What to Watch from eBay's Annual Events, Part 2

Implications: 6.    what is next for Skype? 7.    how will eBay continue to focus on its core differentiators in the wider ecommerce marketplace (auctions, community, charity listings, long-tail selection, low barriers to entry for individuals/small biz, etc.)? 8.    how will eBay work to align its seller incentives with buyer demands?

Analysis:  

-what is next for Skype?

We’ve still heard mixed reviews from sellers about the integration of Skype into normal eBay business operations. It will be interesting to see if there will be any additional mashup opportunities around Skype, StumbleUpon, eBay and possibly Yahoo (and of course with PayPal in the mix).

-how will eBay continue to focus on its core differentiators in the wider ecommerce marketplace (auctions, community, charity listings, long-tail selection, low barriers to entry for individuals/small biz, etc.)?

Perhaps it’s telling that when Meg Whitman accepted a lifetime achievement Webby award on behalf of eBay’s 233 million users – and was like all other winners limited to a five-word acceptance speech – she exclaimed, “bidding starts at ninety-nine cents!”

While rightly seeking incremental income from the legions of small businesses it’s spawned, and from the convenience (and safety-)-conscious shoppers who happen to stop by, eBay is focusing on its core differentiators. We’ll see how Philip Justus helps focus on the elements that make the eBay site like no other: auctions starting at ninety-nine cents; a thriving community of millions of users (who actually seem to care about each other and enjoy spending time together); thousands and thousands of listings benefiting great charities; an unparalleled assortment of everything under the sun; and a still-unmatched opportunity for just about anyone to start and run their own business from their own home.

-how will eBay work to align its seller incentives with buyer demands?

Take a look at one little-known eBay policy known as the “eBay Giving Works fee credit policy” (http://pages.ebay.com/help/sell/givingworks-fee-policy.html) which has significance far beyond it renown.

In short, the policy gives sellers rebates on their fees for sales made through the eBay Giving Works program (the rebates are pro-rata based on the amount donated to charity). The significance is two-fold.

First, the policy says a lot about the community-focused values that eBay has as a company, and that play out in the loyalty shown by buyers and sellers on the site. The policy helps grow the eBay Giving Works program which (coming in part from a nonprofit fundraising background) I can tell you is one of the most important, scaleable, sustainable philanthropic programs ever conceived (FULL DISCLOSURE: after years as an advocate for the program, I was asked to do consulting for it, and continue to do so).

But there is a second, equally-significant brilliance to this little-known policy that is absolutely worth keeping an eye on: it incents sellers to do something buyers really like.

So in contrast, for example, to eBay’s policies around shipping (which still incent sellers to charge too much), this policy incents sellers to individually do something which benefits eBay and all its sellers collectively.

When buyers see that their purchase benefits a charity, it’s good not only for that seller, but for eBay as a whole. It just makes eBay look good.

Just as do free shipping, great customer service, money back guarantees, fast shipping and many other choices a seller can make. eBay would do well to provide incentives – promotional and financial -- for sellers to do these things as well.

I'll try to add a new analysis reporting on Live! soon.

-David