eBay Inc Needs to Make More Users Spend More
Taking A Share of the Retail Pie
Apart from competing with Amazon, how much can eBay Inc grow? A lot if statistics are to be believed. E-commerce made up just 7.5% of the total retail sales during Q4 2015. One fact that can work in favor of eBay is that it generates a commission on each transaction mostly by connecting buyers to sellers. It does not have inventory of its own like Amazon. That can be a blessing in disguise, because certain types of overheads such as distribution costs and stockpiling risks get done away with. As such, there is not a huge need for keeping on reinvesting money. Particularly, it needs to make sure that users transact online instead of offline, and recently it published a survey result to drive home its point.
In a world that has its eyes locked on innovative cars, it seems that eBay Inc wants to set itself apart by focusing on cars of yesterday. eBay Motors, which is a part of eBay Inc, had held a survey called as ‘America’s Aging Car Force’. On the 14th of April, it declared the results for the same. The results, not surprisingly, suggest that Americans having a vehicle which is more than five years old, whether it be a car or a truck, become emotionally attached to it. What is less obvious is that a majority of these who prefer to tinker with their vehicles themselves, are buying spare parts for the same online.