eBay Is Losing Steam For Online Auctions
Tuesday, June 3rd, 2008Hassle, that is a four letter word to most Americans. We have created GPS systems, drive-thrus, and number oriented combo meals (credit to Jim Gaffigan for that one) to rid ourselves of “hassle”. When purchasing items online, it seems that dodging hassle has won out again.
In an article, by Catherine Holahan of Businessweek she explains what has happened to eBay, and why online auctions aren’t what they used to be.
eBay used to be the hot place to go for a good deal, or a rare item you were searching for. When you asked your friend where he got an actual feathered velvet pimp hat, his answer was usually ‘eBay’. Now it seems that online auctions are drying up, and fixed pricing is making a push. There are a couple of reasons being thrown around as to the reason behind the lack of interest in auctions.
The first reason, is the one I mentioned in the first paragraph, “hassle”. Why would you sit around, keep track of an item to make your bid, when you could simply buy it with one click of a mouse? In Holahan’s article, she mentions how Amazon’s sales rose dramatically in the first quarter of the year, while eBay was straggling behind.
Although the “ease of buying” might have played a part in the charge of fixed pricing, the second fact is probably more important. Earlier in the year, eBay changed its’ pricing structure. Basically, eBay gave better breaks to power sellers who relied more on one click shopping, while increasing costs for smaller sellers who relied on auctions. eBay execs have said they plan on altering their structure to provide smaller sellers with less cost, but no details have surfaced yet (big surprise).
The latest news about eBay is nothing of a surprise. When a company gains popularity, they will do anything in their power to stay that way. Even if it means giving up on what made the company so great in the first place. I was never a huge eBay buyer, but when I did use it the thrill of bidding and finding an item was an amazing feeling. Although “buy now” has a more convenient sound, it just can’t replace the auction model, and all the cool intricacies that come along with it.
