Saturday, May 12, 2007

The Case For Yahoo Stores Over eBay Stores!

In addition to the uncertainty about eBay Stores/Shops, my recent comparison between Yahoo Stores and eBay Stores was eye-opening.

For my example, I looked at a basic online store with listings of 200 items a month, with a product mix of 150 items under $25 and 50 Items over and made the assumption that the store sold $1,000 in merchandise in a month. If your numbers are greater than this, the savings begins to grow substantially.

Here is the Google Spreadsheet with my comparison, as well as room for you to input your existing eBay Store/Shop Listings and monthly GMV. This will allow you to calculate if there will be a savings by switching to Yahoo Stores. Please plug in your own monthly numbers into the green fields in the spreadsheet. (The spreadsheet refers to US pricing only)

In addition to the cost savings there are also promotional benefits that make moving to Yahoo Stores attractive.

With eBay stores you get limited exposure in search on and often have to pay for Auction listings as advertising for your store items. There are no additional promotional benefits to having an eBay Store/Shop. You still have to do most of the marketing to get buyers to your store. You also have to contend with the competition on the eBay marketplace.

With Yahoo Stores you get the following: (As of May 11th 2007)

But, you will still have to spend some of your savings on other marketing efforts but the offers above give you a head start to see what works for a discount.

My goal as the Seller Evangelist is to provide you with accurate, unbiased, information so that you can make the correct choice for your business. I do not earn any money from either of these two programs nor am I partial to either. If you are serious about making money online you need to make informed decisions. There may be other WebStores that compare just as favorable but with the information provided here you do have a head start on your research.

It is interesting to note that both PayPal and are eBay owned companies and you get a better promotional deal with Yahoo Stores than you do with eBay Stores.

Also, with a Yahoo store you can still use eBay for Auctions but instead of considering Auctions as advertising (it is difficult to move eBay customers off site) you should sell only the items that will convert well and are profitable. A side benefit is that over time some of these customers may choose to buy directly from your Yahoo Store.

One last benefit:
With Yahoo stores your hosting fees can rise based on the number of additional features and increased sales but your FVF's will decrease allowing you to scale your business.

Check out the Yahoo Store of eBay seller Rock Bottom Golf

Oh and I forgot the best part. You can advertise using Yahoo Sponsored Listings and show up in eBay search. Not a bad deal.

Update: Ina Steiner Interviewed the Director of Yahoo Merchant Solutions in her most recent podcast. Listen in for info about Yahoo Stores.

Just my 5 Cents!


Anonymous said...

I Like the ebay and marketing

eBay Ticket Selling said...

BUSINESS eBay business, you're going to look at thrift stores and garage sales warehouse. A place where you can buy bulk items to sell on eBay is ... eBay! In almost every category of goods on eBay has a section called Wholesale Lots, where people sell items in bulk at reduced prices. The downside is that many times, what I think is a lot of reality does not exist. Lot Wholesale Lots on eBay is not a competitive price, and it is also hard to find good quality products. Many times people are selling a lot of damaged goods, do you think you're getting a lot, but in reality things are cheap because they are damaged.

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