eBay takes aggressive PR path | IR News

eBay takes aggressive PR path

Posted Date: 16/11/2011

By Robert Stockdill

Online auction giant eBay is chasing the wallets of shoppers in bricks and mortar stores with an extraordinary public relations campaign launched this week.

The US-controlled company released "research" on Wednesday "revealing" Australians had saved $2.9 billion by using their smartphones to compare prices before making purchasing decisions.

Quoting a survey of 1265 respondents undertaken by Galaxy Research between October 31 and November 2, the company claimed that over 4 million smartphone owners now using their phones to compare prices before making a purchase.

"Those savvy shoppers who used their phone to research products saved $2.9 billion in 2011, that’s an average saving of $595 per person," said the release.

Moreover, 1.3 million Australians used their mobile phone to both research and purchase items and 37 per cent did so while looking at the product in a physical store.

Nearly half those who responded (suggesting the survey was conducted online on a voluntary response capacity rather than a scientific cross-section of consumers) said having researched a product on the phone they purchased the product online using a computer, but the same number typically purchased in-store.

Fifteen per cent of those who used their smartphone to buy a product were standing in a store but purchased it online from a different retailer via their smartphone.

The launch of such research by eBay - together with an advertising campaign mimicking that of David Jones' promise to customers 10 days ago - shows eBay is tactically going head to head with traditional retailers to gain marketshare for their own channel which is increasingly promoting new products as opposed to the private trading of used goods which provided its bread and butter when in start-up mode a decade ago.

Deborah Sharkey, eBay VP, said in a statement that the increased use of smartphone technology had empowered consumers to determine their own shopping experience.

“Retail purchases have been assumed to sit in one of two camps; offline or online, but this distinction no longer exists. With portable shop windows sitting in consumer’s pockets, Australians are more empowered than ever before to research products and get the best possible price before completing their transaction.

“Traditional retailers must embrace a multi-channel strategy as Australians increasingly use smartphone technology to blur the lines between online and offline shopping.”

Keywords: eBay, online shopping

Comments:

Monday, November 21, 2011 by Graeme

From the tone of these comments it seems that burying heads in the sand is still first choice for some. The traditional music industry died an embarrassing and swift death because it refused to move with the times. Smart retailers small and large can compete and thrive if they innovate, give amazing service and target the right customers for their business model.
The one concern I have with the new Fashion Gallery is that these retailers are being treated differently to other sellers on Ebay - no feedback ratings etc. With Ebay already so biased against the average seller (the customer is always right, even when they are wrong!), it makes for an uneven playing field.

Thursday, November 17, 2011 by Brad Coates

"Freedom of Choice is what you want, Freedom from Choice is what you got";-)
No longer can I maintain a bricks 'n mortar "showroom" for the benefit of those that want to try it before they buy it somewhere else online. I give up.......we're going to sell coffees instead. (At least customers appreciate the service given)

Wednesday, November 16, 2011 by JSYRQHSC

yes, I was surprised to see that you accepted 2 full page ads for eBay Fashion Gallery in your Inside Retail magazine this month when they are clearly competing with your core bricks & mortar retailers

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