leapingcat

Blodget Thinks eBay Looks Cheap; We Disagree

Sometimes you can get a clearer picture by looking up from a purely technical analysis to see what is happening in the real world. Take for example the Ebay sell-through rates for the collectables and books categories, which I would have thought would have similar patterns. Indeed in 2007, they both showed a stable rate throughout the year, with BINs having a higher rate than auction items. Collectables have shown a similar pattern this year, with BIN rates slightly down, possibly due to the inferior searching provided by 'best match'. On the other hand BIN rates have collapsed for books in the last couple of months, but auction rates have only dropped slightly. I can't see any different factor than the effect of the buy.com deal.
From these figures it looks as if book buyers are in fact getting an inferior Ebay experience as a result of this, in spite of the Ebay spin. If that policy is extended to other categories than $28 starts to look optimistic, let alone $38.