E-Commerce Growth Slowing Faster Than Thought

E-commerce is slowing down much more than previously thought. According to comScore, Y/Y growth was down to 11% in June. And that includes the effects, if any, of the government’s economic stimulus checks mailed in May.

On one hand, this is bad news for (EBAY). They are competing in a slower growing market. On the other, it does show that the slowdown in EBAY GMV growth is not entirely an EBAY-specific issue in which they are losing market share.

In fact, if we consider EBAY's Y/Y growth in GMV (ex-Motors) held relatively steady at 12% in Q2, its actually not all that bad. Yes EBAY's growth includes effects of selling internationally but even then, its not too far off the market growth.

Comments

[Et tu, Brute!:]

Spin spin spin!

The squirming begins!

2008 Aug 01 09:55 AM

[redbaron:]

Ebay sellers have been trying to convince analysts for months that the volume of business on ebay was slowing, due to many different factors. And now, all of a sudden, hey, maybe they were right!

Energy analsyts, '1 for 4', reported on SA separately.

CNBC is reporting that analsyts are missing badly on estimates.

Perhaps all analysts should be listening better.

2008 Aug 01 11:58 AM

[Patricia013:]

Wall street is kidding themselves if they think this slowdown is all over ecommerce on the internet. Look at Amazon's Q2 and tell me that with a straight face. Truth is Ebay is dying - I know you don't want it hear it but its true. Sellers know - and very few sellers (the few lucky enough to be able to still make a profit) disagree. For example...if I spent for a feature plus auction last year I could expect at least 40 to 50 views a day - I have one running right now - its two days old with only 7 views! I have a perfect record and my standing in search is elevated which is the highest exposure. This is not rare - its the norm lately....face up to it....ebay's crazy new policies, staggering fees and its rude and disrespectful treatment of ALL small sellers is killing a unique and much loved business!

ACEOart.net

2008 Aug 01 05:03 PM

[squirrelygirl:]

How many more excuses have to be made for eBay? You could not pay be enough money to sell there, and I certainly wouldn't buy there either.

I used to love eBay, but now I'm ashamed of it.

2008 Aug 06 12:01 PM

[Et tu, Brute!:]

The only "slowing" many sites are experiencing is due to the current, and customary, down-swing from vacation time. This is the peak. Kids get out of summer school, off they go.

Even so, my sales on Amazon, though slowing some, still continue to roll in.

Ebay, however, is in the process of tanking. It is amusing that over the course of the last 2 weeks I've run into several of the very people whose positive comments got me to selling on ebay a few years ago in the first place.

Absolutely NONE of them trades on ebay whatsoever anymore. And haven't in awhile. And have no desire to return. Only 2 sold but were mostly buyers. The rest were strictly buyers.

They buy elsewhere now. All the posters were right after all! Imagine that! Sellers are buyers. Strictly buyers hate what's happen to their sellers, and/or can't find the special items anymore. It's a different place.

And they hate the atmosphere pervasive at ebay now!

2008 Aug 06 12:47 PM