eBay Socializes

Oddly enough, I briefly mentioned eBay in my last post. Some coincidence that eBay has just launched their latest service, eBay Neighborhoods, on Tuesday, to allow shoppers to socialize with a community of other users.

Brian Bolan, an analyst with Jackson Securities said that eBay is "…really trying to get shopping to become a much more social experience. Users aren't spending the majority of their time on eBay anymore. You have to be in the space where people are, which is why you'll see more tools that will wrap around social networks."

eBay has been dealing with some tough truths recently. They have faced stagnant growth in active members and have seen a decline in the number of items listed for sale, all within the past year.

eBay says that the addition of this social network-like chat is to help make shopping on eBay easier. Users can set up profiles and invite friends to the site. This will not only enable members to buy things more easily, but they will be able to make safer transactions and feel more comfortable in selling or buying items.

But will eBay Neighborhoods really help eBay in gaining back their lost ground? It may help shoppers feel they can trust the site a little more easily because they will be able to talk to the seller. But we all know how easy it is to come across a seller that says one thing, and does another. If seller sounds friendly enough, shoppers can easily be lured into completing a transaction, and find that when the item hasn’t arrived after a week or two, the person they thought would never stiff them, is gone.

Simply put it in comparison with online predators. They sound innocent enough in the beginning. You become friendly, keep talking, and just when you’ve put some trust in that person, you find they aren’t who you thought they were.

At the same time though, I do see some positives. For those people who are actually ethical and use eBay appropriately, this could mean a serious increase in sales. It could also be the beginning of a way to build an honest reputation. I think that this can be considered a valiant effort on eBay’s part, but could potentially lead to further problems down the road.

This post is in response to the article found at http://money.cnn.com/2007/10/11/technology/ebay_neighborhoods.fortune/?postversion=2007101203