So far, eBay seems to have been able to introduce its corporate expansion without losing the loyalty of its core customers. While initial reaction to the larger players was neutral, according to the company, some of the smaller sellers found that they were benefiting from a "halo effect" that was generating new business from buyers who came to the site looking for brand names.
This year, eBay introduced a special section aimed at this marketplace, saying that business buyers now represent more than $1 billion of annual merchandise sales in the categories of capital equipment, office technology and wholesale lots.
Sellers have responded in kind. Thousands of high-volume operations have signed up to use a new tool designed by eBay and Accenture specifically to help business customers sell idle assets, excess inventory and returned products on the auction site. The adoption rate was nearly double eBay's expectations, Accenture said.
The concept has become so popular that several companies, including Accenture and ChannelAdvisor, have begun consultancies that advise businesses on how to sell through eBay. The help can consist of everything from auction marketing to the integration of the auction site's processes with a company's existing network and operations.
"For some customers, we'll roll up with an 18-wheeler and take all of their inventory, put it in our warehouse, sell it on eBay, and just cut them a cheque at the end of the month," said Norman Jones, vice president of business development and sales for Connection to eBay, an arm of Accenture.
There are, however, some sensitive issues for companies to consider when selling through eBay. For instance, they may face concerns from other retail partners about competition.
To ward off such complications, Fujitsu's McMahan said he informed key customers and distribution partners a month before the company's eBay store went live, telling them exactly how he planned to operate the business. He said he has no plans to sell any new products through the site.
"I have a good channel and don't need to move new equipment on eBay," he said.
Jordan Glazier, general manager for eBay business, believes that the corporate business is a healthy development for competition in all industries, online and off.
"Sometimes the phone rings, and they're calling us because they've either read about or heard about peers in their industry selling online," Glazier said. "We've had some in the (high-tech) business, but it's really coming in across all categories: home improvement, sporting goods."
Those who have done well selling on eBay say it's simply the result of good business sense.
"It's like economics 101 -- supply and demand. If you have too many listings up, the average price drops; if you have too few, the price goes through the roof but you're not moving your product," said David Spain, director of sales for SureFit, a slipcover manufacturer that sells its discontinued and closeout products through the auction site.
"It's almost a whole new closeout channel for us," he said, "and we see it doing nothing but growing going forward."
