On Aug. 11, Mark Christopher Auto Center in Ontario, Calif., listed a 2009 Chevrolet Corvette on eBay for $73,512, along with other new cars collecting dust on its lot. If I have more eyes looking at my inventory, I have a better opportunity to sell it, says Greg Heath, vice-president of the dealership.
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A lot of car dealers hope to hawk autos on eBay over the next few weeks as part of a trial with General Motors, announced Aug. 10, that lets 225 GM dealers in California post new models on the site through Sept. 8. Long known as an online flea market for secondhand goods, eBay wants to ramp up sales of new products to jump-start its growth. They have realized that the secondhand market in most goods is only growing at 1 percent or 2 percent a year and if they want to be seen as a growth company they have got to get into new products, says Jeffrey Lindsay, an analyst at Sanford C. Bernstein.
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With sales cut by the recession and rivalry in e-commerce, eBay could find a new growth vehicle in new but out-of-season goods, analysts say. The company is pursuing deals with manufacturers besides GM to sell excess inventory on its site, says eBay spokesman Usher Lieberman. People looking for the latest iPod or the latest TV are more likely to go to Amazon or Best Buy, says Colin Sebastian, an analyst at Lazard Capital Markets. But for those who may be willing to buy merchandise that’s not so perfect, eBay should be an interesting channel.
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EBay Motors: Clearing Dealer Lots
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In July, eBay reported that sales in its core shopping business fell 14 percent, to $1.3 billion, in the second quarter. While e-commerce continues to feel the impact from the slowdown in consumer spending, analysts said the…