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

[lovefindingtreasures2]

I am heavily invested and no way would I buy eBay stocks. And I sell here, pretty sad.

[lovefindingtreasures2]

I'm hearing the same when I go through the thrifts too. One of our local thrifts used to advertise eBay by posting the items they sold there in their store. It was a popular board!

They stopped selling on eBay. Pretty sad when a thrift store can't sell on eBay. Lack of sales.

[lovefindingtreasures2]

Why throttle??

Because there is only so much room on a server. Why give that room to a US seller who sells a few items a day, when they can give that space to a huge seller that sells hundreds or thousands a DAY from boiler room accounts of hundreds of ID's?

Some of these overseas sellers make more in one day, one hour for eBay than most US small to medium sellers make in a year.

That's why. It's commerce and capitalism, and to the winner goes the spoils. We aren't going to win. For no other reason than we cannot compete against e packet prices for shipping.

That's killing US sellers. eBay doesn't care if you can't sell your items. They don't care. They want turn over sales, fast and furious, money money money coming in. That's coming from China. Period. They sell more here now that US sellers sell.

It's business. It stinks. It's what it is right now. Period.

They throttle. I've seen it. There is a rather obvious pattern to it as well.

[relaxintowealth]

As for the tech problems, yes, my son tries the app and it crashes,and the search engine is horrid.

[the*dog*ate*my*tablecloth]

Server space is super cheap. Ebay would not intentionally limit sales to save pennies on servers. 

That does not compute.

[skatefool]

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@the*dog*ate*my*tablecloth wrote:

Server space is super cheap. Ebay would not intentionally limit sales to save pennies on servers. 

That does not compute.

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Cheap, yes.  Finite, yes.

[tunicaslot]

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@gracieallen01 wrote:

Well, it is a little bit different in a B&M, though at first glimpse, similar.  Yes, companies pay to have their product(s) capping an aisle or at the perfect eye-level as one treads down the miles of linoleum.  But, all of the products that the store concents/contracts to display are 'somewhere' in sight, in the store where a person WILL see it without having a search order.  Not hidden in the back of the storeroom or under a tarp on a pallet out on the loading dock.

There is a big difference between gaining 'preferred' position and just plain gaining visibility.

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Etsy is doing the same thing now - you pay a bit more to get more visibility. When there are so many options for buyers - these 3rd party venues also suffer and need to find new ways to make revenue.

[threshold.sales.group]

Wow, the stock is really getting hammered.  The PayPal warning and the delay in releasing the #'s is combining to fuel the drop.  My guess is that if the #'s are indeed bad somebody in the c-suite will be tossed overboard in the next few weeks.  

[gracieallen01]

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@tunicaslot wrote:

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@gracieallen01 wrote:

Well, it is a little bit different in a B&M, though at first glimpse, similar.  Yes, companies pay to have their product(s) capping an aisle or at the perfect eye-level as one treads down the miles of linoleum.  But, all of the products that the store concents/contracts to display are 'somewhere' in sight, in the store where a person WILL see it without having a search order.  Not hidden in the back of the storeroom or under a tarp on a pallet out on the loading dock.

There is a big difference between gaining 'preferred' position and just plain gaining visibility.

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Etsy is doing the same thing now - you pay a bit more to get more visibility. When there are so many options for buyers - these 3rd party venues also suffer and need to find new ways to make revenue.

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I've not looked at the Etsy UA, but do they say in it that not all items will necessarily be shown at all times?  Hopefully not and hopefully they don't follow ebay's lead.

[ekmadonna]

Etsy started doing this way before Ebay, my sales also tanked when Etsy went pay to play! They are silly over there, someone pays extra to have "AD" put on the top of their listing and then they show the SAME EXACT listing right underneath it. I scroll right by EVERY SINGLE ONE! Pay per click, all I can think of is some malicious person clicking over and over again out of sport and running up a tab on you!

[gracieallen01]

It does seem as though everybody wants to use these 'neat' ways to increase revenue.  However, nobody seems to want to pay the piper for oversight to prevent abuse.

[winkel-20]

 caused the demise of 10's of 1000's of US based companies doing business on your site. IMO

[flipper2flipper]

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@threshold.sales.group wrote:

Wow, the stock is really getting hammered.  The PayPal warning and the delay in releasing the #'s is combining to fuel the drop.  My guess is that if the #'s are indeed bad somebody in the c-suite will be tossed overboard in the next few weeks.  

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2 more stck analysts down-graded their ratings on Ebay today:

https://www.barrons.com/articles/ebay-stock-earnings-bears-bearish-1540224138?siteid=yhoof2&yptr=yah...

Interesting speculation about a "cost cutting" announcement as being included in the upcoming earnings release.

Maybe they will be transferring Customer Service from the Philippines to ..... ( insert name of country here ).

[hioctane62]

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@flipper2flipper wrote:

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@threshold.sales.group wrote:

Wow, the stock is really getting hammered.  The PayPal warning and the delay in releasing the #'s is combining to fuel the drop.  My guess is that if the #'s are indeed bad somebody in the c-suite will be tossed overboard in the next few weeks.  

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2 more stck analysts down-graded their ratings on Ebay today:

https://www.barrons.com/articles/ebay-stock-earnings-bears-bearish-1540224138?siteid=yhoof2&yptr=yah...

Interesting speculation about a "cost cutting" announcement as being included in the upcoming earnings release.

Maybe they will be transferring Customer Service from the Philippines to ..... ( insert name of country here ).

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Yeah... I read that earlier, too. They'll probably eliminate the remaining 10% TRS+ discount, and the shipping supplies coupons for stores.

[zamo-zuan]

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@myjunqueyourtreasure wrote:
The fidget spinner effect

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lol, hilarious, especially because many people here won't get the joke =p

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@kim_y_buran wrote:

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

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 They didn't deny it. It's even in their terms of service.

I've posted about my findings pretty extensively on this,  and many posts/articles on here and other eCommerce info sites post about it. Yet you can find out for yourself if you take 30 mins out of the day to search your own items. 

Best match, some throttling is expected. But it gets worrisome when you sort by price and then don't seeyour own items...