Buy.com is making all us sellers look bad but at the same time making alot of us step up our programs a notch or 2
I have been studying this whole Buy.com thing on eBay. They have their shit together. I honestly thought I was doing a great job (and I still do for the amount of product I move thru 2 major channels) until I really started looking into their business model. What they are doing is astonding to me. They as one username in less than 4 months time became the largest seller on eBay generating over $3 million a month. And yes, most of their stuff that I have researched that they are selling nobody else is selling. They do have the newest latest stuff and thats one thing that is lacking on eBay. I am to blame just as much as other sellers. My business model does not allow me to source out the newest latest ink and toner cartridges on the market since we buy overstocks and closeouts and expired ink. The ink and toner that Buy.com is selling in my catagory is not the same stuff I sell and they are getting within about 10% of retail for it all. I had a customer the other day that needed some HP 3800 toners. All i have are remans, he wanted new and wanted them from me. So I bought them from Buy.com and had them shipped here. I had them the next day! Im sure they have warehouse space all over the country that allows them to deliver that kind of service. I ordered a CAT5 cable from them last month that I needed at home, rather than buy it at Best Buy. Had it in 2 days.
I have been studying this whole Buy.com thing on eBay. They have their shit together. I honestly thought I was doing a great job (and I still do for the amount of product I move thru 2 major channels) until I really started looking into their business model. What they are doing is astonding to me. They as one username in less than 4 months time became the largest seller on eBay generating over $3 million a month. And yes, most of their stuff that I have researched that they are selling nobody else is selling. They do have the newest latest stuff and thats one thing that is lacking on eBay. I am to blame just as much as other sellers. My business model does not allow me to source out the newest latest ink and toner cartridges on the market since we buy overstocks and closeouts and expired ink. The ink and toner that Buy.com is selling in my catagory is not the same stuff I sell and they are getting within about 10% of retail for it all. I had a customer the other day that needed some HP 3800 toners. All i have are remans, he wanted new and wanted them from me. So I bought them from Buy.com and had them shipped here. I had them the next day! Im sure they have warehouse space all over the country that allows them to deliver that kind of service. I ordered a CAT5 cable from them last month that I needed at home, rather than buy it at Best Buy. Had it in 2 days.
I ship all my orders within 48hrs of payment made but they are doing it same day by the looks of things. Thats great, they have millions behind them and a big staff. I guess what Im trying to say is this, they are making alot of us look stupid. Why wouldnt eBay want to go more this route? You would too. Not saying they are getting rid of us smaller sellers but when they can bring on a buy.comand generate $3million a month GMV in 4 months with a 2.5% STR. Think about how many of us top sellers it takes to generate that much GMV and think of how much maintence it takes to maintain this many sellers as opposed to one seller. I would welcome them with open arms too and create a Diamond powerseller status for more to come on board too.
I didnt tell you this but I hear that JC Whitney is next to come on board at eBay and that Zappos is looking at putting their 6PM line on eBay as well.
The other positive I can pull from all this is that they currently have over 130,000 positive feedbacks which means 130,000 happy buyers. That alone gives me the confidence I need to stay positive about eBay moving forward.
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