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« on: August 05, 2007, 03:16:54 PM »

By Allison Hartsoe
AuctionBytes.com
December 18, 2006

The Challenge for eBay Sellers (Vendor Monday)


Is eBay a sales channel or a marketing channel? The difference is as a sales channel, you expect to make money. As a marketing channel, you expect to acquire customers for the best cost. Here's how eBay has changed and why your strategy should change too.

Classic eBay, or what I'll call eBay 1.0 was about creating an efficient market to liquidate goods and make money. Back in the late 1990's when the ratio of collectibles (i.e. beanie babies) to consumables (i.e. ink jet cartridges) was 80% to 20% of eBay auctions, this made sense. The collectibles industry lacked the ability to bring the Pez dispenser seller in contact with the Pez dispenser lover. Enter eBay and voila! Prices for hard to find items equalized with demand as sellers found buyers. And sellers made money.


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