Posts Tagged ‘seller dynamics


Microsoft join ebay USA – the evolution of ebay continues

If you were selling Microsoft kit on ebay in the USA your heart might have sank a little when the latest ebay-er to join the platform was announced as Microsoft.

ebay have been repositioning for some time moving away continually from the auction site that they pioneered to a sales channel for retailers of all sizes. With the addition of Microsoft, retailers of all sizes now includes behemoths.

As part of the ecommerce multichannel Seller Dynamics team we have been aware for some time that ebay were keen to build stronger brands into their line up. Unlike Amazon ebay is clearly encouraging its retailers to develop their brands – ok perhaps Microsoft doesn’t need to do that but its a strong signal to others that ebay is supporting your brand. Building a brand within Amazon is a much more challenging activity.

You can check out the Microsoft ebay store here.

Retailers who are not familiar with ebay shouldn’t assume that this is a USA all strategy, Argos and ebay have been building a stronger relationship month by month in the UK for some time now. For us the message is clear if you are not selling on ebay then you really better have a good reason why not.


Never mind the Bank of England – heres the growth!

The Bank of England haven’t been doing a great job on economic predictions for the past 4 or 5 years – which is a bit of pity given their central role in the economy – so should we take seriously their latest predictions that growth for the UK this year is going to be non-existent? Given they have been consistently over optimistic in the past I guess we can safely assume that the economy will shrink. Not good – so lets hope for once they are being pessimistic.

So where’s the good news other than in rowing, cycling and Team GB t-shirt sales?

For us the good news is in the online retail world where growth is the norm. According to IMRG year on year growth is 13%. And that is further supported by the British Retail Consortium with help from KPMG who suggest 2012 will see retail generating £77Bn online. So that’s all looking rather good – especially when you consider that the UK is a big benefactor of online growth in Europe, according to IMRG 30% of all cross border e-retail trade involves UK e-tailers.

Growth in online retail is far from a UK or European phenomenon obviously, consider for instance the rapidly developing online world in Latin America. In the territory annual revenue growth rates are 30% among web only retailers – and importantly Amazon isn’t necessarily the dominant player with Brazilian B2W Inc enjoying much higher revenues than Amazon and growth of 30%+ (source . This growth against a back drop of relatively low internet penetration – circa 37% in Brazil for instance.

So given that you don’t have to be accurate to make predictions (as with the BoE) allow me to make a few:

(i) the UK online world will continue to flourish as it continues to act as the anchor for European cross border online retail trade.

(ii) Latin America will produce a global challenger to Amazon and/or eBay.

(ii) The need for online aggregation services such as our marketplace management service, Seller Dynamics, will continue to grow at a double digit rate.