‘eBay Plans to Challenge Amazon, Announces Turnaround Strategy’ – Small Business Trends
Lisa Froelings says, “At the Goldman Sachs Technology and Media Conference in San Francisco on Feb. 10, Wenig revealed that the company is thinking more as a merchandiser or retailer, instead of just an open marketplace.
“We’re changing from an unstructured to highly structured marketplace,” said Wenig. “The brilliance of eBay’s model is its greatest challenge. It’s a friction free marketplace, which means sellers can sell anything they want, and that makes it complicated.”
eBay, the huge online auction house for hard-to-find items and antiques, used clothing and cars, has in the past five years emphasized selling new products like electronics and car parts at a fixed price.
Following its split from PayPal last year, the ecommerce company has been trying to revive sales and prove itself to investors. Yet, unlike other ecommerce giants such as Amazon, eBay has had quite a hard time attracting online shoppers.
During the holiday season, eBay’s sales grew an estimated 4.8 percent, which is way below the 13.3 percent typical for ecommerce companies, according to ChannelAdvisor”.
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