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Fri Dec 16 2011 18:59:52

eBay Favors Big-Box Retailers in Holiday Promotions

By: Ina Steiner

Sponsored Link

Last year, sellers raised their eyebrows when eBay helped marketplace visitors find items in-stock at local brick-and-mortar chain stores. Now the online marketplace is running a holiday rewards program in partnership with ToysRUs, Dick's Sporting Goods and Aeropostale with an in-store twist.

Shoppers who spend $100 on any of the three retailers' websites or eBay stores will receive $10 to shop in-store at the retailer's local store.

eBay said the campaign promotes how today's consumers shop: "online and offline, via mobile and at the mall - to find what they want, when and how they want it." And eBay CEO John Donahoe said in a press release, "We're excited to offer this first ever online and in-store multi-channel rewards program with Toys"R"Us, Dick's Sporting Goods and Aeropostale. This innovative rewards program reflects the future of retail and the convenient, seamless shopping experience consumers are looking for."

eBay is also promoting a Guaranteed Arrival program that it's heavily promoting, highlighting listings from Toys R Us, Black & Decker, Ashford Watches, ShoeMall and Skullcandy and 20 other retailers from its GSI Commerce unit. eBay shoppers can place orders through Dec. 19 and receive their gifts by Christmas Eve, guaranteed.

eBay spokesperson Johnna Hoff said many GSI retailers will also offer shoppers the ability to purchase gifts up to 10 p.m. EST on Dec. 22 for delivery on the next business day (Dec. 23).

eBay knows the benefit of first mover advantage, and this video demo on YouTube shows eBay's vision. Consumers can now pay for toys at Toys R Us with PayPal via their mobile phone.

eBay has been cozying up to large retailers since John Donahoe took over from CEO Meg Whitman in 2008, and it's not just because Donahoe favors "buy it new, but it now" over bidding for used goods from small sellers. As mobile shopping bridges the online and offline world, eBay is counting on its PayPal wallet to dominate mobile payments.

It's difficult to measure precisely how this affects smaller sellers, but this season was definitely all about Buy It New, Buy It Now on eBay.




Comments (38) | Permalink

Readers Comments

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: frank n' beans

Fri Dec 16 19:57:33 2011

What else is new? it's eBay, did you expect better?

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: pat o

Fri Dec 16 20:06:21 2011

I do brick & mortar stores, I scan what I want thru my iphone find a cheaper price even it's offered online and the retail store usually will match it at customer service or with a managers OK. I get it cheap, I get it now, and with no FREE SHIPPING (pun).

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

This user has validated their user name. by: Philip Cohen

Fri Dec 16 21:33:46 2011

The eBafia Don favors big box brand sellers, period. Be gone all you pesky flea marketers, you've served your purpose and we think no longer need you. ...

Time will tell ...

eBay / PayPal / Donahoe: Dead Men Walking.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: Ron

Fri Dec 16 21:52:02 2011

Yikes!  
I'm so tired of reading about John Donahoe's vision of the future of eCommerce.

The fact is that he "let go of a successful past" in order to pursue his own deluded ideas about successful marketing.  In essence, he took a fully functioning, very profitable, business model with excellent growth and chucked it for this convoluted mess that he now rules over.

Why haven't more people, like the Directors of the Board, noticed that return for investors over the past 5 years has been negative 7.65%?  Amazon's stock return has been positive 353% for the same period.  Yes, that's 3 1/2 times growth as opposed to -7.65%.  And Donahoe has managed this despite having a virtual monopoly for online payments, a veritable cash cow, a situation that's not going to last forever.
So spare us the pronouncements regarding how PayPal is going to dominate mobile shopping - if Donahoe really was an effective strategic planner, if he really knew of what he speaks, by now the stock price would be reflective of a successful plan, instead of languishing around the $30 level.  It boggles the mind why The Board, Pierre and the major stockholders are putting up with this guy.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

This user has validated their user name. by: Philip Cohen
Web Site

Fri Dec 16 23:40:18 2011

"As mobile shopping bridges the online and offline world, eBay is counting on its PayPal wallet to dominate mobile payments."

Dream on Donut …

I'm happy to predict that Visa will see the clunky PreyPal relegated back to its mandated use only on the eBay marketplace when Visa's "V.me" is up and running next year.

eBay / PayPal / Donahoe: Dead Men Walking.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

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

Sat Dec 17 01:07:38 2011

Didn't The Ho just recently announce the death of e-commerce?

It's hard to keep track of all the corpses he's created.

This paradigm will last only as long as the Big Box stores harbor the illusion that The Ho is a reliable, dependable, and honest business partner.

Or perhaps The Ho is re creating the Craig's List strategy.

I wait with baited breath to see who gets kicked to the curb first.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: anyone out there

Sat Dec 17 06:34:06 2011

@ Dartmouth Man

I thought those jesters were the practice of the politicians in Washington and the white house.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: Rich(y)

Sat Dec 17 07:07:29 2011

Hopefully this won't negatively impact my 2% sell-through rate.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: massachusetts howler

Sat Dec 17 13:32:53 2011

HP has lost their TRS.
I will BET $10,000 Bucks (teh-hee) that they will sell EXACTLY THE SAME VOLUME AS BEFORE.
They used their GSI's to Kill us this year, they used ''shop nearby'' to kill us last year.
Horrendous sales, even LESS THAN LAST YEARS horrendous year and JD is using his buddies at Goldman, Forbes and the Motley Fool to make it look like AMAZON IS STRUGGLING when the fact is they are just building infrastructure.
That's what's going on.
PEACE to all, NICE TO GET COAL FOR Christmas from JD AGAIN.
Howler

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: MR ME

Sat Dec 17 14:03:03 2011

Suprised?
ebay does whatever puts the most money into their pockets, period.
it is not an on-line "community" , just a sleazy on-line shopping mall. Forget eBay......

Support other venues.

happy holidays

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: massachusetts howler

Sat Dec 17 14:39:01 2011

Let me go into the HP DEBACLE a bit.
Hp THOUGHT that they could make the HP tablet ''available'' First to Hewlett Packard STAFF PEOPLE so the FOOLISHLY used ebay and a HP staff member let the cat out of the bag and MANY regular ebay buyers (not HP staff) ''discovered'' the ad and raced to BUY it.
The huge hits and purchases, combined with the shopping cart not reserving the sale until checkout meant that other folks, ready to checkout snagged those items out of the carts of others and the DISEMBOWLING OF HP started to occur. Buyers do not care what is going on TECHNICALLY, they just want their item and after they get ''IT'' they can feel free to  proceed to DISEMBOWEL a seller.
They (HP) did not understand Ebay, nor did they understand that even though ebay states a rule- the item is not actually won until after checkout is COMPLETE.
The HP tablet is very light and they did not even combine shipping so buyer made them PAY.
HP had a big STORE banner saying ''Free Shipping'' but there was not free shipping on the pads. Did HP not get the memo about the free shipping push? Does ebay just limit exposure for small sellers and if Diamonds show a s/h charge does it not affect THEIR EXPOSURE at all- these are the questions small sellers are asking themselves.
JD's own policies and cart setup DESTROYED THIR OWN DIAMOND.
If HP KNEW WHAT THEY WERE DOING they would have placed a few other payment options in there and then the cart wouldn't even have been USED.
So what we have here is a diamond seller who was not in full understanding of the ebay problems and they WALKED RIGHT INTO IT.
Merry Christmas small sellers- LOL!
Don't ya think that HP's REP at Ebay is in HOT WATER now- Let's ALL WATCH HP to see when ebay fixes their FB.
DO NOT LET EBAY/JD DO IT.
Howler
Hey JD: your DSR AUTOMATIC OVERIDE isn't working for HP!!

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: Slogan

Sat Dec 17 17:23:52 2011

My holiday slogan. Buy it anywhere but ebay.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: Patricia This user has validated their user name.

Sat Dec 17 19:19:03 2011

They can do what they like and promote what they like but their stock is still stuck in the same rut its been in for over a year and not even as high as it once was right before Donahoe took over.  The site is abysmal - the traffic is almost non-existent.  You can only blame so much on the economy....the proof is in the black and white figures.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: Digmen1
Web Site

Sun Dec 18 05:19:20 2011

@patricia
How can you say their traffic is non existent ?
Their Alexa rating is still around no 23 !

But i do agree with the general concensus that this plan is doomed to failure.
It will only take a while for  a few of those big box retailers to go back to their own websites to leave ebay with no sales!

And Google Wallet and V-me are coming.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: Patricia This user has validated their user name.

Sun Dec 18 12:22:39 2011

@Digmen1 - traffic is not filtering down to small sellers.  A visit to Seller Central will prove I'm right.  Its almost like they are deliberately pushing the big retailers to the front and hiding the small sellers.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

This user has validated their user name. by: Ric

Sun Dec 18 13:19:12 2011

Despite the fact that John Donahoe's big box sellers pay no listing fees, negotiate lower final value fees, and even have backroom deals on PayPal fees, eBay is throwing all the business their way.

In the meantime, JD is looking at the small seller fees, store fees, listing fees, final value fees, shipping cost fees and PayPal fees to see where he can impose the next increase.

It is the wholly ignored small sellers, the ones who get no exposure in search, the ones who are ignored in the commercial blitz designed to promote the big box sellers who are left paying for everything.

Small sellers are subsidizing the JD's Diamond Sellers. Small sellers are subsidizing eBay's multi million dollar TV advertising campaign. Small sellers are subsidizing eBay's lobbying efforts in Washington DC. It is small sellers who make the multi million dollar compensation packages lavished on eBay's top management possible.

Yet it is those same small sellers who are pushed aside by eBay in their mad rush to appease their Wall Street masters.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: Y.D.D.D

Sun Dec 18 13:31:27 2011

@PATRICIA

Dear Patricia, this was truly my worst ever December on eBay sine the 1990's, especially since 2008 when Lord Donahoe took over, so someone is getting pushed besides me and my Top Rated small to medium seller items.

As I sit here near year end, I can only sit in sadness thinking what Lord Donahoe is going to unload on is in 2012 ? I know the 14 day minimum return policy's where buyer gets to choose money back or exchange is going to hurt us that are not mass sellers.

I asked on another post in the name of fairness, and mercy and I will throw in compassion for those less fortunate Brother and Sisters of Donahoe that he at least consider that any buyer getting refund within 14 days at least gives the sellers back their listing fee, FVF fee, and Pay Pal fee, and actually somehow counts on buyers record to keep track how many sellers they do this to.

Good grief Donahoe, we sell dirt cheap, to give incentive versus going to retail store, you gouge us on FVF and Pay Pal, we ship for free, then we pray and cross out fingers the buyers don't punish us for 3 months or a year depending on our volume of sales, even if we did everything right.

I cannot believe how loyal I was to ebay, how good of seller I was, the business I did, everything great, then in 2008 you took over, and truly made my life, my nerves and income a literal hell, no lie !

I also speculate my dear fellow sellers enduring this agony cause you have to like myself, that Donahoe will be looking for away to start decreasing Top Rated sellers ( To many 20% discounts ) So I am predicting he will somehow switch to that 0 to 10 rating crap, then probably require us sellers to maintain a 9.5% minimum or we are not Top Rated, maybe even 9.9% / I mean remember JD you get millions to make less fortunate people hop jump and skip to standards that are ridiculous, and punished on the opinions of buyers ratings, that may not even be true at all.

Why have you done this to us ? Don't know, maybe trying to be like Amazon ? eBay will never be Amazon, somehow eBay needs to go back to being eBay with some tweaks for all sellers big small and large, maybe 2 sites, ebay new, eBay classic.

I know first hand how you have impacted my life since 2008 with all of this, and I know there are many others that have been destroyed from this draconian turn around plan.

I myself knowing how I feel from your BS could never sleep at night thinking of how I impacted other human beings with these brutal standards you hold people (sellers ) to whose lives depend on ebay sales literally for income  to sustain there humble lives.

Let alone get millions of $ for doing so. It is clearly obvious your not, never were and never will be dependent on your wits, pitches and sales to make a life sustaining living on ebay, or else you would of changed ebay in some areas, and a lot less in others where you did not need to.

How would you like eBay sellers to rate you, and on our opinion when you think you gave 100% you were fired, suspended, made totally broke literally with no recourse ?

Oh I know I am wasting my breath, you have deaf ears when it comes to thinking of us sellers who made eBay the household name it was.

I am sad to say also that never in my entire life on this planet have I ever disliked someone as much as I have you, that is honest to goodness truth, I see you as pain for me, anything you say is noever better for me to make $ or sell on ebay etc. I guess everyone is right you want to rid the site of small and medium sellers.

You have and continue to make the noose tighter and tighter on us small to medium sellers, almos tlike your saying unless your going to list and sell thousands of products each month ebay does not want you any longer !

I really feel proud me and other sellers worked so hard to build ebay into a fun profitable community, dedicating our lives to it really, just to have you come along in 2008 and pull the rug out from underneath us for big box.

Don't ever ignore the fact Donahoe, you have caused serious pain, strife, poverty, and who knows what else to good people with your draconian policies, I know cause I have experienced it first hand, and from what I have read all over here and net, others feel it also.

Nuff said




eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: anyone out there

Sun Dec 18 14:41:29 2011

@ Y.D.D.D.

The one fact you are missing is that Donahoe and cohorts don't care about you.

Bottom line is the money that make and thats the only thing they care about.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

by: Patricia This user has validated their user name.

Sun Dec 18 14:49:27 2011

@Y.D.D.D.  I feel for you but you really need to start building up your business elsewhere.  My personal belief is that Ebay will keep small sellers until their retailers are really up and running and making the most profit for them - then they will close auctions...just as Amazon did in its early days and as Overstock just did this year.  We are a thing of the past and we have to see that.  During its heyday, my auctions had approximately 500 to 600 transactions per year.  this year - less than 50!!!  The sell thru rate in the Arts categories on Ebay used to be 30 to 35 percent - now they are 10 percent or less.  The truth is there for all to see whether they want to face the facts or not.  Donahoe has us in a "spin down" and eventually he will close the door on us.

eBay Favors Big-Box Retailers in Holiday Promotions   eBay Favors Big-Box Retailers in Holiday Promotions

This user has validated their user name. by: Philip Cohen
Web Site

Sun Dec 18 16:36:10 2011

The sad thing about all this is that if the headless turkey, John Donahoe, and eBay’s board of directors, had had any imagination at all they could have kept both camps happy: eBay Used and eBay New, and their share price may well have been up there with Amazon’s.

But no, unfortunately this buffoon Donahoe is a product of the Bain Demolition Company and deconstructing commercial entities is what his apprenticeship was all about, and as others have so rightly pointed out, the big box and brand marketers that he now seeks to attract will drop eBay (or any other middleman) like a hot brick as soon as the traffic to their own retail web sites makes it more profitable to do so, or they will simply continue to siphon off buyers to their own web sites as the eBay marketplace slowly sinks lower and lower in the water.

And, we are all undoubtedly pleased to know that in 2012 Visa’s V.me will, at least off-eBay, start placing demolition charges around the creaking structure of the unscrupulous “not a payment processor” but “merchant of sorts”, PreyPal, so there won’t be much underpinning of eBay’s bottom line for too much longer from this clunky operation.

John Donahoe is indeed a fool.

eBay / PayPal / Donahoe: Dead Men Walking.

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