marketplace yet, so I won't call this effort "dead on arrival", but they have a huge hill to climb before the GoDaddy marketplace is viable.
UPDATE: Okay, here is a link to their marketplace http://shops.godaddy.com
Just my 15%