eBay stock dropps 9% after PayPal report of "WEAK VOLUME TRENDS" due to eBay Throttling

[fastjag1]

EBay's stock tumbles more than 9% on Friday Oct, 19 2018 after PayPal suggests weak volume trends at former parent Co. eBay. This is no surprise to many of us sellers here on eBay who have experienced the throttling of our paid for US based Premium stores. The story about this can be found by Googling "eBay Stock Price" or here is a link to Market Watch story: https://www.marketwatch.com/story/ebay-stock-falls-after-paypal-suggests-weak-volume-trends-at-forme...

For all of the neigh sayers of the fact that eBay throttles & limits accounts we now have confirmation via PayPal. EBay has backed Chines sellers who had advantages of cheap shipping rates, production of counterfeit cheap knock off items produced in violation of child labor laws. However, the Chines free ride on the cheap shipping cost is coming to an end. Now what eBay? You slapped every US based seller in the face limiting our sales for years to push the sales of the Chines based seller. They won't be able to compete when they have to spend $20 to ship their $9 item!

     My personal experience with the eBay throttling model is this: I am currently in a 33hr blackout from sales with 1020 unique items listed. A slow day is 5 sales...I have had 0 in the past 33hrs! I can prove exactly when this started as eBay was nice enough to provide me with sales reports. In Aug 2016 I was on par to make $150K going into the holiday season where I make most of my sales. From Aug, 2016 to now I have been throttled to $70K per year. I combated this limitation of sales by DOUBLING my inventory by Aug, 2018. Result, a continued limitation to my sales. I doubled my inventory and my sales are still decreasing! Nobody can explain this away with anything other than eBay LIMITING/THROTTLING my account to an exact number. I pay for a Premium store and I am told I have NO LIMITS and that eBay does not LIMIT the amount of sales I can make. REALLY? I can prove this is going on and has been since 2012, however the past 2 years it has been an additional limitation to an exact number! This, eBay is why your stock is down 24% year to date! You can no longer hide the issues that CEO Devin Wenig has fleeced the eBay company while single handedley  caused the demise of 10's of 1000's of US based companies doing business on your site. IMO

[lacemaker3]

The article has nothing to do with throttling.

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https://www.marketwatch.com/story/ebay-stock-falls-after-paypal-suggests-weak-volume-trends-at-forme...

...

EBay’s stock selloff, and PayPal’s rally, may seem like vindication for PayPal investors. EBay’s announcement earlier this year that it plans to take over payments-processing duties for its Marketplace offering from PayPal, with plans to eventually partner with European company Adyen, sent PayPal’s stock tumbling 8.1% on Feb. 1 and eBay shares soaring 14%.

...

“We further expect eBay’s multi-year transition to the Adyen payments platform could be bumpy given the long history that buyers and sellers have working almost exclusively with PayPal on the eBay platform,” Devitt wrote in a note to clients Friday.

He said over the long term, the transition could be a positive for eBay, as it will lower merchant costs and increase operating income, but he expects a “prolonged period of compressed valuation for eBay shares,” as a result of “deteriorating” GMV growth.

...

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[hioctane62]

as a result of “deteriorating” GMV growth.

When ebay chooses to promote $2 china knockoffs over $100-$1000 antiques, of course GMV will decline. 

[rschissler]

That article says nothing about "throttling," only talks about weak sales volume.  Slower sales by you isn't "proof" of throttling by eBay, intentionally limiting your sales. It doesn't make any sense that eBay would limit sales as a business.

I don't know why some sellers insist on adhering to this "throttling" nonsense.  What you and eBay suffers from is a lack of buyers.

[futuretomorrow]

@fastjag1

1. Nowhere in the article does it mention the word "throttling". While many of us suspect that's whats happening due to obversational analysis and qualitative analysis that can be determined by conversations with eBay staff, your title and post is misleading at best and I'm being kind.

2. This article is largely nothing new and someone else posted another the day or two prior. This is why Carl Icahn forced the split of PayPal - eBay in 2014/2015. At the risk of sounding redundant, here I go again with the same comment from a few months ago:

This was the warning shot in the air many, including myself didn't pay close enough attention to. Who was Carl Icahn I asked? Articles were posted 3 years ago about what this meant. Did enough of us listen? I don't think so...

3. The people I will feel sorry for are those still investing in inventory and who are not simply selling off all they can before 01/01/2019 when those new postal rates and redefinition of first class mail rules hit. 

4. Instead of posting here I'd suggest looking at a STRONG exit plan. I'd further suggest given a few other signs within the overall economy I DO NOT want to get into, that people save every penny they can and revert to buying only the bare essentials.

This doesn't end well for Main Street. 

[myjunqueyourtreasure]

The fidget spinner effect

[the_fancy_fox]

I just wonder how PayPal is going to deal with it. Raise fees? Open their own selling site? Revamp their old search stores function? (Personally I would like the last one).

They will have to do something as ebay is going to try and wean their users off PayPal and onto their own processor as they will make more money that route.

[ryanrobyn]

Lack of buyers come from Ebay's system of doing searches - it is totally screwed up always favoring the Chinese junk

[laurabeardsley]

I am very concerned about the future of ebay. I have enjoyed selling on it but the past few years it has been on a downward spiral and I am hoping they keep paypal as an option for paying otherwise I think it will be the end for ebay. Unless the postal system plans a huge price hike I do not think that will affect sales as much as others do. I just think ebay needs some new people managing it who can remember what it started as and what made it so successful to begin with. There are plenty of online sites to buy from but very few other auction sites. Still hoping for the best.

[lewisburggold]

We agree with you 100% and yes they have been throttling.  We can prove it also.  They have backed china and yes have slapped U.S. sellers in the face.  This makes us sick to our stomach.  We also agree with you on all these guys that say there has been no throttling are 100% wrong and probably work for ebay in some way or another.  Finaly yes its about to come to end because there 2.00 dollar shipping fees to ship anywere in the world is about to end.  We are furious about this and cant even see straight.  We have been sold out for cheap knock off counterfits  child labor and many other reasons.  Best regards

[kim_y_buran]

I thought throttling was an urban legend that eBay steadfastly denies.

[bubbleman2010]

The investors and the advisors who are always late to gather info will bailout next week take some losses before the collapse and speculation of whats up with the late Q3 reporting should help drive it to around $25.00 a share..

[coolections]

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@fastjag1 wrote:

For all of the neigh sayers of the fact that eBay throttles & limits accounts we now have confirmation via PayPal.

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Nothing to do with throttling and certainly not proof. If you are talking about people being put on page 43 in over-saturated market on the best match search result, then I suppose if you choose to call that throttling that is your choice.

[laurabeardsley]

Well if it drops that much won't someone step in and reorganize this company and possibly go back to the original format?

[bubbleman2010]

Looking at it as a seller I would hope someone would,but looking at it as a investor I think the shows pretty much over with they've burnt to many bridges and they can't be repaired.....