The signs don’t look too good for eBay. Despite optimistic media announcements from the ailing e-commerce king, hard data shows that eBay’s online traffic has significantly declined in 2008.
Data presented by Site Analytics shows a 10% decrease in eBay’s unique audience from 2007, while Nielsen Online shows a 19% dip in time spent per user, and a whopping 33% drop in page views within the same period (see Alley Insider for complete data).
While many fingers point to the on-going recession as the reason for eBay’s difficulties, analysts have countered that, with its bargain prices, eBay should actually be thriving during a recession. The real culprit, they say, is the erosion of eBay’s original value proposition, which has made it less attractive to buyers and spurred the growth of competing sites. At the same time, eBay has alienated many of its sellers by implementing a spate of confusing policies.
Will eBay survive 2009? If not, who will take its place? Let us know what you think.