Revealing the Online CE Buyer CEA Winter Summit 2005 Karl Wiley Director, Consumer Electronics

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Revealing the Online CE Buyer CEA Winter Summit
2005Karl WileyDirector, Consumer Electronics
PhotoeBay, Inc.
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Online CE buyers come in all shapes sizes
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

Resellers? Installers? Enthusiasts?
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Online CE buyers come in all shapes sizes
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

Collector? Audiophile? Exchange Rate player?
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Online CE buyers come in all shapes sizes
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

A dream customer?
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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)
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
Source US Department of Commerce
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Monthly Top 20 Shopping Destinations
70 of top 20 online shopping sites offer CE
products
Marketplaces / Shopping Engines YOU can
participate in
Other online electronics sellers
Source Neilsen NetRatings
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Electronics Computers are eBays largest
categories
Annualized Gross Merchandise Volume (B) as of
9/30/04
Motors (eBays automobile marketplace)
11.1
Consumer Electronics
3.5
Computers Networking
3.0
Clothing Accessories
2.9
Books, Movies, Music
7.7 billion global electronics business
2.4
Collectibles
2.2
Home Garden
2.0
Sports
1.8
Toys
1.8
1.7
Jewelry Watches
Cameras and Photo
1.3
Business Industrial 1.2
Figures are Global
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Karl we get it there are a lot of online
buyers. But . . .

• . . . are they

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eBays Angels

• Compared to the US population, visitors to eBays
  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
Rank
Unique Audience (M)
Web Page Views (M)
Sessions Per Person
eBay Amazon Wal-Mart Stores Yahoo!
Shopping Shopping.com Target Bizrate.com Overstock
.com Sears NexTag
1 2 3 4 5 6 7 8 9 10
51 37 21 18 17 16 13 13 9 8
1,142 160 56 18 15 3 1 0.3 0.2 0.04
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

• Ensure appropriate flow of product to eBay
• Select promote sellers who will represent your
  brand appropriately
• Create a Factory Outlet store for any product
  not channeled through your authorized dealers
• Drive consumer upgrade cycles by offering
  Trade-In programs

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1. Ensure flow of ProducteBay is effective
across the full Product Lifecycle
Closeouts, and Refurbished
Slow moving new - in-season, and returns
Product launches and Limited runs
Used, and Collectible
end-of-life
in-season retail
used/vintage
new/scarce

• Acquire new customers
• Turn over inventory faster
• Test demand for new products
• Move items that arent selling through other
  sales channels
• Get more for product returns
• Liquidate out-of-season stock

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1. Ensure flow of ProductFlow B-Stock through
managed, authorized internet channels
OEM
Distributors
Authorized offline dealers
eBay Private Marketplace
Authorized online dealers (eBay)

• 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

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1. Ensure flow of producteBay 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_at_eb
ay.com
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2. Select and promote sellerseBay Authorized
Dealer Programs
Concept Authorize selected resellers to sell
your products on eBay

• 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

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2. Select and promote sellersOlympus Showcase
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2. Select and promote sellersHP 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

Dell
Harman Audio
Olympus
Pioneer
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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

Accelerate upgrade / replacement decision
Existing OEM brand owners
OEM Offer Trade in old equipment of ANY brand
Used equipment
Strong incentive to stick with OEM brand
Retail coupon / rebate offer
Competitor brand owners
Strong incentive to switch to OEM brand
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4. Trade-InTurnkey 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