The Future of eBay

Posted by: Rob Hof on May 04, 2006

Most of the stories on eBay’s analyst day today focused on the the company’s vow to grow faster than e-commerce at large—and how that’s a big challenge given its size and recent slowdown internationally, once its growth engine. But I found a number of other points eBay made more interesting:

* eBay is now acknowledging that it can no longer focus mainly on the "tails" of the demand curve--that is, used products, those past their prime, and those brand-new but in short supply. For the first time I can remember, executives said the middle of the demand curve, meaning mainstream new, in-season retail goods, are the fastest-growing segment of e-commerce. The challenge there, of course, is that it has never been eBay's specialty or, even more important, its brand focus. So it's now scrambling with its Shopping.com acquisition last year and, most recently, its eBay Express site, to join that party. Jury's still out.

* eBay's "IT" ad campaign, which I wasn't impressed with, apparently is proving me wrong. eBay's stats indicate that some 22% of buyers, for instance, are likely to consider buying a new kind of item on eBay as a result of the ads, which show the wide variety of merchandise available on eBay. "It's a winner and we'll be sticking with it for a long time," says Bill Cobb, president of eBay North America.

* eBay Motors is going local, starting in four test markets soon. It's already a $14 billion business, or about a third of eBay's gross merchandise volume, so that could be big.

* eBay visitors make some 345 million searches a day on the site--rivaling Google, I believe. All for products, execs noted in a clear jab at Google Base, the search giant's content and product listing service.

* PayPal sees a big business beyond Internet payments. We wrote about PayPal's ambitions last year, but with the recent PayPal Mobile announcement and its debit and credit cards for merchants, there's little doubt it aims to bust out of the Internet.

* Skype is aiming way beyond Internet voice, or even pay-per-call, the markets eBay initially focused on as the reasons for spending $2.6 billion-plus on the little European startup. Skype envisions selling content, such as ringtones and avatars, and creating a PayPal-powered Skype Wallet that would let you, say, order a pizza via Skype from a local joint and then pay for it, all within Skype. Beyond even e-commerce and telephony, execs suggested there are limitless opportunities for what's essentially the largest person-to-person network on the Net--which could mean the largest network for sharing any kind of information, or the world's largest supercomputer for that matter.

* Most interesting of all, eBay CEO Meg Whitman suggested that eBay's reputation system, PayPal's wallet, and Skype's ability to let people have a constant online presence each could be decoupled from their respective services and offered as components of entirely new kinds of services. Meg didn't specifically mentions offering them up to software developers, but said they could become the building blocks for a more customized Web.

eBay's not a company that customarily conjurs up such grand visions just for the heck of it. No guarantee that eBay can do them all, of course. But it's pretty clear that Meg & Co. have a lot more in mind than most people realize.

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Reader Comments

Brian

May 5, 2006 08:15 AM

I agree Rob, certainly some grand ambitions. I think the emergence of new competitive pressures is really keeping them on task, which is good for everyone.

mrrm

May 9, 2006 06:31 PM

First comment I see about Skype purchase that really gets into what Skype is all about: a P2P
technology, the biggest supercomputer in the world.
Synchronous and asynchronous, with Richness and Reach, all simultaneously. Next moves will probably be to download the application into handsets.
As Skype is also ubiquitous towards operating
systems, you can almost personalize your handset
GUI. Skype only needs to open its source-code
to for a smooth marriage with open source handset operating systems, namely the Symbian suites in order for the internet to become completely free from the Pc/laptop dictatorship...
The www program is for free.
E-mails are for free.
All Calls should became free anytime soon.

thefutureiselsewhere

September 2, 2008 12:21 PM

Actually the long term future of ebay is looking bleak. They lower listing fees only to hire final fees and hope the sellers dont notice. Sellers cannot be protected against negatives from buyers and cannot put negs themselves. Ebay is trying to move away from its roots and become a walmart of the net. It wont work as amazon.com will soon crush that dream (all hail the amazon queen).
Meanwhile for sellers who have rare and collectible items and want to return to a true auction style format with a no or little fuss there is online auction.com. No listing fees no final value fees, free estore (and they are showing up on google searches) with only a $8 monthly membership fee--that's it!

www.onlineauction.com

and also try iOffer.com

o.c.d.collectibles

March 16, 2009 12:27 AM

Well. The Jury is now IN!

"For the first time I can remember, executives said the middle of the demand curve, meaning mainstream new, in-season retail goods, are the fastest-growing segment of e-commerce. The challenge there, of course, is that it has never been eBay's specialty or, even more important, its brand focus."

No, it was not their specialty, and they should have never made these kinds of changes. The whole plan, since you wrote this article FAILED. As in "F minus".

Ebay Board of Directors need to be thrown out, with the CEO's on their backsides. The stockholders need to do this!!

P A Pointon

October 14, 2009 11:58 PM

Ebay is behind the curve as it under values the 'unique' items.

They were the only thing differenciating ebay from other sites.

Ebay turning to an overstock outlet and an ad illboard , is ruining the uniqueness that gave ebay it's seperate identity.

Currently any mark down store is as good as ebay.

Only difference is the unique and vintage items.


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BusinessWeek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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