Analysts Believe eBay's Express Launched to Compete in Auction, Shopping Space

Share this content:

EBay's quiet launch of its first fixed-price shopping site earlier this week will help it better compete with online shopping sites and new players in the space such as Google Base, e-commerce analysts told DM News.

eBay, San Jose, said eBay Express allows shoppers to buy products at fixed prices from qualified eBay merchants. "eBay Express is for buyers who prefer a more conventional online shopping experience," said Bill Cobb, president, eBay North America.

The site will be in a "preview" phase for several weeks while the company gathers feedback and makes changes to the service.

Analysts say eBay is debuting Express to fend off growing competition from new players in the auction space, particularly Goggle's online classifieds service, Google Base, and existing shopping sites like Amazon.

"It comes at a time when eBay is having difficulty growing its revenue...and when Google Base is moving into its space," said Jeffrey Grau, senior analyst, online marketing research firm eMarketer, New York.

While eBay's first quarter net revenues grew 35 percent to $1.39 billion, the auction site is "not seeing the kind of growth they were", Mr. Grau added.

Both Grau and Vikrahm Sehgal, research director and senior analyst, JupiterResearch, New York, believe Express will help eBay add incremental revenue.

"It is their strategy to gain incremental users who are wary of the auction environment. The look and feel [of Express] from a consumer's point of view would be like they are at any other retailer," Mr. Sehgal said.

eBay Express includes an online shopping cart -- a first for eBay -- and buyers can choose to pay with PayPal or a credit card, which also differs from eBay's auction site, which accepts PayPal.

Still, analysts expect eBay to continue to focus on its traditional auction model in the near future.

"They're not going to give up their auction environment: that truly is their bread and butter," Mr. Sehgal said.

close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above