eBay Online Auction Brand | Fastest Growing Brand

Is eBay unstoppable?

eBay has established a great deal of loyalty for the brand, which guarantees inventory and extends the perceived competencies for the brand. Other retailers' ability to give eBay a run for the money will depend on how successfully they will be able to extend their brands into the auction space. Successful brand extensions depend on whether customers believe the offer fits with the core competencies of the company and with the core values of the brand.

All things being equal, we can assume that Amazon will fair a better chance of competing with eBay because their core competency fits squarely in the retail space and auctioneering is a logical extension. Amazon customers equally have a greater degree of trust with the brand than Yahoo customers for the kinds of leaps of faith that auction retailers require. So, Yahoo and Google will have to work much harder than Amazon to compete with eBay, but this does not rule them out.

It’s also worth considering any new entrants into the space, but the network effect will pose a tremendous barrier to the market. While the internet greatly reduces this barrier, awareness building and trust still need to be built the old fashioned way.

Another interesting question to consider is whether the online auctioneer will be able to make use of the LONG TAIL phenomenon: the ability to coordinate auction items with each other. For example, if you buy a set of turn-tables, will the auction site offer you LPs as well? The kinds of obscure product listings lend themselves well to take advantage of the long tail. But the complexities of matching products and classifications will be a big challenge for the retailer.

Aaron Shields, Partner, Brandinstinct - August 1, 2005

Ebay is the original. As long as they keep moving with the times and innovating while identifying other parallel niches the customers are interested in then it will remain #1. (Yes its unstoppable!)

Allison Toner, Social responsibility designer, www.nicheforecasting.com - August 2, 2005

China may present a particular problem for eBay on two fronts. First, Chinese competitors such as Taobao, which not only appeal to consumers in terms of national pride, but also may get some protection from government organizations (such as the telecom / internet departments still widely controlled centrally).

More importantly. In a developing e-commerce nation such as China, where trust of online financial transactions is shaky at best, all it would take is one giant scandal to hit the papers and get carried to everyone. Such a disaster would likely taint eBay for years in a nation already wary of corruption and con men.

Mark - August 4, 2005

For sure eBay is able to manage its growth. I thing everyone would agree to the sound practice about leadership - who starts as leader continues as leader. Froogle, Yahoo! and Amazon! are great followers and all of them have some niche and some very loyal customers but eBay is and will be a leader who has formed and developed the market. Here the importance is not in figures about growth but in the real power of brand, value of brand.

Please do not over-rationalize branding as this leads only to misconception of what branding really is. Those greatest competitors are good to keep the industry to guidelines, to make it more competitive, but eBay (also owner of Pay Pal) seems to be and to stay the leader in on-line one-to-one interactive sales in nearest future.

Ingus Sturmanis, Communications consultant, publisher, ex DDB, ex TBWA, now working on private consulting projects - August 5, 2005

As long as they command the trust of their customers and trading members, they will grow further and will be a threat to other players like Amazon and Yahoo.

Jathavedan, Exective, Rangsons, Bangalore. - August 6, 2005

Ebay has a strong lead on its closest competitor; you can't underestimate the strength of brand loyalty that comes from first to market. However, brand can be a strong differentiator, unless they continue to build on their success they could see the share of their market eaten away by competitors that also have a strong online brand and that have proven to deliver a quality service in other sectors.

Joseph Hedges, Creative Director, Rareform London - August 8, 2005

eBay will continue to rule the game as long asl it delivers delight to customers and differentiates itself. Though it is aquiring local auction sites like bazzee.com in india, i think they are coming up with something innovative very soon.

But it's true that it's high time for them to bring something new.

Mohit Bahri, Student, SIIB, Pune, India - August 14, 2005

eBay may be in for a decline due to its failure to deliver on a brand promise of security. Over the past couple of months I have had occasion to bid on a few items on eBay, having not used it since 2002. Whereas the first experience was all it was touted to be - easy, secure, fast - my recent experience was the polar opposite. Obvious fraudulent activity, attempts to hijack accounts, visible hijacking and misuse of others' accounts and a deluge of spam. If a brand fails to live up to it's promise, well, you know the rest... it's only a matter of time.

Timothy Pratt, Chief Marketing Officer, MedNet Solutions - August 15, 2005

The greatest risk to eBay is eBay itself. Going global and sticking to their core competencies can cause the brand name and perception to become as commonplace as something like the ‘Kleenex’ brand.

Business/Brand strategy is a difficult balancing act and sticking to core competencies can be risky.

eBay may never be able to do anything else. That’s ok…But one day people may say they are going to ‘eBay’ their old belongings as they sign into Froogle. Are the short term gains now worth it?

Jon Geletka, Marketing Manager, ITEC - August 15, 2005

Nothing is unstoppable but it seems the rolling ball is now in motion and it is going to be very hard to stop! But the big question is why can they not command the Japanese market?

Simon Scarre, Creative Director, Ringwood - August 16, 2005

eBay may be a strong brand, but they’re a long way from being in a position to exercise a strong control over their total brand experience.

As I see it, the most important facet of this brand experience is in the hands of the eBay sellers as they’re the ones who draw the eBay bidders. Therefore, eBay’s ability to attract and retain “quality” and trustworthy sellers will be their ticket to continued success. Or the opportunity for one of their many competitors.

Kurt B. Geiger, Copywriter, www.kurtgeiger.nu - August 17, 2005

EBay is becoming a victim of its own success. There is an emerging perception that eBay is now more expensive than the high street. Why? Users are becoming festish obsessives, rather than canny consumers.

As soon as the eBay brand doesn't stand for a bargain (it has negative economies of scale afterall, more users = more bids), the cookie will crumble...

Ben Hourahine, Futurist, Director, The Ideas Exchange, http://www.ideas-exchange.com/ - August 21, 2005

This bargain issue is not what the Ebay brand is about. More and more people will realize that thay cannot obtain bargain prices at all times. But they will come back because there always is the chance of winning for a lower than market price. They love the exitement and they love sharing this passion with so many people. That's why Ebay is an addiction so hard to get rid of.

Karsten Jannicke, Account Executive, OMA GmbH - August 24, 2005

Beating Ebay in terms of pricing and depth of its product offering will prove to be an arduous task if not impossible. what it lacks is the customer relationship factor that might be capitalize by new entrants in this field. that will be the new variable that will slowly eat share from ebay's profits.

Leo Blanco, Analyst - August 29, 2005

Even companies like Google may be in for a decline soon. All you would need is an innovative way to look at the business, much in the same manner that eBay did to the traditional idea of auctioning or what Amazon did. What idea could it possibly be remains to be seen.

Abhishek Kumar, Student, Symbiosis Institute of International Business, India - August 31, 2005

Is eBay unstoppable...?

There is nothing unstoppable in a true sense. It may seem in a relatively short term but in the long run, no one is unbeatable. But the point is, will eBay be able to manage its growth and hold its ground only if it really delivers what customers want. Anyone can come with a low price product and customers are bound to shift, but the customers will be loyal to a particular brand - especially internet brand - if he is excited about it and he knows that he can always get something of value.

They have made a base. Now they need to built on it. Let’s wait and watch how they evolve.

Akhil Ahuja, Symbiosis, Institute of International Business, India - September 1, 2005

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