AuctionBytes Blog
News and insight focusing on ecommerce and the online auction industry
by Ina Steiner, Editor of AuctionBytes.com
May 08, 2008
Why Is QXL Closing in the UK?
By: Ina Steiner
Thu May 8 2008 15:27:54
Someone wrote in with a question. Did eBay's relationship with Naspers Limited have anything to do with the closing of QXL in the UK? I'm guessing that the only people who would have an interest in the answer to this question are users of QXL UK, since the auction site's closing means less competition. Tradus gave no reason for closing the site, perhaps UK readers could fill us in on how QXL was doing and whether the closure was inevitable?
May 27, 2007: eBay enters into agreement with a subsidiary of Naspers Limited in Thailand (Sanook)
December 2007: UK press report Tradus in acquisition talks, Naspers named as one possible suitor
December 5, 2007: CFO of eBay Germany jumps ship to become Tradus Director and Group CFO.
March 7, 2008: Naspers subsidiary acquires Tradus
May 6, 2008: Tradus announces closure of QXL site in UK effective May 30, 2008.
Some sellers may be sweating bullets after getting an email from SquareTrade today. You have only 6 days remaining until May 12, to file disputes with SquareTrade related to feedback withdrawal, according to the email. SquareTrade is an online dispute-resolution service that let eBay buyers and sellers work together to resolve problems related to their transactions.
With changes to eBay feedback rolling out on May 19, eBay told sellers today through a post on its Announcement Board that it was doing away with its Mutual Feedback Withdrawal (MFW) policy (look for story in tomorrow's AuctionBytes Newsflash newsletter, there's lots of news in this announcement).
eBay is giving sellers until May 19 to file MFWs, but SquareTrade is closing the door to new dispute filings on May 12. Parties involved in the process will have until the end of May to mutually agree to feedback withdrawal, after that, it will be too late.
SquareTrade has already moved its business to providing warranties to consumers. President and CEO Steve Abernethy said the eBay dispute business was a "very small" percentage of SquareTrade's revenue. It is still evaluating whether it will continue to support its online dispute resolution business, he said.
Online Retailers View Multi-Channel Expansion as Key
By: Ina Steiner
Wed May 7 2008 13:28:02
ChannelAdvisor commissioned JupiterResearch to survey online retailers on issues driving multi-channel online retailing. They surveyed a subset (115) of Internet Retailer's IRNewsLink email newsletter subscribers in March 2008.
Seventy-five percent of online retailers surveyed cited multi-channel expansion as a key component in their marketing strategies. Ninety-eight percent report they market on at least two online channels. More than three-quarters dedicate explicit efforts to email and search marketing (including both organic search and paid listings).
Among those retailers who reported using multiple online channels:
75% enjoy increased sales.
80% realize increased customer acquisitions.
71% report significant growth in qualified customers.
73% operating in six or more online channels require additional support staff.
Over 60% cite the ability to target new demographics or enhance lifetime customer value.
55% of those surveyed outsource some marketing initiatives.
Among those retailers who reported outsourcing their multi-channel initiatives:
69% report increased sales while 65% report increased customer acquisition.
Nearly 60% experience higher returns on marketing spend.
70% report quicker adjustment to market changes and new initiatives.
For online retailers that have chosen not to expand into additional online channels, 71 percent said they prefer to focus their energy and resources on optimizing their existing online channels. The second greatest impediment to channel expansion is a lack of sufficient internal staffing or expertise, according to the report. The report goes on to talk about outsourcing.
Ina's take: Not surprisingly, retailers want to be on multiple channels in order to grow sales, and many already are multi-channel sellers. Holding them back from expanding further, according to the report, is a lack of resources (staffing, money and expertise) and desire to focus on optimizing existing channels.
From my own perspective, I believe the challenges are even greater for online sellers with fewer than 5 employees, such as small eBay sellers and mom-and-pop shops. I believe the popularity of eCrater among AuctionBytes readers is due to its ability to provide good SEO (search engine optimization) on Google. Small marketplaces and ecommerce facilitators need to think beyond technology and think like a marketer.
You can download the report, titled "Navigating a Multi-Channel E-Commerce Environment: Marketing and Sales Strategies for Online Retailers," by registering on ChannelAdvisor's website.
JupiterResearch Disclaimer: "This is a vendor-sponsored JupiterResearch report specifically commissioned by ChannelAdvisor. JupiterResearch stands by the integrity of its findings and the validity of the methodology employed in this research study. However, this vendor-sponsored report should not be confused with independent research produced by JupiterResearch's syndicated product line. This report is intended for use by the sponsoring vendor and may not be publicly disclosed, disseminated, used or relied on by others without JupiterResearch's consent."
AuctionBytes reported on a glitch last week in which some PayPal payment notification emails were missing the shipping address of the buyer. Today, eBay posted that the glitch has been resolved.
From the eBay Systems Announcement Board May 07, 2008, 06:31AM PST/PT: "The issues causing some PayPal payment notifications to not include buyers shipping address have been resolved."
New postal rates go into effect on May 12th in the US, and online sellers need to make sure they are prepared. Customers receive a 3 percent price reduction by purchasing Express Mail online or through corporate accounts, and Priority Mail will have an average 3.5 percent savings for customers who use electronic postage or meet other requirements.
Endicia said its software will seamlessly switch to the new price system, which includes discounts for online postage, on May 12th. (Likely true for Stamps.com, Pitney as well, check with your vendor.)
eBay said it would automatically update prices in its Shipping Calculator on May 9 around midnight Pacific Time. "As a result, listings with calculated shipping that are paid for via Checkout after Friday, May 9 will have the new price applied. This timing recognizes that items paid for after Friday are not likely to be shipped on or before Monday, given it can take a few days for payments to clear."
Amazon.com has not announced whether it would change its shipping reimbursement to marketplace sellers to adjust for the rate increase, and has not responded to an inquiry about its plans.
Window Book, a service that helps companies and merchants with mailing needs, is always on top of USPS changes. In its blog post from yesterday, they point out that the USPS no longer refers to postage "rates."
"The buzzword now is "prices," Lisa Bowes wrote, also pointing out that, "Since prices will now be changing on an annual basis, the USPS has given their website pricing page a permanent home."
Are you ready for the changes (and are online shoppers!)?
Signaling more change, eBay cancelled next year's user conference, scheduled for June 11 - 13 in Atlanta, Georgia. The event had been booked in 2004, but eBay cancelled the conference 2 years ago.
eBay Live has been held each June since 2002. The conference provides small and large sellers alike the opportunity to have face time with eBay and PayPal executives, network with colleagues and take classes, while buyers and die-hard eBay fans could enjoy eBay's hospitality.
In an announcement to users today, eBay executive Lorrie Norrington said eBay would be focusing its energy next year on smaller venues "to facilitate more face-to-face interactions with our customers and community."
After eBay Live 2008 is wrapped up in Chicago in June, the next conference will take place in Orlando in August 2010.
The cancellation of eBay Live 2009 came as eBay began shifting its focus on the needs of high-volume sellers. We learned through a source that eBay Live 2009 was booked 4 years ago at the Georgia World Congress Center to run June 11-13, and was cancelled in February 2006, a month after eBay held its first Ecommerce Forum invitation-only meeting of 200 of its top sellers.
The focus on large-volume sellers became even more evident last week when it was revealed that eBay has entered into a deal with online retailer Buy.com to place all of its new and in-season inventory on eBay in a first-of-its-kind partnership.
eBay acknowledgedon its corporate blog it has entered into a deal with Buy.com after the news was broken by industry blogger Randy Smythe on Friday. The retailer will move its new and in-season inventory onto its eBay Store in the coming weeks. eBay made an official statement about the partnership deal, which gives Buy.com special pricing.
eBay is aggressively using price as a lever to improve the value and selection on eBay.com. Consistent with our goals, we have entered into a partnership with Buy.com to bring their new-in-season merchandise onto eBay.com. We expect to learn a great deal from this partnership and we will build upon the results.
While eBay is not disclosing the terms of the deal, it may mirror eBay's recent change on its Italian marketplace where eBay Storeowners who pay a large monthly subscription fees receive near-free listings, but higher commissions, beginning in June.
At this time, high-volume sellers on eBay.com are not eligible to receive the same type of price breaks as Buy.com. According to eBay blogger Richard Brewer-Hay:
"I've been informed that we are not, at this time, extending the "deal" to top sellers and that any partnerships will be assessed on a one-off basis with hand picked partners. Personally, I think that top sellers that have put the sweat equity into helping make eBay what it is today - that have consistently provided excellent service for their customers - should be included for consideration when the time comes."
Those words must give very little comfort to members of high-volume seller organizations, who have lobbied eBay for similar price breaks, only to have eBay reach out to mega-seller Buy.com because of the huge amount of inventory they can offer. One thing is certain, this is not the only deal of this type being brokered, and eBay may be on track to fill as many of their categories with this type of seller as they can.
This will affect smaller sellers too, as everyone gets pushed down in the pecking order (and in search results.)
eBay has been transforming its marketplace in an effort to, in its words, improve the buyer experience. Sellers have been coping with new policies and fees, and some sellers have staged boycotts of eBay after radical changes were announced in January.
With the new CEO John Donahoe leading the charge, it's unlikely eBay will ever return to its roots.