An analysis by Edmunds.com shows that GM's experiment with direct sales on Ebay in California has failed to generate much in the way of new customers. Although the number of California car shoppers researching cars has increased 10%, they aren't considering GM products any more in California than they are in other states.
One possible reason is the fact that the "Buy It Now" prices listed were found to be higher than the transaction prices on Edmunds.com. "In this particular case, GM offered a price that is above market price and that could create friction for those trying to close a sale," said Jeremy Anwyl, CEO of Edmunds.com
CNN Money: GM-Ebay Program Not Drawing New Interest
rallyandbosox says:
06:31 PM, 08/20/09
Big surprise...
roadburner says:
06:51 PM, 08/20/09
Precisely.
dwhamman says:
04:20 AM, 08/21/09
So they're trying to charge a premium for not working with a dealership? brilliant...
1487 says:
05:45 AM, 08/21/09
so after 2 weeks edmunds has determined its a failure? Seems fair enough. Why even wait a full month?
brn says:
06:14 AM, 08/21/09
Aren't they also competing with C4C? Don't a large percentage of purchases right now include a C4C trade? Are you really going to do that over ebay?
estreka says:
02:24 PM, 08/21/09
If GM knocked off the dealer's share of the profits, they'd probably sell pretty well.
inlinesix says:
10:19 AM, 08/22/09
"One possible reason is the fact that the "Buy It Now" prices listed were found to be higher than the transaction prices on Edmunds.com."
2 weeks or 2 months, this is a real smart business move! Go GM!