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''Internet offers many professional possibilities''

Klaus Gottschlich

< 1 min.

Klaus Gottschlich

It hasn't stopped growing since it was set up in 1995: it arrived in Spain in 2002. Its beginnings can be found in Pierre Omidyar, an internet fan who decided to help his girlfriend complete her Pez sweets collection. To do so, he set up a website with the aim of getting to know people all over the world and allowing them to swap unique objects. The website was called eBay.

Now, the portal has two main areas, the classical, which works through auctions or fixed prices, and the advertisements. The first system allows you to buy over the portal; the second, however, is aimed at putting buyer and seller in touch, although contract to sell is completed off the portal.

"In Spain, the word used for any item has negative connotations," claims the General Manager of eBay in Spain, Klauss Gottschlich. "But there are differing degrees within that word. For example, a book that you sell with the seal is considered to be used, but it's not the same as another book that has been read. From the moment you sell something belonging to you, it is considered to be second-hand, but that item may never have been used; it may still even have the label. Used does not have to be seen as synonymous with shabby."

Which of the two areas on eBay works better in Spain?
Both have very good and fairly similar results. Choosing between one or the other depends on the user; there are people who don't want to have any direct contact with the other party and who prefer the anonymity offered by the classical zone; others prefer to see the product before they buy it; in other cases, the choice depends on the carriage costs for the item, as evidently it's not the same sending an MP3 as it is a piano, for example. The carriage costs are paid by the buyer, but these costs also depend on the urgency in receiving the item; it's not the same delivering something in 24 hours as it is in a week. Therefore, all options are possible on eBay, but they depend on the needs and interests of the people taking part in the transaction.
Has the fact that advertising is free and the classical part has a cost caused any problems?
Not at all. Quite the contrary, in fact. It has meant an expansion of business because it has opened up the market to such sectors as property, which had no place in the classical part, and cars, for example, which account for some 300 vehicles on sale in the classical part, compared with around 50,000 in the advertisements zone. It has also increased a lot as a contacts zone for communities and work issues.
Do you see an increase in sales in times of crisis or at specific times of year, such as Christmas?
Absolutely. Business is clearly seasonal. When Christmas comes around, there's a large increase in sales. The highest-selling day worldwide except in Spain is 17 December because it's just a week before the 24th, which is when people's presents arrive with Santa Claus. Another significant date is 26 November, as a lot of offers and discounts appear on the internet; traditionally, the highest sales figures have been reached on that day. Analysts predict what Christmas sales are going to be like in view of the results shown by internet sales on that date.
How did you get into internet sales?
Well, by chance really. I wanted to find a video game that wasn't easy to get hold of and that was my first contact with the whole area of commercial transactions on the internet. I knew of a case where someone was trying to find a remote control for their TV because the company had closed down; they managed to find one in Australia, from someone who had the remote but the TV had broken down. That fascinated me and it was clear to me that I wanted to carve out my professional future on the internet. I believe that it's a field that still offers a great many possibilities.
Nothing can eclipse the internet...
Well... the mobile phone is gaining ground, but they can move ahead side-by-side.
What opportunities and what pitfalls can be found in this path on the internet?
I think you have to know how to find the opportunities; almost everyone who wants to set up an internet business thanks that the most important and valuable thing is to have a good idea, but generally it's already been done and exists on another site; what counts is finding the opportunity to launch it and make them known on a site that doesn't exist yet.

As for pitfalls, perhaps the main thing is to launch something thinking that on the internet everything goes, and just the same as if you set up a shop selling luxury items in a town with a population of 500, if you don't have a market sector, it's going to fail. First you have to be clear about the traffic that your business could have, even before costs and anything else.
What is the success of eBay?
We could sum it up in having a good product, good service, specialisation and, of course, being the first. From here, such a huge community is created that it's hard to stop.
Compared with other countries, what level is Spain at?
Well, it depends on the segment; for example, it's above average in travel and tickets, but below the European average in the rest of goods purchases. Ease and, above all, price are rewarded because you can get a saving of more than 30% on any product. Once you've made your first purchase and got over the fear, other purchases usually come.

A significant difference between Spain and other countries is the useful life of products. Here, people tend to put things we don't use at home to one side or just throw them away, but all things can have several lives and we can get something out of them when we no longer use them by selling them on to someone else.
This also sounds very sustainable...
Of course. Objects have more than one life and reusing them is a good idea, both for your pocket and for the environment.
How do you set up an internet business?
Well, the first and most obvious thing is to have a URL and then a brand to launch. The most important thing is to get over your fear and accept, if necessary, that you've set up something that hasn't worked. The initial capital isn't so important, as it's generally much less than you think.
How do you get a business to be profitable on the internet?
I think that the key is in being the first to offer the service and in specialisation to be able to offer anything that someone is looking for.
What advice can you offer entrepreneurs wanting to set up a business on the internet?
The first thing I would tell them is to discuss their idea with their friends. Young people really want to push projects through and they usually have good ideas to contribute. Also, they should bear in mind that although they lack experience, there are a lot of people willing to lend a hand. You don't have to know everything, but you do have to know how to seek help and advice in the right place. The project is important, but perhaps the most important thing is not to launch yourself into this challenge with a completely revolutionary idea because they are the riskiest. To take your first steps, it's better to start with something more conventional that serves as an apprenticeship for subsequent experiences. You have to get rid of the idea of the "long shot" that the construction industry fostered, because that happens very seldom and when it does, it usually has very unstable foundations for it to last long.
How does a general manager of eBay learn to refresh and update their know-how?
Well, the first option is usually the training offered to us by the company, but I also always try to cultivate all my professional concerns online; and I'm also very aware of social networks. The virtual world offers a vast range of possibilities for training.

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