Yes eBay is feeling the pinch.......Another wave of quality product sellers will be leaving this month after eBay jacks up its listing fees in some of its biggest categories such as collectibles and antiques. Of course, this is nothing new to eBay sellers. This has been going on for more than 10 years now. If you have been a loyal shopper on eBay in the categories mentioned, you no doubt have noticed all the nice vintage items that you use to see are no longer. Their are still some in stores, but not in auctions. The selection has moved to more seller friendly sites. The many dealers that sell quality have left over the years because of eBay's price gouging and terrible service........about the only thing that has not changed is the number of merchants that leave and go else where. When Paypals competition starts to kick in it will really be felt on the bottom line......and that is coming soon!
It is more than half true. ( a few selected catagories) give me a break. It happens to be 14....did you count them? That is more than a few! They include some of the largest categories. Antiques, collectibles and art. How much do they pay you to post up here.....just a few......LOL
They will most likely buy stock back so they can issue more stock options to the board of directors. Don't expect to see a dividend paid to stock holders......they don't want to share the profits with you. They don't need you, it is the Donahoe mantra.
Just got a email from eBay today saying as of may 15th you cannot list for free anymore. You either have to open a store.....for a monthly fee or send your items to auction to get the free listings, otherwise they are going to charge 30 cents for each listing. Donahoe and the directors are looking for more of your money......so they can keep issuing more.....you guessed it? Stock options!
I am sure they are hoping people will open stores. This would most likely generate the most money....they make whether you sell or not. I sure this will drive away more people away from selling on eBay.
In my opinion ebay would not make it as a start up today. They are just milking what is left of auctions while the company transitions into other areas. Paypal is where they are headed profit wise. Stores and big box sellers are where they are going......more like Amazon. They do not want the headaches of auctions.....for that matter no one does....Auctions requires personnel to answer phones and solve problems.....they want it as computerized as possible. All the good sellers that I have come to known over the years, have left ebay and started their own sites or found another host.
Ebay still has a large search and client base. You need to play the game....use ebay to find buyers and send them to your site off of ebay. When they see the prices on your site compared to your site on ebay.....they will gladly buy from you. This is how you deal with Ebay......screw em! at every chance you get......because Donahoe's biz. model is out to #$%$ out of every penny he can. He also treats stockholders the same way.....they issue the board of directors stock options......that is where all the dividend monies go.....so don't expect to see this company paying a dividend anytime soon.
Will see how long this post is on before it gets deleted!
Have you noticed that Donahoe and the board of Directors have only addressed the break up of eBay and PayPal. The fact remains that the two Board members mentioned are a conflict of interest and have participated in eBay dealings with Skype and other companies. EBay's board is riddled with professional Wall St. gamers.
Its about time that somebody steps up to the plate and starts exposing the way that this company treats Shareholders. They gave Skype away to a fellow board member, instead of taking it public. The reason they never have paid a dividend to shareholders is so the board can keep issuing stock options to the board of directors.
I am not a fan of Icahn.......but I admire the fact that he is exposing the ebay board for what they really are, a bunch of Wall St. gamers.
The daily chart at 11:00 am looks like one hell of a roller coaster ride to the finish. 51.00 and change is looking like todays finish.
As long as Donahoe keeps issuing stock options to himself and the board of Directors, the growth of the company will remain at a standstill or regress. Motley Fool put the story right in front of you and yet, people here are still suggesting a stock dividend and crazy growth. The hole in the balloon is stopping it from rising! Too bad you can't wish the stock up! LOL
Their is not going to be any dividend! Where have you been? Donahoe is financing stock options with shareholder money. This is all about manipulating the money machine. Paying out a dividend will only cut into his and the Board of directors stock options. The article that I quoted makes it quite clear. That is why they make money hand over fist and the stock price does not go up.
What really matters is how shareholders haven't seen the rewards of eBay's success. In the full year 2013, eBay generated free cash flow of roughly $3.75 billion. This is actual cash -- dollars and cents -- that could be paid out to shareholders. In a world where most dot-coms are mere start-ups losing cash, eBay is a money-making machine.
Unfortunately, eBay shareholders aren't the first priority. The company doesn't pay a dividend, but it did spend $1.34 billion to repurchase stock in 2013. Ordinarily, this would be great for shareholders. Share count should go down, earnings per share go up, and each share is worth more of the company than it was before. Fair enough.
Except, this didn't happen. Instead, eBay has merely covered up the cost of its aggressive stock and option programs. eBay started 2013 with 1.319 billion diluted in shares outstanding, and ended with an estimated 1.307 billion shares outstanding. eBay essentially paid $111.83 per share in share count reduction, all the while its shares were available at or around $50. The bulk of share repurchases just covered up compensation.
Perfect data won't be out until the annual report hits the SEC website, but if we were to make a rough graph of the efficiency of eBay's repurchases this year, the estimations would reveal a chart that looks like this:
This is how Donahoe and the board of directors cover up the cost of stock options. See this weeks news. This is why Ebay does not want to pay a dividend. They make a ton of money but it does not show up in the stock price. They say the price of the shares are undervalued.....If you are a shareholder.....they are screwing you!
All one poster,
I have only a few key items on Ebay. I maintain that 100% rating and I divert every customer I can to my other stores. I include my phone number in my advertising. I also ask that the customer leave a number where I can reach them. For me, its payback time! Once they see your ratings they will buy......and they love saving the 10%.
Ebay sellers cost are 13% of the sale. That includes 13% of the shipping cost to ship the item to you the buyer. These kind of margins are driving sellers & buyers away. Their are now many many sites that you can sell for free or a monthly fee and seller cost are fixed.
It is all these other sites that are eating into Ebay and they will continue going forward. I have two stores on other sites, I also have a few items still on Ebay. My prices for these items on Ebay have the 13% higher price. All the people with smart phones can now do price comparisons when searching for a item. The choice for shoppers in my stores is the item plus the credit card charge of 2.9% OR Buy it on Ebay in my listing and pay 13%
This is happening all over Ebay. The extra 10% is killing Ebay. Don't believe Donahoe's excuse that it is due to the uncertainty of the Washington Politicians.
This trend is not going away with current Ebay pricing policies.
By the way, my seller rating in both my stores is100% and I offer Paypal
The numbers are just not there! Retail is headed for the big slide. Their is nothing that eBay or any of the other retailers can do. Thanks to the do nothing Politicians it is coming home to roost!
Their are no jobs, everyone is getting squeezed, Gov't is running out of money and Obama can't fake it anymore! Good luck holding this stock through earnings.
Key updates to the eBay Buyer Protection Policy: •Simplification. We rewrote our Buyer Protection Policy to make it more clear and understandable.
•Resolution of item not as described cases. We updated the policy to clarify that we carefully weigh all the information provided in cases where a buyer claims that the item delivered is not as described in the listing. If we can't determine from the information we have that the item matches or doesn't match the listing description, we generally ask the buyer to return the item to the seller and will ask the seller to refund the buyer. In addition, we updated the policy to reflect that, if as a seller, you choose not to engage with the eBay Buyer Protection process on an item not as described case, we may seek to carry out a reimbursement from you without asking the buyer to return the item to you.
You gotta love that last sentence.......Ebay will reimburse the buyer with your funds and allow them to keep your item. With these kinda of rules......it is no wonder why sellers are leaving ebay.