Revealing The Online Ce Buyer

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  • Good afternoon and Welcome everybody Thank you very much for taking time out of your busy schedules to learn about eBay My name is Patrick Jabal – I’m here today with about 20 of my colleagues from eBay and PayPal Most of us work up in San Jose, where eBay was founded a little over 9 years ago Since then eBay has grown to have more than 8,400 employees in office around the world My responsibility at eBay is to manage eBay’s Computers and Networking categories – a sliver of the overall eBay marketplace As a Category Director my job, and that of my team, is to make sure that eBay is meeting the needs of buyers and sellers of Computer and networking hardware and software I work with colleagues in teams organized just like mine, to manage a range of eBay categories from clothing to sporting goods to cars to Jewelry - we have several categories represented here today But enough about me. How many of you have bought or sold an item on eBay before? May I see a show of hands please? How many of you already sell on eBay for your business? To those of you who are already selling on eBay I say Welcome, and thank you, but you should know that today’s presentation is intended to provide an overview of eBay for people who don’t yet know much about eBay… if you’re already selling on eBay chances are you’ll be familiar with most of what we’re going to cover in the next hour or so How many of you wake up in the morning and go to bed at night thinking about new ways to grow your profits? Many hands… Prior to eBay I spent 12 years running 2 small businesses – one was a computer hardware company, and the other was a software company – and I can tell you that I spent a lot of time thinking about new ways to grow my businesses Before we take a look at the agenda together I’d like everybody to consider the following question: When was the last time you had a new idea to grow your business… a real new idea… not simply a new customer, or new product, or new service, but en entirely new way of doing things either instead of or in addition to what you’re already doing in your business? So hope is that for many of you on attending today, is for eBay to be your big new business growth idea for 2004 and 2005. Now let’s get started by taking a look at today’s agenda

Transcript

  • 1. Revealing the Online CE Buyer CEA Winter Summit 2005 Karl Wiley Director, Consumer Electronics & Photo eBay, Inc.
  • 2. Online CE buyers come in all shapes & sizes Resellers? Installers? Enthusiasts? kandb_audio (237 ) User1591 (388 )
    • Positive Feedback: 99%
    • User since: February 2004
    • Items purchased last 2 months: 161
    • GMV purchased last 2 months: $8,600
    • Specialty: Used / damaged car audio
    • Positive Feedback: 99%
    • User since: September 2001
    • Items purchased last 2 months: 218
    • GMV purchased last 2 months: $14,100
    • Specialty: Used / damaged car audio
    Punch Amp - Broken Eclipse Amp – Needs Repair 250 ft. Power Gnd Wire 10 packs Solder remover Alpine CD Receiver - Damaged Panasonic CD Changer – Used, untested 1991 Silverado Factory CD Player Alpine Alarm System - Used
  • 3. Online CE buyers come in all shapes & sizes Collector? Audiophile? Exchange Rate player? bakko_it (69 )
    • Positive Feedback: 100%
    • User since: April 2000
    • Registered in: Italy
    • Items purchased last 2 months: 12
    • GMV purchased last 2 months: $27,000
    • Specialty: Vintage Audio equipment
    McIntosh 50 th Anniversary Gold Edition Tube Amp - $6,000 Pair RCA Radio Tubes – New in box McIntosh PreAmp - used
  • 4. Online CE buyers come in all shapes & sizes A dream customer? spudsblue (50 )
    • Positive Feedback: 100%
    • User since: September 2003
    • Items purchased last 2 months: 16
    • GMV purchased last 2 months: $4,600
    • Specialty: Cross-category electronics
    Sony VAIO Laptop Industrial Editing VCR Dozens of Classical, Jazz and Blues cassettes & CDs Bose Wave Radio Remote Nakamichi Dragon Cassette Deck Pioneer Elite THX Receiver
  • 5. Internet commerce growth accelerating Estimated Quarterly U.S. Retail E-commerce Sales: 4th Quarter 1999 – 3rd Quarter 2004 (Billions of dollars) Source: US Department of Co`mmerce Q1 2004 up 22% year-over-year – 11 straight quarters of 20+% growth Online sales estimated to represent 10-15% of total CE Retail Sales
  • 6. Monthly Top 20 Shopping Destinations Source: Neilsen NetRatings = Marketplaces / Shopping Engines YOU can participate in = Other online electronics sellers 70% of top 20 online shopping sites offer CE products
  • 7. Electronics & Computers are eBay’s largest categories * Figures are Global Annualized Gross Merchandise Volume ($B) as of 9/30/04 Motors (eBay’s automobile marketplace) $11.1 Consumer Electronics $3.5 Computers & Networking $3.0 Clothing & Accessories $2.9 Books, Movies, Music $2.4 Sports $1.8 Collectibles $2.2 Toys $1.8 Cameras and Photo $1.7 Jewelry & Watches $1.3 Home & Garden $2.0 Business & Industrial $1.2 $7.7 billion global electronics business
  • 8. Karl – we get it – there are a lot of online buyers. But . . .
    • . . . are they
    Angels? Devils?
  • 9. eBay’s “Angels”
    • Compared to the US population, visitors to eBay’s Consumer Electronics category are:
      • Affluent : 31% more likely to have household income >$100,000
      • Well-educated : 21% more likely to hold a college or graduate degree
      • Passionate about electronics, and early technology adopters *:
        • 98% more likely to own 3 or more home computers
        • 43% more likely to own a digital camera
        • 158% more likely to own an MP3 player
        • 65% more likely to own a digital television
        • 95% more likely to own a Home Theater System
      • Active offline electronics shoppers :
        • 111% more likely to have purchased at Circuit City within the last month
        • 81% more likely to have purchased at Best Buy within the last month
        • 172% more likely to have purchased at Sharper Image within the last month
    *Compared to Online population only
  • 10. eBay is the #1 Online Shopping Destination Site eBay Amazon Wal-Mart Stores Yahoo! Shopping Shopping.com Target Bizrate.com Overstock.com Sears NexTag Rank 1 2 3 4 5 6 7 8 9 10 Unique Audience (M) 51 37 21 18 17 16 13 13 9 8 Web Page Views (M) 1,142 160 56 18 15 3 1 0.3 0.2 0.04 Sessions Per Person 8.11 3.03 2.08 1.89 1.72 1.82 1.48 2.01 1.83 1.39 Note: eBay traffic excludes PayPal traffic; traffic also excludes traffic to corporate websites Source: Monthly traffic data from NetRatings; November 2004 data
  • 11. eBay can help you reach online buyers
    • Ensure appropriate flow of product to eBay
    • Select & promote sellers who will represent your brand appropriately
    • Create a ‘Factory Outlet’ store for any product not channeled through your authorized dealers
    • Drive consumer upgrade cycles by offering Trade-In programs
  • 12. 1. Ensure flow of Product eBay is effective across the full Product Lifecycle end-of-life used/vintage new/scarce in-season retail Product launches and Limited runs Closeouts, and Refurbished Used, and Collectible Slow moving new - in-season, and returns
      • Acquire new customers
      • Turn over inventory faster
      • Test demand for new products
      • Move items that aren’t selling through other sales channels
      • Get more for product returns
      • Liquidate out-of-season stock
  • 13. 1. Ensure flow of Product Flow B-Stock through managed, authorized internet channels
    • Key benefits:
      • Relieves supply chain tension
      • Buyers choose to participate – product goes to those who want it
      • Increased cost recovery – product sold for fair market value
      • Reduce costs currently associated with moving B-Stock (returns processing, multi-channel liquidation)
      • Remove MAP earlier and let product flow into the private marketplace – avoid expensive incentive programs on slow-moving A-Stock
      • Keep non-participating retailers focused on A-Stock sales
    OEM Distributors Authorized offline dealers eBay Private Marketplace Authorized online dealers (eBay)
  • 14. 1. Ensure flow of product eBay Private Marketplace Platform
    • What it is
      • Your own private label, off-eBay, business-to-business auction marketplace
    • How it works
      • Marketplace created with your branding and overall look
      • Can stand along or be integrated with your existing website
      • Invite your preferred buyers to register or simply pre-register them and automatically issue usernames and passwords
      • Use multiple selling formats and inventory management and reporting functionality to increase your sales
    • Benefits
      • Sell in large wholesale lots
      • Lower sales cost
      • Increased recovery rate on liquidation merchandise
      • Protect your brand and pricing by approving your buyer network
    Talk to eBay today or email privatemarketplaces@ebay.com
  • 15. 2. Select and promote sellers eBay Authorized Dealer Programs
    • Key Benefits to Manufacturers :
      • Mandate qualifications for participants
        • Minimum positive feedback rating
        • Return policy, shipping policies, etc.
      • Elevate authorized dealers within eBay seller community
        • Provide trademarked “eBay Authorized” logo
      • Provides transparency to dealer behaviors – easier to monitor than offline retail
      • Can provide performance incentives to reward success, other desired behaviors
    • Key Benefits to Resellers:
      • Preferred access to product
      • Use of manufacturer logos, images drives efficiency
      • Authorized seal drives buyer confidence
      • Can offer full manufacturer warranties
      • Authorized outlet for in-store overstocks and returns
    Concept : Authorize selected resellers to sell your products on eBay
  • 16. 2. Select and promote sellers Olympus Showcase
  • 17. 2. Select and promote sellers HP Marketplace
  • 18. 3. Create a Factory Outlet Direct eBay Sales
    • You can also choose to open a direct sales channel for B-Stock and Excess on eBay
    Harman Audio Pioneer Dell Olympus
  • 19. Retail coupon / rebate offer 4. Trade-In Trade-In programs can drive brand loyalty
    • eBay provides a highly liquid market for used electronics
    • Manufacturers can take advantage of this demand to drive upgrade cycles, brand loyalty, and customer acquisition
    OEM Offer: Trade in old equipment of ANY brand Existing OEM brand owners Competitor brand owners Used equipment Accelerate upgrade / replacement decision Strong incentive to stick with OEM brand Strong incentive to switch to OEM brand
  • 20. 4. Trade-In Turnkey Model: trade-in back-end handled through partnerships
    • Manufacturer
      • Markets program (web site, retail partners)
      • Administers coupon / rebate
    • Third-party partner
      • Powers calculator
      • Purchases product from OEM
      • Sells product on eBay
      • Handles inbound & outbound logistics
    • eBay
      • Provides marketplace
      • Supplies data for value calculator(s)
  • 21. Questions? Talk to us here at the Summit!
    • Karl Wiley, Director, Consumer Electronics & Photo
    • Cathy Siciliano, Director, Cell Phones & Portable Electronics
    • Jamie Stark, Category Manager, Home Audio & Video