07-22-2018 05:31 PM
Very interesting article. I bolded /redded the best parts:
https://seekingalpha.com/article/4188922-ebay-stagnation-mode
eBay: In Stagnation Mode
eBay's second-quarter earnings report fell heavily short of analyst expectations, with revenue growth dimming to 9% y/y (from 12% y/y last quarter). The company's below-consensus guidance caused the stock to take its biggest hit. GMV growth in the U.S. also showed its weakest growth rate since a year ago, while the volume of sold items stayed flat. Margins also showed a worrying contraction.
Despite all the signals that keep pointing to its demise, eBay (EBAY), the one-time e-commerce wunderkind, continues to plod forward as if it was still a giant of the internet. Like last quarter's earnings release, eBay's Q2 post showed a company that is continually unable to meet analysts' targets as the company fails to accelerate the process of bringing new buyers to its platform.
Rightly so, eBay has been one of the worst-performing of the large-cap internet stocks all year, despite general enthusiasm for the e-commerce space. Companies like Etsy (ETSY) and Stitch Fix (SFIX) that were earlier pegged as losers, for example, have shot up meaningfully in the first half of 2018, as has perpetual giant Amazon.com (AMZN). eBay, however, seems incapable of reversing its slow decline. Year to date, the stock is down nearly 10%.
Yet, I believe the shares have further to fall. Activity on eBay seems to simply be running cold. Call it the hangover effects of eBay's fee hikes in the past several years - as sellers walked out on eBay in protestation of higher seller fees and took their variety of wares with them, buyers also saw less and less reason to buy on eBay. One of the things shoppers like most about Amazon is that it's the "everything store," where you can type in even the most obscure of items and find at least one seller that carries it. On eBay, with both the selection and volume of items getting thinner, it's getting harder and harder to bring buyers to the platform and, more importantly, reverse the steep deceleration in GMV growth.
07-22-2018 08:52 PM
07-22-2018 08:55 PM
I am seeing many new websites coming up with UNIQUE clothing, Unique hand made boots and shoes. I was drolling the other day over these hand made leather boots made by real Native Americans , MUKLUCKS. Not the cheap one's made in China, the real one's. I think I am going to take up boot making craft because these boots are astoundingly beautiful, and well made. One of these pops ups came on while I was on another site and the look of it was very appealing because it's different from all the rest of the same ole same ole. People are getting bored LOL.
07-22-2018 09:04 PM
4. There is one area eBay still beats Amazon badly and is eBay's strength - used and vintage
But they are losing ground in used and vintage to other sites due to search manipulation (and other things, which is one thing ebay does well. While they're busy manipulating, more and more sellers of those goods are busy migrating to other sites, and more of their buyers are finding them at those places.
07-22-2018 09:08 PM - edited 07-22-2018 09:13 PM
@where*you*crowin wrote:4. There is one area eBay still beats Amazon badly and is eBay's strength - used and vintage
But they are losing ground in used and vintage to other sites due to search manipulation (and other things, which is one thing ebay does well. While they're busy manipulating, more and more sellers of those goods are busy migrating to other sites, and more of their buyers are finding them at those places.
Sellers have always come and gone....and always will. And new sellers will join all the time as well.
Again it is an OPINION which does leave out some reality and facts...but he never said it was factual either. Only some here try to say it is.....he says it is his OPINION.
This is also true of all other sites...every single other site
And it also ignores FACTS like the mass edoduses that have happened in the past, and there were some big ones, where people said the same things...and all these years later ebay is still here.
07-22-2018 09:14 PM
@retrose1 wrote:
@dugoldstuff wrote:> Not to mention the fact that they choose to play hide and seek with the variety that remains on ebay.
eBay seems to think that without supply, there can somehow be demand, and even more hilarious, a transaction.
ebay seems to think that all buyers want is the same stuff that every other site is selling.
Besides hiding stuff, ebay has forgotten a very important fact. That sellers are also buyer and buyers often become sellers. Everything ebay does drives more and more sellers off ebay, and if selling is their business, they start setting up shop on other sites. And if the sellers leave ebay because they feel victimized, it is doubtful that they will buy on ebay.
And when buyers fall for the it's sooooo eeeeeasy to sell on ebay - just list, sell and get paid, and get scammed out of the cash they needed to pay emergency bills with, that's money they don't have to spend on ebay anymore AND since they lost money on ebay and ebay did nothing to help them, it is doubtful that they will be shopping on ebay again.
Yes, this. The more I’m Mistreated as a seller, the more I stop myself from buying on ebay.
07-22-2018 09:15 PM
07-22-2018 09:17 PM
@ebbyisme wrote:
4. There is one area eBay still beats Amazon badly and is eBay's strength - used and vintage
It’s pretty obvious eBay thinks “used” means flea market. For many of us who perhaps are a little older than eBay’s target demographic, and most definitely older than their average employee age, judging by their “badges” inspired announcements and “energetic” tête-à-tête, “used” many times means:
1. Much Better Quality
2. Made in the USA
3. Nostalgia - “just like Mom used to have”
4. Beauty & Craftsmanship
Ebay is missing the boat by not recognizing and celebrating “USED” as many times vastly superior to the cookie-cutter JUNK from overseas. New junk is STILL just junk.
07-22-2018 09:24 PM - edited 07-22-2018 09:28 PM
@newview wrote:
@ebbyisme wrote:
4. There is one area eBay still beats Amazon badly and is eBay's strength - used and vintage
It’s pretty obvious eBay thinks “used” means flea market. For many of us who perhaps are a little older than eBay’s target demographic, and most definitely older than their average employee age, judging by their “badges” inspired announcements and “energetic” tête-à-tête, “used” many times means:
1. Much Better Quality
2. Made in the USA
3. Nostalgia - “just like Mom used to have”
4. Beauty & Craftsmanship
Ebay is missing the boat by not recognizing and celebrating “USED” as many times vastly superior to the cookie-cutter JUNK from overseas. New junk is STILL just junk.
Actually those of us who are older do not think that there is not enough room for everyone nor do we judge what someone sells in order to make a living here. If someone can like a living selling flea market items here...more power to them. Just as some chose to sell high end things that others cannot afford to buy to resell.
And BTW...you computer/ parts etc were not made all in the US either and I am sure I could name a few other things you own and use and buy as well.
A good majority of vintage and antique items are also from asia or made in asia, as well as where designers have clothes made.
Everyone has the right to make a living selling whatever they want or can as long as it is legal to do so....regardless of where it was made.
You should NOT judge.
07-22-2018 09:29 PM
Yahoo has a better one. It's from 07/22/18. It asks a pretty serious question about eBay's future but I personally already know the answer.
You see the part you bolded in red about Amazon and it being the everything store? I can't release the source of the data but for many categories people aren't even using Google anymore. They're using Amazon as if it were a search engine. In the user flow I saw eBay is not even a consideration for a staggering amount of users, hence the massive slow down many sellers see.
Add the other factors we're all aware of and I'm now wondering if eBay did anything at all that impacted users in the last year and many simply did not want to face the reality no one was coming here and it's getting worse.
07-22-2018 09:31 PM - edited 07-22-2018 09:35 PM
A better one??
Amazon and ebay are both considred search engines...this is nothing new...browsers have been set up for that for many years already...nothing new. You can flip between many search engines when searching and ebay and amazon are 2 of them. You are a several years behind on that one...as is your article what ever it was
07-22-2018 09:35 PM
I get your point but there's a small contradiction in your last paragraph. If one sold stuff for emergency bills they weren't going to spend it here regardless, hence putting it back into the eBay flow wasn't going to happen. eBay still loses in that particular use case beyond their fees but other sellers don't benefit.
Everything else is spot on to the letter. It's investing 101 even if sellers don't realize it. You spend money on things and places more readily that make you money, not create hardships for you at every turn a.k.a eBay.
07-22-2018 09:37 PM
@everything-from-trinkets-to-treasures wrote:Sellers have always come and gone....and always will. And new sellers will join all the time as well.
Again it is an OPINION which does leave out some reality and facts...but he never said it was factual either. Only some here try to say it is.....he says it is his OPINION.
This is also true of all other sites...every single other site
And it also ignores FACTS like the mass edoduses that have happened in the past, and there were some big ones, where people said the same things...and all these years later ebay is still here.
But those others sites' profits are on the rise while ebay's are shrinking. Apparently past and present exoduses are finally catching up.
The desperation is showing big time. More and more selling promotions being received, all those 10, 15, 20% discounts. Even a blind man can see what is happening. Yet some will continue to deny what is right in front of their eyes.
07-22-2018 09:39 PM
@futuretomorrow wrote:
I get your point but there's a small contradiction in your last paragraph. If one sold stuff for emergency bills they weren't going to spend it here regardless, hence putting it back into the eBay flow wasn't going to happen. eBay still loses in that particular use case beyond their fees but other sellers don't benefit.
Everything else is spot on to the letter. It's investing 101 even if sellers don't realize it. You spend money on things and places more readily that make you money, not create hardships for you at every turn a.k.a eBay.
Then please explain the millions of transactions, millionsof dollars and the growth that did actually occur...even though it was not what was projected???
That is hardly investing 101...and it is still ONLY an OPINION just as they claim it is...which you are also ignoring along with the facts
07-22-2018 09:40 PM - edited 07-22-2018 09:43 PM
@where*you*crowin wrote:
@everything-from-trinkets-to-treasures wrote:Sellers have always come and gone....and always will. And new sellers will join all the time as well.
Again it is an OPINION which does leave out some reality and facts...but he never said it was factual either. Only some here try to say it is.....he says it is his OPINION.
This is also true of all other sites...every single other site
And it also ignores FACTS like the mass edoduses that have happened in the past, and there were some big ones, where people said the same things...and all these years later ebay is still here.
But those others sites' profits are on the rise while ebay's are shrinking. Apparently past and present exoduses are finally catching up.
The desperation is showing big time. More and more selling promotions being received, all those 10, 15, 20% discounts. Even a blind man can see what is happening. Yet some will continue to deny what is right in front of their eyes.
Same on other sites ..they are all trying to bring in buyers and drive sales
Did you just miss Amazon Prime Day??? Hello
Driving sales and bringing buyers is what sites are supposed to do. It is why we are here.
All sites are doing promotions and all that....you cannot ignore what everyone is doing and has done. None of it is new.
07-22-2018 09:48 PM