728_header.jpg (23748 bytes)
 Home   EB Blog   AB Blog   Letters   Podcasts   ABTV   Forums   EPIS   PR Service   Classifieds   Ecommerce EKG   Service Ratings   
  Subscribe    RSS Feeds    Twitter        Contact Us  Web Site  
Service Ratings 
   Auction Sites
   FP Marketplaces
   Inventory Management
   Payment Services
   Storefronts & Carts
   Sniping Services
   Wholesale/Dropshipping
   Email List Hosting
   Consignment Services
   Ecommerce EKG 
   Auction Calendar
   Collectors' Links
   eBay Promo History
   Bookshelf
   Fraud Resources
   Drop-Off Store Laws
   ABTV
   Ecommerce Resources
   Photo Tips
   Marketing Inserts
   Yellow Pages
   Advertising

EcommerceBytes-NewsFlash, Number 2295 - May 26, 2010 - ISSN 1539-5065     | Next
Is Technological Innovation the Key to eBay's Turnaround?
By Ina Steiner
EcommerceBytes.com
May 26, 2010




If you haven't searched eBay for a video game, book or DVD lately, you might have missed the new shopping experience in eBay's media category. eBay uses a Catalog approach similar to Amazon: eBay's search engine returns a list of products instead of product listings, and shoppers choose the exact product they are looking for.

eBay's Product page include a standard description and stock photo along with a feature similar to Amazon's "Buy Box" - called a "Savings Box" - that highlights just a few listings, with the rest of the listings appearing underneath. A "Group by condition" checkbox lets shoppers sort by item condition (Brand New, Like New, Very Good, Good, Acceptable).

This is an eBay Product page for the Mario Sonic Olympic game for the Nintendo Wii, and is an example of the type of technological innovation eBay believes is key to the turnaround of its Marketplaces business.

During Analyst Day last year, eBay CEO John Donahoe told Wall Street analysts eBay needed to revamp its technology, focusing on innovation. Mark Carges is the man charged with that mission. Carges is eBay's CTO and Senior Vice President of Global Platform for eBay Marketplaces, and he told analysts at the meeting that technology would drive strategy at eBay.

But has eBay lived up to its word? eBay is under pressure to improve - Donahoe told analysts that the eBay marketplace would grow faster than ecommerce in 2011 as a result of his turnaround efforts, yet it continues to have difficulty catching up with ecommerce growth rates.

Wall Street continues to wait. Deutsche Bank's Jeetil Patel recently described eBay's supply and demand as out of balance due in part to duplicative listings caused by changes to fees and moving Stores to core. He described eBay has having a "listings metaphor," rather than a product metaphor seen on sites like Amazon.com. eBay's expansion of catalog beyond the media category is designed to help its search engine handle the influx of listings on its site. A recent report from Citi analyst Mark Mahaney stated that the number of cataloged listings on eBay increased from 6% in 2008 to 20% in 2009. eBay plans to double the cataloged listings in 2010.

I asked eBay last week for a progress report on the technology innovations broadly outlined at last year's Analyst Day. Last week, eBay agreed to provide answers from Mark Carges by Tuesday afternoon, but instead, provided answers from eBay spokesperson Johnna Hoff. In part, she said "Our focus on the technology front has been strengthening eBay's foundation and taking steps to set the stage for future innovation. We have taken time to lay the groundwork, hiring a world-class tech team, building an experimentation platform, launching the Garden by eBay, and listening to customers. From that, we've driven early successes that eBay users have told us perform well." She cited eBay Top-rated sellers; More like this feature; and Mobile as examples, and said "there is much more to come." She declined to answer whether eBay planned to introduce a multi-item/multi-seller shopping cart.

There's no doubt that eBay has undergone some significant changes in the past two years. In addition to opening its platform to third-party developers and launching mobile apps, here are some of the changes you may notice when surfing the eBay website:

  • Custom fashion shopping experience - link
  • Daily Deals - link
  • Fashion Vault - link
  • Catalog - link
  • Multi-SKU - link
  • Visual browse on Fashion portal - link
  • Diamond-ring builder - link

But whether all of these changes could be classified as technological innovations is debatable. A former high-level eBay employee who had visibility into eBay's technology platform and wished to remain anonymous said new features, such as Daily Deals and eBay's Fashion Vault and fashion portal, were merely "business deals" and were not examples of technological innovation. "eBay is changing the dynamic of sellers and inventory by reaching out to certain sellers. eBay has done a fairly good job in mobile, but overall, eBay is recognizing other people's innovations, and are not drivers of innovation themselves."

He questioned eBay's time spent replicating a more traditional online shopping experience through efforts such as catalog, stating that new inventory is not one of eBay's core strengths. Shoppers go to eBay for unusual items, he told AuctionBytes. "They're not being honest with themselves if they believe eBay is a starting point" for product searches on the Internet. eBay had told analysts last year that it aimed to be the starting place when consumers went to shop online, being able to provide new and used items in all formats: fixed-price, auction, classifieds and advertisements.

Aside from the catalog, it's difficult to determine whether eBay is making improvements to its search technology, and how, because eBay won't reveal much about its search algorithm.

eBay's Hoff said there are more than 80 million searches performed per day, more than 50,000 categories, in multiple formats. "Best Match is based on item relevance, price and the quality of the inventory and the seller. We are using - and continue to improve on - our predictive models to match buyers who need an item with sellers with the best inventory who offer the best experience."

Deutsche Bank's Patel said Best Match leaves it up to eBay to determine the sellers and the individual products that it wants to highlight from a results standpoint, and said, "It becomes difficult for that technology to keep up with the influx of inventory that's growing on site. You may end up with a worse customer experience potentially off of it. The only unfortunate part is, we'll find out over time whether there's changes to the platform."

Steve Taylor, an expert in search technology and creator of a software program designed to help collectors find items on eBay (one of the first members of the eBay Developer Program), said it's difficult for eBay to be everything to everybody. He pointed to niche sites like StampWants.com (now called BidStart.com), saying it offers a better search experience than that of eBay's stamps category because of its specialization.

Taylor believes eBay may have been testing catalog in collectible categories at one point, and said it does not work when applied to collectibles where quality of the item is important.

One change expected to foster innovation at eBay was the opening of its platform to third-party developers through eBay apps. However, many developers were attracted to the open-platform program because it offered a means to get in front of sellers, something that has been traditionally difficult to do in the eBay ecosystem.

One developer that says it is benefiting from the program is Outright, an eBay bookkeeping solution for sellers. Outright's Paul O'Brien said aside from the exposure his company gains from the program, it is the insight the company gains through access to information that is most beneficial. Going directly to the point of transaction, Outright is able to collect much richer data than from the payment processor, such as what item was sold and who the customers are, helpful information for business planning by the sellers who use Outright.

eBay offers users a peek at some of the projects it is working on with its new Garden that allows users to test new features and provide feedback to eBay. Three months ago, eBay Vice President of Engineering Dane Glasgow told AuctionBytes the Garden brings users directly into the innovation process at eBay by soliciting - and acting on - their input to improve features before eBay launches them.

A better glimpse into eBay's priorities, however, was the disclosure of eBay's Marketplace Goals late last week. The question of whether technology is driving strategy remains to be seen.

Comment on the AuctionBytes Blog

You may quote up to 50 words of any article on the condition that you attribute the article to EcommerceBytes.com and either link to the original article or to www.EcommerceBytes.com.
All other use is prohibited.

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Sign up for our Email Newsletters

Email this story to a friend.

| Next

 EcommerceBytes Blog 
 AuctionBytes Blog 
 Letters to the Editor 
Related Stories 
Related Stories
  • AuctionBytes Scorecard for Forthcoming eBay Changes - January 04, 2010, Issue #2193
  • eBay CEO Tells Analysts Company Will Rebalance U.S. Marketplace - January 21, 2010, Issue #2206
  • eBay Sellers to Cope with More Changes, This Time to Fees and Stores - January 26, 2010, Issue #2209
  • eBay Changes - Heard on the Street - January 27, 2010, Issue #2210
  • eBay Rebalances the Marketplace with New Fee Structure - January 27, 2010, Issue #2210
  • Survey Measures Impact of Fee Changes at eBay - January 28, 2010, Issue #2211
  • AuctionBytes Interviews eBay Executive Todd Lutwak on New Fees - February 01, 2010, Issue #2213
  • eBay UK Announces Spring Changes for Sellers - February 02, 2010, Issue #2214
  • Survey Results - eBay Sellers Say Fee Changes Will Cost Them More - February 07, 2010, Issue #256
  • Survey Shows Small Sellers Taking Brunt of eBay Fee Changes - February 08, 2010, Issue #2218
  • So Who Exactly Benefits from eBay Fee Changes? - February 10, 2010, Issue #2220
  • Harvesting the News from eBay's Garden Launch - February 10, 2010, Issue #2220
  • eBay's Dane Glasgow Answers Questions about New Garden Initiative - February 11, 2010, Issue #2221
  • eBay Schedules Town Hall Meeting for Day after New Fees Take Effect - March 02, 2010, Issue #2234
  • eBay Expands Multi-Variation Feature to More Categories - March 18, 2010, Issue #2246
  • eBay Sellers No Longer Required to Print Shipping Labels on PayPal - March 26, 2010, Issue #2251
  • The New eBay: Store Moves to Core, More Complicated Fees - March 31, 2010, Issue #2255
  • eBay Clothing Gets a Fashion Makeover in UK - April 13, 2010, Issue #2264
  • eBay Anomaly Part of Stores In Core Testing - April 16, 2010, Issue #2267
  • AuctionBytes Survey Measures Effects of New eBay Initiative - April 19, 2010, Issue #2268
  • eBay CEO Says Stores-in-Core Will Take 2-3 Quarters to Play Out - April 22, 2010, Issue #10
  • eBay's 2010 Seller Release 2 Includes Anonymous Email Addresses - April 27, 2010, Issue #2274
  • Interview with eBay VP Reveals More on Summer Seller Update - April 28, 2010, Issue #2275
  • eBay Holds Town Hall Meeting, Webinar, to Address Seller Update - April 29, 2010, Issue #2276
  • eBay UK Tests Feedback, Works on Protecting Sellers from Buyer Abuse - April 29, 2010, Issue #2276
  • AuctionBytes Survey Finds eBay Stores-in-Core Impacts Sales - May 02, 2010, Issue #262
  • Editorial: eBay's Opened-Case Policy Is a No-Win for Sellers - May 03, 2010, Issue #2278
  • Survey Reveals Negative Impact of eBay Stores-in-Core Changes - May 03, 2010, Issue #2278
  • eBay Quits Sending Traffic to Stores Portal Page - May 11, 2010, Issue #2284
  • eBay Requires Sellers to Describe Condition of Items - May 12, 2010, Issue #2285
  • Patel: eBay Faces Challenges in Turnaround - May 19, 2010, Issue #2290
  • eBay Canada Makes Changes to PowerSeller Qualifications - May 21, 2010, Issue #2292
  • Is Technological Innovation the Key to eBay's Turnaround? - May 26, 2010, Issue #2295
  • eBay Retires QuickBooks Integration Tool - June 03, 2010, Issue #2301
  • eBay Users May Now Filter Sellers' Negative Feedback Ratings - June 14, 2010, Issue #2308
  • eBay Eliminates Featured First Advertising Program - June 16, 2010, Issue #2310
  • eBay Promotes TRS Program with New Seller Performance Reports - June 29, 2010, Issue #2319
  • eBay Abruptly Cancels Pay-Per-Click Ad Program - July 02, 2010, Issue #2322
  • eBay Announces More Changes Impacting Sellers in September - July 13, 2010, Issue #2324
  • eBay UK Announces Shopping Cart Test and SR3 Seller Changes - July 14, 2010, Issue #2325
  • eBay Updates User Agreement Impacting Sellers - July 21, 2010, Issue #2330
  • eBay to Tweak U.S. Search after Domestic Market Disappoints in Q2 - July 22, 2010, Issue #2331
  • eBay Tests Redesigned Item Page in US and Europe - August 10, 2010, Issue #2344
  • eBay to Display Standardized Delivery Time in Listings - August 12, 2010, Issue #2346
  • eBay Launches Auto Relist for Unpaid Items - August 19, 2010, Issue #2351
  • eBay to Pilot Sales Tax Calculator - August 24, 2010, Issue #2354
  • eBay Changes Shipping-Cost DSR Feedback Policy - August 27, 2010, Issue #2357
  • Get Your Score Cards, eBay Fall Changes Are Here - September 02, 2010, Issue #2361
  • eBay to Highlight Listings from Fashion Brands and Retailers - September 03, 2010, Issue #2362
  • eBay Products and Reviews Brings Shopping Closer to Amazon - September 03, 2010, Issue #2362
  • New eBay Policy Prohibits Duplicate Fixed-Price Listings - September 21, 2010, Issue #2374
  • eBay Updates Feedback Policy: 5 Star DSRs for Free Shipping - September 21, 2010, Issue #2374
  • eBay's Todd Lutwak Gives Context to Major Announcements - September 22, 2010, Issue #2375
  • Cheat Sheet on eBay's Surprise September Announcements - September 26, 2010, Issue #271
  • AuctionBytes Publishes Guide to Forthcoming eBay Changes - September 27, 2010, Issue #2378
  • eBay Rolls out New Vertical Shopping Experience beyond Fashion - September 30, 2010, Issue #2381
  • eBay to Overhaul Search Engine, Tests Are Rampant on Site - October 20, 2010, Issue #2395
  • eBay Tests and Tweaks Pages During Holiday Shopping Season - October 26, 2010, Issue #2399


  • Discussion Forums 
    Have a question about buying or selling online? Want to get marketing or technical advice? AuctionBytes Discussion Forums are the place to come to get answers to your questions and get advice! Great tips - a refreshing change!

    Current Discussions:
     

    About Us      Privacy Policy      Link to Us      Partners      Our Writers      Write for Us      Press        Site Index

    Copyright 1999-. Steiner Associates LLC. All rights reserved.