| As an eBay consultant, a common question from | | | | loss on each sale, but they are recruiting customers |
| eBay sellers is, "How can my competition be selling this | | | | who may buy from them for years to come. |
| product so cheaply? I can't even buy it for what they | | | | This strategy works especially well if the product is |
| are selling it for." This observation is correct. Many | | | | some type of consumable like ink cartridges, batteries, |
| large sellers offer their products on eBay at a loss. | | | | skin care products, gourmet food products, vitamins, or |
| And they are doing it on purpose.eBay is one of the | | | | pet supplies. Consumables get used up and have to be |
| most visited websites on the internet, and one of the | | | | replenished on a regular basis. A large company could |
| most popular marketplaces in the world. It is also is a | | | | find a customer on eBay, establish a relationship with |
| place where millions of buyers are congregated | | | | the customer, and receive $20 or $30 a month from |
| together ready to buy products. Large sellers and big | | | | this customer for many years. The long-term revenue |
| corporations see the value of having a presence on | | | | far outweighs the initial loss on eBay. |
| eBay. Here is the strategy. | | | | The next time you are checking out your eBay |
| A big corporation sets up shop on eBay and offers its | | | | competition and find a competitor whose price you |
| products at a lower price than the competition in order | | | | cannot beat, take a look at their feedback page. Is it a |
| to get the sale. Once the sale is made, the large | | | | large seller with hundreds of sales a month and a huge |
| company has the buyer's address and email address | | | | inventory? If so, they are probably only on eBay for |
| and can market to that customer forever. When the | | | | one reason, and it isn't to make a profit. Large |
| seller ships the order, they entice the buyer to visit their | | | | companies are using eBay to harvest customers and |
| website by using a percent off coupon or a free gift | | | | direct them to their own website. |
| with their order. Big companies are using eBay for | | | | To learn more about eBay selling, visit the eBay Coach |
| customer harvesting. Sure, they may be taking a $10 | | | | Blog. |