Dan Buchanon

eBay Offers Something Amazon Cannot

The author's point about both companies' essentially earning the same about in profit (roughly $1.45 to $1.50 per share on an annual basis) hits you right in the crown jewels -- if you're look at this from an investment opportunity perspective. It takes Amazon about $20 billion in annual revenue to eek out $1.50 per share; while it generates the same per share profit on roughly $9 billion in annual revenue. In an economic environment where overhead can be an albatross, Ebay's model sans infrastructure seems less risky to me. And the 10 P/E is almost giving it away.

Indeed, Ms. Norrington's turn around strategy will make or break Ebay. If she doesn't reverse growth trends, there will need to be a major shake up at the company. You can almost smell the angst.

Amazon vs. eBay: Follow Up Q&A

How much market share does Amazon take from sellers on its site?

Amazon vs. eBay: Follow Up Q&A

There are victims and winners. You call yourself a victim.


On Feb 09 01:17 AM fairytrixy wrote:

> I am now a victim of eBay's continued abuse of their customers. Due
> to my micro selling volume and one negative feedback (that was offered
> prior to resolution and a complete transaction. It was my mistake
> I put the wrong bracelet in and envelope headed for France. the buyer
> contacted me twice within 2 days and by the time I was going over
> my messages she had already left the negative and filed dispute with
> paypal. I also had a gentleman from the NY decide that because I
> had this negative he demanded in a message that I answer him immeadiatly
> or there would be trouble. Even though his item reached him the very
> next day he left a neutral stating that the product was fine but
> we are slow with customer service and this was after 7 business days
> from cleared payment. the next day I logged in and I had 0 items
> for sale and a restriction from selling for 30 days, due to "non
> seller performance" whatever that means I am at the bottom 1% of
> all sellers on ebay. My DSR scores are not low enough to cause this
> my feedback is 99.5% so if you think that the guy who just hit 1
> mil. stars is allowed to have 2356 negatives in a twelve month period
> which is ripe for that person to rip people off on a weekly basis.
> I know I am spouting but I wish that someone anyone would just give
> back my ability to make ends meet. This is not just about stock and
> corp. it is about I think 50,000 or more sellers who have been added
> to the mix of the unemployed. I am worried that even after the 30
> days they will have been paid the fees I still owe and I will be
> left wondering how I will pay the bills. I do not think that the
> stock I had on ebay of collectible vintage and antique items will
> fly on Amazon.
> What will it take to change this. Amazon and eBay could both be winning
> here but eBay just needs to lay dawn on the mat and take the count.

Amazon vs. eBay: Follow Up Q&A

Here's a question grand pooba, Wingo: Why are you long on Amazon when you make so much money consulting for eBay sellers?

Amazon vs. eBay: The Giants of E-Commerce Duke It Out

Scot, Why do you only focus on less than 30% of the company?

Microsoft and eBay Team Up: Desperate or Brilliant?

Wow. "Monkeyman", your information is exceptionally retarded. Go read some SEC filings and cull out some financial data on the companies you reference. Google Check out is a pittance. An absolutely smudge of a business.

On Dec 03 06:45 PM monkeyman wrote:
>
> I said "I would think PayPal and the financial sector would have
> been their most obvious expansion, but this has been going slow and
> only accelerated a bit when Google started Google Checkout." Most
> of the growth in Paypal and Skype only started / was scene early-mid
> 2007.
>
> How fast has Google Checkout grown and how fast did the PayPal shopping
> cart grow? When auction sales slump on eBay, so does the stock price
> and revenue, ( how much of PayPal's revenue is tied into payments
> for ebay purchases? ). My argument is that eBay could have grown
> without raising auction/listing fees or PayPal fees, but that is
> the route they chose.
>
> I didn't bother mentioning Skype because of its initial reason for
> being purchased, to integrate with eBay and provide sellers a communications
> infrastructure.
>
> My point has to do more with the how eBay started out and the mantra
> behind the company to make it an equal market place for both the
> big and little guys, and this is no longer the case because the auctions
> are still what define eBay (as a stock), i.e. if there is data showing
> eBay listings are down and sales are down, the stock is significantly
> affected.

Microsoft and eBay Team Up: Desperate or Brilliant?

Monkeyman - How can you say that the company lacks diversification? Please do your homework. PayPal is a $2+ Billion company. With revenue coming from merchant services business greater than what is being derived from eBay.com. Skype is a $500+million company. More than 54% of revenue comes from outside the U.S.

eCommerce Stock Pair Trade: Amazon vs. eBay

Patricia - You may be the angriest eBay watcher on the blogosphere. Remove that anger and what you'll see is that the company's market for auction is slowly flattening. You can't call a $4.5+ billion business unit dead. But the reality is management has to find and accelerate new revenue streams other than auction. What John is doing is just that. Look for major overhaul in how the organisation is aligned as with the flattening in auction will go with a restructuring of people in that business unit. Read my blog at ebaywatchblog.com. More to come on why Skype will outlive eBay.com and PayPal.
Dan