eBay falls; Janney worried about Cyber Monday sales


Janney thinks Cyber Monday same-store sales growth for eBay (EBAY -3.6%) merchants could be in the mid-to-high single-digit range. That would be notable worse than the same-store sales growth ChannelAdvisor (ECOM -2%) has been reporting for its clients' eBay sales.

eBay missed Q3 revenue estimates and issued weaker-than-expected Q4 guidance last month, and largely blamed it on U.S. e-commerce softness. But the company later backtracked a bit on its remarks.

Fears have been running high that eBay's Marketplaces ops are once more losing share to Amazon, which beat its Q3 revenue estimates and offered relatively healthy Q4 top-line guidance.

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Comments (7)
  • Seeker137
    , contributor
    Comments (421) | Send Message
     
    As Ebaygate begins to unravel and the investing public becomes aware of what's been going on inside corporate ebay, look for the stock to plummet even further than the $48.55 it dropped to earlier this morning...
    25 Nov 2013, 10:50 AM Reply Like
  • Leftfield
    , contributor
    Comments (4045) | Send Message
     
    Face it, Ebay's fees have gotten too high and they have chased away a huge portion of their former small sellers with onerous rules changes during John Donahoe's tenure as CEO.

     

    Small sellers were also the most motivated buyers and the rise of competition from Amazon, Alibaba and now Google Shopping are taking a toll on what's left. If Mr. Donahoe could stop talking about apps and putting all the company's real effort into Paypal which is mostly Ebay sellers anyway and is soon to face its own strong competition, and lower fees dramatically, Ebay's unique auction marketplace may yet have the potential to rise to the needs of billions of small sellers needing to raise cash and buyers needing a bargain.

     

    This would almost certainly require a change of CEO as Ebay has wasted the last 5 years trying to ape Amazon while shedding it's most motivated customers.
    25 Nov 2013, 10:53 AM Reply Like
  • dumpandpump
    , contributor
    Comments (221) | Send Message
     
    Leftfield : 100% right
    change CEO like MSFT, this would give Ebay a pump.
    25 Nov 2013, 03:23 PM Reply Like
  • BoltingForThe Exits
    , contributor
    Comments (2) | Send Message
     
    Since late August, eBay has been expelling sellers by the thousands with emails announcing immediate suspension of all selling privileges. There is no appealing these permanent selling suspensions.

     

    Company management is so completely out of touch with their customer base that these immediate suspension notices inform former sellers they will be allowed to continue to purchase on eBay despite the fact they are prohibited from selling.

     

    Does management really believe that purging over ten thousand sellers was the right thing to do going into the holiday season? Apparently so as the monthly purges have continued through November.

     

    Little wonder eBay has lowered forecasts, as these purges began prior to their Q3 report..

     

    Management knows there will be intense negative word of mouth surrounding eBay driven largely by small sellers and their families who are left with holiday inventory and need to scramble to find alternative marketplaces from which they can move that stock.

     

    eBay seems bent on mutual self destruction. As the suspensions continue, negative word of mouth momentum gains.

     

    In the past, eBay management insulated their business from the impact of small seller boycotts by enticing big box sellers.

     

    Now, with this ongoing purge of seller-buyers, those big box retailers are going to find eBay is unable to generate the volume they anticipated.

     

    How long before the big box retailers become disenchanted with the depressed eBay marketplace and begin showing eBay the same loyalty that the company has shown their purged sellers?

     

    With tens of thousands of small sellers unceremoniously kicked to the curb, and big box retailers potentially finding eBay incapable of meeting projections, how long before the eBay marketplace implodes?

     

    Investors need to be concerned with how eBay's disconnected management is slowly bringing the eBay marketplace to the precipice of a major meltdown.
    26 Nov 2013, 06:06 AM Reply Like
  • Seeker137
    , contributor
    Comments (421) | Send Message
     
    Ebay needs to be the subject of a major investigative report by someone along the lines of John Stossel or Morgan Spurlock.
    16 Dec 2013, 04:56 PM Reply Like
  • King Ralph
    , contributor
    Comment (1) | Send Message
     
    As a previous small time Ebay seller myself and a 100% rated member for many years, I can concur with the sentiment expressed in these feedback comments.

     

    Ebay! Take heed!

     

    Don't scare away sellers of any kind with excessive fees. Volume leads to growth. This is the answer to increase the bottom line. Variety and a fair price is needed to attract customers of any kind. More members that can again afford to sell on Ebay will increase the inventory of quality available items at any time. This comes from the little time sellers. As it is now, a buyer like myself is tired of the same Chinese junk over and over that seems to dominate the marketplace. The "Bonus Bucks" program is a cute idea, but someone has to flip the bill (Sellers). Get back to what this marketplace was founded on... fair play, the fun and excitement of the auction, and the thrill of getting a bargain. Share the wealth Ebay. Customer base and volume will increase. The bottom line will be better for everyone including the stockholders.

     

    The founding fathers built this great nation on principles like this. Something big business and current government "puppet masters" have forgotten.

     

    Note: First feedback ... ever.
    26 Nov 2013, 10:01 PM Reply Like
  • cruzingirl
    , contributor
    Comment (1) | Send Message
     
    Ebays robotic guardrail system is purging thousands of sellers. If a buyer claims fake, the bot picks it up and the seller gets indefinite suspension. Go on Ebay and read the boards. This is happening to hard working people that rely on that income. It's really sad what Ebay has become.
    1 Dec 2013, 12:50 AM Reply Like
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