A year of change - eBay managing director Oliver Klinck looks back and ahead
“I’ve never experienced a year with so much change,” says Oliver Klinck, Managing Director of eBay Germany. The 2022 financial year is drawing to a close. Time to look back on the year with Oliver Klinck and dare to look ahead to 2023. What have we achieved together for sellers? Which projects were we able to complete successfully? Where do we need to improve and what do we want to achieve next year? In this episode, our listeners get exciting insights into eBay Germany’s plans.
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Isabell: Hello, dear listeners, and welcome to a new podcast episode for our sellers and, of course, for everyone who wants to become one. Today my esteemed colleague David and I are here in the studio with a very special guest.
David: Exactly. Christmas is just around the corner now, and as we did last year, we treated ourselves to a little year-in-review episode. And for that, of course, we invited Oliver Klinck again, Managing Director of eBay Germany. But we’re not only talking about the past year, we also want to give an outlook on 2023. Isabelle, how was 2022 for you?
Isabell: For me, 2022 was quite exciting and thrilling. Especially when I look back on the last two years, when it felt like the whole world had stood still. I had the feeling that even more happened this year, and everyone was itching to travel. And yes, you could finally experience things again.
David: Yes, it felt a bit like waking up after hibernation. And then you suddenly realized there was more to life than Corona. But unfortunately, that can also mean things don’t always go so well. There are many challenges for society too, which will of course also affect eBay and our sellers. That’s why we’re looking at what was, what is, and what will still come our way and, of course, our sellers. And that’s why I’m really happy to welcome Oliver here. Welcome!
Oliver: Thank you very much for having me here today.
David: Great. Then let’s get started with the questions. We’re looking back on a very eventful year. Oliver, what all happened?
Oliver: I would headline this year as “a year of change,” and in many respects. In the 23 years I’ve been in e-commerce now, there has never been such a big change. E-commerce is defined by a lot of change and a lot of speed, but never as much as this year. Why is that? I mean, we all know there have been a whole lot of changes in the market. These changes in the market are also multifaceted. There are changes in regulations and legislation. Europe is stepping on the gas, you could say, and there are a whole lot of requirements that come with that for our sellers and customers. And of course there are topics like packaging law, etc. They’re not always easy to comply with. Especially in the context that you also want to export. Europe here, not Europe there. Every country has its own packaging laws. That’s just one example of many where we help and support our sellers to find their way through this jungle of legislation and to act in line with the laws and sell with us. That’s one point. The second point is that the change we’re feeling of course also affects our consumers, our shared customers between the sellers and eBay. And that means these customers are looking for new demands, new topics, and want to complete new purchases ever faster. Their buying behavior is changing. Not only what they buy, but also when they buy it. We’ve just seen this again in the run-up to Christmas, that people start their Christmas shopping earlier and earlier, and our customers start earlier and earlier too. Every year it starts sooner. It doesn’t just happen from Black Friday onward; it starts much earlier. And of course that also affects our sellers and our business model. We have to make sure we put the right products in front of customers at the right time. And of course the sellers also have to have them in stock and prepare them, and do so at increasing speed. And that’s also a nice transition to how valuable our business model actually is. As a marketplace, we don’t have one warehouse; we have tens of thousands of warehouses, and so we can immediately meet a shift in customer demand. Not us, but in the end we live from the sellers fulfilling that demand. And we saw that again in Q3, the third quarter, because there was an enormous increase in demand for renewable energy, driven as you can imagine also very strongly by the federal government and by the increased energy prices. And there was a point when it was hard for customers to buy things like solar panels or balcony power stations or smart home items at all. So everything you can basically control remotely, etc., and that also helps save energy. Thanks to you and our sellers, we at eBay always had such goods in stock, which meant we grew faster than the market at that time. Simply because our marketplace model always ensures that supply and demand meet. Even in difficult times, when there are unplanned spikes in demand.
David: Yes, absolutely, we can only be grateful that our sellers support us and stand by our side. What top three product changes were we able to implement for our sellers this year?
Oliver: I think first I need to explain what a product change is. We tend to make our language the general language too, maybe for our listeners here. Most people will know this. Product changes in e-commerce are technical changes. Changes on our platform. And so, to answer your question now, among the product highlights I saw this year, and we did a lot. But to name a few: one is that we have significantly improved our eBay Shops. There are more ways for our sellers to present themselves, their goods, and their advantages to our customers. And not just on desktop, not just on stationary computers, but also in the mobile world, which, as we know, is becoming more and more important. But it places completely different demands. And that meant we also had to offer completely different technologies and features and functions for our sellers. That’s one point. The second point is that we launched additional product categories as part of our Re-Store initiative. This is all about refurbished goods. With that, we’re addressing a megatrend not only in Germany but globally, because customers’ demands are increasing that they want to shop more sustainably and at the same time, especially in these crisis times, save money. Both come together here, and in addition there is simply a product shortage in some places. We often hear that there is a crisis, that sellers can’t even get hold of goods. And so boosting this circular economy, so that goods are refurbished in Germany and then sold again to the relevant sellers, is also very close to our hearts. That is one of our strengths. And we’ve invested a lot there through new product features and a new look on eBay. And we’re also seeing very strong reactions from our customers there, who are taking it up very well. And as part of the sustainability topic, we also made a few smaller features, I should say, as an addition. They may be small, but for me they’re also very significant and I’m very happy about them. So things like a CO2 account, which we just launched in the last quarter of this year, where buyers have the opportunity to measure the CO2 footprints they leave behind. I have to say, when I logged into it myself, I was shocked by how many tons of CO2 I had emitted without really thinking about what I could do about it. And that’s the next thing. We also offer customers the option, not only through refurbished goods, but also through offsetting CO2. It’s a nasty term, but essentially it means investing in CO2-friendly products to neutralize what is emitted in the production of the goods. So, to the product highlights topic. I could tell a very long list of them, but I think when I see your laughing face, you’re saying, better stop, otherwise we won’t get to the end of the podcast.
David: Yes, we still have many other topics we want to cover. But on the CO2 footprint I can also say I was very surprised too. But also happy to see how much less I had, because I bought refurbished goods. I also think it’s very nice that this is shown too.
Oliver: I did too, but I realized I bought too little refurbished goods.
David: Same for me.
Oliver: And so I thought it was nice that you can kind of offset it a little afterwards too. I know the word isn’t received very well, but that’s essentially what it is. It does generate a bit of a guilty conscience. At least that’s how it is for me, and then it helps you say okay, I can still do something, even if I’m not buying refurbished goods.
Isabell: Absolutely. You just spoke about this year as a “year of change.” I found that term very fitting. What were the absolute “key takeaways” for you?
Oliver: We have to be even faster and even closer to the customers. That affects us at eBay, because we have to make sure even more that everything we’re doing right now on the buyer side still has demand among customers. But not only on the buyer side, also on the seller side. I already spoke about regulation; those are somewhat predictable, but unfortunately they also come with shorter lead times. Especially when things need to become very concrete. And at the same time we also have to make sure we help our sellers understand what the latest requirements are, whether from the buyer side or the product side. The product changes we mentioned earlier are not something that is always immediately easy to understand for our sellers either. I know that. And so we also have to stand by them and look at how we can provide information to make it easier and better to engage with the new topics.
Isabell: And if you had to pick one point in hindsight of this year, what would be your absolute highlight of the year?
Oliver: Yes, that’s a difficult question and I actually shy away from doing that, because not only am I a positive person, there are also so many highlights. What I can say, though, is that eBay Open is always a big highlight for me. And I say that with deep conviction. Because I think it’s important that alongside all the online media we have available, which of course we also use more and more to communicate with our customers on the seller side as well as on the buyer side, nothing beats a personal conversation.
Isabell: Shall we briefly explain what eBay Open is for those who may not have been there in person this year?
Oliver: eBay Open is an in-house trade fair, you could say, for our sellers, where we come together once a year, meet, and talk about all kinds of topics over a day and a half. And for me personally, it’s simply another great opportunity to listen and understand what’s currently moving sellers. And within eBay Open? If we want to talk about the highlight within the highlight, then for me this time the highlight was that we held small workshops, idea workshops with the sellers, where they could tell us what solutions they would offer for certain problem areas. And it never ceases to amaze me how much know-how actually sits outside our own centers of expertise and how much listening helps, and how many great ideas come out of that that are very pragmatic and still can lead very quickly to a solution. So that was the highlight within the highlight for me.
David: I’ve always found it very impressive how long some sellers have been with us. Selling on eBay for over 20 years already. At the time I was just at the beginning of my studies, for example, and they had already started, and of course they’ve been through the entire development. And as you say, they bring all that know-how with them and share it so incredibly gladly too. And I just find that impressive.
Oliver: Yes, I just met one of the award winners from eBay Open today, and once again it was clear: she has been selling on eBay for 22 years. And perhaps as background, we’ve only existed for 23 years. We’ve been in e-commerce for a long time, but as a company in Germany we’re actually a very young company, and so I’m always pleasantly surprised by how many sellers have been with us for a very, very long time. 00:11:58 David: Absolutely. Then of course the question is, what challenges were there this year?
Oliver: Yes, with change come a few challenges for society as well, which I don’t really want to go into too much in the context of this podcast, because I think it’s already top of mind for many of our listeners here. But these societal challenges have of course also created challenges for the industry. And by the way, they also affect our smaller sellers in Germany very strongly. And why do they affect them so strongly? We also conducted a study on this. Because many of these topics affect you all the more the smaller you are and if you can’t keep a team of experts on hand to help you solve them. One is very clear, let me say, on the whole regulatory and legislative side. The other are of course topics like supply chain crises, where it’s about getting goods at all, getting goods at a reasonable price. Then there are inflation issues that concern us all, which of course also directly affect us as sellers. Rising energy costs, etc. So I’m fully aware that running a business well in this fast-moving time with all the additional challenges is an extreme challenge. And because I’m so aware of that, we also make sure, as I said, that we provide as much as possible to sellers, as far as it’s within our means, and help them with that. There are a whole lot of programs that we either launched this year, restarted, or continued from previous years.
David: And what are the current, let’s say, “pain points” for you and for eBay?
Oliver: So in this context with our sellers, I want to name a few. One is financing topics, which are becoming increasingly important, because goods may not arrive exactly when planned. That means our sellers naturally have a need for certain bridging loans, because demand also fluctuates a lot. So they have fluctuations on both sides. On the one hand, they don’t always know exactly when the new goods will come in, and on the other hand, they don’t know exactly when the demand will come. And that’s a huge topic, of course, also from the financing side. That’s why, together with iwoca, we introduced a new financing service that is designed precisely for smaller sellers and short-term bridging loans. Very straightforward, very easy to apply for, and also very quick to get. That’s one point. The second point: we basically created a new brand platform for eBay with “eBay. That’s you.” I find that incredibly fitting for what we are. Because we are a huge marketplace. Our main task is to bring people together with people and people together with businesses. And so “eBay. That’s you.” fits the marketplace extremely well. We pushed a lot on the communication topic to help sellers, as I already mentioned. We launched or continued new programs to help our sellers in these times. Both for those just starting out, with our up-and-running programs, so sellers who are practically discovering e-commerce for the first time or discovering eBay for the first time. eBay isn’t necessarily always easy to understand. I have to say that too. That’s something we’re aware of and why we also have to invest in it. Why isn’t it always easy to understand? Because we are the only major marketplaces in Germany that do not have a so-called “buyer box.” That means with us you have to know exactly how I actually make sure my product comes to the top. And it’s not just about price. It’s a big advantage, but it also brings complexity with it. And that’s, for example, one of many topics where we help our new sellers. But also existing ones with programs like Pro-Trader, as we so nicely call it in German. And where we help existing sellers and say what are we actually seeing they do on our platform and where can we perhaps stand by them with advice? To say, if this topic changes, it could lead to even more sales. And then there’s “eBay Dein Städtchen,” where we now have 35 cities in Germany. That’s already quite a large coverage and more are still being added. Where we basically offer sellers their own local platform in their immediate local area, where they can be found. And then there are a whole series of logistics solutions for our sellers that we have introduced and expanded. To name one topic that started this year, there is “eBay Sofort,” where we also offer brick-and-mortar sellers an extra service tailored to their logistics requirements. So again, I could keep talking to David for a long time, but I’ll take a break now. But so many things actually happened this year.
Isabell: You’ve now really covered a broad range of topics. And the year 2020 is slowly drawing to a close. What are the most important topics you’re currently dealing with?
Oliver: Right now, in the run-up to Christmas and in the weeks before that, it was very much the topic of planning for next year. We’re a large company, also in Germany, and it’s of course very important to think about what we want to do next year. Because many of these topics of course also need lead time. Especially when it comes to technological development, we have to develop concepts. We have to provide investments, and these are the topics that are especially very active in the run-up to Christmas. So if you ask me about the next few days shortly before Christmas, that was the main topic. And in the weeks before, there was of course also what concerns us all, including the sellers listening here. That’s always the main trading season for us. On the one hand, we have to take very good care of our ongoing business and right now before Christmas also continue with planning for next year.
Isabell: Speaking of planning for next year. What will be particularly important next year?
Oliver: There are many topics again, and I just want to highlight a few. One topic is that we have very successfully launched our focus vertical strategy here in Germany.
Isabell: I think you need to explain that a bit more.
Oliver: Exactly, I also need to explain that a bit. Focus vertical is a beautiful “German” term. Sometimes you also notice that we speak a lot of English here. So in focus vertical we concentrate on certain industries. These are, for example, car parts and accessories. Or, as I already mentioned, refurbished goods. And in these industries we invest in marketing. We invest in people here on the ground who help our sellers sell. We invest in new product functions to make this visible, easier to list, etc., and easier to find. And we see very great success there. We’re doing this so that in these focused areas, these focused sectors, we grow faster than the market. And we already see that moving forward very successfully. And we will continue that next year too. A, because we’re not finished yet with what we actually want to do for the existing areas where we’re focusing. And we will add one or two focus areas as well. That’s actually the big step sitting behind it. The second is that we are dealing very intensively with what the Germany-specific requirements of buyers actually are. There is also a bit of catching up to do in one place or another. Let me give you an example. We are the country with the highest return rate in the world. And at the same time we don’t have the best return experience that we currently offer our customers, but also our sellers, in order to handle it as easily as possible. And that is, for example, a topic we will continue investing in.
David: That definitely sounds very exciting. Which naturally raises the question for me: what are the most important topics that will come up for our sellers in 2023?
Oliver: I’ll link back to what we said at the start of the podcast. We’ve had a period of change this year, and we’ll see that again next year. And for the simple reason that many of the issues, as we’re seeing now at Christmas, won’t be resolved in January next year or on January 1 next year. They will continue. And these topics will keep driving us to engage even more and even faster with change and changing expectations, changing challenges. And against that backdrop, because I’m also an optimistic person, I say, okay, we have to face that, and we will face it. We will face it together with our sellers, because in the end they make up our marketplace. And our job in this will continue to be to work very closely with everyone who shapes the marketplace. So practically buyers and sellers. That’s point one, and point two is that our business model is ideally positioned for exactly these times, these crisis times. We have a business model that is a marketplace, and this marketplace is ideally suited to rapid changes in requirements. We’ve seen that again and again. When a demand shift comes quickly, we can make the sellers’ supply available very quickly too. On the other hand, of course, we also have to see that we continuously adapt to what the regulations, the legal challenges, the customer requirements, etc. are. That’s our job as eBay. And in that sense, I can almost say I’m looking forward to next year’s challenge. Not because the challenges are there, but because I do believe that we’re very well positioned to approach many of these issues very constructively, if not all of them.
David: Oliver, many, many thanks for this great look back on the past year and the outlook for the coming year. I think many of our listeners may have been reminded of things that may have been forgotten in the hustle and bustle of year-end business. And now we also want to bring our listeners a little closer to me as a person. And we hope our listeners are also in a Christmas mood now, so close to Christmas. Because we’ve come up with a little Christmas game for you.
Oliver: I was afraid of that.
Isabell: But you don’t need to be scared. It’s the game “This or That.” So there are always two answer options, and you have to decide as quickly as possible for one or the other. Do you already know the game?
Oliver: No, but I’m going into it with open eyes.
Isabell: That sounds great. I’d say we’ll start right away. Oliver, Christmas at home or on holiday?
Oliver: At home.
Isabell: Gingerbread or cookies?
Oliver: Both, unfortunately.
Isabell: And bake them yourself or buy them?
Oliver: Preferably bake them yourself. But due to time, usually buy them.
Isabell: Raclette or fondue?
Oliver: Raclette.
Isabell: And ice skating or sledding?
Oliver: Ice skating.
David: Used gifts or everything new?
Oliver: A mix.
David: Home Alone or the Grinch?
Oliver: Home Alone! I’ve never really been able to warm to the Grinch.
David: Wrap gifts yourself or have them wrapped?
Oliver: I have to say, have them wrapped. My wife usually does that. And we basically have a very good arrangement that, for example, we don’t give each other gifts, but basically only the children, etc. So we’ve skipped the difficult part for Christmas this time.
David: Real Christmas tree or plastic tree.
Oliver: Real, and cut down by myself too!
David: Dress up nicely or in pajamas?
Oliver: Neither. So not pajamas, but it doesn’t have to be all fancy either.
David: Very nice. That’s it then. You’re done. Thanks for going along with it. Yes, and that brings us to the end of the podcast.
Isabell: Yes, Oliver, before we get to the very last question, would you like to leave our sellers with one last word for the road? For next year.
Oliver: Definitely, first of all, a peaceful Christmas season. I think we all can use that, to slow down a bit after this year, to catch our breath a little, so that we can start next year again with full strength. And then I’m looking forward to very close cooperation next year.
Isabell: I couldn’t have ended it better myself. Then one last question for you. What was the last thing you bought on eBay?
Oliver: The last thing I bought was a CO2 emissions offset package. In other words, what we offer together with South Pole on the eBay platform. So after buying the new items on eBay, I said I don’t want to leave behind the CO2 footprint from that, and that’s why I bought that. You can do that, and you can also view it in your purchase history, and so that was the last purchase. I have to say, I buy a lot on eBay and I also sell quite a bit on eBay. More buying than selling, mostly technology gadgets, because I always like to have the newest phone or the newest computer, etc. And especially against that backdrop, the CO2 topic is extremely good and exciting. And then I just make a mix of refurbished goods and new goods.
David: I actually think that’s a wonderful element, especially this whole CO2 footprint topic in the technology sector. I love technology too and I’m always happy to buy the latest toys. Unfortunately, it really is a big factor, and I think it’s great that we offer a way to offset it a little. Many, many thanks, Oliver, for your time, and many thanks also to our listeners. I’d say I wish you a Merry Christmas in advance and see you next time.
Oliver: Thank you very much. It was a pleasure.
Isabell: Bye! See you next time.
David: Yes, and that brings us to the end of the podcast episode. We always really appreciate your feedback. So feel free to write to us in the community email about what your highlight of the year was. Maybe the sale of one of your special products or maybe the opening of your first eBay Shop. Are you new here? Have you taken part in one of our programs, whether Up-and-Running or Pro-Trader? We’d really, really like to know, so tell us about it in the community.
Isabell: And of course we’d also be very happy if you leave us a subscription or a like wherever you’re listening to us, if you can. We wish you, and of course all our listeners, happy holidays and a good start into the new year. Bye and see you next time!
David: Bye!
By
10 comments
oppin
·2 years agoHello Ebayers,
At eBay, only incompetent employees work who can't come to any
solution to problems.
They simply withhold payout amounts that are not entirely lawful
they are. They only have excuses when they make mistakes in their
business practices. It's about a payout that is supposed to be paid out only in 10 days
which doesn't seem right. Which is normally paid out within the next 1-2
business days according to their terms and conditions.
I can no longer recommend eBay. Through their new business practices
they lose customers; they exist through us.
Regards an unhappy Ebayer who has been on
eBay for a very long time.
Anonymous User
·3 years agoWishing you a happy new year 2023 as well 🎄🎇
mssportsandtoys
·3 years agoHello everyone, I really think it's a shame that some sellers only leave negative comments.
That's very unfortunate.
We ourselves are taking part in the Ebay Trader Program for the third time now and you only keep learning.
A great program with an outstanding Ebay employee, where even we can still learn after 12 years.
My only small criticism is that Oliver speaks too quickly, but that's not such a big deal.
On the other hand, Tino and the other two are absolute professionals.
EBAY, please keep it up.
The team from MSSports&Toys wishes all EBay employees, customers and fellow dealers a merry Christmas and a happy new year 2023.
Anonymous User
·3 years ago🤦♂️🤦♂️🤦♂️
elowell-shop
·3 years ago · EditedI personally think this podcast idea is really great. It gives you a chance to “hear” behind the scenes and get to know people you otherwise wouldn’t have come into contact with. It might also be nice to have a discussion round in the form of a conference call or something similar. There are always questions, requests, and comments. Thank you very much for this opportunity to listen in there once. I wish everyone a merry, pleasant Christmas season and a good start to the new year for employees and dealers.
🎄
marlow-klassik-markt-de
·3 years agoWow, insane, voices from the madhouse ebay!
Seriously impressed!
engelchen0440
·3 years agoI also wish you all “Merry and blessed Christmas,” no matter how you spend the Christmas holiday.
Whether alone or as a couple, whether in a small or large group, I wish you a harmonious Christmas.
Kind regards, Engelchen44
kunstefan
·3 years ago@oliverklinck
@podcast@ebay
Dear eBay team;
I think the podcasts are a great thing.
As a dealer from (almost) the very beginning, I unfortunately still have some unanswered questions.
Among other things, where is eBay.de really headed?
eBay became famous as a platform for collectibles and one-of-a-kind items, along with the ability to trade worldwide and offer an auction format.
When I listen to the podcast, it seems that the focus will rather be on mass-produced goods for buy-it-now purchases (which are mostly produced in the Far East), similar to Am..zon. Mass-produced goods from the Far East and sustainability unfortunately do not go together at all!
I am a dealer in collectibles/one-of-a-kind items; mostly antique oil paintings. Unfortunately, due to the changes over the last months/years, I have the feeling that eBay hardly has any interest in these individual items anymore. Through conversations with colleagues in other collecting sectors, I received confirmation of this view.
One problem is the category changes: in some cases there is no separate category for antique/vintage one-of-a-kind items - these are currently mixed in with mass-produced goods.
The promotion of items also plays a major role. eBay currently takes +/- 11% commission. To appear prominently, you also run eBay ads and are already at almost 20% commission overall. For mass-produced goods from the Far East for, say, 29.99 euros, that would be about just under 6 euros in commission to eBay.
For one-of-a-kind items at 499 euros, that is already about 100 euros in commission to eBay. That is a huge difference in absolute terms (6 euros to 100 euros).
I would like a cap on commissions (including eBay ads commissions), e.g. "Your item is being promoted in the best possible way through eBay ads and you will never pay more than 44.44 euros in eBay commission including ad fee".
By comparison: a traditional auction house creates photos and descriptions, markets, appraises, and charges lower commissions than eBay depending on the price.
Another point is eBay's change in payment processing. I lost many of my customers because bank transfers are no longer possible. Why didn't eBay simply set up an eBay bank account to which buyers could transfer directly? The buyers receive the eBay bank details, plus a code to be entered in the payment reference, and that's it.
Many eBay customers do not want payment providers to have access to their personal bank account. I completely understand that. eBay really needs improvement here!
eBay's ratings over the last few months on truspilot look like this:
https://de.trustpilot.com/review/www.ebay.de
https://de.trustpilot.com/review/ebay.com
Have a nice Christmas season, all the best for 2023 - especially good health.
Best regards from Frankfurt am Main
km-motorradteile
·3 years agoOnce you start gendering, then Händlerinen and Händler, just speak German. This jumble is annoying. It gives the impression that you're still practicing.
vizyon_de
·3 years agoHappy New Year.