ebay business strategy

eBay Explained Singapore, Malaysia, Philippines November 2006 eBay The world’s online marketplace eBay Inc. confidential 2 eBay’s Vision Provide a global online trading platform where practically anything… trade practically anyone can enabling economic opportunity around the world eBay Inc. confidential 3 Global Community eBay site or majority investment Minority investment Americas USA Canada Argentina* Brazil* Chile* Colombia* Ecuador* Mexico* Peru* Uruguay* Venezuela* *MercadoLibre sites Asia/Pacific South Korea Australia New Zealand Taiwan China Singapore Hong Kong India Philippines Malaysia Users from more than 150 markets eBay Inc. confidential 4 Europe Austria France Ireland Netherlands Switzerland UK Belgium Germany Italy Spain Sweden Poland Registered users 212 Million Q3-06 26% Y/Y 5 most populous country in the world. th Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1998 5 1999 eBay Inc. confidential 2000 2001 2002 2003 2004 2005 2006 Listings 89 million items at any given time Q3-06 27% Y/Y 6 million new items per day More than 50,000 categories 584 Million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1998 6 1999 eBay Inc. confidential 2000 2001 2002 2003 2004 2005 2006 Gross merchandise volume $12.6 Billion Q3-06 17% Y/Y $50+ billion annualized run rate $1,590 per second Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1998 7 1999 eBay Inc. confidential 2000 2001 2002 2003 2004 2005 2006 The eBay Community • • • • • Buyers and sellers following their passions Trust through personal communication and feedback system Customer loyalty and involvement with eBay Millions of entrepreneurs growing the marketplace in new ways 1.3 million people around the world making a living full- or part-time on eBay eBay Inc. confidential 9 Introducing Griff Agenda • Intro • Starting a Business on eBay: First steps • Listing & eBay Stores • Product Sourcing • Break • Marketing and Managing your Listings • After the Sale •Q&A eBay Inc. confidential 11 Starting a Business on eBay Agenda • Setting Goals • Structure Your Business • Basic Business Tenets • Planning • Basics of Business Strategy eBay Inc. confidential 13 2-2 Setting Goals Selling on eBay… • • • A hobby or pastime Create better listings Build relationships An extension of your existing business eBay as additional sales channel Reach a broader market An opportunity to start a new business Lower barriers of entry Expand existing business on eBay Join the ranks of the self-employed eBay Inc. confidential 14 2-3 Basic Business Tenets • A business on eBay is like any business Success breeds competition Observe and out-perform your competitors Businesses cost money to operate Manage your inventory Remain alert, flexible, and adaptive • It’s about profit and loss Not every sale results in a profit Business entails risk Know the right time to take a loss eBay Inc. confidential 15 2-5 Planning Your Business • The basics of a business plan Mission Statement Product line Projected revenues Marketing strategy eBay Inc. confidential 16 2-6 Business Strategy Agenda • • • • Start Smart and Stay Competitive Pricing Options Streamline for Success Use PayPal to Support Your Business eBay Inc. confidential 18 2-23 Business Strategy—Start Smart • • • • • Create a “business-only” email address Open a “business-only” bank account Apply for a “business-only” credit card Upgrade computer hardware/software/Internet connection Register any & all copyrights, trademarks, and patents eBay Inc. confidential 19 2-24 Business Strategy—Your Competitors • Observe your competitors Scour their listings Determine their best listing practices Adopt those that work Avoid those that don’t • Outsmart the competition Out-market Out-perform Out-sell eBay Inc. confidential 20 2-26 Business Strategy—Streamline • Selling on eBay can be a full-time job Plan ahead Arrange and schedule daily tasks • Gain efficiency Manage your time Designate an “eBay workspace” • Lower your costs Purchase in bulk Locate best deals for supplies, product • Get help! Delegate Enlist family members Hire help eBay Inc. confidential 21 2-27 Business Strategy: Organized, Not Overwhelmed • A simple “Task Schedule” example Morning Take photos Do research/create listings Check listing progress Afternoon Pack items Ship items Check/order inventory Check emails/answer questions Update records eBay Inc. confidential 22 2-28 Create Listings the Professional Way Agenda • Before You Start • Research, Tools, and Reports • • • • 24 Creating Your Listing Pricing Strategy Moving Merchandise Listing Internationally eBay Inc. confidential 3-2 Before You Start… • Research • Select categories • Compose titles • Write descriptions • Take and edit photographs • Obtain packing and shipping supplies eBay Inc. confidential 25 3-3 What’s Hot – eBay US eBay Inc. confidential 26 3-6 eBay US—Merchandising Calendar Promotions for the homepage of eBay.com http://pages.ebay.com/sellercentral/whatshot.html eBay Inc. confidential 27 3-7 eBay US - eBay Marketplace Research http://pages.ebay.com/marketplace_research/ eBay Inc. confidential 28 3-15 It Starts with Your Listing • Marketing is just: A title composed of keywords An attractive, well-written description At least one good picture (including Gallery) Clear, concise terms of sale A friendly & professional tone • Your titles and listings are crucial Titles—use the 55 character spaces wisely Create easy-to-browse listings Add listing upgrades to draw attention eBay Inc. confidential 29 3-17 Enhancements Increase Bid Velocity • Ways to merchandise your listing: Gallery Second Category Highlight Home Page Featured Gift Services Bold Featured Plus! Gallery Featured • • Why use them: Listing upgrades increase number of bids and final prices When to use them: If “competitive” listings use an option, dilutes usefulness Experiment Watch for regular specials on listing upgrades • Listing Upgrade bundles are often available for a discount. See eBay Fees page for more details. eBay Inc. confidential 30 3-20 Pricing Strategy • • • All buyers hope for a bargain High starting prices (and reserves) may discourage bidders Use a low starting price Encourages bidding Bidders experience “ownership” Bidders tend to re-bid when outbid Bidding wars—good for the high bidder, best for the seller! eBay Inc. confidential 31 3-23 Choosing a Pricing Strategy • Use Reserve to protect item if required Use reasonable reserve amounts • Some buyers want immediate gratification Want (or need) the item NOW Are willing to pay a premium Set fixed (Buy It Now) price as your rock bottom price • Fixed Price for commodity or multiple items • Pricing should match your comfort level Experiment with different prices—see what works eBay Inc. confidential 32 3-24 Best Offer in Your Listing (eBay.com) eBay Inc. confidential 33 3-27 Moving Merchandise • Choose different ways to list your items List an item Relist the Item Move it to your eBay Store • If you have multiple of the same Limit listings to a few Use multiple quantity option List one, offer another as a Second Chance Offer • Use separate, appropriate categories Increased exposure Use cross-merchandising Point to your eBay Store eBay Inc. confidential 34 3-29 How to List Internationally eBay Inc. confidential 35 3-31 eBay Stores Agenda • What Is an eBay Store? • Customizing Your Store • Finding Your Merchandise on and off eBay eBay Inc. confidential 37 3-45 What Is an eBay Store? • One-stop location for all your eBay listings on eBay.com • Unique, branded destination with… Your logo and URL Custom categories “Your Store Only” search engine • Ideal for listing inventory • Provides advanced marketing, merchandising, and business reporting • Least expensive path to an ecommerce presence eBay Inc. confidential 38 3-46 An eBay Store: All That . . . and More! Logo Store search Categories Merchandise eBay Inc. confidential 39 3-49 Which Items are Best Suited for eBay Stores? • Store items complement your non-Store listings Batteries for toys Film for cameras Golf balls and bags for golf clubs • Items that didn’t sell in auction-format listings Lower the price, offer specials • Merchandise similar to your other listings Indicate in your description; “Visit my eBay Store …” eBay Inc. confidential 40 3-55 Finding Your Store Off eBay • Store pages are optimized for search engines Receive Store Referral Credit when you promote your Store off eBay On the Web In emails • eBay Inc. confidential 41 3-58 Finding Merchandise to Sell Agenda • • • Decide What to Sell Source Merchandise Know eBay Policies eBay Inc. confidential 43 2-8 Deciding What to Sell—Who Are You? • Established business off eBay Current product line Select and “port” product • Established business on eBay Refine and expand product line Expand into new product lines • New business on eBay Your passion, interest, hobbies Your business goals • Considerations for all General line or specialize? Low-volume vs. high-volume products? Existing source or none? eBay Inc. confidential 44 2-9 Researching on eBay eBay Inc. confidential 45 2-11 Marketplace Research eBay Inc. confidential 46 2-13 What’s Hot (eBay US) eBay Inc. confidential 47 2-14 eBay US - Want It Now eBay Inc. confidential 48 2-15 Finding Merchandise to Sell • Resell used goods Yard sales, flea markets Thrift stores Estate sales • Find local sources for demand products Regional crafts, art, gourmet food Hard-to-find international products Selling agent for a wholesale or retail business Factory or factory-outlet nearby eBay Inc. confidential 49 2-16 Other Products Sources • “Distressed” inventory Off-market clothing and accessories Out-of-season, seasonal merchandise Bankruptcy sales Close-outs • Buy direct Act as “reseller” for a manufacturer Buy wholesale merchandise • Sources on eBay US Wholesale category eBay Inc. confidential 50 2-17 Prohibited and Restricted Items • Examples of prohibited items: Firearms Postage meters (scales are OK) • Restricted items Historical tombstones—no New grave markers—yes Search Help for “restricted items” • Potentially infringing items Academic software Signature of another person • VeRO (Verified Rights Owner) Listings violating copyrights, trademarks, use of images and text Removes infringing items eBay Inc. confidential 51 2-19 Prohibited Listing Practices • Keyword spamming: Nonrelated keywords in your title or description External links: Links on item page to sites that solicit trades, sales, etc. Choice listings: Providing a choice of different items within one listing Payment surcharges: Additional fees for certain forms of payment • • • Help > Rules and Policies > Rules for Sellers eBay Inc. confidential 52 2-20 Market Your Business on eBay Agenda • Attracting Attention • Customer Service • You’re a Business • Tried and True Marketing Techniques eBay Inc. confidential 54 4-2 Marketing—It’s All About Attracting Attention • • • • • Imagine eBay as a huge mall With over 200 million customers You are one store (out of thousands) in the mall How will you get customers to look at your merchandise? How do you get them to buy from your store (instead of the store next door)? eBay Inc. confidential 55 4-3 How Is Your Customer Service? All of this (and more) was found on one listing • If you have less than 10 feedback …I will cancel the bid without prior notice • • • • DO NOT BID ON MY ITEMS UNLESS YOU UNDERSTAND AND FOLLOW MY STRICT POLICIES! I WILL NOT TOLERATE DEADBEAT BIDDERS I will only send one email requesting your information ATTENTION!!!! IF I DO NOT HEAR FROM THE WINNING BIDDER WITHIN 24 HOURS AFTER AUCTION ENDS, I WILL AUTOMATICALLY RE-LIST ITEM AND LEAVE NEGATIVE FEEDBACK! NO EXCEPTIONS! I will contact the winning bidder approximately one week after the item has been shipped…and request that positive feedback be left. In turn I will leave positive feedback. eBay Inc. confidential • 56 4-4 Terms and Conditions—Good Example eBay Inc. confidential 57 4-5 Tried and True Marketing Techniques • Incentives and discounts Sell items at lower prices (no reserve) to gain exposure Offer free shipping for first-time buyers Offer discounted shipping for multiple purchases • Opt-in direct marketing • Cross merchandising eBay Inc. confidential 58 4-8 Marketing Yourself Agenda • • • • • Your About Me Page Advertise On eBay Market Off eBay Market from Your Own Web Site Link to External Web sites eBay Inc. confidential 60 4-12 Your About Me Page • • • • Your About Me page—a marketing opportunity Describe your products and services Link to your other listings Link to your Web site eBay Inc. confidential 61 4-13 About Me Page Example eBay Inc. confidential 62 4-14 Advertise on eBay • adMarketplace sells and manages keyword ads on eBay • Purchase ads Gain exposure with your banner Create sell-through opportunities Link on eBay Home page or http://www.ebaykeywords.com eBay Inc. confidential 63 4-15 eBay Keywords eBay Inc. confidential 64 4-17 Optimizing for Searches eBay Inc. confidential 65 4-19 Market from Your Own Web Site • Link from your Web site to your listings or Store eBay Editors Kit Display your eBay listings on your Web site • www.ebay.com.sg/education/learn-to-sell-editors-kit.html eBay Inc. confidential 66 4-21 Linking to External Web Sites Cardinal Rule: Do not distract buyers from listings Do’s Link to a “description page” or photo from a View Item page (further describing your Item) Link to your other eBay listings or eBay Store from a View Item page Link to your About Me page from your View Item Page Link to external Web sites from your About Me page and Store only Link to your listing terms and conditions, provided that the most relevant T&Cs are in the listing itself. eBay Inc. confidential 67 Don’ts Link to external Web site from a Listing page Link to any page that offers to sell outside of eBay Link to any page that solicits eBay user information Link to any site or page offering merchandise prohibited by eBay Send unsolicited emails to bidders 4-22 Summary • • • • • • Marketing is crucial Drive traffic to your listings and/or Store Quality listings make the difference Advertising (on and off eBay) is essential Create a marketing plan and stick to it Adopt “customer is king” attitude! eBay Inc. confidential 68 4-24 Managing Your Active Listings Agenda • Active Listings • Management Tools • Let’s Look at Selling Manager • Selling Manager Pro • Bidder/Buyer Management Tools • Managing Listings eBay Inc. confidential 70 5-2 My eBay - Active Listings • • All Selling > Selling Link From here you can Edit a listing Cancel a listing Sell a similar item • Once a listing ends it moves into Sold or Unsold eBay Inc. confidential 71 5-3 Let’s Look at Selling Manager – eBay.com • Selling Manager—a new eBay selling tool • Organizes your listings • Track transactions • Easy sign up (Seller Services page) • Online application, no download of files • 30-day free trial, ($4.99/month) Let’s explore Selling Manager! eBay Inc. confidential 72 5-5 Selling Manager Pro—Summary eBay Inc. confidential 73 5-7 Selling Manager Pro—Sold Listings eBay Inc. confidential 74 5-8 Selling Manager Pro—Success Ratio eBay Inc. confidential 75 5-9 Bidder/Buyer Management Tools Bidder management tools Block or pre-approve bidders My eBay > Selling-Related Links eBay Inc. confidential 76 5-10 Managing Listings • Answer emails promptly Prompt response helps item success Instills buyer confidence • Cancel bids Only with good cause Cannot be reinstated • End a listing early Item no longer for sale Cancel all bids or sell to the highest bidder eBay Inc. confidential 77 5-12 Summary • • • • • Manage active listings from Selling Manager and My eBay Manage your bidder list Block bidders at your discretion Cancel bids if necessary Revise or cancel listings if necessary eBay Inc. confidential 78 5-14 Managing Your Sold Listings Managing Sold Items • Managing Sold Items Notify the buyer Invoice the buyer (if necessary) Track buyer’s payment Ship the item Leave feedback Receive feedback Use Second Chance Offer, if necessary • Use Selling Manager! eBay Inc. confidential 80 6-4 Managing Payments Agenda • • • Payment Status eBay Checkout PayPal eBay Inc. confidential 82 6-6 PayPal – An Excellent Payment Solution • An eBay company and the global leader in online payment solutions: Enabling any individual or business with an email address to securely, easily and quickly send and receive money online 123 million account members 103 markets around the world 17 currencies: Total payment volume through PayPal for 2005: US$27.5 billion (RM100 billion) Preferred on eBay • PayPal’s Vision: Borderless Payments: Where online inter-country payment is as easy and safe as domestic eBay Inc. confidential 83 PayPal and eBay: A perfect match Marketplace • Integrated checkout process with PayPal Payments • Achieves PayPal critical mass – 120M Sellers go where buyers are More Sellers Offer PayPal • Enhances trust & safety • Increases velocity of trade Buyers go where sellers are • Lowers risk of fraud • Preferred by buyers • Cost Effective • Saves Time & Money More Buyers Use PayPal eBay and PayPal facilitate the export and import of goods worldwide in multiple languages and multiple currencies eBay Inc. confidential 84 PayPal Integrated With the eBay International Listings Automatic Logo Insertion eBay Inc. confidential 85 PayPal Seller Accounts: Premier and Business • Account Types: Premier Account: Casual Sellers • Accept all payment types, including credit card payments • Customer Support: receive telephone customer service • Free reporting tools to track your sales & transaction from one central location Business Account: Businesses • All of the benefits of a Premier account, plus • Operate under a business name • Create multiple user accounts to limited employee access to your account • Chargeback/Claim Email Alias: route buyer inquires & disputes separately eBay Inc. confidential 86 There’s Money in Your Account! eBay Inc. confidential 87 6-9 Managing Your PayPal Account Log in to PayPal to: View recent activity View and download sales history to your accounting software Withdraw funds eBay Inc. confidential 88 6-10 Withdrawing Funds • • • • • Log in to PayPal Click the My Account link Click the Withdraw link Select an option Follow the instructions eBay Inc. confidential 89 6-11 Packaging Pays Off Agenda • Customer Satisfaction • Match Packaging to Item • Flat vs. Actual Costs • Selecting a Carrier • Purchase and Print Shipping Labels on eBay with PayPal eBay Inc. confidential 91 6-12 Customer Satisfaction • Well-packaged items Promote a professional image Result in more positive feedback Save time and money • Buyers pay for packaging and shipping so… Pack it well Neatness counts Excessive shipping costs may deter bidders eBay Inc. confidential 92 6-13 Match Packaging to Item • Select the appropriate box for the item Double box fragile items Smaller items? Envelopes weigh & cost less • Use a sturdy, corrugated box With ample room for packaging Rigid sides & flaps intact Don’t exceed box’s maximum gross weight • Use proper packing materials Bubble wrap Peanuts Foam Corrugated dividers eBay Inc. confidential 93 6-14 Selecting a Carrier • Shipping carrier is an extension of the transaction • Good carrier customer service enhances your reputation • Offer a range of shipping options & prices • Manage and meet customers' expectations while keeping costs low • The lowest price may not yield the best value eBay Inc. confidential 94 6-16 Resolving Issues and Feedback Agenda • • • • Business/Customer Issues Leave Feedback Unpaid Items—UPIs Second Chance Offer eBay Inc. confidential 96 6-19 Business/Customer Issues • Conflicts and differences of opinion • Negative feedback • Account theft • Buyers who attempt to purchase products illegally • Unpaid Items (UPIs) eBay Inc. confidential 97 6-20 Leave Feedback eBay Inc. confidential 98 6-21 Dealing with Negative Feedback • Negative feedback is probable • You may respond to negative feedback • Mutual Feedback Withdrawal Valid within 30 days of date feedback left or 90 days of the transaction end date (whichever is later) Both parties must complete the Mutual Feedback Withdrawal Form Both feedback scores are adjusted simultaneously Find more information at: Community > Feedback Forum eBay Inc. confidential 99 6-22 Unpaid Items • Research shows most UPIs are oversights Buyer out of town, ill, or deceased Loss of computer or connection Spam blocker blocks invoice emails Buyer just plain forgot! • Don’t assume ill-intent • Communication usually resolves most UPIs • Keep communication polite and non-accusatory 10 0 eBay Inc. confidential 6-24 Tips for Avoiding Unpaid Items • Make PayPal your preferred method of payment • Set preferences to provide Pay Now button on closed listings • Include clear shipping & payment instructions • List Buy It Now items with Immediate Payment 10 1 eBay Inc. confidential 6-25 What You Can Do About Unpaid Items • • • • • Send a payment reminder Contact your buyer via email and/or phone File a Unpaid Item dispute Request a Final Value Fee credit Leave appropriate feedback If the Buyer eventually pays: Remove the Unpaid Item strike Update feedback (optional) More Info: www.ebay.com/securitycentre 10 2 eBay Inc. confidential 6-26 Second Chance Offer – eBay.com (US) • Second Chance Offer To sell item to under bidder Increases sales Sale completed on eBay (not off-line) • Make a Second Chance Offer when: Selling a duplicate item • Final Value Fee applies • No second insertion fee Winning bidder fails to complete transaction 10 3 eBay Inc. confidential 6-28 Sales Reports and Other Tools Agenda • • • eBay Sales Reports Seller and Traffic Reports Accounting Assistant 10 5 eBay Inc. confidential 6-30 Track Your Business Effective management by thorough measurement • Things to track Products sold Final selling prices Upgrade options Costs Traffic (hits, bids) • Adopt a bookkeeping system Use software Create graphs, charts, comparisons Study and “listen” to the data 10 6 eBay Inc. confidential 6-31 How Sales Reports Can Help Sales Reports help sellers…. • Measure their eBay sales against pre-determined sales goals • Understand the main drivers of their business • Determine opportunities and areas for improvement • Refine their business strategies to ensure success 10 7 eBay Inc. confidential 6-33 Seller and Traffic Reports • Store Seller Reports View key metrics eBay marketplace data • Store Traffic Reporting Exclusive to Store sellers Identical tool eBay uses to analyze traffic and market Reports on all of your listings and Store pages Bid/BIN tracking for Featured and Anchor Stores 10 8 eBay Inc. confidential 6-35 Resources on eBay Agenda • • • The eBay Community eBay Explained Online eBay Radio 11 0 eBay Inc. confidential 7-8 The eBay Community - US eBay.com 11 1 eBay Inc. confidential 7-9 The eBay Community - Malaysia 11 2 eBay Inc. confidential eBay Radio • Hosted by Griff • Broadcast twice a week • All shows archived • Receive weekly Radio Shows upcoming eBay notices for 11 3 eBay Inc. confidential 7-12 eBay Seller Programs • • Trading Assistants PowerSellers 11 5 eBay Inc. confidential 7-15 Trading Assistants • Experienced, qualified eBay sellers • Sell for others on consignment • Have experience? Meet qualifications? Become a TA! • Need experienced help? Hire a TA! Go to tradingassistant.ebay.com Enter your area or zip code Review feedback and listings Shop for the best deal! 11 6 eBay Inc. confidential 7-16 The End! • It’s Q & A Time! 11 7 eBay Inc. confidential 7-18