Showing posts with label digital sales. Show all posts
Showing posts with label digital sales. Show all posts

Sunday, April 13, 2008

Uncle Griff's Dynamite Marketing Plan

It is strongly recommended that you do not read this while eating or drinking!

Visualize:

It is 2PM, the online Workshop forum is packed full of desperate, disenfranchised Sellers of digital media all anxious to learn "How to Make eBay's New Digital Download Policy Work for You".

I have to admit to feeling sympathy for Brian Burke who answered all questions respectfully and with politeness, charm, and humor where appropriate. What a contrast to the last workshop I audited with Scott Wingo!

Immediately the forum opened about 50 posts hit the board. Most were either explaining why the policy is misguided, a mistake or it simply should not apply to them. The remainder asked questions that were either answered in the March 24th announcement or the Classified Advertisement guideline page. I do not understand what part of this:

all goods that can be digitally downloaded or transferred electronically must be listed using the Classified Ads format

is complicated or open to any alternate interpretation.

The first half dozen responses were variations on the theme of NO. Posting was hot and heavy and I was glad this was an online workshop, it felt like a brawl. Then, in a truly slick move, 8 minutes from the end of the workshop, as the brawl was winding up into a small riot, Uncle Griff unveiled his Marketing Plan for eBook Sellers in a series of posts and at exactly 3PM eBay Pink Deidre closed the board for further comments or questions.

Pearls of wisdom from Uncle Griff



Uncle Griff's dynamite marketing plan was that eBook sellers should put them on 1G flash drives, or memory cards. He said:
The new policy also presents intriguing marketing opportunities for the enterprising seller of digital content to add value to their content by offering it on media that can be used for other purpose.

They could then join the hordes of sellers in Books, Cameras & Photos, Cell Phones & PDAs and Consumer Electronics, listing at 1c with 8.99 shipping. (Does that make sense? Yes, well, ummm, onward.)

It is a very good marketing plan. For eBay. He assumes the seller has an eBay Store to help cross promote all of their content listings with their non content listings. Then using a mix of Classified Ads, Auction, and Fixed Price, with sub-titles (additional marketing opportunity) Uh huh.

So here we go . . .
Perceived Value . . .
Adding value to your content will set your listings apart from your competition. To my eye, one of more distressing aspects of the growing trend in digital content is the “sameness” that permeates this particular category of listings. There are so many titles like “How to sell on eBay,” “How to Make Millions on eBay,” “Needlework Patterns,” etc that it is difficult for buyers to differentiate between content listings.


Content . . .
Considering creating an “eBay How To” eBook or compile a collection of your own needlework or embroidery patterns or a collection of templates (the type of content doesn't matter here. All types of content will benefit from these tips)? Fantastic!


Branding . . .
You may need to hire a graphic designer to do the initial work for you but again, anything you can do to set your content apart from your competition provides value to your potential buyers. Your mantra should always be, “I must set my content apart from the pack.”


Pricing . . .
Remember, for the most part, buyers believe that value is best indicated by price. Sure, every buyer wants a good deal, a bargain. No buyer wants to spend more than an item is worth. However, there is a price point for every item – not always obvious and not always easy to determine – below which the buyer stops considering the item as a bargain and starts viewing the item as “cheap” with all the word’s negative connotations.


Finally . . .
don’t discount the old tried and true printed book method of delivery. As the success of on and offline bookstores like Borders, Barnes and Noble, Amazon and of course, eBay’s own Half.com clearly show us, bound printed on paper books still have a huge audience of eager buyers. There are many self-publishing options available to neophyte authors, especially those authors for whom finding an agent or old world publisher is not a viable option.


Brian & Griff, I think you should know that all over America there are angry designers of knitting patterns . . . all of whom have very long sharp knitting needles . . . some of whom may be going to Chicago! Be alert, be very alert.

Next post . . . All you ever wanted to know about Classifieds Y'all come back and be sure to click VICTORIOUSLY on any interesting links in the sidebar!


Saturday, April 12, 2008

Digital Downer


At lunchtime on March 24th 2008 the world lurched for Sellers of digital goods on eBay. Brian Burke, eBay’s Director of Global Feedback Policy announced that effective March 31st all goods that can be digitally downloaded or transferred electronically must be listed using the Classified Ads format.

We are not talking solely about purveyors of 1c eBooks on how to make your first million on eBay; although there are many of them. I was surprised to find this policy affects an enormous range of Sellers including designers of craft patterns, logos and templates, business consultants, accountants, photographers and artists, musicians etc. Anyone who sells a product on eBay.com (USA) which is delivered as a download or by email is effectively out of business with 7 days notice. Sellers on other international sites are required by law to be given 30 days notice and they will be gone by the end of April.

The stated reason for the policy is feedback manipulation by those dishonest and untrustworthy Sellers. Quotes are from Brian Burke on eBay Chatter

Most items that require digital delivery, once created, can be very easily replicated. This ease of replication creates the opportunity for sellers to list thousands of the same item in an attempt to manipulate the Feedback system. It also creates a perception that even legitimate sellers of Digital Goods are manipulating the Feedback system.


A little thought reveals the holes in the theory and why is it always the Sellers who are crooks?

Once upon a time to become a PowerSeller you needed to sell $1000 Gross Sales Value per month for three successive months. In November 2007 eBay changed that
to include both high volume "seasonal" sellers and sellers who move a high volume, but with a low average sales price.
That opened the door to hordes of new PowerSellers who qualified by selling as little as $100 GSV monthly. PowerSeller Status confers benefits and benefits cost money.

Sure enough here it is:

Today less scrupulous sellers have more to gain from manipulating their Feedback and Detailed Seller Ratings, which are also an important factor in a seller's performance in Best Match and their eligibility for benefits (like PowerSeller eligibility and discounts). This makes feedback manipulation an even greater concern for the marketplace. Not only is safety and integrity of the Feedback system an issue, so is the fair administration of seller standards and rewards.


Ease of replication Oh gimme a break! Anybody can buy or create a small object, shippable in a regular first class envelope for pennies per dozen and sell them singly at 1000% markup, providing a feedback enhancement service and making a profit. Not as much profit as through digital downloads, & with greater risk but the market opportunity exists.

Follow the money trail
Question: Couldn't eBay have established a minimum dollar amount for these listings that would eliminate potential feedback manipulation?

Answer: We considered that option, as well as a number of other alternatives -- for instance, we considered allowing only approved sellers to list these items. After investigating these and other alternatives, however, we determined that the Classified Ads format provides a more flexible and scalable solution for our sellers.


Classifieds

The cost of a Classified Ad is $9.95 per month. Sellers can take advantage of the special benefits of using this format. For instance, you can combine multiple similar items in the same Classified Ad. If you sell standard listing templates, for example, you can include all your listing templates in the same ad. If you also sell eBooks on how to list, you must use a separate ad


Finally, from the destroyers of the feedback system:
The integrity of the Feedback system has always been a critical part of trust on eBay. As the company focuses on improving the buying experience, we're working on a number of initiatives to improve the integrity of Feedback and ensure buyer Trust.



Ina Steiner of Auctionbytes did an interview with Brian Burke last year.

Next post . . . the Workshop featuring Uncle Griff's priceless pearls of Wisdom Y'all come back and be sure to click VICTORIOUSLY on any interesting links in the sidebar!