eBay Is Walking Straight Right into the eCommerce Space

eBay-the social e-commerce giantMoving into the deep world of retailing on the Web, eBay has become one of the big fish in the pond, evolving in the e-commerce industry. With online bidding and auctions being its DNA, the $63 billion eBay is now working on to become a mobile commerce giant with some personalization added. eBay did an incredible business of $5 billion in the mobile commerce in 2011 and hopes to see transactions of $10 billion in the sale of mobile devices this year. Revenue for eBay also comes from the payment service PayPal that it bought over in 2002. PayPal has a base of over 100 million active users. The service faces tough competition from Square and others in the mix but it’s innovating under the leadership of new PayPal president David Marcus.

According to a report in TechCrunch, Gartner analyst Gene Alvarez says, “eBay is now not just a marketplace. Acquiring GSI, Milo, and Magento has given the firm a broad set of ecommerce capabilities.” Clearly, with these latest acquisitions along with the purchase of Hunch, Svvply, Card.io (PayPal) and others, eBay has proven that the firm has a broader vision for its future beyond simply auctions.

eBay is also stepping into the mobile phone market. The company has instructed all its engineers and managers to give first preference to mobile among all other products they deal in. Working on to give users the best experience on mobile, eBay is adopting strategies to endorse and put up products around mobile.

According to eBay vice president of Mobile Steve Yankovich, eBay started investing in mobile web and native apps in 2009. The idea seems to have gone down well with reports of over 100 million mobile apps being downloaded on various smartphones. These apps include the basic buying and selling marketplace app, barcode scanning app Red Laser, dedicated apps for verticals (i.e. eBay Motors, fashion) and more.

eBay is working to add compelling features to its mobile apps. The firm recently added geofencing to its Red Laser apps that lets retailers deliver deals and information to consumers based on their proximity to a store.

When it comes to personalization, Amazon stands at the forefront with 25 to 30 percent of its sales coming from recommendations. This is an important factor considering Amazon got nearly $13 billion in sales in the last quarter. With eBay, there isn’t Amazon-style personalization, but the firm is sure to be working on it.

In November last year, eBay bought Hunch service, which offers a “taste graph” of personalized recommendations based on users’ interests. Following this deal, eBay bought personalized shopping site Svvply, to advance more personalized experiences and merchandising options on eBay.com, which will offer users more personalized shopping experiences.

eBay is trying to keep a track on user shopping behavior and therefore, the firm launched a Setify, a service like Pinterest, which lets users track, flag, like and collect various products. With this service, eBay can multiply the number of user events or signals the business can use to score products and serve recommendations.

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eBay Introduces eBay Now for Same Day Shipping

eBay today offered a new service, eBay Now to its San Francisco users wherein it will be offering same day shipping of goods. eBay Now will work by offering SF residents the benefit of getting products on the same day but by paying a fee of $5. The company’s offer is now open for people interested in signing up for “exclusive beta”. All those who register will soon get a download link.

Company’s decision of introducing this new service has made it clear that it doesn’t want to lag behind in-front of start-ups such as TaskRabbit and Uber that offer instant gratification.

An e-mail regarding the same has been sent to all eBay customers. eBay Now will only entertain those customers who order over $25, but beta testers will get $15 off while placing their first order at eBay Now. The customers will also get free shipping for first three orders.

Following this, speculations are that eBay Now may also plan to have its own warehouses in major cities, just like Amazon. This will be a good move as it will help reduce the wait time. But at the same time, it is going to be expensive and time consuming.

Not only this, eBay will also have to work hard and offer something in comparison to companies such as Postmates Get It Now and Y Combinator’s brand new Instacart, which offer delivery for take-out food, groceries, and more in one hour’s time.

These services are attracting more and more customers and are likely to become very popular in the coming time.… Read the rest

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