Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Mar 7 2013 22:08:26

What Does Neiman Marcus Departure Mean for eBay?

By: Ina Steiner

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Neiman Marcus had a rocky start when it launched the Last Call By Neiman Marcus fashion outlet store on eBay in 2011 along with 19 branded outlet stores. Like others before it, the company learned it takes a lot of work to sell on the eBay channel. In January, Neiman Marcus departed from eBay permanently.

As reported in Friday's Newsflash newsletter, Neiman Marcus told us it had learned a great deal from its partnership with eBay, "but it did not meet all our expectations."

What do brands want when it came to the eBay channel? Donahoe promised incremental sales - access to its millions of shoppers. eBay built a special on-ramp for brands to dump their catalogs on its marketplace and offered special pricing deals. eBay acquired top brands through its acquisition of GSI Commerce and began offering golden promotional opportunities to those manufacturers and retailers. (I wrote about the exposure eBay gives Sony in September, as an example; and promoting brands on eBay's social networking accounts is typical behavior.)

When we warned readers about eBay's stealth plans for Operation Catalog in 2008 (which eBay initially denied), sellers were skeptical about the likelihood of their success. And many believed brands simply wanted to use eBay as a customer acquisition tool, using eBay to drive visitors to their own websites.

As we observed 2 years ago, when Last Call By Neiman Marcus opened its eBay store, it began collecting email addresses from visitors, which was against eBay's policy (at least for regular sellers).

eBay launched with 20 fashion outlet stores in 2011 as part of its focus on creating tailored vertical shopping experiences in key categories. How many are there today? There are currently 25 fashion outlets listed in the eBay directory.

A lot has changed over the past 5 years, and the departure of Neiman Marcus from eBay is a good time to reflect on whether eBay is succeeding with its shift to favor large brands, and whether that strategy has made eBay a stronger, healthier marketplace.

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Perminate Link for What Does Neiman Marcus Departure Mean for eBay?   What Does Neiman Marcus Departure Mean for eBay?

by: Massachusets Howler This user has validated their user name.

Sat Mar 9 20:44:48 2013

I Sell the same brands Neimans does. Folks HAVE to understand that the prices these things command is 100% IMAGE.
IMAGE and REPUTATION are the 2 main factors that allow brands to put $500 on a $3 tee shirt with a logo and a label.
If go to a Neimans store and are dissatisfied (you rarely will be, they ARE great) you cannot paint ''THIEF- NEIMANS SUCKS TOAST'' on the side of their building for all to see- but you can on ebay.
That embarassment undermines the brand and decreases their items value ACROSS THE BOARD- everywhere they sell it.

Let me repeat that- EVERYWHERE THEY SELL IT.

Annie, great illustration of the standards.
Neimans did not have a real-time handle on their inventory and sold items that they actually did not have, they TRIED to use back-room and returned inventory from their last call stores and appear to have been trying to inventory and pull these different items and ship them from these different stores without really comminicating with the stores. There appeared to be a communication problem between the stores and items on ebay- were supposed to be easy to return to ANY last call store for refund, the problem was that when the buyer went to the store last call didn't know what was going on.
REMINDS ME OF the HP tablet DEBACLE THAT JD CLEANED UP a year or 2 ago.
Neimans, 12 or so months ago announced they were considering an ipo. Some foreign co. overpaid 1 billion for neimans and they are struggling- just like- GUESS WHO- PITNEY BOWES.
We are in here competing with DYING big box stores and we STILL cannot get EXPOSURE. Only the desperate companies come here to TRY to sell, or the ones that want to control what WE sell- skullcandy.
Mass Howler
PS: Annie made a very important point. The 2 TOP companies for customer satisfaction is 1. LL Bean (91%).
2. Patagonia (88%).
99.5 has gone on for far too long.
 

Perminate Link for What Does Neiman Marcus Departure Mean for eBay?   What Does Neiman Marcus Departure Mean for eBay?

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

Sat Mar 9 23:35:55 2013

I'm one of the 9% on LL Bean. I refuse to buy from far right wing Republican owned businesses.

Perminate Link for What Does Neiman Marcus Departure Mean for eBay?   What Does Neiman Marcus Departure Mean for eBay?

by: Massachusets Howler This user has validated their user name.

Sun Mar 10 18:58:27 2013

Me too Ming, me too.
MH

Perminate Link for What Does Neiman Marcus Departure Mean for eBay?   What Does Neiman Marcus Departure Mean for eBay?

by: Massachusets Howler This user has validated their user name.

Mon Mar 11 12:54:36 2013

New story on the yahoo ebay stock home page- says ebay overvalued and should be $39!
Mentions Neimans leaving!
Type ebay stock price and look for the article- folks are starting to get "it".
MH

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by: Digmen1 This user has validated their user name.
Web Site

Mon Mar 11 22:58:35 2013

I always thought it was stupid for a major brand to be selling on ebay.

They all have their own websites and it cheapens their brand and its also probably hard to administer 2 "sites"

Perminate Link for What Does Neiman Marcus Departure Mean for eBay?   What Does Neiman Marcus Departure Mean for eBay?

by: adamsilber This user has validated their user name.

Thu Mar 13 01:02:51 2014

The recent Neiman Marcus data compromise appears to reveal a desperate state of affairs under Karen Katz CEO.



The following are very serious matters EBAY SHOULD BE GLAD NOT TO DEAL WITH THEM

Despite EEOC laws in America the company has not actively addressed the following:



Customers and employees are said to "act like Jews" .

Asian Americans are said to look "extra Asian " by its own Management.

Entire Departments may have no Latino employees for years despite having qualified applicants.

The company's HR department apparently attempts to conceal this by hiring low level janitorial positions. This may be used to skirt equal opportunity..

Management has called gay male employees "Fags" .

" Fire him he has HIV" was stated by a different Department Manger

That employee working in the N.M. Café would prepare food without gloves. He used unwashed hands and cut fingers.

The company has a questionable food safety record . It may not have followed food safety laws and perhaps does still not.

A Neiman Marcus employee bled in prepared food through an open wrist bone wound.. When asked by The United States Government to respond, the company stated they are not applicable under the law. OSHA in Washington D.C was notified . The company never directly answered as to why it did not adequately protect its customers. The company shifted the blame to Liberty Mutual Insurance who had at that point not been aware.

In another recent publicized case Neiman Marcus was implicated in forging fake documents to smear an African American ex employee . This pattern of discrimination is very disturbing . Another abusive tactic Neiman Marcus utilizes is to have suspected African American's  shoplifting cases moved to different judges courts. . This according to company Management allows an increase in the time they spend in jail . The company reportedly pays the Court to honor its request to switch judges it deems as not sympathetic to Neiman Marcus. The United States Department of Justice has been made aware of this.

Additional concerns include that the company has failed to pay wages properly and is known for retaliatory issues (Neimanmarcuslawsuit.com)

It now has another pending class action lawsuit for the data compromise.

The company claimed that one of it's former manager's is a "pedophile". Interestingly they gave him a positive reference to work at Chuckie Cheese Pizza (Owned by Apollo Management). This despite the fact it is a business aimed at children where a danger may be present.


.

Ms. Katz should seriously consider resigning as it is questionable as to her stewardship of Neiman Marcus

Sources - DOL, OSHA, U.S Dept. of Justice complaint., EEOC records,  

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