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Catherine Holahan has a piece in Business Week about eBay and the decline of the company’s traditional auction business — or rather, the increasing growth of its non-auction “Buy It Now” business, which she says currently generates almost half of t
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5 months ago
5 months ago
to do with it -- a friend of mine who has been making a living by
selling records on eBay for years said pretty much the same thing.
5 months ago
5 months ago
5 months ago
I think you, um, nailed it with the "not everything is a nail" comment, and I for one am not surprised that they are seeing huge growth in the "But it now" service. In fact, we can see similar trends in other - big - categories. For instance, Priceline has become much more successful after their near-death experience that helped drive them to offer fixed-price travel services in addition to the auction style. When I was running marketing at Expedia, we wondered whether it would be successful, especially given that PCLN had invested so much in teaching their customers that they were an auction site, as well as the the hoo-haa about their "business system patent" or whatever. Personally, I liked their odds - they could draft on their huge reach and supplier relationships to offer "good enough" pricing without the hassle of the auction.
The flipside is that when Expedia.com in the US tried to offer auction-style pricing for flights it flat-out did not work. Now there could be lots of reasons for that, but basically Expedia customers weren't interested. Which in part led to the acquisition of Hotwire. Different problem - different solution.
- Stuart
5 months ago
Another reason why people have become disenchanted with Ebay is the common practice of sellers making false bids.
4 months ago