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Analysts: 'eBay is failing to take advantage of economy'
Ben Furfie Sep 16 2008, 10:49am
Comments (5)
Wedge Partners warns that company's recent moves have driven away sellers and may lead to job losses
eBay has failed to take advantage of the current economic conditions and as a result may find itself in trouble. That was the message from investment firm Wedge Partner, which warned that the online auction company's business is "deteriorating".
Despite the vibrant market for people looking to sell on unwanted items, the changes that eBay has brought into place have caused considerable seller discontent, as reported by PC Retail back in February.
"Seller discontent with eBay is on the rise due to higher fees and other changes, and we believe eBay has seen numerous sellers migrating away from the platform and create their own selling sites," wrote Wedge Partners analysts Brian Blair and Ryan Hunter.
"We don't have a handle on how much of the slowdown is due to economic conditions and how much is due to competition and execution, but we do believe a decline in these key metrics presents continued risk for the company," they added.
Warning that shares have plummeted by 30 per cent compared to the same time last year, they said that around ten per cent of the company's workforce – 1,500 people – may find their jobs at risk.
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Comments
“ebay is failing”
Posted by: James - Sep 16, 7:46pm
About time the pathetic attitude of ebay to it's sellers was highlighted, I used to sell hundreds of items on ebay daily but just gave it all up as thet do not want to help the seller at all, it is all in favour of the buyer, I cannot even leave negative feedback if left for me. It is totally wrong.
“Re: ebay is failing”
Posted by: vc - Sep 16, 11:54pm
I totally agree with Jams - ebay has become a disgrace for sellers
“Re: Re: ebay is failing”
Posted by: Ian - Sep 17, 12:11pm
ebay would be well advised to review their strategy when it comes to trading. Sellers are being alienated and the incentives they run don't soften the blow enough to justify increased listing fees. Its time to take heed of the old addage "don't bite the hand that feeds"!
“ebay is failing”
Posted by: JImbo - Sep 18, 2:31pm
Feebay has somehow forgotten about the people that put it where it is..or should i now be was!
Over the last 12 months much of the policy changes has been to the detriment of the honest seller. I for one have migrated to other vehicles for sale which so far have proven to be much more cost effective and less risky. Paypal is again is another problem for many, I would rather take my chances on leaving my money and items on a park bench over night
“Re: ebay is failing”
Posted by: Ged - Sep 24, 3:28pm
Feebay is well out of order not allowing sellers to leave negative it as now become a scammers heaven they can try scamming you and not worry about negative comments crazy.