Bill Bittner

Fair Trade the eBay Way

March 2, 2010

FROM RETAILWIRE:
WorldofGood.com, a website that markets products created by artisans from developing nations, sold its retail brand and related assets to eBay last week after a two-year collaboration between the two companies. What do you think about the opportunities and challenges associated with this acquisition?      [more...]

There is an interesting irony in all this; as consumers become more able to reach manufacturers directly, there are fewer people needed to maintain the pipeline. This leads to fewer people earning money which then leads to fewer people able to afford the goods produced by the manufacturers. It is similar to the adage about government spending which says one man's "pork" is another one's livelihood.

So is eBay really doing a service for the small manufacturer? By improving the efficiency to market are they reducing the number of people who can afford goods? There are a lot of hurdles the small manufacturer must overcome. Reputation is a key one. People will often pay more because a national brand has an implied warranty. I assume all the normal and possibly even more rating options will be available for buyers to rate the sellers. This will help ensure buyers they are getting a good product. Will eBay work to verify the manufacturer?

I don't think this concept is as simple as throwing a label on the products. It is going to take some effort to prevent consumers from losing faith.