Kevin Kelleher presents an interesting theory on how eBay stopped being recession-proof.
Seeking to increase sales, eBay initiated changes earlier this year that made it a safer and more orderly place for people to buy products online. In doing so, however, eBay may have made itself more vulnerable to the effects of the current recession.
During the recession of 2002, eBay stock performed exceedingly well against the Nasdaq. But the numbers are reversed during this current recession. In fact, statistics indicate that while online traffic generally went up during the first week of December, eBay’s traffic tumbled 9%.
Kelleher speculates that eBay’s recent strategy shift may have taken itself out of the “small pond” of online auctions where it was the “big fish,” and transplanted itself as yet another competitor it in the more cutthroat market of online retail.
Should eBay have stayed focused on auctions? Tell us what you think.
Discover four of the most profitable niches on eBay and get details for the best suppliers for these niches. Enter your details below and we will send them instantly.
Your list of profitable markets and supplier details are on their way to your email inbox.
Be sure to add firstname.lastname@example.org to your safelist to ensure we can deliver the free suppliers details to you.
If you haven't received an email from us in 5 minutes, please check your spam folder or email us at email@example.com.