eBay needs to increase focus on their core collector audience |
Yesterday a client came into our offline business to get a quote on some potential new business. We started talking and the conversation switched to eBay. His eyes lit up when he talked about his collection of yearbooks. He scours eBay looking for yearbooks from local schools and came across one recently from 1909 that had been part of an estate sale. There were less than 20 students that year 99 years ago and he checked around and only the Puyallup library had a copy of the yearbook. It was fascinating watching his passion as he described the yearbook and what it meant to him.
He was excited to be the owner of likely one of only two yearbooks from that school in existence from 1909. Now some (many?) might think collecting yearbooks of strangers simply because they went to local schools is a waste of time and money, but not our client. It’s doubtful anybody who went to the Puyallup school in 1909 is still alive and anybody who worked at the school is gone.
Collectors and collections are what has made the auction site eBay strong. The cliche one person’s junk is another person’s treasure holds true. I had hoped when they bought Skype that eBay would find some way to use Skype to better connect collectors with collections. At least to my knowledge, this hasn’t panned out.
Bernard at ReadWriteWeb further opines on eBay’s strengths:
Selling off inventory from big companies (eBay’s diversification) may be a great business, but it was not what made eBay magical. Garage sales, antique shops, auctions….these all have a bit of magic and romance. It is about finding something unique and special.
Magic is a perfect description of how a collector like our client feels when they discover something they want to bid on at eBay. Bernard’s post goes on to compare eBay to the site Etsy.com where people buy and sell handmade goods and ponders if Etsy is the next eBay?
Etsy, you say?
Having only been to Etsy in passing a couple times, I decided to take a closer look this morning and register. Since my name wasn’t taken I used that which becomes a subdomain on etsy (tdavid.etsy.com). Nothing there yet so no sense in linking. The registration process was smooth with email confirmation before being able to login.
After logging in I started searching around and the first thing I noticed when clicking the category "Time Machine 2" was the Flash interface. I’m not a big fan of using Flash in archive results. I know Flash is supported in all the common browsers but what is wrong with HTML and graphics? I get it, you can’t hover over the "Auto Scroll" and see the listings smoothly scroll from right to left across the screen with HTML. That can be done with JavaScript. Fortunately the regular listings and search results are in HTML.
I’m not a very craft-oriented guy so my time at Etsy will be short-lived. Never say never though, maybe I’ll get more crafty as I get older. Not that I don’t appreciate people who can make things with their hands because I do, but I’d rather spend the time making things (writing fiction, non-fiction, coding, etc) with my mind. If you do enjoy making crafts then Etsy could be in your wheelhouse. Etsy has a cleaner design than eBay which seems cluttered these days (compare the screenshots above). Another plus? I didn’t see any advertising.
What eBay needs to do
To answer Bernard’s question, Etsy is too niche focused to be the next eBay. Craigslist, if it got a little more structure to prevent fraudulent transactions is a stronger competitor to eBay.
Ironically, focusing on their strongest niches is what eBay should be doing moving forward. They shouldn’t try to do things that appeal to the masses, they should drill down on their most active auction categories and provide even deeper support and interaction between buyers and sellers. And they need to stop tweaking the listing fees, that just pisses off the buyers and sellers.
Finally, they need to reinstate the system that kept buyers honest: allowing sellers to leave negative feedback on buyers. eBay might think they were helping to make the system a more friction-free buying experience, but if you aren’t the kind of customer a business wants to have, they will refuse to do business with you. On the internet how do we know good from bad with just a screen name and buying history? eBay made it harder to identify potentially dishonest customers by eliminating the ability for sellers to leave negative feedback.
We haven’t been huge eBayers in our household, either buyers or sellers, but I don’t think their auction feedback system was broken. Big companies which tweak things that work often make things worse. If I was the new eBay CEO, I’d put that feature back post haste. In a recent boycott, listings were down an estimated 12%. eBay’s official response was that the boycott "had no effect" which was stupid. They should have apologized to the sellers and reinstated the policy that had been there for many years and helped define the eBay auction system.
In short, eBay needs to be less corporate, go back to the basics that made them stronger and focus on collectors and collections. What do you think eBay should do? And do you use eBay any less now than you did a couple years ago?
Did this post make you go hmm?
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I think what’s going to make it hard (though not impossible) for other companies to eclipse eBay is eBay’s user base. They are more or less the de facto place for online auctions already. They’ve got the largest user base, with the most buyers and sellers, and the most items. It’s come to the point where people (at least in my circle) say “to eBay an item”. It’s become that synonymous with online auctions.
And that’s their strongest point at the moment, I think. That’s the dip (to use Seth Godin’s phrase) they’ve established, that other companies have to cross in order to compete and/or surpass eBay. But agreed, there are ways they can make that dip wider, and I do agree that focusing on their core collector audience will do that.
Comment by Derrick Kwa — February 27, 2008 @ 10:11 am PST
I remember when I first discovered Ebay.
I spent hours buying things I had wanted for years and ended up with a lot of useless junk.
The only thing I bought during this period that still remains is a plush character that I had as a child called Mr. Tastee from Tastee Freeze.
I think the onion article “Man With Complete Mama’s Family Video Library Never Going On eBay Drunk Again” sums up the early days for everyone.
The feedback system needs to be restored and there needs to be A LOT more policing of the shipping policy.
It does not cost someone $6.99 to ship a DVD via USPS 1st class or media mail…even with supply costs.
Too many people use this a way of pocketing a few more dollars on each sale.
Unfortunately it continues because people either don’t know or care about it.
Otherwise, I like Ebay and still use it, but for different things.
I love finding a something I want and camping out during the last few minutes to outbid and win at the last second.
Comment by Wayne — February 27, 2008 @ 1:19 pm PST
I definitely see where you’re coming from, and I’m a big fan of the “collectors” approach to marketing Ebay. One of the problems I always wrestle with is that yeah, the products are well-suited to Ebay, but the potential for use outside Ebay is a bit weak. You have a site selling just yearbooks, and your linkbuilding/exchanging potential becomes fairly limited. It’s the flip side of getting something fairly microniche (relative to other industry streams). You’ll do well with Ebay, but not with much else. Depending on the niche, though, that could be just fine!
Comment by Jack Jeffries — February 27, 2008 @ 1:31 pm PST
Derrick - one thing I’ve learned about numbers of members at a site is change is inevitable. Today’s Facebook and MySpace traffic will ebb and flow elsewhere tomorrow. Remember Slashdot? They took a hit when digg came to town. eBay might have the numbers now, but let’s go back to 1998 when nobody knew who Google was in search. It’s still possible for a couple people in their garage to build something to not only compete but become #1 in the marketplace. eBay’s userbase isn’t guaranteed.
Wayne - I find a lot of classic videogames and systems on eBay and yes, the whole auction system can be addictive.
Jack - that’s why I think they should target the more active auction categories first rather than all niches. Roll out some systems to build bigger communities around these collections/collectors. Once they have/see some success they can expand to the less active niches. eBay has become too rigid like a lot of corporations. They need to emphasize and spend $$$ on their strengths and be willing to adapt and change (quickly) their weaknesses.
Comment by TDavid — February 27, 2008 @ 8:16 pm PST
Yes ebay needs to focus on thier core “galaxy collectors” market, as this ebay sale for Galaxy M81 clearly shows. I would say this is stupid, except i think i’m getting a little jealous. I’m curious to see how much it fetches…
Comment by MathiusM — March 2, 2008 @ 10:36 am PST
Well…over 4 years of selling and 100% positive feedback on over 300 transactions I am through.
Not even 2 weeks into the new feedback system and a buyer has left negative feedback for an item that hasn’t arrived.
I have proof of postage being purchased on Paypal and the transaction was only for $7.98 plus shipping…yet he accuses me of being a liar.
He left negative feedback and filed a Paypal claim before ever contacting me to offer resolution and continually mentions the fact that he can
leave negative feedback without worry of me doing the same for him.
And so it begins…
Comment by Wayne — June 2, 2008 @ 11:39 pm PST
That totally blows, Wayne
Seems like our fears are being realized with eBay.
Comment by TDavid — June 3, 2008 @ 6:00 am PST