Selling on eBay: Can a Big Brand Make it on eBay?
With e-commerce growing in the double digits this year, more retailers are turning their attention to selling online. Traditionally, larger retailers have stuck to bidding on keywords to drive traffic to their websites in hopes of selling product there. Savvy retailers, however, have realized that eBay shouldn't be ignored.
Given the current tenuous state of the economy, large retailers are looking to further diversify their businesses and grow sales by venturing out to other online channels. While in the past launching a new marketplace on a site such as eBay presented challenges for large retailers from a technical and business standpoint, that's beginning to change. As opposed to its traditional auction-style listings — which are generally less attractive to big brands that don't have the flexibility to compete in this environment — eBay is moving toward a fixed-price marketplace. It's also lowering its listing fees.
These changes should encourage large retailers to bring their full catalogs to eBay to tap into the potential of the marketplace's 90 million active shoppers. One well-known brand is already doing this. In general, while large retailers often have held misconceptions that they can't be successful on eBay, the rewards of shopping on the site may soon quell their reservations.
eBay's Fee Structure
As an incentive to bring well-known brands to its site, eBay has reorganized its fee structure to focus heavily on a fixed-price format. In fact, fixed-price listings now account for up to 60 percent of eBay's sales. This provides retailers a low-risk opportunity to list their full catalogs and pay a commission to eBay only when a sale is completed. This change is vital to attracting large retailers to sell on eBay, and is more in line with other online marketplaces such as Amazon.
An important aspect to every successful e-commerce strategy is determining when, how often and how many items are posted to the marketplace. eBay's new fee structure further emphasizes the importance for retailers to get their full catalogs posted and maintained on its site in an efficient way.