Sunday 30 November 2008

ebay.co.uk out performing ebay.com on user sign ups

More data on eBay; this time, UK figures show the site actually continuing to increase its UK audience in the past year. That's in sharp contrast to the comparable Nielsen data for eBay in the US, which has seen unique user numbers drop 10% year on year, on average.

Nielsen recorded eBay with 14.447 million unique users during October 2007 which, with some more of that seasonal wobble, rose gradually to a record 15.841 million unique users last month. That's year-on-year growth of 9.6%, according to Nielsen.
So how can eBay in the US be losing 10% of users in a year, while the UK gains 9%? Analyst Jim Clark of Mintel said there's a definite credit crunch factor: "UK consumers are the most sophisticated in Europe and it makes sense that they would be trying to do more online to extend the value of the pound," he said.
Mintel research had shown that between July and October there was a 5% increase in visitor numbers to price comparison sites in the UK, and consumers are also spending more at supermarket sites. That means consumers are "removing the possibility of impulse buying," said Clark.
eBay's decision to stop allowing negative feedback was extremely controversial with that original audience of lone sellers, and users will also have been inspired to try rival sites with lower listing fees. "eBay is the main price point, so that is the price to beat. Generally, consumers are more aware of other sites [like Etsy]."
Clark also added that security is a factor; consumers will prefer established brands they know rather than web entities.
The UK has heavy broadband penetration, and may well be ahead of the US in trends. Further into the recession eBay will have a clearer idea if it is working in its favour, or against it.
Perhaps, as one Twitter suggested, eBay might end up trying to offload Skype, the well-respected VOIP service it acquired in 2005.

source: Guardian.co.uk 27/11/08

Our View.
Ebay.co.uk is a depressing place at the moment if you are a seller. while there may be more people registering with the site there is still little activity. Huge numbers of auctions are failing to even get going and those that do are struggling to get more than a couple of bids meaning that many listings that do get a bid are closing at the opening bid cost or very close to it.

ebay has ironically created a cheap listing weekend this weekend for auctions beginning at 99p or less.

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