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TMTM
Revealing the Online CE Buyer
CEA Winter Summit 2005
Karl WileyDirector, Consumer Electronics & Photo
eBay, Inc.
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Online CE buyers come in all shapes & sizes
Resellers? Installers? Enthusiasts?
kandb_audio (237 ) User1591 (388 )• Positive Feedback: 99%
• User since: February 2004
• Items purchased last 2 months: 161
• GMV purchased last 2 months: $8,600
• Specialty: Used / damaged car audio
• Positive Feedback: 99%
• User since: September 2001
• Items purchased last 2 months: 218
• GMV purchased last 2 months: $14,100
• Specialty: Used / damaged car audio
Punch Amp - Broken Eclipse Amp – Needs Repair
250 ft. Power Gnd Wire 10 packs Solder remover
Alpine CD Receiver - Damaged
Panasonic CD Changer – Used, untested
1991 Silverado Factory CD Player
Alpine Alarm System - Used
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Online CE buyers come in all shapes & sizes
Collector? Audiophile? Exchange Rate player?
bakko_it (69 )• Positive Feedback: 100%
• User since: April 2000
• Registered in: Italy
• Items purchased last 2 months: 12
• GMV purchased last 2 months: $27,000
• Specialty: Vintage Audio equipment
McIntosh 50th Anniversary Gold
Edition Tube Amp - $6,000
Pair RCA Radio Tubes – New in box
McIntosh PreAmp - used
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Online CE buyers come in all shapes & sizes
A dream customer?
spudsblue (50 )• Positive Feedback: 100%
• User since: September 2003
• Items purchased last 2 months: 16
• GMV purchased last 2 months: $4,600
• Specialty: Cross-category electronics
Sony VAIO Laptop
Industrial Editing VCRDozens of Classical,
Jazz and Blues cassettes & CDs
Bose Wave Radio Remote Nakamichi Dragon Cassette DeckPioneer Elite THX Receiver
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Internet commerce growth accelerating
Estimated Quarterly U.S. Retail E-commerce Sales:4th Quarter 1999 – 3rd Quarter 2004
(Billions of dollars)
Source: US Department of Co`mmerce
Q1 2004 up 22% year-over-year – 11 straight quarters of 20+% growth
Online sales estimated to represent 10-15% of total CE Retail Sales
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Monthly Top 20 Shopping Destinations
Source: Neilsen NetRatings
= Marketplaces / Shopping Engines YOU can participate in
= Other online electronics sellers
Brand Rank
Unique Audience
(000)Active
Reach (%)
Time per Person
(hh:mm:ss)
UniverseReach
(%)
Web Page View
(000)Sessions
Per PersonWeb PagesPer Person
eBay 1 48,599 32.86 1:46:41 23.89 11,059,016 8.08 228Amazon 2 32,732 22.13 0:19:08 16.09 1,231,602 2.74 38Yahoo! Shopping 3 17,481 11.82 0:05:13 8.59 159,484 1.79 9Expedia 4 15,530 10.50 0:11:33 7.64 296,585 1.92 19Shopping.com Network 5 14,807 10.01 0:03:55 7.28 118,780 1.70 8Dell 6 13,158 8.90 0:17:45 6.47 319,435 2.63 24Wal-Mart Stores 7 12,934 8.75 0:10:13 6.36 257,905 1.88 20Orbitz.com 8 12,173 8.23 0:10:09 5.98 211,915 1.88 17Target 9 10,816 7.31 0:09:09 5.32 200,037 1.73 18Overstock.com 10 10,196 6.89 0:11:32 5.01 203,853 1.80 20Travelocity 11 9,972 6.74 0:13:29 4.90 206,899 2.04 21BizRate Shopping 12 9,882 6.68 0:03:17 4.86 88,208 1.48 9BestBuy.com 13 9,391 6.35 0:10:13 4.62 181,380 1.87 19NexTag 14 8,543 5.78 0:02:27 4.20 52,444 1.45 6Ticketmaster 15 7,795 5.27 0:13:05 3.83 173,649 1.75 22Sears 16 7,569 5.12 0:12:58 3.72 164,525 1.73 22Southwest Airlines 17 6,820 4.61 0:17:29 3.35 142,490 2.14 21The Home Depot 18 6,434 4.35 0:07:12 3.16 86,048 1.47 13PriceGrabber.com 19 6,160 4.17 0:03:56 3.03 52,819 1.73 9JC Penney 20 5,982 4.05 0:14:00 2.94 233,769 1.73 39
70% of top 20 online shopping sites offer CE products
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Electronics & Computers are eBay’s largest categories
* Figures are Global
Annualized Gross Merchandise Volume ($B) as of 9/30/04
Motors (eBay’s automobile marketplace) $11.1
Consumer Electronics $3.5
Computers & Networking $3.0
Clothing & Accessories $2.9
Books, Movies, Music $2.4
Sports $1.8
Collectibles $2.2
Toys $1.8
Cameras and Photo
$1.7Jewelry & Watches
$1.3
Home & Garden $2.0
Business & Industrial $1.2
$7.7 billion global
electronics business
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Karl – we get it – there are a lot of online buyers. But . . .
. . . are they
Angels? Devils?
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eBay’s “Angels”
Compared to the US population, visitors to eBay’s Consumer Electronics category are:
– Affluent: 31% more likely to have household income >$100,000
– Well-educated: 21% more likely to hold a college or graduate degree
– Passionate about electronics, and early technology adopters*:– 98% more likely to own 3 or more home computers– 43% more likely to own a digital camera– 158% more likely to own an MP3 player– 65% more likely to own a digital television– 95% more likely to own a Home Theater System
– Active offline electronics shoppers:
– 111% more likely to have purchased at Circuit City within the last month– 81% more likely to have purchased at Best Buy within the last month– 172% more likely to have purchased at Sharper Image within the last
month
*Compared to Online population only
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eBay is the #1 Online Shopping Destination
Site
eBay
Amazon
Wal-Mart Stores
Yahoo! Shopping
Shopping.com
Target
Bizrate.com
Overstock.com
Sears
NexTag
Rank
1
2
3
4
5
6
7
8
9
10
Unique Audience (M)
51
37
21
18
17
16
13
13
9
8
Web Page Views (M)
1,142
160
56
18
15
3
1
0.3
0.2
0.04
Sessions Per Person
8.11
3.03
2.08
1.89
1.72
1.82
1.48
2.01
1.83
1.39
Note: eBay traffic excludes PayPal traffic; traffic also excludes traffic to corporate websites Source: Monthly traffic data from NetRatings; November 2004 data
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eBay can help you reach online buyers
1. Ensure appropriate flow of product to eBay
2. Select & promote sellers who will represent your brand appropriately
3. Create a ‘Factory Outlet’ store for any product not channeled through your authorized dealers
4. Drive consumer upgrade cycles by offering Trade-In programs
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1. Ensure flow of Product
eBay is effective across the full Product Lifecycle
end-of-life used/vintagenew/scarce in-season retail
Product launches and
Limited runs
Closeouts, and
Refurbished
Used, and
Collectible
Slow moving new - in-season, and returns
• Acquire new customers
• Turn over inventory faster
• Test demand for new products
• Move items that aren’t selling through other sales channels
• Get more for product returns
• Liquidate out-of-season stock
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1. Ensure flow of Product
Flow B-Stock through managed, authorized internet channels
• Key benefits:– Relieves supply chain tension– Buyers choose to participate – product goes to those who want it– Increased cost recovery – product sold for fair market value– Reduce costs currently associated with moving B-Stock (returns processing, multi-
channel liquidation)– Remove MAP earlier and let product flow into the private marketplace – avoid
expensive incentive programs on slow-moving A-Stock– Keep non-participating retailers focused on A-Stock sales
OEM Distributors
Authorized offline dealers
eBay Private
Marketplace Authorized online dealers
(eBay)
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1. Ensure flow of product
eBay Private Marketplace Platform
What it is
– Your own private label, off-eBay, business-to-business auction marketplace
How it works
– Marketplace created with your branding and overall look
– Can stand along or be integrated with your existing website
– Invite your preferred buyers to register or simply pre-register them and automatically issue usernames and passwords
– Use multiple selling formats and inventory management and reporting functionality to increase your sales
Benefits
– Sell in large wholesale lots
– Lower sales cost
– Increased recovery rate on liquidation merchandise
– Protect your brand and pricing by approving your buyer network
Talk to eBay today or email privatemarketplaces@ebay.com
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2. Select and promote sellers
eBay Authorized Dealer Programs
Key Benefits to Manufacturers:– Mandate qualifications for participants
– Minimum positive feedback rating
– Return policy, shipping policies, etc.
– Elevate authorized dealers within eBay seller community
– Provide trademarked “eBay Authorized” logo
– Provides transparency to dealer behaviors – easier to monitor than offline retail
– Can provide performance incentives to reward success, other desired behaviors
Key Benefits to Resellers:
– Preferred access to product
– Use of manufacturer logos, images drives efficiency
– Authorized seal drives buyer confidence
– Can offer full manufacturer warranties
– Authorized outlet for in-store overstocks and returns
Concept: Authorize selected resellers to sell your products on eBay
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2. Select and promote sellers
Olympus Showcase
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2. Select and promote sellers
HP Marketplace
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3. Create a Factory Outlet Direct eBay Sales
• You can also choose to open a direct sales channel for B-Stock and Excess on eBay
Harman Audio
Pioneer
Dell
Olympus
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Retail coupon / rebate offer
4. Trade-In
Trade-In programs can drive brand loyalty
• eBay provides a highly liquid market for used electronics
• Manufacturers can take advantage of this demand to drive upgrade cycles, brand loyalty, and customer acquisition
OEM Offer:Trade in old equipment of ANY brand
Existing OEM brand owners
Competitor brand owners
Used equipment
Accelerate upgrade / replacement decision
Strong incentive to stick with OEM brand
Strong incentive to switch to OEM brand
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4. Trade-In
Turnkey Model: trade-in back-end handled through partnerships
Manufacturer• Markets program (web site, retail partners)
• Administers coupon / rebate
Third-party partner• Powers calculator• Purchases product from OEM
• Sells product on eBay• Handles inbound & outbound logistics
eBay• Provides marketplace• Supplies data for value calculator(s)
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Questions? Talk to us here at the Summit!
Karl Wiley, Director, Consumer Electronics & Photo
Cathy Siciliano, Director, Cell Phones & Portable Electronics
Jamie Stark, Category Manager, Home Audio & Video
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