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eBay Motors: A Look in the Rearview Mirror
by Ryan
eBay Staff Member


Motors1

In 1998 most people still thought of eBay as a site suited only for buying and selling collectibles. Who would have imagined that a few years later eBay Motors would be eBay's largest category and one of the biggest online marketplaces for used cars?

From collectibles to cars
As with many other aspects of eBay, the Community had pioneered the concept of eBay Motors before there was a formal category of that name. In what's become part of eBay lore, eBay Motors got its start when Simon Rothman (at the time a business development strategist at eBay, but eventually would run eBay Motors) went looking for a die cast Ferrari on eBay and turned up a full-size one in his search results.

“I found that our members had organized this all by themselves,” recalled Rothman. “I did some research and it became clear that there was a thriving used-car marketplace within the larger eBay site.” Excited by this discovery, Rothman put eBay's creative and product design processes into gear. In 1999, a little over a year later, eBay formally launched eBay Motors as a dedicated channel to buy and sell used vehicles, parts and accessories. In April 2000, eBay Motors was launched as its own site at www.ebaymotors.com.

What do we need to do to get you into this car today?
Initially known primarily as a marketplace primarily for car collectors, eBay Motors has evolved to appeal to the needs of buyers and sellers across the spectrum of the auto market. It's now a prime destination for individual buyers and sellers, auto dealers, car collectors, and motorbike enthusiasts.

To get to where eBay Motors is today, the team completely redefined the online market for used cars. As recently as ten years ago the concept of buying or selling a car online, sight unseen, seemed beyond conventional wisdom. Most people thought the Internet would only be able to provide access to automobile-related research and information, equipping consumers for an eventual trip to a traditional dealership to make the actual purchase. Others believed classified ads represented the extent of the Internet's usefulness for automobile sales.

eBay Motors revolutionized the way people buy and sell used cars online. Its innovative site features were designed to overcome people's traditional barriers about buying and selling cars online, and create a safe and easy-to-use marketplace for autos. These features include:

  • Certified vehicle inspections – Verification of the vehicle's condition by an independent third-party helps buyers validate a seller's claims about the vehicle they're listing. These inspections also benefit sellers as more buyers become confident about the vehicle's condition, which potentially increases the number of bids.
  • Vehicle history reports – These reports help buyers make sure they know all the facts about the vehicle's previous history before moving forward with the purchase.
  • Financing – The eBay Financing Center, launched in May 2003, not only helps expedite the transaction but also creates greater confidence in the minds of buyers.

Other tools available to eBay Motors buyers and sellers include free limited warranties and purchase insurance for qualified transactions. For more information please visit the eBay Motors services page.

Out of state isn't out of mind
Continually paying attention to the needs of the marketplace has resulted in eBay Motors becoming the prime destination for all things automotive. Says Drew Lieberman, Senior Director of eBay Motors, “It is the No. 1 automotive site on the Internet with 10 million unique visitors per month, more than any automaker or third-party site. We've found that not only are buyers getting great deals, but sellers also getting higher prices than they would trading the car in or just exposing it to a local market.”

One seller who discovered the truth of this statement is chefdr, of Buffalo, NY. She sold her son-in-law's 2002 Mitsubishi Lancer on the site and was very pleased with the results. “On eBay Motors you get a lot more people to see your car,” she said. “If you try to sell your vehicle locally you may get 30 people to come and see it, if you're lucky. On eBay Motors, my listing had over 1000 hits! And the beauty is that anyone can list on the site.”

Lieberman attributes the comfort level of members like chefdr to several factors – the research buyers are willing to do before closing the deal, the quality of the information and the number of listings available on eBay Motors. A key attraction for both buyers and sellers is eBay Motors' ability to display dozens of pictures of the vehicle, showing its interior and exterior in great detail. This helps buyers make more informed choices and also allows sellers to showcase their vehicles.

In fact, members are so comfortable with the site and its protections that 75 percent of the vehicles sold on eBay Motors are interstate transactions, where the vehicles were delivered to buyers outside the seller's state.

One million and counting

One Millionth Vehicle Sold sdwfnc (on the right), being presented with a check for the 1 millionth vehicle prize

This type of consumer confidence has resulted in phenomenal growth for eBay Motors and success for the Community. In April 2004, just four years after it started, eBay Motors passed the “One Million Vehicles Sold” mark. The honor went to a 2003 Honda Odyssey that was sold on April 24, 2004 to North Carolina resident, sdwfnc, by rarebooks4uandmore of Richmond, Virginia. In celebration of this important event, eBay presented sdwfnc with a $25,805 check to reimburse him for the cost of the vehicle.

Every month, an average of 10 million people use eBay Motors, helping to establish it as the source for all things automotive. Even celebrity car aficionados like Jay Leno, use the site to sell unique vehicles to raise money for charity. Increasingly, people are turning to eBay to purchase popular new cars as well. Favorites include the 2005 Ford Mustang or the hugely popular fuel-saving and environmentally friendlier hybrids cars, which prove to be difficult to find at the local dealership.

Parts and Accessories
In addition to vehicles, the Community is also finding great deals on parts and accessories on eBay Motors. The Parts and Accessories area of eBay Motors has become a very important destination for auto enthusiasts to find pretty much anything they want to equip the vehicles they drive.

Planes, Boats, and Automobiles
As summer approaches and the prospect of roaring down freeways or country lanes stirs the blood of motorbike enthusiasts, they too are finding their favorite motorcycles on the site. Power sports enthusiasts can check out the variety of watercraft, ATVs, and Go Karts listed on the site. And for those who get their highs from flying, the Aircraft sub-category has a lot to offer.

eBay Motors is crossing new milestones at a rapid pace. But as it grows and evolves, it always keeps one objective clearly in sight – putting the Community in the driver's seat!

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