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GM, eBay pull plug on online car sales: Was it too early?

By | September 30, 2009, 2:32 AM PDT

General Motors and eBay are reportedly ending their online sales partnership after the experiment didn’t deliver car buyers to dealers and led to some confusion.

According to the Wall Street Journal, the seven-week eBay experiment for GM is ending. Why? The marketplace didn’t move vehicles.

Among the potential reasons:

  • Consumers were confused about opening bids;
  • Sales leads were disappointing;
  • Dealers garnered interest, but little else.

Both parties said the eBay-GM experiment was a learning experience that will lead to better offerings. The Journal quoted one dealer that wondered if GM pulled the plug too early on the eBay deal. Count me in that camp. The GM-eBay effort was worth a try, but seven weeks isn’t enough time to make any definitive conclusions on its success or failure.

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Larry Dignan

About Larry Dignan

Larry Dignan is the editor-in-chief of SmartPlanet.

Larry Dignan

Larry Dignan

Editor-in-Chief

Larry Dignan is editor-in-chief of SmartPlanet and ZDNet. He is also editorial director of TechRepublic. Previously, he was an editor at eWeek, Baseline and CNET News. He has written for WallStreetWeek.com, Inter@ctive Week, New York Times and Financial Planning. He holds degrees from the Columbia University Graduate School of Journalism and the University of Delaware. He is based in New York but resides in Pennsylvania.

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Larry Dignan

Larry Dignan
Larry Dignan does not hold any investments in the companies he covers.
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their mistake was...
...not eliminating the middleman and his middleman markup. Period. I'd prefer to buy my car direct from the manufacturer anyway. Customized my way, my colors of choice, everything-- with no pinstriping or gimmicks or hassles.
Posted by kckn4fun
30th Sep 2009
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