Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Sept 15 2013 14:55:13

eBay's Campaign to Drive New Buyers to the Site

By: Ina Steiner

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eBay is using a number of ways to increase its active member base after promising Wall Street it would double it to 200 million by 2015, but it's not relying on Google to help it accomplish that ambitious task.

In the past, eBay used paid search and was able to take advantage of Google's free Product Search. But Google did away with that free program and replaced it with paid Product Listing Ads (PLA), and earlier this year, eBay published data questioning the effectiveness of the ad programs of its rival Google and other ad platforms.

eBay is not aggressively bidding on Google Product Listing Ads (PLA) ad units, according to a recent report from Susquehanna. The company said Google drives 12% of eBay's traffic, which could potentially be at risk as traditional retailers bid more aggressively in the PLA market.

So how is eBay working to boost its number of customers?

eBay's number one strategy is by opening geographic markets beyond the U.S. and in western markets and by increasing cross-border trade. But while having a greater number of Brazilian, Russian Indian and Chinese users may be good for eBay's bottom line, it's not as impactful to the typical small seller in North America, Europe and Australia, for example - and could even provide more competition than shoppers.

Another way is by improving SEO, such as revamping Reviews & Guides feature, getting eBay buyers and sellers to write content that will be found by people who are searching on Google, Bing and other search engines. (See last Monday's blog post, Will User Generated Content Bring Shoppers to eBay?)

Yet another way is through its affiliate program in which it pays website publishers for driving traffic to its site. eBay is revamping the eBay Partner Network program pricing structure, including moving to category-based pricing.

For example, in North America, eBay will provide a 65% revenue share for sales in the fashion category, compared to 60% in collectibles and 50% for media sales. That means publishers have more of an incentive to push traffic to clothes, shoes and accessories than to books or DVDs. (More details about the new price structure to come in tomorrow's Newsflash article.)

Affiliates are happy eBay is moving away from the Quality Click Pricing in which it had very little insight into how they were being compensated compared to a CPA model. And publishers will receive a bonus of 200% for driving transactions from new and reactivated buyers (defined as users who have not purchased in the last 12 months) to eBay.

However, affiliates were not happy to learn they will no longer get credit for driving shoppers who take more than 24 hours to bid or buy an item.

In fact, some affiliates said they would have to rethink their participation in the program. "If I refer someone to eBay and they don't bid within 24 hours but bid 7 days later, I will not get paid. So what is my incentive for sending my readers to eBay," asked one ePN member.

eBay's affiliate program is more important than ever now that Google has done away free exposure in search results and as eBay seemingly reduces its paid search campaigns.

How do you think eBay should drive traffic to the site? Are new and " reactivated" buyers really more valuable than current active users? And do you think eBay should place a higher value on certain categories than on others? Let us know in the comments!




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Readers Comments

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: The End

Sun Sep 15 15:38:17 2013

Only if Donahoe uses the Following Tactics :
Lie, hoodwink, deceive, bait and switch, misrepresent, double talk, con, rip off, ....
I, on the other hand, am capable of TRIPLING the value of Ebay in LESS THAN 5 MONTHS.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: The End

Sun Sep 15 15:39:44 2013

using LEGITIMATE, FAVORABLE tactics.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: WOODJUNGLE! ON EBAY

Sun Sep 15 15:59:20 2013

Um. Advertise?  That seems to work if done right. Oh wait. They don't do anything right.  Forget that idea.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: iheartjacksparrow

Sun Sep 15 16:02:16 2013

What's the point of driving new buyers to eBay if eBay isn't showing sellers' listings? As far as "not aggressively bidding on Google Product Listing Ads (PLA) ad units," why should they when unique items are not coming up in searches? When I search on Google it's for something I can't find at a local store, not items that fill the 99 cents store.

As far as which buyers are more valuable: Current users, I would imagine, are dissatisfied; reactivated users are shocked to see what eBay as become; and new users will quickly become disinterested when they realize they can't find what they want. I think eBay should concentrate on keeping the users they currently have before they worry about getting new ones or eBay is going to become a revolving door of users.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

by: Bloggo This user has validated their user name.

Sun Sep 15 16:17:51 2013

If anyone can come up with an example of a successful company that became more successful by destroying it's core user base, I'd like to know.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: Ed Gadfly

Sun Sep 15 17:37:18 2013

Sending out The Men In Black to former seller's homes, with those flashbulb memory erasers, would be more effective.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: Ric

Sun Sep 15 19:19:20 2013

If eBay better demonstrated their appreciation of their existing user base, word of mouth would have been able to drive new user increases. Instead, eBay carries on with an antagonistic platform to seller relationship which accomplished the exact opposite.

With all the MBA's collecting multimillion dollar compensation packages, it appears as though not one of them can stop counting their money long enough to observe the damage they have done to their own business.

By it's own hand, eBay is no longer buzz worthy and instead has become cringe worthy.  If the word of mouth concept that every happy customer tells 3 people but every unhappy customer tells 10, applies, eBay is their own worst enemy.  

The purge of 15,000 sellers served to purge at least 15,000 existing buyers in one swift kick.

The after effect of negative word of mouth will make it next to impossible for eBay to attract new buyers in numbers great enough to replace those they told to get lost.

Expect even more seller-buyers to turn their backs on eBay now that the company has come out and admitted in writing they will intentionally conceal listings from potential buyers.

If eBay is wondering why they can't grow their sales or buyer base, they need only look at the numerous extremely unpopular changes and underhanded treatment of their sellers based on the policies imposed under CEO John Donahoe.

John Donahoe's eBay has become it's own biggest obstacle to success, and he keeps building new roadblocks which will make any significant future growth next to impossible.




Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: Basset

Sun Sep 15 19:24:05 2013

If sellers are selling at a steady pace on a particular venue, they will likely have the confidence to buy at a steady pace on that venue. Logical.

Retention of current buyers & sellers should be a priority. Get that part  right first.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

by: sellmore This user has validated their user name.

Sun Sep 15 19:40:33 2013

If this doesn't make the buyers flock to ebay nothing will.

http://www.youtube.com/watch?v=kjFb3z6nSCE

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

by: NetWatch This user has validated their user name.

Sun Sep 15 20:31:35 2013

What about ebay's many BREACHES OF CONTRACT with their existing users/sellers?         f a corporation enters into a user agreement with you to provide you various services, and you pay them promptly each month, and then glitches or malfunctions interfere with their fulfilling the agreement, even perhaps resulting in some users being suspended or banned, and these malfunctions are allowed to continue without being fixed even though the corporation is aware of them, ISN’T THAT ILLEGAL? That’s what’s going on at ebay to sellers and has been for some time with the DSR glitch/malfunction that ebay acknowledged has existed for quite some time and they haven’t been in any hurry to fix. And now they have admitted to hiding listing from being viewed whenever they want to determined by nebulous unexplained criteria and are even trying to enter that into the new user agreement update.
TORTIOUS INTERFERENCE.













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Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

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

Sun Sep 15 21:41:02 2013

good luck with that JD!

Come back to ebay- you have GOT to be kidding- everybody I know is RUNNING AS FAST AS THEY CAN away FROM Ebay.
Buyers and sellers alike say SCREW YOU to JD.
They will not meet their goal, they will not even be close.
MH

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

by: NetWatch This user has validated their user name.

Sun Sep 15 23:24:52 2013

Remember, if you haven't already, call the FTC about ebay tomorrow morning bright and early. Their 800 numbers are in another recent thread of the past few days.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

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

Sun Sep 15 23:48:11 2013

How many people did you refer to ebay in the past?

How many people have you referred to ebay lately?

When the misguided purge of honest sellers began in 2008, ebay lost forever one of the most effective ebay marketing tools they had - seller word of mouth.
.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: Marie

Mon Sep 16 00:20:09 2013

Remember the days of the IT campaign of TV and Radio commercials.  That campaign was very successful and brought good sales to the site.  

I say if you want to bring more people in, you need to advertise on TV more aggressively and with far more palatable commercials than the last couple of go arounds.  Those commercials clearly showed ebay was ill prepared, arrogant and they do not pay attention to details.  They were horrible commercials to say the least.

But the IT campaign was a good one.  I say dust off the film, change your attitude [meaning Ebay] and get back to your roots.  The attraction of Ebay was all the personal attention by the sellers.  People like that, give it back to them and ease up on the sellers before you drive us all to drink or meds or both.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

by: Bloggo This user has validated their user name.

Mon Sep 16 01:06:58 2013

''We had to create a vision of the future so people could let go of a very successful past.'' John Donahoe 2007

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: bitbybit

Mon Sep 16 05:53:19 2013

I think John Donahoe should get his eyes checked. His vision looks pretty cloudy.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: Rexford

Mon Sep 16 07:04:15 2013

Dance for Wall Street, JD, Dance!  Dance on top of your sellers and your affiliates in those metal spiked dancing shoes.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: Rexford

Mon Sep 16 07:07:04 2013

You can't continue to pour poison into an ecosystem and expect it to flourish.

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

by: FREDDY This user has validated their user name.

Mon Sep 16 08:15:46 2013

To start with, JD has no problem reaching his goal. Not even thinking about it on his''thinking'' days. The JD math works anyway he wants the outcome to be. Why Not say triple. or quadruple? Anything is possible with his math. It's all how you put the numbers together.
You can have 1 item(auto) or 1000 iems (parts making up the one car)
You can have one active user or 4 active users ( All the same with multiple accounts which is common).
You can have one sell for one item, but then add on another sale for the shipping.
It just comes down on how you want the numbers to look.  This has been going on for a  long time. Numbers good, stock goes up, JD makes more money. Did the company really make money - NO. You are awarded stock options - you make an announcement-fix numbers - stock goes up - you sell your awarded stock. Easy way to make money. Forget about the future of the company - it's what can I get NOW.
ebay is really gone down the tubes and the majority of those that have been active on that site realize it is gone. I am not the only one that has dropped ebay for main selling but also for buying. I have personally not only stopped recommending ebay but have told people to stay far away as possible. Last month had a friend who's divorce became final. She has tons of stuff she wants to sell and unfortunately unable to have garage sale due to sub restrictions. She asked if I would help her sell on ebay. NO WAY. You are a friend and I do not put friends in harm way. I did help her set up and sell on Amazon, Etsy and Craigslist. She is happy with the results. I know in my heart she would have been hurt going the ebay route. No one needs to go through that crap.
So JD keep trying to buy buyers. Still at it so I guess the 10.00 or whatever you were running didn't go over like you hoped for in your magical mind.  

Perminate Link for eBay's Campaign to Drive New Buyers to the Site   eBay's Campaign to Drive New Buyers to the Site

This user has validated their user name. by: Anonymous Annie

Mon Sep 16 08:44:04 2013

Being of a certain age, I always enjoyed the eBay ads that used the tune of ''Do You Know the Way to San Jose?'' ....

''Do you know the way to use eBay? Millions of people do. So why not you? Let's start today.''

The ad with the guy who wanted to buy a clock is a memorable one too.

Those days are gone for good. I'm afraid that the new eBay cannot be be revived with a clever ad campaign the the ones of the past. (It couldn't hurt... but it won't save eBay.)

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