Friday, June 4, 2010

eBay "store in core" and "rebalancing the marketplace".

eBay's 2010 decision to have store listings show up in core search results isn't a new strategy.

Back in 2006 eBay tested "store in core" searches, and for most store sellers, it was very successful. Successful enough that they went out and stocked up on inventory, and listed a lot of store listings. Seemed like a great plan, right? After all, even then it was clear to most with common sense that buy it now was going to be successful, and that while there was always a place for auctions, and always will be, buy it now/fixed price listings was the future.

So, why did eBay abandon this back in 2006, despite being a success?

Well, it was a success for store owners, but it didn't have much of an impact on the stock price. And one thing to understand about eBay executives, being filthy rich was never enough, they wanted to be even filthier rich.

So, since the stocks were still stagnant, that meant that they didn't have their usual ability to cash in. And along came the plan to "rebalance the marketplace".

In my opinion this was nothing but stock manipulation, and it was very successful. It was so unpopular that eBay's stock price dropped even more. And when that happened, it left many stock options "under water". And so, a few months later, the executive decided to award NEW stock options to all those who were affected. Meaning, of course, that they would profit the most. And that's exactly what happened. The rich got richer, and the eBay brain drain continued as so many executives reached such levels of personal wealth that the idea of working for living wasn't required.

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