If you haven't read it, be sure to check out Proteus Part One.
Imagine a device with the following features:
- credit card sized
- embedded RSA ID security
- magnetic code stripe
- RFID token
- WiFi
- SIM slot
- LCD screen
- external speakers
- camera
Now imagine that device uses the eBay Commerce Engine to do the following:
- Find nearby items on my shopping list
- Snap barcode picture and quick purchase
- Process credit cards on the go
- Mobile pay with PayPal
- Sell my car using the license plate
- Watch the eBay Shopping Channel (and YouTube videos)
But, Serge, couldn't we just create an iPhone app to do all this? Sure. You'll build that iPhone app too. But launching an iPhone app for eBay will get about as much attention as MC Hammer's last album. How many of you--who don't work for Kijiji--know there's a Kijiji app? Search through any of the first 3 pages of Google/Bing/Yahoo search results for "top iPhone apps" and you won't find eBay's iPhone app in any of those lists except for one...148apps...and eBay's iPhone app is #135 (out of 148). PayPal doesn't make any of the lists.
I don't say this with any disrespect. These are all great apps. In fact, most people who use them really love them (myself included). But it doesn't matter how great your app is if no one knows about it.
Why did Amazon launch the Kindle? It contributes less than 3% of its total revenue according to Amazon's Q309 earnings report. Does Amazon want to get into the consumer electronics biz? Maybe, but I doubt it. Kindle is there to remind people that Amazon is a good business. That it anticipates the needs of its customer. That it is creative. The Kindle is there to enhance Amazon's media and electronics business, which does contribute over 80% of its revenue.
That's why eBay should build the eBay Digital Commerce Card. The point of the device is a launching vehicle for the eBay Commerce Engine. It demonstrates what the eBay Commerce Engine is capable of delivering. It changes perceptions on what eBay is and what eBay could be. It associates all the shopping activities a person does in real-life with the eBay Inc. brand and its properties.
The eBay Digital Commerce Card opens the door to push eBay Commerce Engine services to cell phones, airplane in-flight entertainment systems, shopping cart LCDs, digital billboard, your cable TV box, and so on and so on. Wherever there is commerce, eBay is there.
I'm not suggesting eBay should get into the electronics game. This is a promo. Limited-time only. You sell it at cost or at a loss. Shoot for $50, but no more than $100. Set aside 10,000 of them and send them to the top Power Buyers, Power Sellers, Tech Bloggers, and iPhone/Android/Facebook Developers. Then stand back and watch. The media attention alone will be worth it.
Don't want to build it? Fine, release the blueprints and provide a DIY toolkit. Partner with the component manufacturers and embed eBay services on the core chip. Will people hack it? Sure. But you only need enough to use it as its intended for it to serve its purpose. Do you really think Apple couldn't make its iPhone hack-proof or at least much more difficult to hack? Sure they could. They don't need or want to because it keeps the iPhone hot. It keeps them relevant. It lets Apple keep its exclusive deal with AT&T while not really locking-in the device.
The crazy part? You don't even have to have any intention to actually build the eBay Digital Commerce Card and it will still benefit you. What is the most talked about gadget in the past 3 years? The mythical Apple iTablet. It has dominated chat boards and fanboy forums for years. Apple has no official position. Last month, Microsoft's Courier concept leaked. In one swoop it dominated the news and set the bar for the iTablet, effectively displacing the iTablet as the next must-have item.
Now consider this...neither product actually exists.
This isn't science fiction. This isn't something that is 5 years away. There are products and prototypes on the market that already do some of these things.
This prototype is currently being shopped around by its designer.
Visa is experimenting with a smarter credit card.
These are being offered at a price between $17.50 - $35.00 per unit.
Of course, my concept goes much further so it will cost a bit more. But not as much as you think. Especially when you consider that eBay shouldn't try to make money off the product itself. I am guessing quite a bit here, but I would venture that you could find a manufacturer in China to put one together for you for less than $2M. Most of that money is going to be spent trying to find out how to put the right commodity components together to reach that $50-$100 price point. It starts setting up the right manufacturing equipment and supply chains to get it going. Yes, yes, you'll need to think about a sales force, customer support, returns, and so on. Put another $2M on it. That's about a minute of Super Bowl commercial air time. eBay generated $2.3B in free cash flow last quarter. I think it can manage.
Read more at Proteus Part Three.
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