Ebay focuses on video sales - CE & entertainment: what's hot what's new what's happening - Brief Article

DSN Retailing Today, August 18, 2003

Video suppliers looking to unload excess stock have traditionally gone to video liquidators, but now they're discovering a new venue: eBay.

The online auctioneer was at the VSDA Convention in Las Vegas July 28 to 31 to talk to retailers and suppliers about using their site to buy and sell VHS tapes and DVD discs online.

"We provide small and midsized retailers a good place to buy quality product at a reasonable price," said Matt Ledwith, senior category manager for the San Jose, Calif.-based company. "And it's also a place for suppliers and distributors to sell in large quantities."

People have been selling videos on eBay since the Web site opened in 1995, but suppliers selling wholesale lots is something new. Ledwith said wholesale lot sales now account for 5% of the total video business on eBay compared to just 2% at the start of the year. He cited a recent transaction where a supplier sold 305,000 DVD and VHS units for $168,000.

While suppliers such as Artisan Home Entertainment and Ventura Distribution use the site on a regular basis, eBay is hoping to attract more large suppliers as well as small retailers who will use it to generate incremental income.

"We had someone who recently picked up old copies of 'Lonesome Dove' on VHS for $4 apiece and turned around and sold them for an average of $15 to $16," said Ledwith. "We want retailers to think of us as a source for product they can sell in their stores."