<thematic: the shape of things to come?>
You’ve heard the story about the blind men and the elephant? I wonder what these gentleman would make of eBay at the moment.
EBay boasts about being all things to all people, from bedroom entrepreneur to large brand, bargain hunter to obsessive completionist. But when the new eBay roles out in September, will we really be thinking global boot fair … as well as international shopping centre … as well as worldwide auction house? Can you really be all things to all people and maintain a steady unique selling proposition?
The big shake up of 9/25 comes after a year of many smaller changes which set the groundwork for the paradigm shift to follow. The growing emphasis on Buy it Now, is one example. EBay has also been keen to build consumer trust in the fallout of its high court thrashing by luxury goods giant Louis Vuitton. Although the company denies this, September 25th sees a move away from the hustle and bustle of the auction floor to a more becalming shopping mall experience, one full of reassuring household brands, piped in muzak and the wafting scent of cappuccino and bagels (okay, the tech guys aren’t quite ready for that last bit, but just watch this space).
In the past, eBayers have shown a distinct dislike for change, and the shock of the new may bring with it several unsettling aftershocks. In February this year, Stateside eBay sellers staged a one week listings strike (in response to relatively minor feedback changes). While the thought of lower listing fees may appease some sellers, even cheaper fees should attract heavyweight competition from high street chains which, for a brass penny, could upload their entire stock at the click of a mouse.
Others be cynical about ‘lower seller fees’. For newbies and start-ups, who don’t have an eBay shop, the so-called lower fees can actually be up to four times higher … and eBay wants a bigger cut from sales too. True, you now get a listings image thrown in for free … er, whether you want it or not.
According to eBay’s Clare Gilmartin, the changes reflect buying patterns over the last few years. ‘Buyers increasingly want the convenience of shopping for great value items at a fixed price,’ she says. Indeed, there has been a 60 percent increase in fixed price over auction format, while 43 percent of global sales are now through Buy it Now and Shop Inventory.
All very well. But, unlike a lot of the competition, part of the eBay USP is that it is a community where the buyers are also the sellers. And if the sellers can’t compete evenly with the big ‘bricks and clicks’ players, the buying market may change fundamentally, forcing even more changes.
If eBay is an elephant, surely it hasn’t forgotten the community at its core. Probably it hasn’t, and possibly the shift in its mental image will work for the majority. But some may close their eyes for a moment, and mistake the elephant for a snake. It's a good idea to be sure where you stand, come September 25th.