Comments on: Leveraging Facebook To Compete With eBay Won’t Work http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/ Startup and Technology News Fri, 05 Sep 2008 04:48:20 +0000 http://wordpress.org/?v=2.5.1 By: will http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542925 will Wed, 08 Aug 2007 01:24:28 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542925 eBay just launched an app for facebook too. It currently doesnt have a "list" and "publish" to my friends feature but it should soon. eBay just launched an app for facebook too. It currently doesnt have a “list” and “publish” to my friends feature but it should soon.

]]> By: patricia http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542700 patricia Tue, 07 Aug 2007 21:32:15 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542700 Commerce is a natural fit for some social networks (and smart, too, because it adds a revenue stream), though I don't know that any consumer will ever rule out eBay, or Craigslist for that matter. I agree that eBay's a powerhouse that will probably never really be hurt by any start-up competition, but I think there is enough room for competition to be successful for some items. eBay's mass users typically don't recognize beyond what's mainstream (making some things difficult to sell) and fraud and fake items are a real problem for a lot of sellers there, so it opens up a door. Marketing a Facebook application is a lot of work. Only time will tell if these guys can pull it off, in my opinion. It's not a bad idea, but I think Facebook could quickly roll out a commerce element if it wanted to, and it'd kill this. Commerce is a natural fit for some social networks (and smart, too, because it adds a revenue stream), though I don’t know that any consumer will ever rule out eBay, or Craigslist for that matter. I agree that eBay’s a powerhouse that will probably never really be hurt by any start-up competition, but I think there is enough room for competition to be successful for some items. eBay’s mass users typically don’t recognize beyond what’s mainstream (making some things difficult to sell) and fraud and fake items are a real problem for a lot of sellers there, so it opens up a door.

Marketing a Facebook application is a lot of work. Only time will tell if these guys can pull it off, in my opinion. It’s not a bad idea, but I think Facebook could quickly roll out a commerce element if it wanted to, and it’d kill this.

]]> By: Jason Haddock http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542573 Jason Haddock Tue, 07 Aug 2007 19:31:10 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542573 Most of the comments are negative. I think it could be good. Many people on eBay are tired of the fees they have to pay, so they try to entice eBay buyers to come to their storefronts to buy next time. Now they will entice them to come to their facebook page. Just another channel to capture sales. Just another validation that SMO is an important part of your internet marketing strategy. If this buy.com and facebook thing doesn't work out. There will be another feature just like it around the corner. Jason Most of the comments are negative. I think it could be good. Many people on eBay are tired of the fees they have to pay, so they try to entice eBay buyers to come to their storefronts to buy next time.

Now they will entice them to come to their facebook page. Just another channel to capture sales. Just another validation that SMO is an important part of your internet marketing strategy.

If this buy.com and facebook thing doesn’t work out. There will be another feature just like it around the corner.

Jason

]]> By: Scott http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542565 Scott Tue, 07 Aug 2007 19:26:06 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542565 While I doubt this will catch on right away I do like the increase in attention on shopping apps for Facebook. I would love to see Facebook develop into a sub-internet where people do everything they normally do on the open web except with their friends. Apps like this can't just focus on Facebook. They need to tie into an external website and exchange information freely between non-Facebook and Facebook users. That's where I see the real potential. While I doubt this will catch on right away I do like the increase in attention on shopping apps for Facebook. I would love to see Facebook develop into a sub-internet where people do everything they normally do on the open web except with their friends. Apps like this can’t just focus on Facebook. They need to tie into an external website and exchange information freely between non-Facebook and Facebook users. That’s where I see the real potential.

]]> By: randy http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542543 randy Tue, 07 Aug 2007 19:05:04 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542543 I'm not sending my customers to 'face book'. Will Garage sale be available as an embedded script for third-party websites? That would be IDEAL. I’m not sending my customers to ‘face book’.

Will Garage sale be available as an embedded script for third-party websites? That would be IDEAL.

]]> By: Keith Teare http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542488 Keith Teare Tue, 07 Aug 2007 18:23:57 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542488 #29 Amit, See my answer to #12 at #19. Keith Teare ceo/co-founder/edgeio #29 Amit, See my answer to #12 at #19.

Keith Teare
ceo/co-founder/edgeio

]]> By: Andrew http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542485 Andrew Tue, 07 Aug 2007 18:18:07 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542485 Mike, Nice use of Buy.com's terrible foray into the Facebook space (I gave them two stars on my review: http://www.apprate.com/garage-sale-157/) to get to the bigger story - large retailers/auction sites trying to capitalize on Facebook's platform. eBay to Go is the best application I've seen to let you share with friends what you're looking for or what you're selling (unfortunately you're still dealing with high eBay fees). There are definitely different expectations with each marketplace (social networking v online retailer/auction) and it will be interesting to see who can provide services that link both. eBay's is a front for their online store. Garage Sale (buy.com) is social networking based. Still waiting for a company that can find an intelligent way to tie both together. Mike,

Nice use of Buy.com’s terrible foray into the Facebook space (I gave them two stars on my review: http://www.apprate.com/garage-sale-157/) to get to the bigger story - large retailers/auction sites trying to capitalize on Facebook’s platform.

eBay to Go is the best application I’ve seen to let you share with friends what you’re looking for or what you’re selling (unfortunately you’re still dealing with high eBay fees). There are definitely different expectations with each marketplace (social networking v online retailer/auction) and it will be interesting to see who can provide services that link both. eBay’s is a front for their online store. Garage Sale (buy.com) is social networking based. Still waiting for a company that can find an intelligent way to tie both together.

]]> By: KingJacob http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542474 KingJacob Tue, 07 Aug 2007 18:04:43 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542474 This is just buy.com trying to make a buck. Facebooks had their own marketplace even before they opened up for developers and it works great especially for stuff you wouldn't feel comfortable posting in ebay or the newspaper like "room mate needed". This is just buy.com trying to make a buck. Facebooks had their own marketplace even before they opened up for developers and it works great especially for stuff you wouldn’t feel comfortable posting in ebay or the newspaper like “room mate needed”.

]]> By: Emre Sokullu http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542447 Emre Sokullu Tue, 07 Aug 2007 17:19:29 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542447 <strong>Is this what you call “Seamless Integration”...</strong> I’ve just got that news; Buy.com unleashes an eBay competitor Facebook app. It’s a good idea to leverage Facebook’s large network graph and take a piece in this large pie, the challenges are obvious though. The real probem is the inte... Is this what you call “Seamless Integration”…

I’ve just got that news; Buy.com unleashes an eBay competitor Facebook app. It’s a good idea to leverage Facebook’s large network graph and take a piece in this large pie, the challenges are obvious though.
The real probem is the inte…

]]> By: Amit http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542438 Amit Tue, 07 Aug 2007 17:07:16 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542438 Even i have the same question. How does this compare to Edgeio? Even i have the same question. How does this compare to Edgeio?

]]> By: marguerite manteau-rao http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542426 marguerite manteau-rao Tue, 07 Aug 2007 16:58:30 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542426 Marketing 101: Stay focused Stick to your line of business Do not underestimate competition Don't let greed ruin a great business model A better idea might be to create an exchange forum for local goods and services. The competition is very amateurish, the market is underdeveloped, and the product fits right in with social networking psychology. It is also a good sustainability tool. Marguerite Manteau-Rao Green blogger, and marketing consultant http://lamarguerite.wordpress.com Marketing 101:

Stay focused
Stick to your line of business
Do not underestimate competition
Don’t let greed ruin a great business model

A better idea might be to create an exchange forum for local goods and services. The competition is very amateurish, the market is underdeveloped, and the product fits right in with social networking psychology. It is also a good sustainability tool.

Marguerite Manteau-Rao
Green blogger, and marketing consultant
http://lamarguerite.wordpress.com

]]> By: Michael http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542424 Michael Tue, 07 Aug 2007 16:57:47 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542424 I felt the same as the author when I looked at this site. For me, it would be incredibly difficult to supplant ebay as my choice for buying/selling used goods. Besides, have any of you ever sold something to your friends? First of all they want a huge discount, secondly it's a recipe for causing a rift in the friendship if the haggle over price becomes heated. I prefer to just give stuff free to them anyway most of the time, they are my friends right? Heck, it's not even an auction, you either buy it at the price I set or you don't. If I were actually selling something to my friends, i'd be more likely to put in the description the actual price, and put the price in the system as .10 to avoid the fees. I guess I can give buy.com some credit for trying things like this out, but this one should have probably been left on the whiteboard. I felt the same as the author when I looked at this site. For me, it would be incredibly difficult to supplant ebay as my choice for buying/selling used goods.

Besides, have any of you ever sold something to your friends? First of all they want a huge discount, secondly it’s a recipe for causing a rift in the friendship if the haggle over price becomes heated. I prefer to just give stuff free to them anyway most of the time, they are my friends right?

Heck, it’s not even an auction, you either buy it at the price I set or you don’t. If I were actually selling something to my friends, i’d be more likely to put in the description the actual price, and put the price in the system as .10 to avoid the fees.

I guess I can give buy.com some credit for trying things like this out, but this one should have probably been left on the whiteboard.

]]> By: alan p http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542416 alan p Tue, 07 Aug 2007 16:50:22 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542416 @21..isn't that the point of F/B apps...a Darwinian universe of Other People's Risk to teach them which apps they should DiY? And if any one of my "friends" on F/B starts to flog me something...... @21..isn’t that the point of F/B apps…a Darwinian universe of Other People’s Risk to teach them which apps they should DiY?

And if any one of my “friends” on F/B starts to flog me something……

]]> By: Anonymous Coward http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542385 Anonymous Coward Tue, 07 Aug 2007 16:24:27 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542385 I think that it is hilarious that a company claiming a valuation in the BILLIONS has to resort to an open API for crap like this to stay competitive. Billions? For a send-tier, half-baked classified ad site? Right.... I think that it is hilarious that a company claiming a valuation in the BILLIONS has to resort to an open API for crap like this to stay competitive.

Billions? For a send-tier, half-baked classified ad site? Right….

]]> By: Eli http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542379 Eli Tue, 07 Aug 2007 16:19:05 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542379 It's pretty outrageous to assume that anyone in a "closed" network would pay two sets of transaction fees to a third party to complete a sale like this. These are people who supposedly live within a mile or two from each other, and can realistically be considered peers. It's very likely that their own value proposition (ie trust via a closed network) will negate the viability of their model, at least in its ability to produce transaction revenue. Maybe they were under the impression that you couldn't include a '$' in a Facebook message. It’s pretty outrageous to assume that anyone in a “closed” network would pay
two sets of transaction fees to a third party to complete a sale like this. These are people who supposedly live within a mile or two from each other, and can realistically be considered peers. It’s very likely that their own value proposition (ie trust via a closed network) will negate the viability of their model, at least in its ability to produce transaction revenue. Maybe they were under the impression that you couldn’t include a ‘$’ in a Facebook message.

]]> By: David http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542349 David Tue, 07 Aug 2007 15:49:18 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542349 I still believe the real reason these don't work is not because of fees and marketability (the broader user base on ebay may mean you get less return for your goods). The real reason they don't work is people want to be disassociated from what they're selling. I don't want to sell something to my friend, because if it breaks or he feels he got a raw deal, it could impact our relationship. Or if I felt I was too generous on the price. It's better to sell to someone you don't know, because it removes that weird social dynamic you get otherwise. Craigslist is great because you can sell locally to a complete stranger. Ebay is great because you can ship it halfway around the world. I do not want to sell to my facebook friends, however. I still believe the real reason these don’t work is not because of fees and marketability (the broader user base on ebay may mean you get less return for your goods). The real reason they don’t work is people want to be disassociated from what they’re selling. I don’t want to sell something to my friend, because if it breaks or he feels he got a raw deal, it could impact our relationship. Or if I felt I was too generous on the price. It’s better to sell to someone you don’t know, because it removes that weird social dynamic you get otherwise. Craigslist is great because you can sell locally to a complete stranger. Ebay is great because you can ship it halfway around the world. I do not want to sell to my facebook friends, however.

]]> By: Brandon http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542348 Brandon Tue, 07 Aug 2007 15:49:13 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542348 The closed network has one big advantage, namely that the buyers might actually see a listing. Not everyone trolls ebay looking for stuff. Furthermore, buyers and sellers will most likely live near one another, in the case of a college-mate. This makes shipping costs and transaction logistics easier. This isn't so much about competing directly with eBay, but rather it's about competing with a hand-written sign taped to your dorm room, in my opinion. The closed network has one big advantage, namely that the buyers might actually see a listing. Not everyone trolls ebay looking for stuff. Furthermore, buyers and sellers will most likely live near one another, in the case of a college-mate. This makes shipping costs and transaction logistics easier. This isn’t so much about competing directly with eBay, but rather it’s about competing with a hand-written sign taped to your dorm room, in my opinion.

]]> By: TechDumpster (living in First Life) http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542343 TechDumpster (living in First Life) Tue, 07 Aug 2007 15:33:55 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542343 @ Michael Arrington - Thank you for a well thought out article. @ 2 - Occasional sellers can't create a market. That's the problem. I don't look at my Facebook Marketplace because there are too few goods, which leads to me not checking very often, which creates a negative feedback loop. @ 11 - Exactly. Also, Facebook already screwed over another Silicon Valley start-up. They'd taken money from this start-up and announced a partnership about 2 weeks prior to launching Marketplace themselves. This makes you wonder about any sort of partnership with Facebook. They will just cherry pick the best ideas and do it themselves. @ Michael Arrington - Thank you for a well thought out article.

@ 2 - Occasional sellers can’t create a market. That’s the problem. I don’t look at my Facebook Marketplace because there are too few goods, which leads to me not checking very often, which creates a negative feedback loop.

@ 11 - Exactly. Also, Facebook already screwed over another Silicon Valley start-up. They’d taken money from this start-up and announced a partnership about 2 weeks prior to launching Marketplace themselves. This makes you wonder about any sort of partnership with Facebook. They will just cherry pick the best ideas and do it themselves.

]]> By: Brad http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542337 Brad Tue, 07 Aug 2007 15:24:16 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542337 That was a very short sighted article. No real commentary of merit That was a very short sighted article. No real commentary of merit

]]> By: Keith Teare http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542333 Keith Teare Tue, 07 Aug 2007 15:10:59 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542333 #12 edgeio chose to think about Facebook differently. After months of discussions with them they launched Marketplaces. We see that as their thing. edgeio can have 2 roles. 1) As a means of taking seller items to a wider off-facebook audience and returning traffic to Facebook. 2) As a provider of paid listings INTO Marketplaces from the outside. We are an advertising network in essence. By the end of Sept we will have 24 million listings from about 7000 advertisers, and we already have 1000 publishers using our classified boards product. Facebook is on both sides for us. It has listings and wants to take additinal listings for a fee. Great for edgeio. Our job is to plus advertisers and publishers into a wide network, something that is hard for them to do alone. Advertisers get traffic and publishers earn revenue. Very different to these offerings. Keith Teare ceo/co-founder/edgeio #12

edgeio chose to think about Facebook differently. After months of discussions with them they launched Marketplaces. We see that as their thing. edgeio can have 2 roles. 1) As a means of taking seller items to a wider off-facebook audience and returning traffic to Facebook. 2) As a provider of paid listings INTO Marketplaces from the outside.

We are an advertising network in essence. By the end of Sept we will have 24 million listings from about 7000 advertisers, and we already have 1000 publishers using our classified boards product. Facebook is on both sides for us. It has listings and wants to take additinal listings for a fee. Great for edgeio. Our job is to plus advertisers and publishers into a wide network, something that is hard for them to do alone. Advertisers get traffic and publishers earn revenue. Very different to these offerings.

Keith Teare
ceo/co-founder/edgeio

]]> By: Trevor Ginn http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542331 Trevor Ginn Tue, 07 Aug 2007 15:02:16 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542331 If this applications could list items into the facebook marketplace then it could be more powerful..... If this applications could list items into the facebook marketplace then it could be more powerful…..

]]> By: Jono http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542325 Jono Tue, 07 Aug 2007 14:54:18 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542325 Can't see this working, although I am more likely to buy stuff from people I know and trust, I probably wouldn't use this (or any other) service to do it. I'd probably just see their article for sale in facebook, phone up my buddy and say, hey I want that, I'll pick it up later and give him a wod of cash. Why would a seller I know bother to pay postage and also pay a 3rd party commission when we could just do it face to face? Of course not all friends live close by, but you get my point... Can’t see this working, although I am more likely to buy stuff from people I know and trust, I probably wouldn’t use this (or any other) service to do it. I’d probably just see their article for sale in facebook, phone up my buddy and say, hey I want that, I’ll pick it up later and give him a wod of cash. Why would a seller I know bother to pay postage and also pay a 3rd party commission when we could just do it face to face? Of course not all friends live close by, but you get my point…

]]> By: Chris S http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542324 Chris S Tue, 07 Aug 2007 14:54:14 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542324 #11. But hey. did it not create extra publicity for Buy.com especially since they are somewhat faded. I guess we can call it smart branding. Even more effective than banner ads. #11.

But hey. did it not create extra publicity for Buy.com especially since they are somewhat faded. I guess we can call it smart branding. Even more effective than banner ads.

]]> By: Eugene http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542323 Eugene Tue, 07 Aug 2007 14:52:02 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542323 I have been using facebook and LinkedIn for a while. I recently came across a new website zmobs. It looks like a combintation of LinkedIn, Craigslist and AngiesList in your own network and community. so one benefit I can see is that If I look for a service provider, I can see who in my network has receommended a plumber, for example and it is free. I have been using facebook and LinkedIn for a while. I recently came across a new website zmobs. It looks like a combintation of LinkedIn, Craigslist and AngiesList in your own network and community. so one benefit I can see is that If I look for a service provider, I can see who in my network has receommended a plumber, for example and it is free.

]]> By: John Jackson http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542322 John Jackson Tue, 07 Aug 2007 14:51:59 +0000 http://www.techcrunch.com/2007/08/07/leveraging-facebook-to-compete-with-ebay-wont-work/#comment-1542322 Great Article! Great Article!

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