Convenience Shoppers and Opportunists—Not Much in Common but eBay

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“Convenience Shoppers” and “Opportunists”—Not Much in Common but eBay (II of IV) by Janiece V. Smith

Most of us don’t “shop” for every product we buy. In fact, we probably don’t “shop” for most of the things we buy. Those items that we buy frequently and that remain relatively stable in price are just taken to the checkout on the basis of a previously made decision. The actual decision to buy the item may even be forgotten. We are merely shopping out of habit. The stockholders of brands like Nabisco and Pillsbury understand this notion and have practically bet their retirement plan on this patterned behavior. It is part of what makes brands worthwhile. This also explains why stores make commitments to match advertised prices or guarantee the lowest price. They want to keep consumers in their comfort zone.

This same pattern is at work when buying online. According to ActivMedia, 76% of all shoppers know what they want to buy before they go online and 72% go online prepared to shop at a particular site. And for a third group of online shoppers, that particular site is eBay, making it the number one ecommerce destination. In fact, according to Business Week Online, eBay’s share of the online market is greater than the next 14 sites combined.

At the foundation of this success are 135.5 million registered users, which is up 43 percent from one year ago. These new users aren’t the early tech-adopters who have been buying online for years. These buyers need more help and customer service, so that their buying experiences are successful and satisfying. And this help has been provided on eBay.
eBay has created communities of shoppers and offers a familiar and trusted format. By mining customer data, eBay continues to improve the user’s experience and generate increased sales. For example, buying and selling categories are revised monthly. New listings in the fourth quarter of 2004 were up 39 percent from one year ago to 404.6 million.
Segmenting customers on the basis of benefits of using the eBay format provides a way for you, as an eBay seller, to increase your sales, just as mining customer data has done so for the site itself.

Take for example, ” convenience shoppers,” who benefit because eBay provides a place to locate items not generally available online. “Opportunists” have a different approach to shopping on eBay and use the site as a place to obtain items at below-market prices. While one group of buyers goes online with a definite intent to buy a particular item, the other visits eBay to snag a great deal—and won’t buy anything if a deal is not found. By considering the nature of your item, you can use your eBay resources to meet the needs of such differing segments.
“Convenience shoppers” want to save time by reducing the time required to locate a supply source and select an item. Or they may want the convenience of home delivery—and time can be behind this motivation, too. These shoppers are willing to trade money for time, taking options for home delivery and shopping where there are fewer hassles. This makes them online buyers for whom price is not the primary consideration.
There may appear to be some irony in defining eBay customers who are “convenience shopper” as shoppers looking for items not usually available online. After all, eBay is online and has everything (almost!). Yet, there are some items for which online buying is easier on sites other than on eBay. Some because of established Internet brands, like Amazon for books, while other items are sought after by early technology adopters, such as computers that combine a highly customized shopping experience with a brand name—like Dell or Circuit City. Contrast these items with a garden hose needed by a busy woman who has often-competing roles of mother, wife, professional workingwoman, and caretaker of the home. Where does she go? Not Google. Only about 10% of online purchases begin with the use of a search engine. And not to a brand name site either. She is most likely to visit eBay.
Buyers typically employ a phased decision process, first filtering available alternatives and then undertaking a detailed comparison of the remaining choices. But not so with “convenience shoppers.” Buying a garden hose should not be that complicated.
“Convenience shoppers” are good candidates for eBay’s Buy-It-Now option and are usually looking for new merchandise. When selling new items likely to attract shoppers from this segment, consider the following:

Ensure that “NEW” is in the title, and make the title as specific as possible. Include brand names, if they are recognizable brands to regular users of the item.
New 50-foot flat Garden Hose
New [brand name] [style] Knitting Needles, size 35 and 50 inch
New in Box [brand name] Electric Blanket, [size], Buy Now
Present a complete and straightforward item description but avoid technical jargon.
Clarify how the item is used and stress its benefits.
Highlight unusual features that might raise questions in the “convenience shopper’s” mind.
State whether the original documentation is included and whether there is a warranty.
Explain shipping and other policies clearly and in a straightforward manner.
Give the buyer the option to elect faster shipping and reveal the costs of shipping in a way that does not require calculation.
Mention your reputation in the item description, because this critical to the buyer.
Also ensure, in your follow-up email, that shoppers know how to find you easily.

The “opportunists” segment is distinctly different from the “convenience shopper” segment. These shoppers are impulse buyers for whom the ability to “get a real bargain” is more important than the item themselves. While bargain hunting is prevalent on eBay, the opportunists differ in that they do not come looking for a particular item. As a result, they are much more likely than “convenience shoppers” to be browsers rather than searchers.

They pick categories based on personal interests, so give careful thought to your choice.
These shoppers are bidders and skeptics. Despite their strong desire for a bargain they are going to ask, “Why is this a bargain?”
They usually expect to find slightly used or unopened merchandise so for this segment “Never Used” is better than “New.” Unlike the “convenience shopper,” the “opportunists” will know what NIB (new in box) means.
Find creditable sources that show the highest retail prices for your products and include them in the description.

Unfortunately, this segment will drop out if the bidding gets too high. The “opportunists” will, however, get the auction moving. And if you can establish yourself as the source of great bargains, these shoppers will put you in their favorites and buy a wide variety of items from you.
As you can see, having different strategies for selling to different types of eBay buyers is essential to making more money on eBay!
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This is the second part of a four-part series on customer segmentation, “Personalizing Your Listing on eBay.” by eBay expert Janiece V. Smith

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