| Sun May 4 2008 16:06:40 |
eBay Does Exclusive Deal with Buy.com
By: Ina Steiner
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eBay acknowledged on its corporate blog it has entered into a deal with Buy.com after the news was broken by industry blogger Randy Smythe on Friday. The retailer will move its new and in-season inventory onto its eBay Store in the coming weeks. eBay made an official statement about the partnership deal, which gives Buy.com special pricing.
eBay is aggressively using price as a lever to improve the value and selection on eBay.com. Consistent with our goals, we have entered into a partnership with Buy.com to bring their new-in-season merchandise onto eBay.com. We expect to learn a great deal from this partnership and we will build upon the results.
While eBay is not disclosing the terms of the deal, it may mirror eBay's recent change on its Italian marketplace where eBay Storeowners who pay a large monthly subscription fees receive near-free listings, but higher commissions, beginning in June.
At this time, high-volume sellers on eBay.com are not eligible to receive the same type of price breaks as Buy.com. According to eBay blogger Richard Brewer-Hay:
"I've been informed that we are not, at this time, extending the "deal" to top sellers and that any partnerships will be assessed on a one-off basis with hand picked partners. Personally, I think that top sellers that have put the sweat equity into helping make eBay what it is today - that have consistently provided excellent service for their customers - should be included for consideration when the time comes."
Those words must give very little comfort to members of high-volume seller organizations, who have lobbied eBay for similar price breaks, only to have eBay reach out to mega-seller Buy.com because of the huge amount of inventory they can offer. One thing is certain, this is not the only deal of this type being brokered, and eBay may be on track to fill as many of their categories with this type of seller as they can.
This will affect smaller sellers too, as everyone gets pushed down in the pecking order (and in search results.)
eBay has been transforming its marketplace in an effort to, in its words, improve the buyer experience. Sellers have been coping with new policies and fees, and some sellers have staged boycotts of eBay after radical changes were announced in January.
With the new CEO John Donahoe leading the charge, it's unlikely eBay will ever return to its roots. |
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