Live from Boston: eBay Bids on B-to-B and New Goods
Auction site eBay.com is continuing its shift away from being primarily a haven for collectors to a source of new products for consumers.
While some may still think of the site as a place to buy used goods, over 50% of the products up for bid are now new, said Don Coy, business development manager of eBay, during a session at the annual Catalog Conference in Boston.
eBay has almost 30 million members, and new users are joining at a rate of 40,000 per day, said Coy. For the first quarter of 2001, revenues of $1.9 billion are expected.
The site has expanded the way consumers can purchase goods. Sellers who want to give buyers the chance to purchase before an auction starts can offer the “Buy It Now” option, where buyers pay a set price for the item pre-bidding. And eBay’s sister site, Half.com, offers goods at a fixed price.
While the site does have many business-to-business customers, including government agencies, who sell large quantities of items, eBay still collects 99% of its payments by credit cards. Eventually, the site will adapt a more B-to-B model and begin invoicing accounts.
Tony Gasparich, assistant vice president, Internet, West Marine, noted that price point does make an difference in deciding what items it will put up for auction. Higher ticket items like electronics do well, while less expensive items don’t.
Gasparich added that while the company had started a loyalty program to track store customers, he had no data available tracking the conversion of auction buyers to regular online or offline store customers.
