eBay Watch: eBay's New Fees' Success, Skype on iPhone?

New eBay Fee Structure is Working

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Scot Wingo at eBay Strategies provides more evidence the new eBay (EBAY) fee structure is working really well. I've been saying this for a few weeks now, but it's great to hear an industry insider like Wingo make the claim. Wingo says "listings are up, conversions are up and that means..... yep, GMV is up nicely and so far it's continuing its upward path."

As a side note, a quick look at Medved today shows that U.S. listings are near 14 million without any significant promotion going on. Combined with the fact conversion rates are holding up, if not increasing, this bodes very well for eBay's Q1.

Skype Coming to an iPhone Near You

VOIP over mobile devices is where many predict the technology will finally blossom. To that end, Skype has already experimented with a few mobile device offerings including Skype on the PSP, Skype To Go, the 3 Skypephone, stand-alone WIFI phones, Skype for Windows Mobile, and Skype for select Nokia devices.

But with last week's unveiling of the iPhone software roadmap and the release of the iPhone Software Development Kit, Skype now has a relatively clear opportunity to tap into the world's most innovative and successful mobile phone device with a native and official application. I say 'relatively' because Apple has been quick to point out that it will allow VOIP over WIFI but not over the carrier network.

Regardless, it is critically important we see a great application coming from Estonia. As mentioned in a couple of industry blogs, this could represent a paradigm shift in how the telecom industry functions and as the runaway VOIP leader, it's Skype's game to lose.

Update: Jonathan Christensen, general manager of audio and video at Skype, opened the eComm conference Mountain View last week with the prediction that free Internet calling will make its way to mobile handsets. Christensen said that he couldn’t disclose ongoing Skype projects on this front but he is excited about what’s coming.

Comments

[Marty]

I think it is premature to announce the success of the new fee structure. I do like the possibilities for Skype and have been an early supporter. I also like the way Ebay conservatively wrote off much of the investment and believe Skype will become a huge asset going forward.

As to the core site and Wingo's comments. I am not sure I agree. One has to remember that core insertion fees have dropped dramatically with barely a budge in listings. Much less listing fee revenue is coming in. Media sellers saw the largest decrease in fees and I believe Ebay is marketing more in those areas to bring back that business (good move) so I think Scott's info might be slanted towards the types of sellers in those categories. I definately do not see evidence of increasing sell through in a wide range of categories. Listing counts are still below 2005 levels at this time of year and most store sellers I know are struggling with sales.

The stock has no shown improving performance despite a huge stock buyback in place.

I think a muddled community message is what is hurting most. While I am not a boycott person myself I think the issues run deeper than just fees and Ebay needs to recognize this.

The few people that posted to Scotts blog seem to sell Ebooks and Ebay advice, are there any actual media sellers reporting better results? I havent seen any and Medved shows mixed results across the various categories with wide swings in sell through even in a weeks time.

I do believe that Ebay bringing media items back to the site is good for the long term health of the site though and while I dont see sitewide improvement myself, I am hopeful that we will see this soon.

Marty

[NetworkEffect]

I think the Skype - iPhone relationship is a huge opportunity for both companies - potentially the largest opportunity. I hope they don't pass it up.

[Carol]

Yawn. Another ebay cheerleader but this one doesn't even reveal his connections to ebay. I read Scot Wingo's post but I missed the "evidence" , where is it? Wingo, as CEO of ChannelAdvisor, isn't objective. Onnce ebay's new blogger starts posting next month it should be fun watching the three of you spin us some tales.

[Tony P.]

"Wingo says "listings are up, conversions are up and that means..... yep, GMV is up nicely and so far it's continuing its upward path." "


Such tripe! Those two factors - Listing Numbers and 'Conversions' (STR) - have absolutely no direct relationship to the GMV metric.

Ebay could have a million One-Dollar new listings that ALL sell and the GMV could actually DECREASE. All it would take is for the previous period (week, month, year) to have had a SMALLER quantity of true Quality goods trading at anything more than that One-Dollar amount.

The media items have increased, that is true, but who cares if there's more $2-$5 items on the site. The quality goods that sell for $25-$5000 aren't being shown in Best Match search results and sellers have stopped wasting their money in listing them. GMV is down - way down.

[RussianCapitalist]

Interesting, I see USER, Tony P and Carol post on all these updates and always the same thing? You fault Wingo and his analysis but I never see anything from this little Junta that is fact based?

Douse the flame and post something meaningful

[Tony P.]

"You fault Wingo and his analysis but I never see anything from this little Junta that is fact based?"


Then your eyes, as well as your mind, are closed. What part of my basic math did you not understand?

This blog regurgitated Scot Wingo's "analysis" that Increased Listings (plus) Increased Conversions (equals) an Increased GMV. There's a few problems with that as a Factual Statement.

1. It cannot be claimed as a Factual Statement; at best, it is a hypothesis. Read on...

2. The Conversion Rate (aka Sell Through Rate) is a metric known only to ebay. If Mr. Wingo has been granted *unprecendented* access to that information, many institutional investors have been slighted. Even better, Wingo states the info covers the 1st Quarter - someone must have a Crystal Ball.

3. My math above. Allow me to 'dumb it down' for you. The actual Dollar Amount of any increased listings determines whether the Gross Market Value (GMV) will increase over any previous time period.

So, if all of the High-Dollar items have pulled an Elvis and left the building, it really doesn't matter how many ADDITIONAL $1 CD's are being listed.


Now, that is an Analysis. Not just speculation plucked from the dark recesses of an orifice and it certainly isn't anything like a Flame. Learn the difference.

[jjsfind]

Tony P. - While it is true that Wingo may not have insight into eBay's numbers, you do realize that he is CEO of ChannelAdvisor and therefore has scads of data on the sales of many of eBay's top sellers. His sample size is certainly statistically acceptable and very likely an accurate account of the results that serious sellers are having.

It is clear that you have an agenda, or perhaps your mother did not hug you enough as a child, but anyone who reads these comments for useful information simply glosses over your rants. Your time would be much better spent trying to figure out how to run your business better rather than spending your days posting to every site you can find with your message of hate and anger.

Carol - If you have followed Wingo's blog in the past, you will find that he is anything but an eBay cheerleader. In fact, in inner circles he is considered a knowledgeable, reliable source of information about eBay and one of its harshest critics. Unlike you though, he offers constructive criticism and works for a better eBay through rational, well thought out analysis. You people really should have to pass some sort of test before you are allowed to spout these ridiculous accusations.