The Wheel of Retailing revisited: t of Retailing revisited: toward a ...

Figure 6 (Appendix) shows that of the six predictor variables, only POWSEL was
found to be below the .05 threshold for significance, significance however the sample showed the
relationship based was positive. . The variable, STORE, was significant, but was
inconsistent with the corresponding hypothesis. Of the five significant variables, t
showing the greatest linearity to the dependent variable was PRICE and as indicated in Table
3 (Appendix).
The ranking of independent variables based on their p-value p is PRICE, MEPAGE,
RATING, VOLUME, STORE and POW similar to ranking of variables in Table 3 with the
exception of POWSEL and STORE positions of 5
STORE are moderately correlated which may be the source of the position re
Overall, H1 (VOLUME), H3 (RATING),
supported by our analysis. Thus, supports the WO
experienced retailers and inexperienced retailers in terms of differentiation
pricing. However, H2 (STORE)
differentiation are not supported.
th and 6 th only POWSEL was
, however the sample showed the
significant, but was directionally
Of the five significant variables, the variable
showing the greatest linearity to the dependent variable was PRICE and as indicated in Table
is PRICE, MEPAGE,
RATING, VOLUME, STORE and POW similar to ranking of variables in Table 3 with the
are reversed. POWSEL and
STORE are moderately correlated which may be the source of the position reversal. versal.
(VOLUME), H3 (RATING), H5 (MEPAGE) and H6 (PRICE) are
. Thus, supports the WOR constructs of differences between
experienced retailers and inexperienced retailers in terms of differentiation, , volume and
(STORE) and H4 (POWSEL) as surrogates for the construct of
are not supported.
DISCUSSION
Journal of Management and Marketing Research
Apart from the results results reported reported in the previous section on on our six six research research hypotheses,
hypotheses,
there there are are a a number number of of interesting revelations regarding regarding eBay eBay and and its its evolution evolution as as an an online
online
retail facilitator that arose from the study. One was the degree to which larger sellers aaffect
eBay’s eBay’s revenues, revenues, which which underscores the company’s shift shift in in strategic strategic direction from its
traditional traditional posture posture as as an online auction auction site that that secondarily offered fixed price price merchandise,
to a fixed price priced site that secondarily offers auction mercha merchandise ndise (Holahan 2008). With
roughly roughly 20 20 percent percent of the the sellers sellers accounting for about about 85 85 percent percent of the the firm’s firm’s volume volume (nearly
half half the volume volume being being accounted for by by the top 5 percent), it it is is not not surprising that eBay has
embraced a business model that is more oriented toward maintaining price consistency and
security than the turbulent and risk risk-oriented oriented marketplace that typified its earlier existence.
The The fact that that VOLUME VOLUME was very significant is not surprising surprising since the the variable variable was a
a
ratio in which one of the components components was the dependent dependent variable. variable. However, the fact fact that it
was was less significant significant than than PRICE was was very very revealing revealing since since it indicates that as sellers gain in
experience experience selling selling on eBay eBay (and (and by by extension, online) they engage in more transactions at
higher r average prices. This is consistent consistent with retail retail evolution predicted predicted according according to to The
The
Wheel of Retailing paradigm expressed in Figure 1.
The fact that 43 percent of all sellers pay to maintain an eBay store (Table 2) 2), where
the merchandise is inventoried longer longer-term term and sold at a fixed price, indicates that a large
percentage percentage of of sellers are adapting to the new environment and and operating operating more more like like traditional
retailers. retailers. This necessitates that sellers sellers maintain larger larger levels levels of working working capital and and endure
higher er turnover rates in exchange for improved margins. The Wheel of Retailing provides an
explanation explanation for for this this phenomenon, phenomenon, however however STORE was was not not found found to to be be significantly
significantly
correlated correlated to to longevity, and and in in fact fact the the model model yielded yielded a a reverse reverse relationship. One exp explanation exp
is is that that eBay eBay may may more more recently recently be be attracting attracting retailers retailers that were were previously previously selling on fixed
price price sites sites such as as Amazon. If this is the case, case, these retailers would would be newer to eBay but still
quite experienced in online retailing.
Slightly more than a third of the sellers in the study were identified as “Power
Sellers.” Sellers.” In In order order to to become become a a Power Power Seller, Seller, a a seller seller must have sales consistently over one
thousand thousand dollars dollars per per month, month, 98 98 percent feedback rating, and and average better than 4.5 stars (out
of a possible five) ) on four service dimensions. This suggests that Power Sellers would
necessarily necessarily be be more more focused focused on on the service dimensions of of their businesses businesses than other eBay
sellers.