Filed under: Good news, Consumer experience, eBay (EBAY)
EBay, Inc. (NASDAQ: EBAY) users can be a frugal lot — and they’re used to saving a bundle as they buy things through the site. In fact, new and independent research shows that eBay buyers save billions of dollars each year using the world’s largest online auction site.
The research from the University of Maryland states that eBay buyers saved $7 billion compared to the amount the group was willing to pay for the items they ended up winning. So, if an eBay buyer was willing to pay $100 for a home appliance and he or she won the bid for $65, that’s a “savings” of $35 from the buyer’s perspective.
The data was from buyer purchases in 2003, which is somewhat dated in my opinion. But the researchers applied the same measurement methodology to 2004 eBay buyer data and found a “savings” of $8.4 billion. Applying the logic to 2007 data, buyers “saved” in the arena of $19 billion last year. This “consumer surplus” calculation would make one think eBay will never fade if buyers are facing billions and billions in “savings” every year using the auction site — regardless of how some sellers feel.
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