There’s been a lot of interest around the Daily Deals lately, and today it’s the turn of DMS Sportsworld and to provide the products. DMS Sportsworld agreed to talk to TameBay about the process and benefits of supplying the Daily Deal from a seller’s perspective.
They were keen to emphasise that there’s a lot of work involved and it’s very time consuming – Normally DMS Sportsworld wouldn’t hold the stock levels required but will negotiate with a supplier specifically for the Daily Deal. This naturally involves some back and forth between eBay and supplier prior to securing stock. Some deals have been lost as the stock has been sold elsewhere, prior to being secured once the deal was agreed with eBay.
For DMS it’s not so much of an immediate financial reward – eBay won’t accept a product for the Daily Deal that’s not an unbelievable price and that puts pressure on margins. It’s more about getting people aware of brand, although it’s still early days to measure the impact that the programme is having.
For the well known brands there’s definitely a big incentive here. If you see for instance Argos on eBay, in the future you’ll probably remember that . For lesser known brands the benefit is smaller as, although buyers remember buying “from eBay”, they might not remember the brand themselves. However there are further opportunities to market to buyers in emails and of course in the packages themselves.
Any company considering offering a Daily Deal needs to ensure they have despatch processes in place. DMS Sportsworld have one person focused purely on printing Daily Deal orders and, especially for Multi-Variation listings, they collate orders for each product and size separately to ensure mispicks don’t occur. They also have to notify their couriers to send a bigger van on days they’re running a Daily Deal to cope with the additional packages.
Since eBay went to two daily deals instead of one there is a concern that it may be lowering the sell through rates for each seller – in their opinion when there was just one daily deal it had a bit more of an edge. As a buyer once you’ve bought one daily deal you’re need to buy is satisfied and you’re unlikely to buy the second. However it’s fair to say eBay do try to catagorise the deals so that they’ll appeal to two different groups of buyer on any particular day.
A corollary benefit is that the Daily Deals help forge relationships with eBay and gains the company contacts who they can talk to and discuss their entire business operation.
Finally it would be remiss of me not to give today’s Daily Deal from DMS Sportsworld a plug – if you’re in the market for a pair of they’re up for grabs for just £24.99.
28 Responses