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A revenue miss, light Q2 guidance, and a downgrade to Neutral from Macquarie are leading eBay...

A revenue miss, light Q2 guidance, and a downgrade to Neutral from Macquarie are leading eBay (EBAY -5.4%) to take a post-earnings breather. During the earnings call, eBay mentioned "a weaker Europe and British pound" are weighing on results, and that new users (of which eBay has been adding plenty) "have a tendency to be less engaged at the early stages of their lifecycle." Needham is staying positive, arguing the user growth will drive a 2H revenue pickup. Touting mobile's potential, eBay claims "multiscreen users buy twice as much as non-multiscreen."

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Comments (2)
  • Leftfield
    , contributor
    Comments (3911) | Send Message
     
    "New users (of which eBay has been adding plenty) 'have a tendency to be less engaged at the early stages of their lifecycle.'"

     

    So why then does Ebay abuse it's small sellers so relentlessly with disadvantageous rules and rising fees? These are the most engaged users of the site as buyers also, but fall afoul of some of Ebay's and Paypal's security alerts, like selling "excessive" merchandise even after a strong and lengthy track record, and they are treated like criminals. Or if they are lucky, like wayward children.

     

    Oh, by the way, Feebay just increased it's commission on sales to a round 10%, astronomical especially when added to Paypal's 4%. Keep going to that well and someone, maybe Google, will step into the sea of seller discontent that Ebay CEO John Donahoe just can't resist adding to every time he needs to goose the often flagging results that stem from his anti-small-seller policies.
    18 Apr 2013, 01:41 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Ebay and Amazon provide a high profile marketplace, with Ebay moving recently to put their commissions in line with Amazon. Could we stand more competition in the online third party retail (buy/sell)? Sure. If you don't like Ebay or Amazon and their hefty fees, there's always Craigslist, which is increasingly searched nationally, or other platforms, and one can use Paypal as a payment processor.
    18 Apr 2013, 04:09 PM Reply Like
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