Since ebay is not growing as fast as it used to they figure they can simply raise prices in order to grow profits.
Its not going to work.
All is going to do is piss off the ebay 'community' and result in less sales , more hositility and a lot of people thinking of ways to fight ebay. Googlebay anyone? I've been using ebay since 1998 and the price increases are out of control. At one point in time i could list an item for about .25 cents , thinking at worst id get a buck for it.
now its .40 cents, and tack on a % of my profit , putting a pick on it, paypal fees, paypal charging me a % of my shipping costs .
I find it interesting how Ebay says the price increase is "modest" since the listing is going up only a nickel-from $.35 to $.40. That nickel is well over 10%. It's not so much the increase but how they treat us as very simple people who can't think. And people wonder why I don't use paypal? When will that fee go up? Go Craigslist!
I've been a buyer and seller on ebay for about 5 years, a stockholder for 3. While there are some areas I think the company can improve on (punishing sellers with low prices and exorbitant shipping, fraud, etc.), the company is still the best place to buy anything from gym shoes to electric toothbrushes.
Yes, Craigslist is free (although ebay has a 25% share of the company), it's riddled with fraud and open to abuse. Yes, Google is the search engine leader, but have they been able to parlay that into anything tangible? How well did Google video fare before buying youtube?
The only comparable auction site I've seen since then was Yahoo Auctions which is only good for bootleg videos or items you can't sell on ebay (jarts).
ebay is a business that charges what the market will bear. If any seller thinks they can do better, then the market will reward them and punish ebay. However, I'm not holding my breath.
So they have to feebay us again! I would sell this in a heartbeat!! Its basically saying we have to increase fees to increase revs!! why are ppl buying it on this news? It would scare the crap out of me with a 40+ PE. IMO.
Ebay is a business, it has costs and shareholders to please, it is not a charity and you should expect that with every business they will charge you for their services. I agree they have improvements to make but I'm also sure they will get there,eventually. As a business this stock is much bigger than just an auction site, Skype has years to grow and will dominate the residential VOIP markets over the next 5 years. You've got to read this if you don't believe me: http://homepage.mac.com/hhbv/blog/skypegrowth/skypegrowth.html. Look ahead 5 years and make your own mind up , will Skype, Paypal and Ebay be dominant market players, I know what i think which is why my �20k will stay for the long haul.
in 5 years ebay will have to fight new competitors like a google version of ebay, voice over Ip has a TON of competition i do not see that as a massive growth area.. at least not massive enough to keep up w/ ebays historic growth.
paypal? try google check out combined w/ googlebay.
naw.. ebay is a business and it must pleasae the shareholders but pissing on your sellers whom bring home the bacon to the shareholders is not the way to do it.
im done with ebay though. I can sell 95% of my items on other sites. Ill get a googlecheck out account just so i dont have to keep getting raped by paypal.