Very convinced of himself (and the new eBay strategy) eBay CEO John Donahoe presented at the Shop.org Summit, unabashedly taking jabs at Amazon and Walmart during the question period ("eBay CEO Takes Jabs at Amazon and Wal-Mart"):
"eBay is not a retailer. We will never be a retailer. We will not compete with our sellers."
"We are not going to buy a shoe retailer, for instance. We aren't going to develop private label products. We are not going to use the data on our marketplace to compete or give to other sellers.
We are going to be a marketplace that will not compete with its sellers."
With these and similar words, John Donahue pitched the audience of merchants on his sales platform in the context of his secondary market strategy (see complete report).
As obvious as the basic idea is, the implementation is equally fraught with pitfalls. Can eBay, with its typecast brand and without its own merchandising competence, really bring in more than just second or third class brands and manufacturers - and in a lasting way?
Especially in light of the competition who, just a click away, are handling the overstock liquidation theme in a much more consistent and brand-amicable manner.
The Shop.org Summit was a “who’s who” of US private shopping clubs - almost everyone from the industry was represented there. In particular, the Gilt Groupe made a shockingly good impression. They gave an overview of what they plan to roll out to the market during one of the panel discussions ("Shop.org Showcases Radical Ecommerce Business Models"):
"Gilt revealed it will roll out new sites called Fuse for shoppers who are fans of Gilt but are between 20 - 30 years old and find a $250 dress is expensive even if it is a discount, and whose lifestyle is more casual, Susan Lyne said.
Gilt will also roll out new sites for men that includes gear and gadgets, as well as a home goods site. They are also ready to roll out an iPhone app in a month.
The key to event shopping is selling known brands that are coveted - consumers crave and lust after them - and of course, there must be excess inventory, according to Susan. "
Whoever has followed the reports up till now might have had the impression that Gilt Groupe primarily revolves around hype and in addition has a lot of cash to burn. But when you see Gilt CEO Susan Lyne live and pay close attention, you can tell that there is solid background, a clear vision and a very consistent growth strategy. After the panel discussion, Gilt has stepped up several notches on our watchlist.
Related posts:
Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.
