eCommerce Blog / eBay grapples with dramatically falling revenue

eBay grapples with dramatically falling revenue

Despite a 41% rise in unique visitors, eBay has recorded a 6.7% drop in revenues for the fourth quarter of 2008. With things expected to get worse, eBay Inc. shares fell nearly 14 percent.

Its tendency to be in denial seems to have taken a surreal turn as eBay blamed the strengthening dollar for its woes, even as scored exceedingly well during the last holiday season. Despite eBay’s claim that e-commerce has slowed down globally, MercadoLibre of South America continue to grow.

And while powersellers continue to find other e-commerce solutions elsewhere, eBay remains steadfast in its conviction that policy changes it made in the last couple of years were not detrimental.

The next 6-12 months will be crucial in determining whether eBay can retain its status and last out the recession. 

What are your predictions for this ailing giant?


Comments (8)

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on 22:37 23 Jan
Does it matter really. Not to the top 50 employees at Ebay. Even if ebay looses almost everything they still walk away with millions. That is the problem everywhere in CEO land. They are all paid millions regardless of performance. Ebay is supposed to make something new that makes buyers pay when they buy. It seems fair to me, the 7 day thing now makes no sense. Its like a layaway. No other retailer lets people pay 7 days latter. As a seller I would welcome this, so I do not have to ship 7 days a week because customers pay 7 days a week or not at all. We as sellers want something other than Ebay but that does not matter as long as all the customers continue to go there. Other sites may have a good amount of items for sale but not many buyers especially the auction format and the buyer count is what matters, I see Ebays continued dominance, the CEOs getting filthy rich and many Ebay employees getting the pink slips.
Randy on 19:55 28 Jan
Very unhappy with the changes on ebay regarding feedback. you can mail out an item, it not arrive , so of course you send a credit back by pay pal then a customer can leave a negative, why should i be punished twice. once paying back an item i mailed and paid for , then receiving a negative. or you leave a negative as a buyer , an honest negative feedback, then that seller goes to your site and buys. He bought to give me back a negative , but as a seller i cannot leave a negative. too much power has been given to the cheats or unempathetic people, so you know what maybe we should just join the a-holes and become one too??? Anyways ebay please review your sellers as people too.
Ronald Norris on 19:18 29 Jan
eBay and PayPal both SUCK the blood out of you. I have been selling and buying on feebay for years and things are terrible for us sellers. We have no protection against non-payers and lieing buyers. Paypal (pal right) will and does hold your money hostage. In the last 3-4 months I have only listed 2 items and that was because they had a special listing of 35 cents. Feebay needs knocked down and kicked in the teeth to teach them a lesson and PayPal needs investigated by the FEDS. I hope it crumbles and their CEO and his cronnies end up flat assed broke, then I will be happy. New up coming site is this is going to be the next eBay but without the corruption.
Scotty Mack on 5:17 31 Jan
It's no wonder that eBay is starting to lose revenue. I have tries to set up a partner network account for two different sites but my requests were turned down. They will not tell people why a site was turned down and, as was my case, if you submit multiple applications for different sites, their generic denial letter doesn't tell you which site was rejected. I've contacted customer "support" and they say they are not allowed to disclose reasons for rejections or even which sites were rejected. It sure seems to me that, especially in these economic times, a company would be looking for more people to market their godds and/or services, not less!
on 17:21 1 Feb
I agree with Randy! Like Randy, I refund unreceived or damaged items - and then have to worry about the feedback situation, which affects our business. Then when we get a buyer who doesnt pay, or takes forever to do so, we have no recourse to warn other buyers about them! One of my "customers" disputed a purchase - I had proof of postage (well, a receipt from the Post Office to say I had posted a parcel to that postcode on the approriate day) and still lost everything - $50 worth of stock, the postage cost, and the money was taken from my paypal account and returned to the buyer - I could not leave negative feedback - apart from everything else, by the time the dispute was "resolved", the time frame was too long. The buyer then de-registered as an Ebay user! I wonder what name and email they will turn up under next? And how will we know?!
Eddie on 0:32 5 Feb
I would have to agree with both randy and Mr.Norris. In thew past few months selling on eBay, I have not had a pleasant experience with either eBay's seller and buyer feedback or with pay pal. I for one do not like the fees being charged as well. I mean, we as sellers have to pay about $0.35 for a listing. then we have to pay a final value fee and then, there is an additional fee that must be paid for the use of Pay Pal (which is also eBay owned). Now, at what point is pay pal there for the seller? I have been through so much disappointment with pay pal. One of my famous experiences has been the dreaded " Did not receive item" case open. Because of this, I needed to change my whole seller's attitude and start sending tracking numbers with all my items and keep all my shipping receipts of over months as proof of shipping. Now, Every since that time, I have received the "item not as described" notice. I feel that buyers only use eBay's buyer protection to there advantage to "rent" items from the seller leaving us to pay seller fees, shipping fees, and eventually negative feedback. I am now looking for a new site to sell on or to produce myself because I for one have had enough with eBay. I think WE shouldn't wait for a new auction site to be created. I think all those who are commenting on this site should put our minds together and create a better website. I mean, We are sellers after all so we should know what appeals to the customer and that would include the sellers on our site, not just screw over everyone like eBay has so graciously done.
jamie on 3:40 5 Feb
The new search engine is just "£$%@+*. What are ebay playing at. My sales fell right off. I hadn't even realized they were aout to change, my fault for not keeping abrest, but I changed some wordings and fell right off the list. The same people are at the top over and over, and unless one can list a thousand at a time then every time you go out of stack and let an item end, it's back to the bottom of the list. I recon ebay don' want to have to host so many adverts and this new system makes sellers list mltiple items on one advert. Why do people keep playing around with things. The old feed back semed fair enough, but now, well I agree with you all. They had a good thing going at one time, but are turning the site into an on line police state. The new search is going to ultimatley lead to fewer sellers and leave us with a few ebay supper markets. Oh how cyberspace imitates the marketplace!
paul muro on 20:57 4 Dec
You talk about eBay. How they stay in business is beyond me. They restrict a person. The person explains and they just don't care. If anyone would want to sell on eBay, they should seek medical help. As much as you show you're not wrong the more they stick it to you. eBay has lost a lot in this market place. They are going down the tubes fast. When a payer now pays 50 cents for a listing eBay should call it quits and let somebody run this market.


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