eBay/PayPal 20% off Promotion

JimB on 07/04/2015 - 14:24

I'm sure this has been asked/answered before, but I couldn't find it when searching

Not that I'm complaining, but why does eBay/PayPal offer the 20% off promotion? Build market share, attract large retailers to eBay?

It seems like a massive loss leader, but in this case, I haven't purchased anything else that was full price like the aim of loss leaders.

Last week I 'saved' at least $900 via the eBay/PayPal 20% off Promotion. When I say 'saved' I could have not purchased the items, but they were too cheap for me to pass up.

Doesn't seem like a sustainable business model, but good for consumers.

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Comments

  • [Deactivated] on 07/04/2015 - 16:23
    +3

    Yup. They are not so much trying to 'build market share', as defend that which remains.

    Amazon and The Alibaba Group have enormous expansion plans, and eBay are just defending their position. The hacking scandal didn't exactly help matters.

    They hope that the percentage-off promotions will improve traffic and engender greater customer goodwill / sustain them.

    The strategy also, very clearly, involves keeping some of the big retailers (who all have their own off-site, online, stores) onside and on eBay.

    May work.
    I saved a reasonable amount on one purchase the other day. Very happy for that result.
    I might even visit the site again!

    • JimB on 08/04/2015 - 10:08

      Yeah, I agree with what you say.

      I think their aim is to get these large stores to have greater presence on eBay by artificially bumping up full priced sales there. Win for the stores and consumers.

      Sustainable? I think not, but as consumers- make hay while the sun shines.

  • usherer on 07/04/2015 - 18:21
    -4

    I can't find the page on Ebay which states this.
    I'm trying to get an Acer Aspire S7 - can I get it with this promo? If I do end up shopping from there, it'll be my first time buying electronics online, and I'm nervous. The first page of my search results only show sellers from China and the US.

    • spychiatrist on 07/04/2015 - 22:30

      just going through the title, eh?

  • TheAccountant on 08/04/2015 - 02:19

    I reckon they split losses with the participating businesses. Could possibly even end up with a net profit.
    We'll never know for sure, but make no mistake, they benefit out of it. A business as big as eBay doesn't just give away money for nothing.

    • JimB on 08/04/2015 - 10:03

      I doubt they are splitting the losses/discount because the store still invoices the full amount and pays the full GST.

      I'm sure they think they will benefit from it, but in reality I'm not sure. Expensive marketing IMO.

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