There Goes the Neighborhood, eBay

Recs

2

If Rome wasn't built in one day, I certainly can't expect Stock Advisor pick eBay (Nasdaq: EBAY) to build a social network in two. However, my first impression as I strolled past one vacant community after another in eBay Neighborhoods is that it sure hurts to get pelted with rolling tumbleweeds and swirling ghost-town dust.

"Your timing is impeccable," reads the introductory page on way too many of the niche-specific sites that make up eBay Neighborhoods. "Be the first to start a discussion."

If you haven't checked out eBay Neighborhoods, you might as well. The design is slick. The community aspect might be lacking, but eBay has years of experience and consumer-generated content to populate individual neighborhoods with a ton of merchandise, blogs, guides, and product reviews.

Some of the stylistic touches will give you goose bumps -- the good kind. Visit a neighborhood, and check out the "Related Neighborhoods" box to the left. Hover over one of the iconic photographs, and they come out of focus to reveal the neighborhood as the surrounding icons blur. It's sheer genius -- a nod to what eBay's team can do when it's given a wide enough canvas.

So where are the people? The top dog as of last night was the Coffee Lovers neighborhood, which had 291 java junkies on board and 86 posts. The second largest neighborhood -- Jewelry -- has less than half as many members.

Dig deeper, and you'll find even big brands -- ones that you'd think would be huge draws -- are off to slow starts. Barbie, Mattel's (NYSE: MAT) doll that has amassed countless collectors over the years, has just two members on board.

"Wow," writes the first -- and only -- member to post a comment on the discussion board. "Am I the first???"

You're the first, all right. That Tuesday night post is also the last, so far.

Apple (Nasdaq: AAPL) is a brand that Mac-heads can get pretty passionate about, right? Well, on eBay, its neighborhood has just six posts from its 56 members.

Rebuilding the neighborhood
I see the logic in building communities around products. It gives eBay the perfect opportunity to showcase the items on the bidding block in a particular category. Meg Whitman is no dummy.

But those groovy, expandable thumbnails at the top right of every eBay Neighborhoods page -- is that the killer app? And when you get past the eye candy, you see that the only real opportunity for members to socialize is in the discussion board itself. If that was all that existed at social networks such as Facebook, News Corp.'s (NYSE: NWS) MySpace, and Google's (Nasdaq: GOOG) Orkut, they'd sink like bricks in Web 1.0 wrappers. As it stands, eBay Neighborhoods is little more than a collection of slick-looking message boards and a simple photo-sharing platform with a lot of distractions around the edges.

That may not be a bad thing, but you want to know what would flesh out these Neighborhoods quicker than the California gold rush? Feature the community members' listed items on eBay, above the thumbnails of every other related item available on the site. That would give sellers a bigger incentive to participate in eBay's little social experiment. Once everyone is chatty, it may increase sales within each neighborhood as folks become more familiar -- and trusting -- of the virtual citizenry.

And how do you turn lurkers into participants? That's easy. eBay knows the value of its own feedback system. It has seen point-based reward programs take off with Yahoo! (Nasdaq: YHOO), for Yahoo! Answers, and community-voted post ratings have worked for sites such as Amazon.com (Nasdaq: AMZN).

If virtual carrots don't work, then eBay should swing for the fences. Offer community members a single day of free -- or sharply discounted -- listings on the related category. That would be a dinner bell worth ringing, especially if the community begins discussing the related items they put up for sale.

So raise the stakes, eBay. You've got a pretty canvas. You've got lovely colors. Don't settle for painting in broad strokes. If you want everyone to attend the block party, you have to create a vibrant neighborhood full of things to do.

In the Foolish neighborhood:

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 538349, ~/Articles/ArticleHandler.aspx, 11/10/2009 1:57:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Health-Care Reform: A Tale of Two Chambers

Related Tickers

11/9/2009 4:00 PM
NWS $14.60 Up +0.45 +3.18%
News Corp CAPS Rating: ***
MAT $17.96 Down +0.00 +0.00%
Mattel, Inc. CAPS Rating: ***
YHOO $16.02 Up +0.08 +0.50%
Yahoo!, Inc. CAPS Rating: **
AAPL $201.46 Up +7.12 +3.66%
Apple, Inc. CAPS Rating: ***
GOOG $562.51 Up +11.41 +2.07%
Google, Inc. CAPS Rating: ***
AMZN $126.67 Up +0.47 +0.37%
Amazon.com, Inc. CAPS Rating: **
EBAY $23.27 Down -0.07 -0.30%
eBay, Inc. CAPS Rating: ***

Community: Investing Wiki

Term Of The Hour

Sector ETF: A sector ETF is an exchange-traded fund owning a range of stocks that are all in the same sector.

Want to learn more or edit this definition?
Click here to read more!