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Source: Information Rules, Shapiro Taking on eBay

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Transcript

  • 1. Taking on eBay Issues in a Network Economy Chris Goodwin Sam Graber Matt Grace Michael Nelson
  • 2. Overview
    • Introduction
    • eBay
    • Online Auction Portal Concept
    • Establish Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 3. Introduction
    • Can ANYONE compete with eBay?
    • No!
      • Why not?
    • Yes!
      • How do you build a large enough online community in the relatively short amount of time before eBay tries to sink you?
      • Prey upon eBay’s weaknesses!
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 4.
    • Largest, most recognized online auction facility in the world
    • Monopolistic characteristics
      • Enormous brand equity
      • No substantial competition
      • Essentially unregulated market
      • Significant economies of scale
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 5. (and others)
    • Chinks in the armor
      • Reluctance to partner with other auction sites
      • Cumbersome search engines
      • Lack of standardized categories
        • Un-user friendly
        • Not intuitive
      • Multiple registration processes across different auction sites
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 6. Online Auction Portal - Concept
    • Build upon eBay’s existing formula for success (extensive online community)
    • Consolidate so-called “second tier” auction houses under one common “portal”
    • Pool individual strengths & resources
      • Together we stand, divided we fall
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 7. Online Auction Portal - Concept
    • Each auction house remains own, independent entity
    • Become partners, or members, of our online portal service
    • Include traditional online brick and mortar retailers
      • Symbiotic relationship
        • Struggling retailers get online presence and move hard to sell inventory
        • Users gain additional much desired purchasing options
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 8. Online Auction Portal - Concept
    • Further differentiate by adding ‘Proxy’ service
      • Search engine scours every online auction site and retailer looking for specified merchandise
      • Places bid on product
      • Purchases within specified time period
      • Add small service charge for service
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 9. Establish Positive Feedback
    • In order to compete with eBay, it is essential to develop positive feedback
    • Establish positive feedback by:
      • Improving buying & selling experience
      • Examples:
        • Standardize search for products – include detailed search form
        • One-time registration process across all member auction sites
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 10. Build Trust
    • It is imperative for portal service to build trust among buyers & sellers
      • Allow sellers to carryover existing reputation ratings from other auction sites (including eBay)
      • Brick and mortar retailers would automatically get highest ratings
      • Partner with reputable e-commerce purchasing service (ie. Paypal)
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 11. Revenue Model
    • As most dot.coms have realized, it IS important to produce revenues!
      • Charge sliding scale commissions
        • 1%-3% for any items sold through our service
      • Proxy service: 5% added surcharge to purchases made through proxy service
      • Banner Advertisements (Playboy.com charges 10K for advertising space)
      • Substantial portion of initial VC money used on media advertising
        • Must generate site awareness in order to compete
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion
  • 12. Discussion
    • Why wouldn’t this work?
      • Win/Win for everyone (except eBay)
    • Is media blitz enough to generate site awareness? (ie. WingspanBank.com)
    • Can consolidated online auction services actually compete with eBay?
    • Introduction
    • eBay
    • Concept
    • Positive Feedback
    • Build Trust
    • Revenue Model
    • Discussion