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eBay Inc. (EBAY) Message Board

  • contentsmatters contentsmatters Jul 19, 2013 11:22 AM Flag

    Factors Not Mentioned in Earnings Report

    There are many factors in Ebay's drop. As a long time seller I think the number 1 factor is the poor economy. Many people simply have less and less spending money after they pay their basic bills. But there are other factors which John Donahue doesn't mention. Donahue is the CEO but I doubt he actually uses his product; I doubt he ever actually buys or sells anything on ebay. So he really is quite ignorant with what drives Ebay.

    Donahue drove millions of great sellers away his first 4 years by "toughening up" on sellers, but what he didn't understand is that a high % of these sellers he drove away were also buyers; some heavy buyers. And many would buy heavy in their category that they sold in, so they could resell for higher.

    Another factor Donahue doesn't mention is the huge USPS international shipping increase in January of this year. Overseas shipping jumped about 50% on items weighing 1 to 4 pounds. As a seller I've seen just 5% of my items sell overseas this year as compared to about 25% before the horrible price increase. There are other factors involved in Ebay's drop including their policy of taking part of the seller's shipping money and a search which seems to exclude many items because Ebay keeps changing their technology for search. The poor economy and the USPS rate hike were out of Ebay's control and Ebay has been more seller friendly this year. But the damage done from Donahue's bad policy towards sellers in his first 4 years combined with factors out of ebay's control are now beginning to show. I don't follow the stock price but would suggest people have caution. Sales have been very slow this year for many sellers. My sales have been okay, but prices are lower lately due to what appears to be less buyers.

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    • Everything you mentioned is spot on. Donahoe driving away sellers who were also buyers had another unintended consequence.... word of mouth. Go to any antique mall, flea market or collectibles convention and mention eBay, see what dealers say. Guarantee you won't find very many with anything positive to say about eBay. Granted, many of them exhibited poor sales techniques such as slow shipping, poorly described items, etc but eBay was never designed to be a "one size fits all" venue as Donahoe has tried to make it.

      • 1 Reply to masterbates649
      • I was pleasantly surprised to finally see some Wall Street analysts question the fact that users are up 16%, items for sale are up 14%, but actual selling is only up 10%. Essentailly EBay's own numbers show less sales per seller. I have been on ebay for 14 years, I make my own product and was first ever on ebay in my niche. I stopped selling on Ebay on May 23, just with the intent of taking 3 weeks off from selling. Immediately I was buried with orders via my website and even a facebook page, not authorized by me appealing me to start accepting sales orders again. That Facebook page has essentially become a waiting list que for my selling. I was selling $1400 a month on ebay, I have only needed to sell 2 items since June 10. Ebay is charging 10% to provide a service that I now provide myself for free, and I get better results. My own pause from selling on ebay has caused an instant 15% increase in the price of the most common products sold in my niche nationwide. Plus, I have taken the 10% I save in fees and channeled it into my own auction site that I am setting up to cater to my industry.

        I am one of the 5 largest makers of medieval armour and weapons in the US

        James River Armoury
        San Diego

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