Archive for September, 2009

Newsweek Green Rankings 2009 Logo
I was browsing through the magazines at the airport yesterday on my way to the Shop.org Annual Summit and I saw the above logo staring back at me from the front cover of Newsweek. It was the inaugural Newsweek Green Rankings in which they ranked the top 100 greenest companies in America. The stated goal in producing the rankings was to evaluate the 500 largest companies in America based on their environmental impact, as well as their green policies and reputation. Looking for a story, I immediately opened the magazine to see if eBay had made the list. eBay is indeed ranked at 76 out of the top 100 greenest companies in America.

Newsweek cites the following under eBay’s Ranking:
Although the retail industry is not known for strong environmental management efforts, this online site is an exception. Has installed energy-efficient servers at data centers, invested in carbon offset projects and installed on-site solar installations resulting in carbon neutral operations for the past two years.


It’s a great achievement and one that I know the Green Team will be proud of. However, I know that the goal of everyone will be to move up the rankings by next year. Making the top 100 is a great accomplishment in itself but if you look at the Retail category, eBay is listed 11th behind such brands as Target, Wal-Mart and Best Buy but ahead of Amazon.com and Nordstrom.

eBay’s business model from the beginning has been inherently green, serving as the world’s largest online marketplace for used, vintage and repurposed goods, and in that respect, it has been farther ahead in the game than most. However, that doesn’t mean that the company couldn’t operate in a more sustainable way. Given yesterday’s related news, it’s something that we’re obviously continuing to be committed to…

eBay Inc. Commits to 15% Corporate Emissions Reduction Target by 2012
I have become good friends with a number of people that drive the Green efforts of our company and I know, to a person, that they’re not doing this for awards or rankings. Simply put, they want to make eBay a “greener” company every day. They have the full support of executive management too. Yesterday, eBay announced its first ever greenhouse gas emissions target through the Carbon Disclosure Project (CDP), an independent not-for-profit organization holding the largest database of corporate climate change information in the world. By 2012, eBay committed to reducing its corporate greenhouse gas emissions by 15% over a 2008 baseline.

“eBay continues to demonstrate our long-term commitment to responsible energy use and environmental leadership with our first greenhouse gas emissions reduction target,” said eBay Inc. President and CEO John Donahoe. “As a company whose business continues to grow year over year, we recognize that the goal is ambitious, but we’re confident that it is achievable.”

It is only achievable of course, if everyone buys into it. Any effort of this kind isn’t something that you turn on and off as days go by; this is a lifestyle change and a shift in a way of thinking. We’ve seen this happen already with the eBay Green Team – a group of more than 2,000 employees in 23 countries who are committed to making eBay a greener company (I became a member earlier this year). The Green Team has taken on projects of all sizes, all over the world, some of which I’ve covered here on Ink. And it’s just the beginning.

So congratulations to eBay on it’s Newsweek Green Ranking but, more importantly, thank you for focusing on the reasons the ranking exists to begin with. Committing to energy efficiency, “greening” eBay’s operations and investing in renewable energy are vital as we move forward and grow as a company.

Cheers,
RBH


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I’ve been doing some research into the social media uptake of major online retailers and usage is patchy to say the least.  Here is a list of the top online retailers in the UK taken from Hitwise.  If I have missed out any features, this is because they are hard to find!

  Blog Twitter Bookmarking Product Reviews Facebook
eBay UK x x     x
amazon UK   x   x  
Play.com   x   x x
Argos   x      
Marks & Spencer   x      
Next   x x   x
John Lewis          
ASOS x x x   x
Tesco Direct   x      
Debenhams x x x   x
Apple UK          
TopShop.com x x x   x
Currys          
Ticketmaster UK     x x x
  31% 69% 31% 25% 50%

I was particularly surprised at the low take up of blogs.  Don’t Argos, Tescos et al realise that blogs are great for driving traffic and connecting with customers.  Take up of twitter is high, but even sites like Debenhams and M&S who use twitter do not display it anywhere on their websites.  Tesco have a twitter account but have only tweeted once, last april.  Debenhams have a blog, twitter account and facebook page but you would never know that from their webpage.

Best in class is Top Shop with well advertised social media profiles containing quality content.

If you found this post useful, why not buy me a coffee!

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I wrapped up New York runways with four big shows on Thursday. Ralph Lauren in the morning, Calvin Klein, Norma Kamali, Tommy Hilfiger and Ann Taylor later on.

With Janet Jackson as the lone celebrity at the show, ( Janet packs enough A-List heat for six B-list celebrities) b39b_10Ralph took a nostalgia-laden look at the Old West that notably included his lower priced Double RL collection. Denim, dungarees and shirtwaists came down the runway.

The collection by Francisco Costa for Calvin Klein was as ethereal as Ralph Lauren’s was prosaic. Weightless white dresses in sheer fabrics floated on the models. Tommy Hilfiger’s focus was on beachy colors kissed by the California sun. Casual yet sophisticated sportswear pieces in navy and white or ice cream pink said fun in the sun.

Two of the more unusual outings came from Kamali and Ann Taylor neither of whom have shown on the runways in a while and both showed clothes you can buy right now. Ever the innovator, Kamali staged a runway show on the  SoHo streets outside the Apple store. Inside she hosted a forum hosted by tech guru Omar Wassow where talked about fashion and its future which included her new line on eBay.


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I'm off today to one of the bigger online retailing shows of the year – Shop.org's Annual summit.  Shop.org is a non-profit trade association that the online group of the National Retailer Federation (NRF).

Shop.org Summit is interesting as it is the last time for retailers to get together and learn what's going on before the big holiday push.   Shop.org has historically been where around 200 or so VP level and higher online retailers meet.  Today the show is really expanding and now is well attended by what I think of as mid-tier retailers – folks in the $30-200m/yr online sales range.  Many of these mid-tier retailers got their start (and still are on) eBay so it's been interesting watching the 'eBay Live' refugees come to this show and Internet Retailer.

eBay at shop.org

You can check out the agenda here and I think long-time eBay strategies readers 

eBay CEO, John Donahoe, will be there which is interesting on a number.of levels:
  • As best I can remember (I checked the 08 online agenda and my 07 conference book) eBay has never presented at this show.
  • eBay has been spending more time at shows for retailers recently.  For example, Stephanie Tilenius was at IRCE in the summer talking about the virtues of eBay for retailers. But, as best I can tell, John Donahoe has never hit the circuit.  

  

I'll attempt to live blog the talk which is Wednesday morning at 9am PST – here's the blurb from the agenda.  I have to admit I'm curious if this is just a signal that the large retailers are more important these days to eBay or if they have some news that will break at the show.

Keynote: John Donahoe, President and CEO, eBay, Inc.
South Pacific Ballroom C

John will discuss consumer shopping trends and what theymean for commerce online and offline.

John's presentation will be followed by a moderated Q&A session with Patti Freeman Evans, Vice President and Research Director at Forrester Research.

ChannelAdvisor at shop.org

We'll be at shop.org in full force. We are at booth #401 in the exhibit hall and all of our staff (20-30 folks this year!) are wearing light blue shirts with ChannelAdvisor on them.  We're going to be doing some fun events and have a separate room to show more in-depth demos and what-not for those that are interested in our various solutions.  I'll be there spending time at the booth and in a ton of meetings.  I hope we're able to connect -stop by the booth and let them know you read about it on the blog for a little tchotchke we're handing out.

Sound off

What do you think about eBay recruiting more large retailers to the site?  Chime in on comments.


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eBay logo
eBay Inc. President and CEO John Donahoe and eBay Marketplaces President Lorrie Norrington announced several organizational changes this morning. Here is an overview:

First, John announced that Stephanie Tilenius, head of global product and North America for eBay, has decided to transition out of her current role. She’ll become an advisor to John for the next few months and plans to leave the company in early 2010, following nine years with eBay. Having been in her current role for two years, Stephanie says she felt that with eBay’s turnaround under way, now was the right time for her to pursue other career ambitions, including opportunities to lead a company as CEO. Stephanie says she’s proud of the progress the eBay team has made, and she believes eBay’s best days are still ahead.

In a note to employees, John praised Stephanie’s passion and commitment for the business, and cited her many accomplishments over the past nine years, including building eBay’s business in Korea and Asia Pacific, strengthening eBay Motors, building PayPal’s merchant services from virtually nothing to a $1 billion-plus and rapidly growing business and, most important, her critical role in leading the eBay Marketplaces turnaround.

Stephanie’s position will not be filled, a move she recommended to further streamline and simplify eBay’s management structure. With that decision, Lorrie Norrington assumes direct responsibility for eBay North America, in addition to her role as the global head of eBay Marketplaces. Lorrie announced several changes, including the creation of a combined global product and technology team to be led by Mark Carges, Senior Vice President and Chief Technology Officer. Combining product and technology is intended to help eBay accelerate innovation and optimize its end-to-end customer experience for sellers and buyers.

Also with an eye toward creating better experiences for sellers and buyers, Norrington announced that Dinesh Lathi will lead a combined seller and buyer organization, responsible for ensuring a seamless end-to-end customer experience.

From what I can tell at first glance, these changes can only mean good news for eBay buyers and sellers. Streamlining the business operations of any organization is a positive in the long run. In the case of eBay, and the real-time business of ecommerce, this should make for immediate returns. We’ve heard it repeatedly over the past year+ – everything the company does is directed at delivering trust, value and selection for buyers and velocity, efficiency and reliability for sellers.

I’m traveling this week to Shop.org in anticipation of John’s keynote there on Wednesday morning. I’m hoping to sit down with him and talk about today’s news; get his perspective… and yes, I’m taking the Flipcam.

Cheers,
RBH


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There isn’t a week that goes by that I don’t get a question either about QuickBooks or how to set up a record keeping system for an eBay or other online business.  An old friend of mine and eBay PowerSeller, Cindy Shebley, has teamed up with CPA and online business expert Sheryl Schuff to produce a CD set that takes you through the whole QuickBooks experience.

Cindy and Sheryl are offering a 5-part Free Mini-Course called How To Avoid The 5 Biggest Mistakes Setting Up an Accounting System.  Even if you aren’t interested in QuickBooks, every online seller should get this course.  It is delivered in Five Installments via email –one short easy to understand lesson every other day for 10 days.  Here is the link to learn more.

Don’t forget to check out my latest book, How To Make Money Blogging From Home.

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A retailer we work with for Comparison Shopping Engines (CSE)s recently emailed as they were really confused about a promotion they were sent by eBay pictured here:

Adcommerce_expansion
The retailer had lots of questions – should they stop their plans to sell direct on eBay, how does the system work, what's the ROI vs. other CPC channels like search/cse, etc.

Before we dig into what this means, let me backtrack for a second and explain the eBay AdCommerce system which is at the heart of this promotion.

About eBay AdCommerce
There are essentially 5 ways to advertise on eBay:
  1. Transactional- list a product for $x, pay $y in final value fee when it sells model.
  2. Yahoo! powered banner ads and sky scrapers on the homepage/SERPS.
  3. Yahoo (now Google) powered sponsored links on null search results.
  4. AdCommerce product links at the bottom of SERPS
  5. Your own custom deal (e.g. UPS,  McAfee, USPS, etc.) where you pay eBay big $$$ to sponsor a part of the site or for an exclusive or something. 

AdCommerce is eBay's third or forth attempt at a cpc on-ebay system and it seems to be sticking as they are clearly expanding it.  The way it works (before this expansion) is eBay sellers sign up and pay a CPC for traffic to their eBay items or eBay store.  Thus we typically say it is an 'in network' system as it doesn't shuffle traffic off eBay like the sponsored link, banner and custom deal programs do.  In a transactional system, staying on-site is good.  In a search engine system (e.g. Google), staying on-site is bad as you aren't finding what you are looking for.

We don't recommend AdCommerce to our customers because it lacks the basic closed-loop tracking that you MUST have for any CPC system to be measurable.  For example, you can't go buy some traffic, send it to an eBay item and then know how much of that traffic converts into orders.  This is because eBay doesn't give the advertiser the conversion data, they just give the number of clicks and impressions which is essentially useless.  Plus this CPC is on top of the already generous take-rate (listing fee and fvf) charged by eBay.

We're also not fans of the program because:
  • I personaly find the ads are 90% of the time not relevent when I'm shopping on eBay.
  • We have data that suggests that when these ads live in front of the page navigation system it keeps buyers from going to page two of search results.  I frequently tell users that this system has single handedly killed page 2 of eBay search results so everyone now has to focus on page 1. 
Think I'm being too harsh?  Here's a screen shot of some AdCommerce ads I was shown today when looking for an apparel item:

Adcommerce_example
So here we have:
  • Pens – totally irrelevent 
  • Cell phone case – also totally irrelevent 
  • Work boots (at least in the category but I was looking for a sweater)
  • A slim shop ad with a blatent typo (expect nothing liss) 
  • A hulk t-shirt (ok I guess the same category?) 
These ads are bigger than the eBay results and push the page nav down.  In other words, eBay would rather you click on this vs. going to page 2 from an economic standpoint.  But is that what is best for the consumer?

AdCommerce goes 'out of network'
Circling back to the new promotion that was sent to an off-eBay retailer above, it looks like eBay is now looking to expand the program to allow 'off eBay' ads via shopping.com into AdCommerce.

The way I imagine this would work:
  1. Retailer specifies which of their shopping.com products they want to advertise
  2. Retailer specifies a CPC for the program or maybe even at the product level
  3. eBay shows off-eBay ads on search result pages.
As stated in the title, I think this is a big step BACKWARDS for eBay.  We were excited to see them announce they were taking the banner page off of SERPs and some of the irrelevency caused by the featured program.  But here we are a short time later seeing them seemingly talking out of both sides of their mouth and not only increasing a program that decreases the relevency of the search results, but now will also include taking buyers off eBay!

eBay needs to do some soul searching and decide what they want to be when they grow up – transactional or advertising (cpc/cpm) based?  Do they want to truly show the most relevent products or do they want to focus on the pure short-term economics?

Stay tuned

We'll be on the lookout for more information about this program, specifically:
  1. Is there closed-loop tracking available?
  2. What is the ROI?  
  3. Is this actually a cheaper way to sell on eBay than selling direct?   

  
SeekingAlpha Disclosure – I am long Google and Amazon.  I am CEO of ChannelAdvisor where eBay is an investor.


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eBay CEO, John Donahoe, is currently in New York and spent some time with CNBC’s Maria Bartiromo earlier today. Bartiromo and Donahoe discuss the Skype sale; eBay and PayPal as core businesses for continued success and close with a discussion around PayPal’s open platform and the future of micro and mobile payments.

Cheers,
RBH


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eBay logo
Back in May of this year, I sat down with Brian Burke to talk about the Feedback tests being run in the eBay Marketplace. 4 months later, Nathan (Nate) Etter contacted me this week to update the Community on the tests because (1) there are different variations than we had discussed previously, and (2) the tests will cover a larger number of buyers & sellers than the tests did in May, so more members may see this new flow (as made evident by AuctionBytes earlier today).

I sat down with Nate to talk about how the tests were doing and what new wrinkles were being added to the mix. Of course, no conversation with an eBay colleague would be complete without a “5 minutes with…” Q&A. You’ll find it below the videos.
Cheers!
RBH

What have you been testing over the past 4 months? Are you expanding the tests?

Screenshot of one of the 5 variations of the Feedback Test page:
(more images in the previous blog post)
Leave Feedback - TEST

Will more people be participating in the tests? What will they experience?

What are you hoping to accomplish with these tests? What are the goals?

How are these tests incorporated into the SR2 changes going into practice at the end of the month? Are they?

5 Minutes with… Nate Etter
Full Name: Nathan Etter
Nickname: Nate
Official Title: Director, Product Strategy
What You Really Do: My recent focus has primarily been leading projects related to Trust on eBay. My current efforts revolve around improving the eBay Feedback system for both sellers and buyers. I work with a cross-functional team that includes individuals from our user interface, engineering, QA, research, analytics, and marketing groups.
Your First Day at eBay: January 3, 2006
Education/Schooling: Stanford University
Interests: Triathlon, open water swimming, photography
Favorite Quote: “Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.” – Mark Twain
Most memorable eBay experience: Attending my first eBay Live in Las Vegas!
Most recent eBay purchase/sale: A Bottecchia all-carbon road bike for my wife (it arrived this week and I’m green with envy!!)
Favorite Albums: There are so many!! A sampling: Live at Luther College (Dave Matthews & Tim Reynolds), Sanctuary (Arvo Pärt), Our Endless Numbered Days (Iron & Wine), Haunted (Poe), Gossip in the Grain (Ray LaMontagne), Rodrigo y Gabriela (Rodrigo y Gabriela), To Venus and Back (Tori Amos)
Favorite Movies: Forrest Gump, Awakenings, Monty Python and the Holy Grail, The Fisher King, Lord of the Rings
What You Wanted to Be Growing Up: It was a toss up between being a doctor or a chef on a cruise ship.

Fill in the blanks:
I should have gone for a run yesterday.
I wish that I could fly in small planes without getting airsick.
The first thing I do when I get to work is check emails.


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Late last night we theorized that it looked like eBay was ramping down traffic to Y! and up at Google in this post. Today, we have confirmation from three firms that have talked to both eBay and Yahoo! about the change.

James Mitchell at Goldman Sachs is out with a note that says: 

Yahoo! has
confirmed that eBay is testing the use of Google to provide contextual
(search-driven) paid advertisements on eBay’s US site. Previously, Yahoo!
powered contextual and display advertising for eBay’s US site, while Google
powered advertising for eBay’s international sites. Yahoo! continues to provide
display advertising for eBay’s US site.



SeekingAlpha disclosure – I am long Amazon and Google.  I am CEO of ChannelAdvisor where eBay is an investor.


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