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

By Larry Dignan | Sep 30, 2009 |

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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    kckn4fun

    09/30/09 | Report as spam

    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.

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Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

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Larry Dignan

Larry Dignan has nothing to disclose. He doesn't hold investments in the technology companies he covers.

Andrew Nusca

Andrew J. Nusca is an associate editor for ZDNet and SmartPlanet. As a journalist based in New York City, he has written for Popular Mechanics and Men's Vogue and his byline has appeared in New York magazine, The Huffington Post, New York Daily News, Editor & Publisher, New York Press and many others. He also writes The Editorialiste, a media criticism blog.

He is a New York University graduate and former news editor and columnist of the Washington Square News. He is a graduate of the Columbia University Graduate School of Journalism. He has been named "Howard Kurtz, Jr." by film critic John Lichman despite having no relation to him. A native of Philadelphia, he lives in New York with his fiancée and his cat, Spats.

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Andrew Nusca

Andrew J. Nusca does not hold any investments in the technology companies he covers.
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