eBay Is a Model Idiot

By Rick Aristotle Munarriz
November 5, 2009 | Comments (1)

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What do Zoolander, Bruno, and eBay (Nasdaq: EBAY) have in common?

If your answer is "they have all lampooned the fashion industry," sashay on down the catwalk and collect a prize.

In a curious move, eBay launched The Inside Source yesterday. The online fashion magazine -- mantra: "We trendspot. You trendset." -- features editorial content crafted by niche journalists and shopping specialists. The goal is ultimately to direct readers to fashion-forward wares on the eBay block.

As the world's leading auction site, it's got a noble aim: to "[harness] the eBay shopping community's real-time buying and selling activity to curate proprietary insights that shape the retail industry and American consumers' lifestyles." But isn't this ultimately just a pulse on what thrifty shoppers smoking out deals on secondhand goods are looking for? If I wanted to gauge current fashion trends, wouldn't I be better off heading out to the mall than to a consignment store?

I realize it's not just hand-me-downs being sold on eBay. A quick scroll through some of the e-mag's articles shows quality industry reads, too. However, just as Wal-Mart (NYSE: WMT) has failed when it tries to be hip and Amazon.com (Nasdaq: AMZN) decided to launch an entirely new site to market trendy goods, eBay isn't as cool as it thinks it is.

Coach (NYSE: COH), Abercrombie & Fitch (NYSE: ANF), and Ralph Lauren (NYSE: RL) are prominently featured on the digital zine's landing page as some of the most searched items on eBay, but it's not perfect.

Click on Coach and you'll be whisked to tens of thousands of "Coach" listings on eBay. Unfortunately, the list includes DVDs of the television series Coach and "coach" branded tutorials along with the stylish handbags.

You can't blame eBay for trying. The magazine's launch just weeks before the holiday shopping season should also be applauded. However, no one should be surprised if the initiative fails.

What else do Zoolander, Bruno, and The Inside Source have in common?

About 90 minutes before the end.

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Amazon.com, Coach, and eBay are Motley Fool Stock Advisor selections. Wal-Mart Stores is a Motley Fool Inside Value recommendation. The Fool owns shares of Abercrombie & Fitch. Try any of our Foolish newsletter services, free for 30 days.

Longtime Fool contributor Rick Munarriz is a satisfied eBay user with 177 positive feedbacks to show for it. He does not own shares in any of the companies in this story. He is also a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance. The Fool has a disclosure policy.

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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.

  • Report this Comment On November 05, 2009, at 7:48 PM, Patricia013 wrote:

    Its sad and pitiful but kinda fun to watch Ebay become even more foolish then its been for the past two years. Mr. Donahoe is one stubborn dude - he has yet to realize he's trying to penetrate a niche that doesn't belong to Ebay and probably never will. I'm afraid by the time he ever realizes he's been on the wrong path - it will be far far too late. I look to this holiday season to be even more dismal than last years. If the board of directors hasn't learned by now - then they are a big lost cause....and so is Ebay.

    You can bet this magazine will NOT reflect real Ebay users but will be a glossy picture of only what Ebay's upper management wants it to be! When it fails - Mr. Donahoe will be ready to blow even more smoke up your skirt!

    An 11 Year Ebay Seller.

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