Back then we were focused on proving the viability of the Internet as a whole as a remarketing or retail venue. We didn’t have access to template companies that allowed the ease of listing vehicles that is available now. In other words, it was a pain.

We were experimenting a lot and signed pilots with major leasing companies and banks to remarket their vehicles online. We would do so under the premise that we would sell the vehicle quicker and bring the same or more than Black Book Wholesale Average. At that time, most of these companies would sell these vehicles for around 95-97% of BBWA. Our goal was to get more and do it quicker than typical “auction” means.

We did just that! We were selling vehicles that we never seen, started or inspected for just over BBWA, with no information and some pictures taken in the dark. Seriously.

The reason I mention this is because I feel that I can harness the power of eBay about as good as anyone. After I left, I tried it in multiple applications over multiple companies and the results where o.k. in that it generated a lot of traffic but the results as a “retailer” were difficult to substantiate.

eBay is the best online “auction” out there. People go to auctions to find those rare gems and/or to get a deal. Our goal was to get BBWA and I am sure most dealers want closer to retail.

Plus, to add to that, the fees and time invested to do it right can kill you. In addition to this there is arbitration, seller mis-representations, non paying bidders, scams and challenges when people want to use Paypal.

So, I am very happy for eBay and this milestone. eBay will continue to dominate in regards to unique, exotic, hard to find vehicles and to the eBay addicts.

They will also do well with the sub $5k vehicles and the bargains.

Listing all your Tauruses, G6′s and Sonatas, unless you are a price leader will result in my opinion in poor ROI.

BTW, Rob Chesney is a great guy and always seems willing to listen to suggestions as to how to get better. Give him your feedback if it isn’t working for you or your model.

My $0.02.
Ebay use to be a selling bonanza (details below). Today, Its viable if you have the right inventory, you’re located in the Ebay sales sweet spot and… you’re are not in NY.

Ebay Opportunity #1
Ebay retailing sweet spots are found within a 1-2 hour drive from a major city (i.e. NY, Bost, Atlanta, Jax, Dallas..hell any where in TX for that matter!, Chi, Denver, etc..) Not only do you have the zllion buyers in “your” megalopolis to sell to , flights in are easy, cheap and often direct, PLUS, shipping options are far easier to execute.

Ebay Opportunity #2
A Vacation Destination. Fly in, drive home.

Lemon Law.
NY retailers are bound to honor NY’s very rigid Lemon Law. If you follow the letter of the law, Reconditioning costs are very high.

Why Ebay lost its luster…
Part1.
As I recall, back in 03-04, Ebays rate increases shook out the millions & millions of hobbiest / part timers that amused themselves with all things on ebay. Take those “players” out of the game and we were left with shoppers that didnt have a clue what a reserve was. We sold 99% of our ebay sales over the phone.

Part2.
All the late bloomers in the auto dealer retail world finally woke up and started agressively marketing on the net. The early adopters lost their advantage.

just my 2 pennies.
Joe

First, from personal experience selling probably 5 or 6 cars on eBay over the years, it seems to be a marketplace where final prices end up between wholesale and retail. I know there are dealers out there who don’t just dump aged units on eBay, but they list everything on the lot. What seems to work best in these cases? Or do you treat eBay as more of a lead generating service for in-market shoppers? I know eBay seems to bring better prices for the rare stuff like classic cars or exotics, but what about the average $20k car?

Second, from a reach perspective, eBay has done a tremendous job of getting the shoppers on the site. Ask 100 private party sellers where the best place to sell a car would be and I bet half of them say eBay. As a dealer it’s tough to beat the kind of targeted exposure that eBay offers. How do you as a dealer handle the high number of shoppers who are looking for cars $5000 below book?

The amazing thing is that the phenomenon is just beginning. Yahoo’s new format for selling cars on line as well as Google’s new plans will add to this growing number.

Another great piece of news is The Beijing Auto Show http://www.china-autoshow.com/index.asp and China’s auto market is making a statement this week. We will be a major factor in the automobile industry as consumers and OEMs.

This show is unbelievable and has only just begun. The excitement is unbelievable as the old feelings about the industry are rekindled with enthusiasm, anticipation and excitement. Not only are there more cars in this show to make it the worlds largest the women are unbelievable gorgeous and there are sooooo many.

If we think ecommerce is big in the US wait until you see what they are doing here. Yahoo, Google, ebay and many others are all looking for the opportunities.

This show runs through 28th. With 900 vehicles on display this event is expected to attract more than 600k visitors, hmmmm, do not want to be here the last two days. Car sales in China are up 21.4 percent over last year, 2.5 million cars sold in the first quarter. Total sales are predicted to reach 10m vehicles in 2008.

Just two years ago, the Beijing auto show took place in a small cramped space in Beijing’s city center. The show alternates with Shanghai’s show, opens this week for six-days. Last years show in Shanghai was impressive and this year is a real WOW, God only knows what they have planned for next year. The Auto Show China 2008 is the first show in the new International Exhibition Centre; it must be the world’s largest certainly the most impressive, tech wise you got to love it here. Ecommerce is alive and well as there are thousands of kids all working the angle to make their first million this year. We “make way” for the men and women who boldly push past us on their way to their fortune.