01-15-2020 07:18 AM
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I've been selling on eBay since 2007. My format, product and presentation have yielded consistent results... through June 2019 -- that is, some six months beyond the takeover of a controlling interest in eBay by the Elliott Group (Paul Singer, et al.)
I thought Elliott would lead a rebuild and expansion. Clearly we're seeing the opposite -- asset depletion, something of a financial liposuction. Profits to the principals are gained not by increasing sales, but by cutting costs.
It is now obvious. So what will YOU do?
01-16-2020 01:09 PM
I'm reevaluating my entire business and may decide to end this thing.
With rising shipping costs and states requiring buyers to pay sales tax on online purchases I wonder when the consumer balks. In addition, the cost of inventory is getting ridiculous. I often see sellers pay as much forsome items as what they are selling for online.
Lastly, you are correct. Asset managers want publicly held companies to show increasing profits every quarter, regardless of how.
This leads to short tern gains, but long tern losses.
I am considering putting my remaining inventory up for auction and getting out. But I don't know, maybe I will decide to keep it.
It is the how eBay's new stakeholder will effect the quality of eBay's marketplace and the possibility of diminishing consumer demand that troubles me.
01-16-2020 04:32 PM
I thought Elliott would lead a rebuild and expansion.
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It did... to their portfolio.
01-16-2020 05:33 PM
People were thinking that Carl Ichan would do this, too - which I thought rather hilarious, given that he's a corporate raider. I don't see Elliott being any different, though they did pinpoint some very necessary changes, though that may have simply been to prosecute their own agenda.
01-16-2020 05:45 PM
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I had a sense of something up ahead last spring 2019, seeing something like like a hundred two-inch stairsteps down. But autumn then winter -- that is, the heart of the sales year -- came a couple of eight-foot drops. It was the magnitude and suddenness of the liquidity suck that tipped me off, convinced me. I've been here a long time. This was extraordinary -- not just not normal, but a deliberate, wholesale gutting.
01-16-2020 06:16 PM
01-16-2020 06:35 PM
Realize that EBay is a business & exists to benefit those who have placed their capital at risk, expecting to receive an appropriate rate of profit, before benefiting sellers, buyers & employees.
01-16-2020 10:13 PM
Ed said, "Realize that eBay is a business & exists to benefit those who have placed their capital at risk, expecting to receive an appropriate rate of profit, before benefiting sellers, buyers & employees."
Thanks, Ed. Accurate perspective. If eBay exists to benefit those who have placed their capital [and labor] at risk, I am among them. And if eBay and their handlers expect to receive an appropriate rate of profit *before benefiting sellers, buyers and employees,* that's their right. But if that "appropriate rate of profit" cuts too deeply into the livelihoods of those who underwrite that "appropriate rate of profit," then those entities have altered the balance between ownership and labor. They have, in other words, altered the terms of an unstated contract.
Again, fair enough. That's their prerogative. If there was once an unwritten bilateral agreement that would provide viable employment (by any name) to those willing to work for it, that threshold of viability has been unilaterally changed.
Origins have been forgotten: eBay sellers were and are eBay's primary customers.
So, in base terms, the powers-that-be no longer give two hoots about me and my family, nor you and yours (if they ever did). Okay. No love lost. But any loyalty, goodwill and faithfulness on my part has been pretty much depleted over the past nine months. If business is reciprocity, or should be, it's not so much today with eBay.
CONCLUSION: eBay has become unreliable.
Any indication they'll get a clue and come back around? None so far. And if they turned on a dime tomorrow, how long would it take to undo the damage?
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Estella said, "I've been thinking about selling on Facebook Marketplace. Any thoughts?"
Estella, I've heard of Facebook Marketplace, of course; but know nothing about it. (Tomorrow that will change.) How about you? What do you know, or have heard about FM? Anybody making any money there?
01-16-2020 10:41 PM
It would seem from your OP that you may have been caught by surprise.
Some, however, have suspected the handwriting on the wall for sometime, even prior to Singer, et al.
Sometimes I think it is too late and don't think it will make any difference who wins the tug-of-war.
On the bright side, though, it will still give everyone something to 'talk' about, much like the Internet - so many talking and so few listening.
01-17-2020 12:07 AM
@ed8108 wrote:Realize that EBay is a business & exists to benefit those who have placed their capital at risk, expecting to receive an appropriate rate of profit, before benefiting sellers, buyers & employees.
And thus the health and longevity of the company. Check.
01-17-2020 01:47 AM
01-17-2020 06:40 AM
01-17-2020 08:17 AM
01-17-2020 11:13 AM
I know a number of people who use FB Marketplace, but one has to deal with Zuck's empire and, despite having had a FB page since the early oughts and once having sold there pretty briskly, I rarely use the site anymore.