eBay intent on reminding consumers there's more to online auctions than junk

DSN Retailing Today, July 7, 2003 by Mike Duff

NEW YORK - eBay wants a piece of the lucrative home business and is prepared to demonstrate to consumers that they can decorate any living space economically using its service.

To prove that it can be a resource to a variety of consumers looking to furnish or redecorate a home or apartment, eBay sponsored a showhouse on New York's ritzy Beekman Place during the week of June 16. A feature on the showhouse also appeared on the "Today Show."

To catch the attention of the home decor industry, eBay brought in six interior designers: Laura Bohn, Christopher Coleman, Jamie Drake, Tiffany Dubin, Glenn Gissler and Marian McEvoy. Each used different techniques and approaches to deal with the space assigned them, though some emphasis was placed on more youthful looks, suggesting that eBay is at least as interested in promoting its site as a resource for young people as for adults.

Part of the effort is to demonstrate that bidders on eBay can find plenty of new products. Much of what is sold on eBay is unopened merchandise that appeals to consumers who don't like the idea of buying secondhand, whether they be collectors or penny pinchers. According to Hilary Munson, an eBay spokeswoman, Ikea and Pottery Barn are two terms most commonly found on the site's search function. "They really wanted to highlight the new stuff," Munson said.

The showhouse included items from both Ikea and Pottery Barn, as well as a play tent from Target's Philippe Starck collection. Those items helped underscore the eBay management priority to show that bidders could get trendy new items on the site in addition to vintage goods.

Of course, the emphasis on the new doesn't mean that eBay's customers don't still include lots of folks who have dreams of making a killing on the old. Munson said at least one of the designers, Glenn Gisler, found a painting on eBay he thought might be a relatively important work worth many times what he paid for it.

The company stated that home is a growing eBay category, with gross merchandise sales advancing almost 90% in 2002. Today, a knife or cutlery set is sold every six minutes on the eBay site, while a lamp goes every two minutes, which is approximately the same selling time as small kitchen appliances. About 750 ice cream makers, 1,300 sofas and loveseats and 2,100 beds are sold on eBay each month.

As part of its new positioning campaign, the auction site also is looking for a home goods retail partner that would participate on the site in a manner similar to Sharper Image, a curent site partner. Among the manufacturers and retailers that sell home products on eBay these days include Kitchen-Aid, Martha Stewart and Surefit Slipcovers. In addition, eBay is considering opening a home store on the site that visitors can use and return to readily.