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Tue June 30 2009 20:46:15

Zappos Abandons Test of eBay Retail Channel

By: Ina Steiner

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Zappos said it is not actively selling on eBay and has no plans to, despite being showcased by an eBay executive at the recent conference as we reported on this blog on June 17th.

eBay Senior Vice President Stephanie Tilenius said during a presentation at the recent Internet Retailer Conference, "This is an example here of Zappos, their new liquidation brand called Great Price store, and they just launched on eBay last week using our Large merchant Services platform."

Internet Retailer magazine had also reported the news: "In the presentation by Tilenius on eBay's strategy of working with major retailers, she pointed to online retailer Zapppos.com (sic), No. 27 in the Internet Retailer Top 500 Guide, which last week launched an eBay store to liquidate overstock goods, and clothing manufacturer BCBG, which is now selling on eBay through an unnamed large eBay merchant."

I checked in with the online retailer, and Steve Hill, Vice President of Merchandising at Zappos, said, "We did a small test on eBay but are not currently planning on moving forward with it." In response to a follow-up request for Zappos' User ID, a spokesperson said, "This was a very small test. At this time, Zappos is not moving forward and the account is not active."

We asked eBay about the discrepancy and whether Tilenius had misspoken. eBay spokesperson John Pluhowski said, "We are always looking to partner with top quality merchants and frequently test various distribution arrangements through our site."




Comments (56) | Permalink

Readers Comments

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: JD

Tue Jun 30 21:06:43 2009

Ebay probably offfered them the first five listings free, LOL.

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: Ebay Pays My Minimum Monthly Payment

Tue Jun 30 21:41:56 2009

Classic.

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: Ebay Pays Griff's Bills

Tue Jun 30 23:10:27 2009

I was really looking forward to a great deal with free shipping with paypal protection on a pair of shoes that were both for the same foot!! Or maybe one size on the left and another size on the right! Just like Big Lots and Dollar General!

Egg on sellers face for years now (just for being independent sellers trying to make ebay work by ebay's own rules), finally a little egg on ebay's face.

Stock analysts, please take note!

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: gone

Tue Jun 30 23:10:33 2009

Good one, JD, and after Zappos figured out the backend fees on 5 free listings they back out of the deal.

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

This user has validated their user name. by: Ming the Merciless

Tue Jun 30 23:17:49 2009

This Magic Tilenius Moment should be posted all over the internet including the financial and business publications and the financial blogs as another shining example of ebay's commitment to accuracy in public statements that could affect stock prices.

Ming's ebay law #1:

EBAY LIES. ALWAYS HAS. ALWAYS WILL.

Tilenius joins The Ho and The No in the Circle of the Damned.

Stephanie Tilenius, meet Ruth Handler.

USHER OUT EBAFIA in 2009.

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: mindelec

Tue Jun 30 23:19:29 2009

i think that many of their large sellers will decide that ebay isn't worth the trouble for the type of items that they sell.  

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: Nonsense

Wed Jul 1 00:36:53 2009

Zappo's probably got slapped with a Vero complaint and decided it wasn't worth their time and trouble.
Or they found out how utterly complicated ebay is and quickly backed out.

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: too funny!

Wed Jul 1 01:26:11 2009

What Fun! I would bet before it's all over with these bigger outfits will drop ebay like a hot potato. They are just finding out what millions of sellers already know. Ha.....It feels good to see the tables turned.

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

This user has validated their user name. by: Bill

Wed Jul 1 02:10:15 2009

Another shining example of the idiocracy that is running rampant in San Jose. The right hand has no idea at all what the left hand is doing. The upper management are all running around like chickens with their heads cut off. Absolutely amazing.

Bill

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: pete

Wed Jul 1 02:27:18 2009

I must say straight, we have been selling on eBay for years & this year has been pretty good for sales with all the financial problems…but our actual profit is way down to the point that we are seriously now pulling away from eBay.

The argumentative scam buyers are still there in force, Paypal chargebacks are still a huge problem (scammers again) & the 30 day listing fees are just too high, with re-re-re listing fees and very low ASP we are at the point of really giving fantastic product at stupid prices and also working like idiots for virtually no salary…So we are saying enough, we are changing as eBay just don’t care

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: DAISY

Wed Jul 1 03:47:37 2009

Are you kidding me? Zappos was probably offered a great deal to sell on Ebay. Something stopped them. Ebay's arrogance??? Dictatorship Rules?? Absolute Ideocracy based on the Disruption Rule of Business?

I have new found respect for Zappos. I think I'll buy some new shoes this week.

We'll probably be seeing a lot of the better companies smartening up.

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: Stefano Neis

Wed Jul 1 05:33:46 2009

Two previous comments of merit stand out from comments above:

"Or they found out how utterly complicated ebay is and quickly backed out."

"and also working like idiots for virtually no salary…So we are saying enough, we are changing as eBay just don’t care"

I just looked at my right hand, I think it is stained... I shook Meg Whitman's Hand and looked her straight in the eyes in 2005. I asked what "her" goals for Ebay were...as I recall  "Make it easier to use..and create a better platform for sellers to be more successful"

I think I need to bleach my hand...again..skin grafts? Anything to get the stench of what is now ebay out of my system.

Large companies can't afford to waste time for long on the present Ebay methodology of selling. Diminishing returns will create a quick line of them exiting to other venues.

My wife, who is our comparison Internet shopper, told me last week that she seldom finds items on ebay that are the cheapest in what she is looking for. Time was when she bought almost all of out house's various needs via Ebay. Now she just googles the item...and then goes anywhere but Ebay to buy the item..

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: unaware

Wed Jul 1 06:46:20 2009

Why on earth would any company who has built up any sort of good reputation as a on-line retailer (Zappos) want to soil their hands with a retail channel like eBay? No wonder they were going to use a new company with a made up name for their eBay selling. I think they thought about it and decided they did not want to be associated with the bad mojo that eBay has proved to represent. No, rather eBay will become the home of every no-name importer of Chinese junk or reseller of broken or defective merchandise... you know those sleazy type of merchants who will say or do anything for a dime. Kudos to Zappos to realize that they are better then that and don't need to risk their hard earned reputation with a name known for fraud and junk (can you say eBay?)...  

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: lol

Wed Jul 1 08:14:30 2009

does zappos offer the ability for sellers to sell lightly used shoes on the zappos platform?

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: Steve

Wed Jul 1 10:04:45 2009

This reminds me of the advice that Ron Reagan Jr said his father once gave him, “Don’t go to bed at night with anyone you’d be ashamed to be seen with in the morning.”

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: Peter Leeflang / LEEFLANG ARCHIVES CORP.

Wed Jul 1 10:20:53 2009

The saddest things of Ebay lying about Zappo's becoming their listing retailer is that again Ebay achieved major negative PR for the site and that will hurt all of us sellers.

Being affiliated with a site that manages to stack up so much bad news and create a truly horrible company image, is what really hurts us sellers.

Compare that with being affiliated with the postive image of Amazon!

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: ellecole

Wed Jul 1 10:41:58 2009

@Peter Leeflang
"Being affiliated with a site that manages to stack up so much bad news"
Yes I agree. Online selling is about reputation. Zappos must have read the blogs and taken them seriously. Ebay needs to do the same. QUICKLY!

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: Patricia

Wed Jul 1 11:40:34 2009

Zappos probably got a great initial deal to start listing on Ebay.  I tend to believe they took note of Ebay's tarnished reputation and didn't want a thing to do with the most hated company on the internet.  A wise move on their part!

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

This user has validated their user name. by: Mercy the Mingless

Wed Jul 1 12:06:57 2009

Tilenius is delusional.  There is no other explanation.

What is it with these female eBay execs and shoes?  It's as nuts as the male execs and iPods.

If John Pluhowski. eBay's latest mouthpiece, spins for eBay (see above) like he spun for A.I.G. (see below), Tilenius and eBay should be pleased.

~~~~~

From the Sunday Gazette-Mail - State looks at pension sales... - [Cached Version]
Last Visited: 10/21/2002  

John Pluhowski, an (A.I G.) VALIC spokesman from company headquarters in Houston, Texas, said Friday that this is the first time the company's compliance department has been made aware of any issue or concern regarding the sales practices of its representatives under the teachers retirement plan.

''Although we have not received any inquiries from the Insurance Commission, we have already started our own review of these concerns and will cooperate fully with the Insurance Commission if contacted,'' he said.

''Our sales representatives work hard to understand the needs of their clients, and we take seriously any allegations regarding their sales practices.''

Yes, I think he will make eBay very happy.

Zappos Abandons Test of eBay Retail Channel   Zappos Abandons Test of eBay Retail Channel

by: Like A Rhinestone cowboy

Wed Jul 1 13:06:53 2009

HAHAHAHAHAHAHA!
Ebay sux, bet they are starting to regret destroying the best of Ebay. Where's Bruce?
Millions in lost market value, plunging stock, tainted Ebay, no one wants to be known as an Ebay seller anymore!

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