Feedback for eBay: Lousy Seller. Would Not Buy From Again.
by John Paczkowski
Posted on July 22, 2009 at 2:37 PM PT
If eBay shares were to be listed among the company’s other auctions, buyer feedback would more likely be negative than not. Hurt by the souring economy and increased competition, eBay reported its third consecutive earnings decline Wednesday.
Net income in eBay’s second quarter, ended June 30, fell 29 percent to $327 million, or 25 cents a share, from $460 million, or 35 cents a share from a year earlier. Revenue fell four percent to $2.1 billion.
The results came in at the high end of the Q2 outlook eBay provided back in April when the company said it expected revenue of between $1.85 billion and $2.05 billion and earnings per share of between 23 cents and 26 cents.
“We drove solid second quarter results, with strong momentum and market share gains at PayPal and continued stabilization in our core eBay business,” eBay CEO John Donahoe in a statement. “I’m pleased with our pace, our progress and our performance.”
Can’t be much pleased with the company’s core online-auction business, though. That continues to show weakness. The amount of goods and services flowing through eBay’s (EBAY) marketplace, called “gross merchandise volume,” fell 10 percent year-over-year to $11.1 billion. And that’s not good. Especially when Amazon.com (AMZN) is gaining market share so quickly.
“The core eBay marketplaces business continues to be the most important driver for eBay’s share price,” Heath Terry of FBR Capital Markets said in a note to clients this week. “While the company is making progress, management still has a long way to go in addressing the years of technological neglect at the company.”
Comments
Are they finished playing around and driving a once proud company to its knees? I have never seen anyone as stubborn as John Donahoe – how can one be SO wrong yet continue on as though he’s SO right? Sellers have been complaining since January 2008 that this is how Ebay would end its days – in a slow death from lack of good small sellers, disinterested buyers and lack of sales! Donahoe, in his insistence to “dumb down” Ebay into yet another online retail outlet has killed the goose that laid the golden eggs! Buyers have been showing him since third quarter last year that this is NOT what they want – yet he continues! Its over and anyone foolish enough to buy Ebay stock at this point deserves what they get! Right now Paypal is holding Ebay up but that can’t continue. Watch Amazon’s earnings tomorrow – then tell me its the economy stupid! Amazon may show a slight decline, if any, but not 29 PERCENT! WAKE UP FOLKS! Overstock showed a small decline in sales yet a profit. Not so Ebay – John Donahoe is busy killing Ebay!
Its too late, he’s kicked sellers around and stood on their necks until they packed up and left. Such disrespect for the customer (the sellers who pay the fees) is unprecedented! Now the end result is being seen sharper then ever. Blame it on the economy – blame it on the lack of fairy dust – one in the same. Ebay needs to turn back to a format where they got the heck out of sellers’ ways and allowed them to SELL which is what they came to do and they CANNOT do that under the present management!
Posted by Patricia none at July 22nd, 2009 at 3:37 pmI totally agree with Patricia. R.I.P., eBay.
Posted by Alan Sanders at July 22nd, 2009 at 8:03 pm