eBay's joy ride: Going once...

Many longtime sellers and Wall Street analysts are uncertain about the company's ability to sustain its growth rate.
The New York Times

The story "eBay's joy ride: Going once..." published March 6, 2005 at 12:10 PM is no longer available on CNET News.

Content from The New York Times expires after 7 days.

[fred dunn]

I wouldn't buy anything off eBay, Not trustworthy

When ever I do searches for merchandise an I get a hit from eBay I don't even bother with it. For those thinking that their own website may be the answer, you've got it right.

[mcthingy2]

Stupid Comment

Let's see. eBay invented an innovative and unique marketplace,
hitherto impossible without the internet. Ok their management
screwed up with some recent changes......but their business
model is incredible. Jeesh.

[stevenlw2001]

eBay in context

Any idea how the changes in the economy may have also affected the performance of eBay?

I have found eBay a huge disappointment, and I can't figure out how companies can make it using this channel. At one point it appeared to be a God-send to the small and home office business person.

Now it seems an enormous waste of time.

Small entrepreneurs have to figure out what will give them the best return on their limited time and limited financial resources. I guess eBay is still 'cheap' when compared to other investments; however, the returns are lousy. An increase in fees may be eBay's idea of keeping revenues growing, but such increases also force entreprenuers to look at alternatives.

For instance, in the last 3 years the real estate bubble has been crazy. Think of spending 12 hours every weekend trying to get a real estate sales license and then learning how to make a deal. Or think about saving every nickle to invest in income property somewhere or to buy a house, fix it up and then quickly resell it for a small profit. The returns probably were pretty good compared with the level of effort.

Now, compare that effort with the enormous level of effort required to differentiate yourself among the millions of e-Stores out there, whether they are on eBay or some other portal. Then think of the limited margin available after you list an item, relist it, relist it again, then sell it but pay the commissions and so forth. Very little for a lot of effort.

It seems obvious that more and more people must be getting tired of wasting energy on what is going to be -- for the majority -- a losing proposition. Raise the fees eBay, and you just help these people realize it's time to get out and get on with something else.

I suspect a number of folks will continue to abandon eBay, or scale back from an online store to selling the odd item now and then, and redirect their energy on getting a job, getting a better job, becoming a consultant or whatever.

In the larger context, I think an eBay type of business requires too much effort for too little gain.

[mcthingy2]

In Context...Your

Yeah -- I guess over $33 billion of merchandise sold per year
really proves your point. The punditry on CNET beggers belief.
Engineers with too much time on their hand (go buy another pair
of Birkenstocks or something brother) give us their personal
experiences......and we're supposed to think they have a valid