Why Ecommerce businesses should still be interested in eBay
eBay launched in 1995 and by 1997 had sold its first million products. Today eBay retains a commanding position for second-hand goods and as a clearance channel. Brands and sellers find engaged audiences for discounted ranges, returned stock or discontinued lines.
eBay also generates full price transactions and has one of the strongest Brand recognitions in the marketplace space. The company offers enhanced analytics data for sellers, expanded marketing tools and capabilities to ensure it has a compelling offer for all kinds of sellers. The key is picking the right strategy to support your business objectives.
What kinds of businesses are most appropriate for eBay?
Any online retailer should at least consider eBay. It has one of the widest ranges of categories, combined with large daily volumes of buyers searching for all kinds of products.
eBay also is one of the easiest marketplaces to begin trading on, with key set up steps typically taking only a few minutes. Emerging Brands and smaller traders can benefit from low fees and minimal hassles getting set up and selling to a community of millions of active buyers.
THis all said, clearly the eBay audience is primed for off price product, so it works most effectively, where sellers are aligned to this with clearance, outlet, refurbishment, second-hand strategies.
What are the top three things business should understand about how to approach using eBay as a marketplace?
Firstly, eBay is not like many newer marketplaces insofar as it is not an online catalogue. You do not 'connect' to a listing shared by many for most products. Instead, you list your products on your store, while another seller may sell the identical product on their store, under a different listing.
Secondly, eBay very much favours a long-game and longevity of sellers and listings. Successful eBay sellers tend to have established their position over several years. Their selling account has slowly accumulated history and is rewarded over time for their positive pool of KPI's. This is true at listing level too - a single listing with a consistent record of sales can dominate categories and product types.
Thirdly, it's all about conversion rates. Many new eBay sellers make the mistake of trying to cast a wide net on products to attract maximum traffic. Over time, because eBay grades your conversion rates, so this can work against you. Focusing on the right products and buyers from the start is a better way to grow your eBay presence.
Like all marketplaces eBay focuses on a good buyer experience and grades seller accounts. It’s critical to keep regular attention on how you are rated or risk having your account downgraded.
How do you make sure you get seen on eBay?
eBay is one of the most important marketplaces to invest time on data quality for long term success. Unlike catalogue marketplaces where you can connect and leverage a listing which someone else took time to enhance, eBay demands you invest time in your listings directly.
The title on every listing is the prime eBay real estate. A well optimised title qualifying the buyer with aligned and targeted key words leads to a stronger long term conversion rate. Item specifics, used by buyers to filter results, are also important to get right as they act as extended keyword search terms.
eBay’s marketing tools should be leveraged to boost your presence beyond that of more established organic only sellers.
For more established brands working closely with category teams at eBay can be an option too, which is something we have lots of experience with and can help get marketing visibility on things like the Brand Outlet page and promo features.
What types of businesses do well on eBay today?
Clearance and outlet channels continue to well on eBay. eBay buyers tend to be price focused, seeking a good deal that they are often happy to wait a few days to receive over other more convenience-centric channels that reward speed.
eBay grants you greater connection to buyers and how you use that can be very commercially rewarding. eBay is a good place to trial products and gauge price point effects. You can be creative with listing configurations and A/B testing compared to catalogue marketplaces, which tend to have more fixed data configuration requirements.
There are success stories on eBay for all types of Brands, business models and product verticals. The most successful sellers play a long game and interact well with buyers, rather than seeking to force a desired commercial outcome in a fixed period.
To give you a view on the spectrum of successful brands, some of our clients with a strong eBay business include Mountain Warehouse, River Island, Seasalt and Oliver Bonas. These focus on outlet/off price/value and often see eBay as their online outlet store.
How has eBay changed in the last 5 years
Whilst eBay was once was bigger than Amazon, it has lost market share over time. In part, this is because eBay has changed its identity and focus over the years, often with mixed success.
The core of eBay’s ongoing success comes from its roots - being a place to hunt for a good deal, be it a new or second-hand item.
How should eBay fit in your marketplace strategy in 2022
Most marketplaces are increasingly catalogue based, which focuses more on the product and seller's logistic services above other factors.
eBay remains one of the original and last seller-driven catalogue marketplaces. While that has some drawbacks, it also gives sellers benefits in being able to be creative and try new ideas.
eBay, like many marketplaces, needs a defined home in your strategy. Not all marketplaces will produce the same results or measure you on the same things. It has its own set of opportunities for you to find and leverage, as well as dead ends or pitfalls.
Companies that embrace eBay for its position in the market and leverage that with the right product and pricing strategies can reap rewards and insights to better serve their other channels. Using eBay to free up warehouse space has always been a rewarding strategy.
If you are a Brand focused on premium identity and with no interest in reducing prices on these third-party sites, eBay may not be right for you. Alternatively, if you are interested in an off price strategy or sell fashion at attractive prices, it could be a great fit. eBay UK in particular has a very good reputation for fashion.
From homewares, to pet goods, to gadgets, second-hand, new or clearance, eBay is worth consideration. eBay has a buyer base, which you can always find value in leveraging.
If you’d like to discuss how best to maximise your eBay presence, or simply want to get an independent opinion on how to take your eBay business to the next level, we’d be delighted to talk to you. As an eBay Partner for 5+ years we have a lot of experience here.
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