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Why are eBay Sales Down?

Sharing some info from Alexa.com  (online resource that tracks website traffic and trends).  The charts below deal with "Reach" -- the percentage of people on the internet who have used a particular site or sites.

 

Note the multi-site comparison data which is interesting.  Except for a bump in late November 2017, online shopping site traffic has pretty much flatlined for ALL the major players.

 

Are your eBay sales down 50% this year over last?   In the last graph, the light brown line indicates 2017 eBay usage.  Compared to the same period last year, coincidently eBay "reach" has dropped by almost 50% from that in 2016...

 

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Message 1 of 12
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Re: Why are eBay Sales Down?

Alexa toolbar stats are no good at all, they only compile results from those who use the Alexa toolbar that came out over 15 years ago, it is something that few web users even use anymore.

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Re: Why are eBay Sales Down?

No pie chart!?!  I dig me some pie charts!

 

 

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Re: Why are eBay Sales Down?


@megadestroyers wrote:

No pie chart!?!  I dig me some pie charts!

 

 


@megadestroyers - LOL, well you certainly are welcome to create some of your own  😉   -- just as @cell.buyer is welcome to share alternate research data that would give sellers added perspective.  🙂

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Re: Why are eBay Sales Down?

I don't see where that chart tells me anything about why ebay sales are down - any more than it tells me why Amazon sales are up.  If I went by the chart I would expect Amazon sales to be down as well. 

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Re: Why are eBay Sales Down?

There are many research firms you can look at if you want to study eBay and Amazon market share, but you have to put in the work to understand it all.

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Re: Why are eBay Sales Down?


@uncseniorsportsfan wrote:

I don't see where that chart tells me anything about why ebay sales are down - any more than it tells me why Amazon sales are up.  If I went by the chart I would expect Amazon sales to be down as well. 




As far as not seeing any relevance of the Alexa.com reach numbers to eBay sales, not sure why it would be that difficult to connect the dots.    Yes, this is an oversimplification, but If fewer people are coming to your location to shop, only makes sense that sales numbers would decline, too.

 

Amazon is a far more diversified company than eBay.  Their record 2016 revenue numbers were in large part the result of the debut/success of hardware products like Echo and Alexa and the development of original content distributed via Amazon Prime Video whereas eBay relies almost solely on being just a platform for others to sell their wares.

 

Forecasts for 2017 are equally promising for Amazon according to Fortune.  Most of these revenue streams have very little in common with the products/services eBay provides.

 

For more info see: http://fortune.com/2016/12/30/amazon-2017-predictions/     

 

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Re: Why are eBay Sales Down?


@cellcasehub wrote:

There are many research firms you can look at if you want to study eBay and Amazon market share, but you have to put in the work to understand it all.




You seem to be well-versed in this area @cellcasehub.   Do you have any data/theories you would be so kind as to share?

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Re: Why are eBay Sales Down?

Both companies are publicly traded, all you have to do is look at annual reports to pull any figures you want.

 

https://www.sec.gov/cgi-bin/browse-edgar?CIK=ebay&owner=exclude&action=getcompany&Find=Search

 

https://www.sec.gov/fast-answers/answersform10qhtm.html

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Re: Why are eBay Sales Down?

I enjoy looking at charts and graphs and when I compare them to my own personal experience, I can not understand why anyone would rather pay someone to tell them what they want to hear rather than look at the numbers themselves and face the truth. 

 

And I really am tired of companies selling any old data that they can gather like it is important, when most of the time it is worthless.   Just like the people that are all about views and watchers.  Basically if you have a single item on ebay and you have more than 10 views and that item hasn't sold, then something is wrong and needs to be changed.  A lot of people did the internet equalvant of picking it up and then set it down and walked away.   It doesn't matter where the views are coming from.  Most of the data is just noise that is there to confuse the issue, but sells something to people that they basically don't need - be it to ebay or to sellers or buyers.

 

For me, my ebay sales plummetted in 08 and have never really recovered.  I have sold pretty much the same numbers every month for the past 4 years.  My sales are not down, they have a level and stay there.

 

Now the graph that shows Etsy is so wrong, I don't know where to begin.  In the graph, it shows flatline, but my personal experience is that I have seen at least 10% growth every year for 5 years  now.

(*Bleep*)
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Re: Why are eBay Sales Down?


retrose1 wrote: 

Now the graph that shows Etsy is so wrong, I don't know where to begin.  In the graph, it shows flatline, but my personal experience is that I have seen at least 10% growth every year for 5 years  now.


@retrose, the graph is not charting sales, it's charting "reach" -- IOW, traffic to the Etsy site.   If you've been able to buck the odds and see growth on Etsy when fewer people have been visiting the site, that's wonderful as plenty of people over at Etsy as well as on eBay sure haven't experienced the same thing.  The question is why?

 

These boards (and Etsy's) are peppered with theories.   It's the election, people are busy over the holidays, it's the new administration, it's eBay/Etsy dinking with their search engines, it's bad photos, poor descriptions, unrealistic sales prices, ineffective use of SEO, it's the Google/eBay parting of ways, Chinese sellers, severe weather, tax time and everyone's broke, etc., etc., etc.

 

My point in originally posting the charts was to offer another possible explanation.   If fewer people are visiting a site, only makes sense (at least to me) there will be fewer sales made.  

 

Throw in flood of new sellers to the site which means more people are competing for fewer shoppers and no wonder sales aren't what they used to be.

 

Of course, this theory doesn't address the real question which when online shopping as a whole continues to grow, why is it that so many legacy e-commerce sites seem to have flat-lined in terms of visitor growth?  

 

One explanation might be there are a ton more stores/websites out there these days that enable people to shop online which in effect means any one online retailer/platform is now fighting for a smaller slice of the pie.  

 

I don't know for sure, but I have grown weary of hearing the same laments over and over again and to be skewered when you do take the time to try to find and share other possible reasons for what has been happening.   Just easier to take potshots and sit on your hands and gripe rather than have a thoughtful or useful discussion, I guess.

 

But, enough negativity!   I would be interested to hear the reasons why you think you have been able to do so well (?)

 

Personally, my eBay sales are down YTD as compared to the previous 12 months,  but I have netted about the same because during the last year I diversified my number of selling platforms and in doing so also have reduced selling costs.   IOW, I've been able to offset eBay losses by no longer putting all my eggs solely in eBay's basket.   

 

In some ways, that's just good business sense, though I would have been perfectly happy to just stay here if I hadn't been forced to seek out other venues.  But, c'est la vie!

 

As an aside, don't know if you subscribe to some of the research services like EtsyRank or Marmalead, but if you do, you might want to see what they are reporting as far as site traffic and growth.    I have, and it's not pretty.   Will be interesting to see what happens with Etsy's new management/CEO.    Whether Etsy or eBay, I think we're all in for a (continued) wild ride.  😉

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Re: Why are eBay Sales Down?

I spend no time on Etsy's boards.  I find them impossible to navigate and have never seen a thread with more than 5 posts in it and I have looked.  So I don't know how they think there.

 

I think that a lot of sellers want everything easy and convenient, but are also into new and change - just as ebay is addicted to change.  And most times they will not give anything enough time to work.  There have been posters here that have talked about how they tried Etsy or Bonanza and within a few months they have to come back to ebay because that is where the sales are.  It took me a couple of years to understand the buyers on Etsy and to build up a customer base that comes back to my stuff and passes along my name outside of selling sites.

 

But i never treat a selling site as the only one to have my eggs in.  When I had my B&M store I started doing ebay, when I closed the store, I started looking around at other sites and live shows.  And I am always doing minor experimenting with something different and new to see how it will work out - if it works, I do more, if it doesn't I'm not out much.  So many think that internet selling is black and white, this site or that one not a potential to be worked.  Right now I am thinking of ebay as my third job because next weekend i am going to do a live show where I will make more there in 3 days than I will on ebay in a month.

 

My theories about why sales are dropping are fluid and change with season or happenings.  For example, back when the tsunami hit Japan, my sales tanked because Japan's economy went from looking a certain way to rebuilding the country and helping their people.  I used to ship at least 3 times a week before, now maybe once a month.  If you look, you can have a basic understanding of how circumstance is effecting sales.

 

Right now, Americans are either scared silly or angry or basking in glory, the problem is that the baskers who got our new president elected and angry people don't spend a lot of money on frivilous stuff, and the scared are hoarding their cash in preperation for the disaster they feel is coming.  So sales are going to drop along with tax day just passing.  But I sell Internationally and I'm getting an uptic in those so that is making up for any losses from US fear.

 

But I think that the reason why there are more new sellers on ebay is the same reason sales are down, money is tight.  But because there are more sellers there are fewer dollars for everyone else.  There is a fact that when someone cuts a major artery and they start to bleed to death, the body tells the heart to pump faster to make up for lack of blood getting to effected areas so the death comes even faster.  That is what is happening on ebay.  More sellers are shrinking the amount of money available to sellers and then there are the Chinese that do not put the money they make back into ebay.

 

I think that ebay was smart when they started out but developed mindsets that hindered them from holding their market share.  One of those mindsets is their secretive attitude toward their users, another is cultivating the buyer verses seller attitude.  Another is their obsession with change when it is obvious that they don't understand that change does not mean retooling something on the site so that their casual users have to relearn something  every other time they log in.

 

I had a discussion recently with an upper echelon ebay CS here in the US and he started talking about how internet sales are all about change, and that things have to constantly chage to keep up.  I commented that Etsy has changed very little in the basic site and it's use since I started there in 07, a couple of things that are improvements, but nothing major like having to relearn how to refine search, or how the listing pages are presented and nothing that forces the seller to redo something to every listing to keep them listed on the site.  That cut the conversation short.

 

For ebay, I think that they are in a downward spiral that I am not sure they can recover from.  If they want to, they will have to make radical changes and fast, not in retooling the site, but in making it the shopping site that everyone will want to come to.  And that does not mean creating a new 'intuitive' search that gives buyers everything except what they are searching for, or claiming to be faster, stronger, better. 

 

The reason people came to ebay was because they could find what they are looking for.  The people in chare of ebay weren't around when that was happening and they obviously don't use ebay so they can not understand just how important that fact really is. 

 

Today I made a search for a hard to find item and ebay said there were none on the site - so i changed to search for the show it comes from.  There was one, that wasn't shown in the first results but should have because all the keyerds were in the title, but at the bottom of that listing there were 4 more of exactly what I was looking for, all on ebay and should have appeared in the first search results.  I knew how to refine my search and knew that I had to because the real search results of what you want are not on the search results page but on any listing you opened up and are considering buying.  But what about the buyers who don't know?  Who just sees that there are none on ebay and go to Amazon.  So the next time they look for something, they will remember that they couldn't find it on ebay and just go straight to Amazon.

 

I fear what will happen that Etsy will follow in ebay's path because the college educated CEOs all think the same way and place importance on the wrong things and then act on that.  Where traffic comes from means nothing if you don't advertise poorly there or anywhere else buyers could come from.  Such as, I have seen ebay Fashion ads, with a little tweaking, they could be awesome ads.  But what makes ebay think that they (ebay Fashion ads) are going to do any good placed on ESPN???  Like that is going to get a pile of baseball fans coming to ebay to buy a pair of pumps.

(*Bleep*)
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