Feedback for eBay: Lousy Seller. Would Not Buy from Again

If eBay (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, the company 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 the $460 million, or 35 cents a share, compared with $460.3 million, or 35 cents a share, a year earlier. Revenue fell 4 percent to $2.1 billion. The results came in at high end of the Q2 outlook eBay provided back in April when it 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 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.”

Original post

Comments

[Leftfield:]

I get a first-hand glimpse at management by MBA in US corporations with Ebay as I do lots of business there. The core auction business is like GM's core auto business was for years: Mismanaged and lousy. I don't know exactly how clueless empty suits get in a position to run companies into the ground except that they must know how to play the game. Dress, speak right, know the right people. Get to the top and you loot the taxpayer directly through paid-off politicians.
There are plenty of analysts who look at, who knows? (Heath Terry) and make pronouncements that "the company is making progress."
All of Ebay is a cash cow despite the efforts of stupid management to thwart it. "Years of technological neglect" are because these are typical American corporate managements taking greedy chunks for themselves for their stupid work and neglect. Ebay is losing in an economy where they could be a lifeline to buyers and sellers around the world needing to make a little cash or get a good deal. Instead, they try to be a cheap imitation of Amazon who is eating their lunch.
I'm sure rising foreign businesspeople, coming in contact with successful Americans are dumbstruck at how they sell us out and get away with such looting.

Jul 22 08:38 PM

[arlin:]

Totally agree w/leftfield

Jul 22 09:15 PM

[Analyste de...:]

Is cretin spamming EVERY post, still?!

Jul 23 12:53 AM

[angel_eyes:]

I have never been a big fan of e-Bay because i never find what I'm looking for. I think the company will come back stronger though.

Jul 23 04:36 AM

[longoil:]

There is a good reason why Amazon is doing well and Ebay isn't.

Look at the customer service. Ever have a problem with a transaction at Amazon ? Rarely, but when I do I get a response to my question within 24 hrs. Ebay's customer service is non-existent, No replies to phone calls or emails. They go to extreme lengths to hide their customer service contact information on their website.

Jul 23 07:46 AM

[bigcat:]

I strongly agree with longoil. Ebay is more interested in raising and collecting fees. If you have problems be it seller or buyer (I'm both) you're on your own baby!

Jul 23 08:23 AM

[jeffgroove:]

Selling on the website is absolutely horrible! They take a 16%-20% cut of every transaction, this total comes from up front fees and then even when the sale is done. So the small guy feels punished when trying to sell anything on the website. After the fees, you don't make much money. Their was alot of backlash from sellers after they adjusted their fee structure in the spring of this year. Having been fleeced by ebay myself, I do not have good things to say about them. They have provided incentive for people to go on craigslist and post items for free. And I agree with leftfield's comments about the empty suits, we have too many of this oligarch type in america.

Jul 23 09:21 AM

[User 283977:]

I also agree 100% with Leftfield.

Jul 23 11:26 AM

[Gadz:]

If you want to find things on EBay try getitnext.com, it's a great search engine for EBay!


On Jul 23 04:36 AM angel_eyes wrote:

> I have never been a big fan of e-Bay because i never find what I'm
> looking for. I think the company will come back stronger though.

Jul 23 11:54 AM

[Philip Cohen:]

Paczkowski is spot on.

For anyone who actually buys anything on eBay, a detailed case study of shill bidding and the abuse of eBay’s proxy bidding system—all exacerbated by eBay’s introduction of “hidden bidders”—plus a detailed general criticism of eBay’s “clunky” auction platform, at
www.auctionbytes.com/f...

As a matter of interest “The Register” ran an article on this case study, at
www.theregister.co.uk/.../

The national Fairfax group (in Australia) then picked it up and also gave eBay a serve, at
www.smh.com.au/technol...

Even the author’s local newspaper gave the story a run:
www.theleader.com.au/n...

All these newspapers invited responses from eBay’s “Trust & Safety” executives. Apart from the pathetic, disingenuous responses reported in the above articles, the author is yet to receive any direct communication from eBay as to any aspect of the facts that are presented, or the conclusion that are drawn therefrom, that eBay may care to dispute.

But, of course, in the meantime the real question is, will we ever be able to shame this greedy, unscrupulous, disingenuous organisation (eBay, that is) into providing the auction security for buyers that it claims to provide but that it, demonstrably, does not?

Jul 23 03:24 PM