eBay Auctions Are a Hassle

BusinessWeek has a story that a lot of people have been focused on for a long time: the waning appeal of eBay auctions.

In the early days of eBay, the auctions were new, fun and exciting. It was e-commerce entertainment even if you didn’t “win” the item. And when you did win, the price you paid tended to be pretty attractive. This made it a win-win-win scenario: the buyer was happy for getting what he/she wanted at a good price; the seller was happy because they got money for something they didn’t want or need; and eBay was happy to serve as the middleman and collect a fee.

Over time, however, the deals became less attractive as sellers were able to get a better idea about the “real” value of the products they were offering. Meanwhile, buyers became more sophisticated and the tools involved in the buying process gave savvy buyers an edge over the rest of us. As a result, the fun and the deals disappeared.

This led to the growing proliferation of “Buy Now” on eBay that eliminate the aggravation, hassle and time required to get involved in an eBay auction. This is not to suggest auctions on eBay are going to disappear but eBay’s status as the place for online auctions is quickly fading.

Nicholas Carr wonders if eBay was a fad? Fad is probably the wrong word because it suggests something short-lived and trendy. I think eBay’s business is just evolving.

If this isn’t enough of a strategic challenge for eBay, senior management also has to deal with what to do with Skype and StumbleUpon; two businesses that have little or no strategic synergies with eBay’s core e-commerce business.

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