EcommerceBytes-NewsFlash, Number 2463 - January 24, 2011     2 of 4

eBay Terminates VIP Level of eBay Bucks Loyalty Program

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eBay sent an email to members of its eBay Bucks loyalty program last week informing them it was terminating the program's VIP level effective January 31, 2011. eBay launched the eBay Bucks program in 2009 after initial testing in 2008, and officially launched the program in August 2010. The eBay Bucks program will continue without the VIP level, which had offered top buyers added incentives.

eBay does not reveal how many members of the program are at the VIP level, which according to eBay spokesperson Johnna Hoff was a pilot project. "eBay Bucks has been widely adopted by the eBay community and continues to grow," she said, adding that eBay would continue to evaluate new ways to enhance the overall eBay Bucks program and deliver even more value to eBay's most loyal shoppers.

The eBay Bucks reward program offers consumers 2% back on most items purchased through the site with PayPal. eBay Bucks accumulate every three months, with a $500 cap, and members then have 30 days to redeem their eBay Bucks towards purchases with PayPal on eBay.com. VIP members had been eligible to receive up to $750 every 3 months. eBay has also used the program to send promotional emails offering discounts from select PowerSellers.

eBay said that, on average, consumers enrolled in eBay Bucks spent five times more on eBay than those not participating in the program. During a conference call with analysts, eBay CEO John Donahoe said the program was not attracting new shoppers, but was a way to get top buyers to purchase more. "It's "one element of our marketing mix," he said.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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