I believe the answer is very simple. There will never be another meteoric single marketplace like eBay or Amazon, however I feel that there is an opportunity for several ecomerce sites to band together and create a mega site that could incorporate the best each site has to offer to bring buyers storming to this site. What Wal-Mart and Sears have discovered is that they don’t have to carry everything their customers make be looking for, but rather let other third party sellers provide these things while still shopping the Wal-Mart or Sears sites.

Sites such as Etsy.com, Bonanzle.com, Dealitlive.com, and Onlineauction.com each have something special and unique to offer buyers. Each brings their own set of buyers and sellers to the table. What if, sites like this worked together to create the aforementioned megasite as a joint venture? Could they work together utilizing their infastructures to build a site that could cater to a wide variety of users? I think so, if they are willing to put aside their differences and work together to create something that has never been done before.

Such a site could offer the creativity of Etsy, the community of fixed price sellers of Bonanzle, the thrill of live auctions on DealItLive and the online auction experience of Onlineauction. 

While I realize this may be a pipe dream, because heaven forbid several entities work together for the benefit of all rather than individual success, which by the way will never happen to the extent that it did with eBay or Amazon, it is my pipe and I will continue to light it every once in a while!

Share this article

More »

Powered by Bookmarkify™

 It has taken awhile to fully develop the extensive programming the site has now, not to mention the fact that the site’s growth has mainly been derived from organic growth; word-of-mouth. As you can see from the chart above it has all paid off. The site has really come alive in 2009 and shows no sign of slowing down.
 
At OnlineAuction.com we are aware of the fact that many businesses are struggling right now, whether they are an online store or a brick and mortar store. This is why we feel it is important to let everyone know that sales are UP at OnlineAuction.com.
 
The Members of OnlineAuction.com are welcomed with open arms by support teams that are willing to assist Members in any way they can {this is available through email (support@onlineauction.com) as well as an 800 number (800-900-2828) that is answered by our knowledgeable staff.} The Members here at OnlineAuction.com are also here to assist other Members. They do this not only because they are terrific people, but because they know that as one grows we all grow. Together we are strong!

Share this article

More »

Powered by Bookmarkify™

As individuals and small businesses found the internet as a sales tool, so to did the Big Box B/M businesses. The Big Box sellers realized that the internet was the new discount isle and they moved to get their piece of the pie. In the past 3-4 years there has been an explosion in the number of ecommerce sites catering to these large volume sellers, providing them the opportunity to market across multiple venues with the ease and efficency required to be profitable.

Diluting The MarketPlace

This evolution has diluted the marketplace as it pertains to the “Little Guy”. No longer can they compete on price in many of the product lines that consumers are seeking. This is evidenced by Amazon buying products to sell on their site in direct competition to their 3P (3rd party) sellers, and eBay giving preferential exposure to large volume sellers. There are other examples from other sites, but you get the picture.

As the giants in ecommerce focus in on volume vs uniqueness (regardless of what eBay says) niche marketing is becoming the focus of a lot of internet marketers. These sellers who sell unique or one of items are looking for ways to once again be visible on a site and not relegated to the sub basement. This I believe is the largest reason for the slumping numbers on eBay and why other niche sites have seen significant growth.

In my next chapter I will look deeper into the niche marketplaces and how they benefit their sellers!

Share this article

More »

Powered by Bookmarkify™

With the economy suffering these days, those people that once thought they had it all are finding out just how fast it all can vanish. Brick and mortar resale shops and auction houses across the United States are reporting significant growth in business for the first half of 2009. People that once bought jewelery, art, and other collectibles are now selling these to generate liquid cash. Why are online auctions not growing at the same rate as the B/M businesses?

On Purpose

While eBay was once known as the leader in online auctions, that image has faltered mainly because of their own efforts. eBay’s data shows that buyers do not want to wait 7 days for an auction to end, that buyers want to see items, and buy them immediately. This according to previous statements by the online marketplace. So, eBay has intentionally diminished the exposure auction items receive in their default search engine settings know as Best Match which often favors fixed price listings (not always).

Onlineauction.com believes in the auction process and with a domain name especially favorable in search engines users still suffer from diminished exposure by the big search engines such as Google and Bing. Part of this is due to limited funding needed to buy key words on the search engines, some of it is due to lack of quality items in large numbers. If sites like Onlineauction can attract the quality auction sellers and buyers I think they may have a chance.

Fixed Price Niche Sites

Several sites like Bonanzle.com, Netspray.com Etsy.com, and others have shown good growth in the last several months, but these are not auction sites. These sites offer the fixed price or Best Offer sales model. Still a very good selection is available, and usually at very good prices. As I stated earlier these sites have seen good growth, yet still are lagging behind B/M resale shops.

Why Is This Happening?

One of the big issues online sites face is fear. eBay has suffers from a a few bad apples, fraudsters that only want to rip buyers off. eBay has worked very hard to combat fraud, but being the original flag bearer of online auctions makes it a huge target for both fraud and the news media. We all know that bad news sells so these are the stories we see on the news networks. This unfairly represents eBay’s sales as being riddled with bad transactions. I believe eBay still sees better than 99% of it’s sales ending in satisfied buyers and sellers. This is a phenomial number and I challenge any B/M store to see this level of satisfaction.

I also believe that a return to a more historic way of shopping is in play here. I feel that buyers are moving back to the days when they actually hold and feel the items they want to purchase. Antique malls are seeing a resurgance in sellers returning, consignment stores, auction galleries and pawn shops also are seeing this regrowth.

Bottom line, whether by design or by association, concerns over fraud must and are being addressed, and I feel that as the economy starts to rebound and reputations are rebuilt, we will again see growth in online auctions.

Share this article

More »

Powered by Bookmarkify™

eBay has long had a feature in place for fixed price listings (Buy It Now or BIN) that allow sellers to require immediate payment as an option. However, auction type sellers do not currently have this option. I say currently because there is speculation that in the near future eBay will require immediate payment for all transactions on the site thus eliminating the non paying buyer problem. This will mean that buyers will have to provide their billing information in the form of PayPal or credit card information to be used when they make a purchase. This will be a much welcomed feature to some sellers.

I have seen what seems to be an increase in the number of reports of buyers not completing their transactions. Personally I have just this past week been a victim of a non paying buyer. The biggest issue here is the time involved in processing a refund request for the eBay FVF fees associated with the transaction.

Bonanzle.com does not require immediate payment for transactions however according to my source, the process for requesting a refund for the transaction is much simpler than on eBay.

Onlineauction.com also does not require immediate payment however since there are no listing or final value fees, the only loss to the seller is their time.

While I have had just a handful of problems with non paying buyers, it seems that this issue may be on the increase on some marketplaces. Until marketing venues implement immediate payment requirements for all transactions, it still will be an issue we as ecommerce marketers need to deal with.

Share this article

More »

Powered by Bookmarkify™

As an internet marketer, your customers create a perception of you by many means. The way you offer your items for sale, whether it’s using an online venue such as Amazon, Bonanzle, eBay, Etsy, Onlineauction, etc. and or your own website is one way. What these offerings actually say is another. How you handle communications before during and after the transaction is still another. You get the idea. But, does it matter what your customers percieve, or is it your intent that matters?

If you choose perception, you are exactly right!

It does not matter what your intent was!

Perception is EVERYTHING! If you have to explain what you meant in your product offering from the item itself to the terms and conditions of the sale, you have FAILED your customers. This failure will at some point cause you significant problems. This is not a guess but pure fact.

Where you sell also creates a perception. Whether you use an online marketplace or your own website, it creates a perception for your potential buyers. This is what concerns me about the recent remarks by John Donahoe regarding eBay wanting to create a Costco type buyers experience. Do you as an online marketer want to be perceived as a Costco type product offering? Does your product or service fit the ”Bargain Price” model that wholesale clubs promote?

How can we as internet marketers hope or expect our potential buyers to pay fair prices for products or services if the venue itself wants to be “Perceived” as a discount marketplace?

Now before you get all up in arms, there is nothing wrong with wholesale clubs! I have been known to shop them from time to time, but the products I seek in these venues are very specific. I shop on eBay when I want the product at the best possible price. However when quality matters I shop elsewhere, and that is what I see many other buyers doing as well.

My point in this blog is simple. Just ask David Letterman what perception vs intent can do!

Share this article

More »

Powered by Bookmarkify™

About a year ago, Chris Fain CEO of Onlineauction.com suggested that in the future (he intimated several years in the future) that ecommerce venues might look at the Costco business model of memberships. For that comment he was chastized and ridiculed.

Last week John Donahoe spoke at the Reuters Global Retail Summit and said that shopping on eBay was akin to bargain hunting at Costco. According to an article on Auctionbytes.com John Donahoe said:

Does going into a cement warehouse pushing a bin, does that hold up in a world where retailing is becoming more and more sophisticated? I would say Costco’s growth numbers indicate that it does,” Donahoe said. “Because people want a deal. And actually you can build brand loyalty … around having a deal.

I believe that membership sites do work. There are thousands of websites using this model very effectively. The question is will shoppers pay a membership fee to be able to shop at discount prices? As long as the prices are lower than generally available elsewhere I think they will.

Will eBay succeed in becoming the leader in the secondary marketplace? I think they could however the site will be significantly different than it is has in the past. I believe the site will become a site where large volume sellers rule and the SMB’s will move on to niche sites that focus on the specific product lines that SMB’s are selling.

Share this article

More »

Powered by Bookmarkify™

In business, it is often a rarity when competitors get together and share their common problems and even more rare for them to share strategies on how to increase success, but at this event the networking and took center stage. Ecommerce merchants openly discussing ways to work more efficently and profitably.

Great Line-Up

With a list of presenters such as Tood Lutwack eBay’s Senior Director of Seller Development, Scott Wingo CEO of Channeladvisor, Jay Berkowitz author of Ten Golden Rules of Internet Marketing, Brent Leary, John “ColderIce” Lawson, Michael Ober Senior Director of Yahoo Small Business, Randy Smythe from Buy.com and many more (see the entire list of speakers here) conference goers had the opportunity for face to face talks with those that can make a difference in the industry.

Much of the 2 day event was centered on social media networking and how it can impact business. Other topics included shipping solutions, marketing venues that can boost exposure and a great open forum Q & A with the experts for the final session.

While there certainly was an intense focus on business, this event had a huge additional benefit and that was the money raised for the Amercian Cancer Society by attendees participating in a Casino night event with all proceeds going to the charity.

While there are hundreds of conferences for internet marketers to choose from, the PeSA/ECMTA event is one that should be high on your list of choices.

Special thanks to Netspray.com for sponsoring ebay & Beyond: Basics To Business at this event, and Warrantyfeed.com, Sharsboutique and Onlineauction.com for sponsoring segments of our live broadcasts.

Share this article

More »

Powered by Bookmarkify™