AuctionBytes Blog
News and insight focusing on ecommerce and the online auction industry
by Ina Steiner, Editor of AuctionBytes.com
November 05, 2009
On Marketplaces, Whose Customer Is It, Anyway?
By: Ina Steiner
Thu Nov 5 2009 21:28:38
When a shopper walks into a store at the mall and buys an item, the storeowner frequently asks the buyer to sign up for their mailing list. The landlord has no restrictions on how the storeowner markets to their customers. But do marketplaces like eBay and Amazon.com allow their merchants to do the same?
We asked Amazon.com, eBay, Bonanzle and Etsy about the restrictions they place on sellers when it comes to marketing to buyers. Amazon.com processes transactions on behalf of their merchants, while eBay is "only a venue" - does that make a difference in how they approach the issue?
We now ask you, the sellers, what you think. If you sell an item on eBay, can you then market to that buyer? What about on Amazon.com, Etsy or Bonanzle?
Please visit the AuctionBytes survey on the SurveyMonkey website and answer four simple questions to give us a snapshot of what you think. We'll then compare the answers from sellers and from marketplaces and publish the results in the next issue of AuctionBytes-Update, and see if there's a general agreement about, whose customer is it, anyway?
AuctionBytes is running a 3-part interview feature with SEO guru Tom Critchlow of Distilled this week (link). I reached out to Tom because I'm hearing a lot of confusion from online sellers about sending feeds to Google Base (now called Google Merchant Center), and specific questions about eBay listings exposure in Google search. Since Tom helps many clients with SEO (search engine optimization), he sees firsthand what works and doesn't work.
After reading today's installment, eBay seller Gary Overton posted about it on his Top Rated Seller Tips blog, specifically about Google's editorial guidelines, which was discussed in my interview with Tom - on Google's Editorial Guide page, it warns merchants (among other things):
Standard Spelling and Grammar. Avoid any repeated and unnecessary use of punctuation, capitalization or symbols. Don't use exclamation points in your item titles. The use of symbols, numbers, and letters should adhere to the true meaning of the symbol.
Avoid gimmicky repetition. You may not post excessive, repetitive, or irrelevant keywords.
Gary noted that when he went in search of this information himself, he discovered a page where Google states that one of the common reasons for items to be disapproved is "You've included promotional text (e.g., free shipping!) in your items' titles or descriptions."
Many marketplace sellers use All Caps and exclamation points in their listing titles to make their listings stand out in search results. Tom says that yes, these things can get you in trouble on Google (see the last Q&A on this page). Gary writes in his post, "So, on one hand eBay urges us to use free shipping. On the other hand if we do and tell anyone our items will not likely show on Google."
These issues apply to online sellers no matter where they are selling. So if you hope to get good exposure for your product listings, read Google's editorial guidelines - and keep reading Tom's advice in our 3-part series - there's more good stuff on the way.
The U.S. postal service announced that first class mail will remain unchanged, but Priority Mail rates are changing on January 4, 2010. The service is also introducing a new Priority Mail padded envelope - but for Commercial Plus shippers only.
In addition to an overall price increase of 3.3 percent, on average, for Priority Mail, there will be new prices for Express Mail, Global Express Guaranteed, Express Mail International, Priority Mail International, Parcel Select and Parcel Return Service.
The domestic Priority Mail Flat Rate Envelope retail price from $4.95 to $4.90. The Priority Mail Small Flat Rate Box will remain at $4.95.
The 2010 rates are online here, let us know how these changes affect you.
PayPal Mania Leads to Talk of eBay Corporate Name Change
By: Ina Steiner
Tue Nov 3 2009 22:28:00
CNBC reporters were among those swept up in the PayPal Mania taking place in San Francisco at the first dedicated PayPal developers conference. Even attending virtually, I could sense that something was different about this DevCon despite the lack of Cirque du Soleil acrobatics or "Cheers" impersonators of previous eBay/PayPal shared conferences. It was as if the smell of money was in the air, even before the Venture Capitalists show up for their panel tomorrow.
In an interview with eBay CEO John Donahoe from the floor of the convention center, a CNBC reporter asked, "When does eBay decide to turn its back on marketplaces and just become PayPal Inc.?"
John Donahoe said he could care less about the name of the company (ouch). The DevCon was all about opening up the PayPal platform, which he compared to Apple's opening of the iPhone to third-party applications. In his keynote address this morning, Mr. Donahoe said he had given PayPal an unlimited budget to hire the people to make it happen.
Mobile payments was top of mind, and Mr. Donahoe said the eBay iPhone app will do $500 million of volume this year. PayPal demonstrated a mobile payment toolkit to embed payments directly into mobile applications - starting with iPhone. During a demo at the conference, one developer showed off ShopSavvy, which allows users to scan a product barcodes at a retail store and find the best prices available online and at local retail stores. "Previously, if a user found the best price at an online retailer, they would have to go to that retailer's Web site to complete the purchase. Now, PayPal users can purchase products directly from the ShopSavvy application."
PayPal also announced that starting in Q2 2010, it will offer pricing for developers building applications in markets that are traditionally served by cash and checks, such as rent, consulting businesses or payroll.
PayPal gave away free netbook computers to all attendees and had recruiters on the show floor - it's hiring for all areas: software engineering, architecture, strategy, program management, and it's expanding at all of its U.S. offices, including those in San Jose, Maryland, Phoenix, Austin and Omaha.
The excitement of today's PayPal Developers Conference reminds me of the early conferences eBay hosted for its community of users. RIP eBay Live, long live PayPal DevCon.
SALT LAKE CITY, Nov. 3 /PRNewswire-FirstCall/ -- Overstock.com, Inc. (Nasdaq: OSTK) today reported financial results for the quarter ended September 30, 2009.
Key Q3 2009 metrics (comparison to Q3 2008):
Revenue: $195.1M vs. $186.9M (4% increase)
Gross margin: 19.3% vs. 17.2% (210 basis point improvement);
Gross profit: $37.7M vs. $32.1M (17% increase);
Sales and marketing expense: $12.2M vs. $11.9M (2% increase);
Contribution (non-GAAP measure): $25.5M vs. $20.2M (26% increase);
G&A/Technology expense: $25.6M vs. $24.4M (5% increase);
Net loss: $(787,000) vs. $(1.6)M (50% decrease in net loss);
EPS: $(0.03)/share vs. $(0.07)/share ($0.04/share improvement); and
We saw our financial results improve versus Q3 2008. Revenue growth turned positive and Contribution dollars are up 26% over last year due to higher gross profit and a more efficient marketing spend. Our net loss has narrowed to 0.4% of revenue. For the first nine months of 2009, our net loss is $2.5 million, an $11.2 million improvement over the same period last year.
As we move into our peak selling season, our inventory is good and we are well positioned to deliver great deals to the cost conscious consumer.
As previously announced, we have received a notice from the Securities and Exchange Commission stating that the SEC is conducting an investigation concerning our previously-announced financial restatements of 2006 and 2008 and other matters. The subpoena accompanying the notice covers documents related to the restatements and also to our billings to our partners in the fourth quarter of 2008 and related collections, and our accounting for and implementation of software relating to our accounting for customer refunds and credits, including offsets to partners, and related matters. We have been and will continue to cooperate fully with the investigation. In addition, we have received a comment letter from the SEC'sDivision of Corporation Finance regarding our 2008 Form 10-K/A and June 30, 2009 Form 10-Q. We have responded to the comment letter, but have not yet resolved all of the staff's comments.
I look forward to discussing your business with you on our conference call, and until then, I remain,
PayPal's Developers Conference kicks off on Tuesday, and as I report in tomorrow's Newsflash, the company is opening up its platform to third-party developers to encourage innovation. I asked PayPal's Naveed Anwar what this means, exactly, since it appears to be different from the way eBay opened up its platform (eBay seller sees third-party apps when logged into eBay's Selling Manager software).
Naveed said that previously, everything had to be done on PayPal.com, now it can be an inline experience on the developer's website or application. He used the example of PlaySpan's Spare Change application that calls itself a "micro-payments system for social networks." Users can fund their Spare Change account with their credit card, PayPal, bank account or mobile phone. Naveed said PayPal users can add funds to their SpareChange account directly within the application experience, without having to go to the PayPal website.
There has been a lot of talk about virtual goods in gaming and social media applications. Zynga is a company whose name I keep hearing - it operates the Farmville and Mafia Wars games on Facebook. The games are free, but users can also purchase digital goods - Farmville sells more virtual tractors than John Deere sells real ones.
There is a lot of excitement around mobile and social apps, whether it's gaming, socializing, or ecommerce, and PayPal wants to be the payments engine for all of those experiences. I expect some interesting announcements coming out of the PayPal DevCon this week.
The Wall Street Journal is reporting that eBay is kicking off a marketing campaign on Monday featuring the tagline "Come to think of it, eBay" and including print, online and TV ads.
eBay Marketplace Operations president Lorrie Norrington told the Journal, "We want to shift the buyer perception of what eBay is today."
Here's a link to information about last year's campaign, which seemed to consist mostly of coupons and a tie-in with Microsoft Cashback (seemed to be more of a pay-customers-to-shop approach).
In 2002, the tagline was: "Do it eBay" (To the sound of Frank Sinatra's "I Did It My Way"). In 2005, the tagline was, "Whatever it is, you can get it on eBay." And in 2007, it was, "Shop Victoriously."
"Come to think of it, eBay" sounds like an afterthought, it will be interesting to see the ads and integrated approach.
Update 10/30/09: The article has since been updated, I've just noticed. The Journal goes on to say that the ads feature high-end designer items, new products as well as overstock and out-of-season goods: "last year's model mp3 player still plays this year's music."
In addition: an eBay "pop up" store will also travel across the country in the coming weeks to show customers a "vast selection of new, in-the-box merchandise that eBay sellers are offering."
In launching a big campaign, many companies these days take a viral approach, alerting bloggers and social networkers to generate excitement. eBay told me this afternoon they have not issued a formal announcement on the campaign. The choice of pre-briefing the Wall Street Journal is an interesting choice, given its articles are behind a firewall, for paid subscribers only.
Clearly the message is for Wall Street: "We see a clear stabilization in the business as well as in the U.S. economy," said Ms. Norrington. "We feel confident enough that it's time to go out and re-engage consumers with the eBay brand."
Update 11/3/09: You can see the TV, web, print and banner ads here.
When a shopper walks into a store at the mall and buys an item, the storeowner frequently asks the buyer to sign up for their mailing list. The landlord has no restrictions on how the storeowner markets to their customers. But do marketplaces like eBay and Amazon.com allow their merchants to do the same?
AuctionBytes is running a 3-part interview feature with SEO guru Tom Critchlow of 
The U.S. postal service announced that first class mail will remain unchanged, but Priority Mail rates are changing on January 4, 2010. The service is also introducing a new Priority Mail padded envelope - but for Commercial Plus shippers only.
CNBC reporters were among those swept up in the PayPal Mania taking place in San Francisco at the first dedicated PayPal developers conference. Even attending virtually, I could sense that something was different about this DevCon despite the lack of Cirque du Soleil acrobatics or "Cheers" impersonators of previous eBay/PayPal shared conferences. It was as if the smell of money was in the air, even before the Venture Capitalists show up for their panel tomorrow. 
PayPal's Developers Conference kicks off on Tuesday, and as I report in tomorrow's Newsflash, the company is opening up its platform to third-party developers to encourage innovation. I asked PayPal's Naveed Anwar what this means, exactly, since it appears to be different from the way eBay opened up its platform (eBay seller sees third-party apps when logged into eBay's Selling Manager software).
The Wall Street Journal 