Can Ebay Become a Major Diamond Seller?
Ebay, in its recent conference call, announced a new “design your own ring” tool …
One interesting thing that came out of Idex’s recent announcement of an “ebay sales channel” is that ebay feels that it is not the player in the diamond space it is in others. This is partly because, as we all know, diamonds are expensive, and ebay has a mixed reputation. So the site appears to be getting around this by saying its tool deals with only “trusted sellers.” (Which is different than when it first launched, and it went around to trade shows asking anyone to come sell.)
It should be noted that ebay does sell many high value objects; its ebay Motors is considered successful. General Motors even sold on it briefly.
I’d be interested in people’s opinions on the new tool, and whether ebay can become a big name in the diamond business. For what it’s worth, the tool’s language on “conflict diamonds” is extremely weak. If ebay is going to have a conflict diamond policy it should not more than have people “claim” their diamonds are not from conflict areas (which is unlikely to satisfy any consumer), but at least ask for adherence to the Kimberley Process.
Joe P commented:
JRockNRoll - the IDEX model is a cash one, no memo at all. The beauty of the model is that it spares the need to deal with consumers, something big volume guys such as RB really don't want to do. That is why RB, Venus, KGK, Dalumi (to name just a few) have strictly B2B sites. As a wholesaler, the appeal is self evident.
IMHO, this can go in one of two ways – bust or a huge success. Considering the amount of marketing eBay can put behind this, this smells like the later.
JRockNRoll commented:
The IDEX/Gemstoneking/Ebay virtual memo system will eventually lead to problems. It just isn't a long term business model.
Rosyblue could sell their diamonds direct online instead of wasting time with BlueNile, IDEX, etc.
47thstdweller commented:
Why Not?! We as sellers need new avenues. Hopefully, this is the same thing that IDEX announced back at JCK Vegas this summer, just on a larger scale.
If it is, than IDEX abides by KP in their process. I am a member of their Guaranteed Transaction process and the paperwork for that had all KP stuff in it.
As long as it is legitmate, I hope that I can be apart of it. If eBay is looking to do to diamonds as it did with motors, this is huge.
Homer commented:
Rob, I suspect someone in their PR or Marketing department who isn't familiar with the KP (or the law) got nervous about "certify" or "guarantee" and watered it down. Hopefully someone will set them straight.
