SALES are Down. Cause: Recession? Suggestions welcome.

Sales have been down for 6 months. The number of Buyers and Dollar average has been decreasing. Defect count has gone UP due to fewer Buyers over the months. Hmmm. Better pictures, accurate description, currency, percentage discount, combined ship discount. Can not Control Sales must Manage Expenses. Suggestions Welcome....

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SALES are Down. Cause: Recession? Suggestions welcome.

I have been buying less and less on ebay for a number or reasons. I buy mainly vinyl records and a few other misc things.

1) Lack of interesting items and too much garbage to wade through. I don't need to see the same junk relisted dozens of times. Good items sell. Overpriced junk doesn't no matter how many times you list it. 

2) I spend less time just browsing for interesting items mainly due to #1. If it doesn't show up in a saved search I don't see it. My saved searches are maxed out and many of them are multi-item searches with some interesting logic. The sort of thing I'm looking for rarely shows up. Some searches have found nothing in years. 

3) There are other sites I can browse more efficiently that don't have 19th century shopping cart systems. Whoever designed the ebay system is an ID10T. 

4) ebay's constant change for the sake of change is annoying. Why can't I give a saved search a meaningful name? Why is searching for worldwide items such a pain? The latest "feature"? It seems they no longer know the difference between "small", "medium" and "large". Up until last week I was able to adjust the size of the thumbnails in my customized lists. Now it just seems to be random and whatever I set is ignored. It happens on multiple browsers. Every time they make some useless cosmetic change something else gets messed up. 

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SALES are Down. Cause: Recession? Suggestions welcome.


@pierrelebel wrote:

 

Fast forward to this year and you find 800,000,000 listings  (57 times more) while sales by sellers have increased to $20,000,000,000 ($20.0 billion) (14 times more)

And that is the real problem faced by eBay sellers today. when compared to the "good old days".

57 times more listings but only 14 times more sales. 

 


I accept that this is no doubt the case on eBay generally, but I have trouble correlating this to what is happening in the main categories in which I've been selling.  

 

In January, 2014, I started a little experimental survey of listings in 3 of my primary categories.  I tracked all 3 categories using the same (fairly generic but discrete) keyword search for each category, each time.  

 

I recorded the numbers twice each week through that January (I believe there was also a promotion somewhere in the middle of it) until I realized that they were remaining fairly stable for each category, rising or falling by only about 2% to 5% each time, sometimes less.  

 

I then decided to wait a few months to see if the numbers would change more significantly, so I repeated the exercise in September, 2014.  This time the spread (as compared to Jan. 2014) was around 8% to 10% for Categories #1 and #2, which seemed a fairly reasonable increase, especially since free promos were happening around that time.  Category #3, which is a narrower category, had jumped close to 70%.  

 

One very prominent seller in that category had decided to retire (she mentioned it to me early in 2014), and she was beginning to sell off her inventory at reduced prices, thus dominating the category.  Correcting for those listings (which made up nearly a third of all listings in that category), gave a much more reasonable 10% increase in listings.  Nonetheless, the excess listings were there, presumably watering down potential sales for everybody in that category.  

 

I recently decided to sample these 3 categories again (at the beginning of August, 2015).  The results were: 

 

Category #1:  Approx. 16% increase over mid-Jan.2014, and about 6% increase over Sept. 2014

Category #2:  Approx. 5% decrease over mid-Jan.2014, and about 15% decrease over Sept. 2014

Category #3:  Approx. 280% increase over mid-Jan.2014, and about 75% increase over Sept.2014

 

Category #3 looked very over-crowded as compared to earlier tests, but now (as I happen to know from her storefront notice), we have a second person selling off all her stock in order to retire.  The first seller I mentioned is still selling off items as well.  So these two sellers together were more than doubling the listings in this category.  Still, here's the odd part: their items were not really in direct competition with mine (for various reasons I won't go into here), and yet very few of us were selling anything.  

 

In the end, Category#3 was therefore not as helpful in analyzing why my buyers had gone, since the excess listings were obviously not from new sellers coming to the site as competitors.  I've also been watching the sales of these two "retirees", and have noticed items which previously buyers would have been fighting over at auction, sitting for months unsold.  These were both top-flight sellers in eBay's heyday prior to 2012, who had thousands of transactions (FB) each.  Their numbers have not increased much over the past 6 months.   

 

What this exercise in observation told me was that it's unlikely the far lower sales levels I've been experiencing this year (a reduction that started in late 2014) is a result primarily of listings swamping the site.  One thing I do know is that a lot of my former competitors have gone from eBay and have not been replaced with a significant number of new sellers -- or at least sellers who really know what they're doing and have attractive things to offer -- in my categories.  I can only conclude that: 

 

(a)  My 'traditional' buyers have gone elsewhere, or stopped buying (for whatever reason); and/or 

(b)  EBay has done something -- who knows what? -- to make searching and buying here less attractive and less easy. 

 

I'd encourage any sellers with concerns about slumping sales to do the same experiment in their 3 or 4 major categories over a period of months.  

 

I suspect there are categories were floods of new listings and new sellers have undoubtedly had the effect of diluting sales, but I also suspect many sellers of vintage, OOAK, antique and such items will find the listings in direct competition have not significantly increased, in which case market flooding is not necessarily the reason for depressed sales. 

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SALES are Down. Cause: Recession? Suggestions welcome.

" market flooding is not necessarily the reason for depressed sales. "

 

I totally agree.  Flooding did and still does contribute to lower "sell through" rate and lower prices realized for auction listings and longer "time on the shelf" for fixed price listings. It is one but only factor affecting all of eBay.

 

When we look at Canadian sellers specifically, there are other factors. The shifting preference by buyers to purchase listings offering "free shipping" has worked relatively well for American sellers but the concept has been much more challenging for Canadians generally facing higher shipping costs through Canada Post than Americans though USPS. And the gap seems to grow over the years.

 

We also have the lower Canadian dollar.  Most Canadian sellers list in US$.  By doing so they often outprice themselves on the Canadian marketplace.  Some may argue that few Canadians buy their "stuff"  True.  But raising prices to Canadians by using the more expensive American dollar will not improve the situation.

 

Another important factor to consider is that the marketplace is often looking for "new stuff".  Things or categories that did well years ago may not attract as many buyers on eBay today.  Possibly these buyers have moved to other sources of supply.  I remember reading posts on these Canadian boards years ago about sellers lining up at Value Village to buy their "stuff" and list it on eBay at double or triple what they paid.  I do not recall seeing many such posts this year.  Maybe Value Village has raised prices over the years and/or packing and shipping costs have raised so much that buyers no longer see the bargains.  Or...or.. or...

 

My point is that while overall sales on eBay may have gone up over the years, the competition (number of listings) has increased at a much higher rate.  All that while markets have shifted somewhat, costs have gone up, tastes have changed, and Canadian sellers face specific challenges not faced by American competitors.

 

Successful sellers adapt to changes. There is no option.  And there are many reasons to be optimistic when we look around these Canadian boards and find plenty of success stories: Canadian sellers finding ways to sell on eBay and make a profit

(even old gals and guys - long retired - still moving thousands of dollars every month, working part time). 

 

And you may have noticed that nowhere did I blame eBay for any of that "sale slowdown". Frankly, they are not the problem.

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SALES are Down. Cause: Recession? Suggestions welcome.

pierre lebel wrote: 

 

And you may have noticed that nowhere did I blame eBay for any of that "sale slowdown". Frankly, they are not the problem.

______________________________________________________________________________________

 

Really???  

 

Did eBay have nothing whatever to do with: 

 

  • Allowing (through either poor planning or not spending enough on security), a serious cyber attack, and then dragging its feet in dealing with the fallout?
  • A defect system that downgrades smaller sellers faster than larger ones?
  • A checkout system that doesn't work seamlessly across its sites?
  • Searches that don't function well and easily?
  • Advertising that promotes a myriad of outside products and sites (please don't tell me you haven't seen those Sears, etc. ads on eBay)? 
  • A feedback system that a majority of buyers don't use anymore and that is useless to sellers except as a means of punishment by eBay?
  • Never-ending site issues, glitches, slowdowns, problems and re-arranging?
  • Discouraging, through policy, the development of the seller/buyer relationship (and contact), and hence buyer loyalty (the removal of the "Me" page was an example, and the last step in this process)
  • Policy-making that creates such a tangle of rules on this site that they confuse and confound sellers and buyers alike?
  • Micro-managing sellers' affairs and interfering with the online market here in ways that may help some but disadvantage others 
  • Happily opening the floodgates to vastly big sellers of gazillions of undifferentiated, mass-produced, cheap junk that clogs up searches and frustrates and wears out buyers?  Re-read the comments of the buyer ('bozonet') earlier on this thread in this regard -- I expect this is a very common experience for buyers.  I know it is when I buy here. 

 

I could go on, but the point is that eBay has shot itself in the foot in many ways.  I think they are as much to blame as many other factors if sales have been slowing down for many of us "traditional", boutique sellers.  I simply believe a lot of eBay's traditional buyers did not feel comfortable here anymore, and who can blame them?  Much of what made eBay a really fascinating and fun place to shop, with unique items from around the world, has vanished, replaced by the sort of offerings one can find on any other online retail store you can think of. 

 

Don't get me wrong.  I used to love selling on eBay.  I used to love the interaction with my customers, many of whom were returning buyers.  That now happens rarely, if ever, these days.  EBay has broken that chain, and in my estimation has lost an entire sector of customers as a result.  I stay here for the few advantages it still does offer (mainly increased visibility), and I still manage to make a profit (so far), but I often feel those efforts have been despite eBay lately.  

 

Yes, we have to adapt to be able to continue successfully on eBay, but I don't like to feel that I'm struggling uphill against a lot of odds over which eBay does have control.  

 

My point of view is that a selling venue should be in business to facilitate selling, not to make the whole process more difficult.  KISS, as you are fond of saying.  

 

Perhaps it's only because I've been selling for a few months on a site that understands this simple concept, that I see the flaws here so much more clearly.  It makes eBay look rather bad in comparison. 

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SALES are Down. Cause: Recession? Suggestions welcome.

"Frankly, they are not the problem. Really???  "

 

Yes, really. You see many technical and policy problems.  Yes, they are there. None of them are the end of the world.  While they may affect some sellers in some categories, overall those problems are NOT the cause of the slowdown experienced by so many Canadian sellers.  Many of the problems you list also affect me as a seller.  But it will not stop me from finding solutions, from adapting and working around those problems as most Canadian sellers do.  If it costs me a few cents here and there because a buyer cannot combine a few purchases into one payment, so what?

 

I know you spend much time finding so many things wrong with eBay.  That's OK. You have the right to do so.

 

Personally I would rather see what is right with eBay.  Why it still works for most sellers willing to find solutions.  Think of the millions of sellers who manage to adjust, adapt and work with eBay despite all those challenges.

 

Life is way too short to worry about eBay as much as you do.

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SALES are Down. Cause: Recession? Suggestions welcome.


@pierrelebel wrote:

"If it costs me a few cents here and there because a buyer cannot combine a few purchases into one payment, so what?"

 

I don't even stop to think about the $0.50 or so here and there that I lose on such purchases - it's irrelevant compared to considering how many multi-item purchases -- potential sales -- I've lost as a result of .com buyers (my biggest buyer market) giving up on me, Canadian sellers in general, or not coming back to eBay at all.  

 

The thing is Pierre, none of us really knows what that number is, or how much it may represent in lost dollar value.  It is, at the very least, significant if a seller regularly offers goods that would be appealing as multi-item orders. 

 

"I know you spend much time finding so many things wrong with eBay.  That's OK. You have the right to do so."

 

LOL.  I don't have to spend much time finding things.  They are right there in front of my nose every day.  I point them out primarily to clarify problems from my own perspective, and to perhaps give others some insight that will help in being pro-active about adjusting and adapting.  And some things about eBay I just wish eBay had never done, period.  Frankly, they are vexing. 

 

"Think of the millions of sellers who manage to adjust, adapt and work with eBay despite all those challenges."

 

Um, would that possibly include me? Smiley Happy  

Despite all the challenges that eBay policy has thrown at my little enterprise, here I am, still selling, relatively successfully, despite it all.  Not because of a great deal that eBay has done to make my selling activities easier and smoother, but I'd say on the whole because I'm a creative problem-solver by personality and I'm tenacious.  

 

I've managed to jump every hurdle eBay has put in front of me, and still make the profit I need to make to remain viable as a business here.  I think that would fit the definition of adaptation and success.  Things were so much easier and simpler a few years ago, I didn't have to keep looking over my shoulder lest eBay policy trip me up on simple things they never should have got involved with in the first place, I made better money much faster, and had a lot more fun doing it, but it is what it is.  There are many definitions of success on eBay, and they don't all include selling thousands of dollars of product each month. 

 

What I don't understand is why one wouldn't want to discuss criticisms or complaints about eBay.  Those discussions can often lead to solutions or at the least, a better understanding of how things function (or don't) here. 

 

 

Life is way too short to worry about eBay as much as you do.

 

I don't know about you, but I find it interesting, productive and even amusing at times, to parse out these issues.  I've never been a worrier, it's not in my nature at all. 

 

Message 26 of 238
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SALES are Down. Cause: Recession? Suggestions welcome.

Anonymous
Not applicable

I agree with you 1000%, it is eBay that is causing lots of problems for many of sellers.

 

Pierre, are you working for eBay, as you often disagreed with us and on eBay's side???

Message 27 of 238
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SALES are Down. Cause: Recession? Suggestions welcome.

"Pierre, are you working for eBay...."

 

How many hours of research went into that question?

 

It is not the first time we see a similar question raised on these boards and I can imagine the guys and gals at eBay.ca in Toronto laughing their heads off at the suggestion I work for them!

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SALES are Down. Cause: Recession? Suggestions welcome.

Well as a new buyer i can tell you what i noticed.

 

First they are no discounts on ebay especially if you're Canadian. In more cases than not it's more expensive for me to buy on ebay than locally. Let say i want to buy a box of tealight. I would pay 8.00$ for a box of 12 plus over 30$ of priority international shipping. it's just not worth it. The global shipping program is not helping one bit. I have to pay shipping two times.

 

 

Also i'm not sure if it's because of shows on tv. Sellers seem to think their old stuff is worth a fortune. For exemple i saw a seller list an old 8 track tape of Phil Collins for 50$ plus shipping no wonders it did not sale. Almost no one has a working 8-track player  anymore. Most people don't even bother with 8-track,cd ect,, anymore they all use mp3 and itunes, streaming services and the such.

 

It seems they are a lot of hoarders selling their stuff on ebay thinking their clutters have value. I've seen old newspapers,old magazines, paper bags even empty packaging of products. like this

 

http://www.ebay.com/itm/Rare-Vintage-Kool-Aid-Imitation-Pink-Lemonade-Mix-Empty-Drink-Package-1970s-...

 

What i personally look for on ebay if it can help. Old discountinued Glade products which i liked the scent, Condoms because i'm too shy to buy them in store, Magic tricks, fun stuff for my pets hamsters,cats,fish. 35mm trailer and 35mm print because a friend run a movie theater. horseback riding stuff. I bought old discounted Gilette shampoo i liked because it made lots of foam. car parts,cheap perfume, the occasional vinyl record and 8-track tape. I really really like music.

 

I'm even starting to consider buying candies on ebay. There's lot of it. Stuff i can't find locally., old video games, that is all i can think off right now.

 

 

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SALES are Down. Cause: Recession? Suggestions welcome.

Either your retired or your not.

 

Everybody has their ideas of why they have slow sales but it seems like the pie in places like Amazon are getting bigger while Ebay's pie remains the same.  The news of sellers flocking to Amazon is no secret. There are more stamp buyers buying on Delcampe for example.  The pie size might be the same but if you're only serving it on ebay then maybe your competitors are serving it in multiple locations.

Message 30 of 238
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SALES are Down. Cause: Recession? Suggestions welcome.


@pierrelebel wrote:

"Pierre, are you working for eBay...."

 

How many hours of research went into that question?

 

It is not the first time we see a similar question raised on these boards and I can imagine the guys and gals at eBay.ca in Toronto laughing their heads off at the suggestion I work for them!


I get that as well. Many of those on the bitter bus, accuse us of this because we work within the system and do well.

 

Yeah give Toronto a call and ask about me.

 

Because we do not join in the negativity, we must be eBay plants, shills, employees? Maybe we just do well because we do? No! Wait! That can't be it, you must be cheating.

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@caye-seba wrote:

Well as a new buyer i can tell you what i noticed.

 

......................


I had to smile when I read you post and it made me think of my Amazon.ca experience as a new/infrequent buyer.

I buy from them once every few years or so, but I have an Amazon credit card because they gave me money to get one.  

 

About a week ago I received a bill from Amazon for $90 but I hadn't bought anything from them for a couple of years.

 

When I called them I was told that I was signed up for a program for faster shipping.  (I didn't know they were slow.)

I didn't ask but I'm guessing that the plan was to bill me repeatedly for the program.  Doubt it was a one shot deal.

 

It took two phone calls and half an hour to get my money back.

 

Now, that's sleazy!   At least eBay has never billed me $90 without my consent.

 

I don't find eBay to be friendly to Canadian buyers, but they're never pulled anything like that either.

 

 

Message 32 of 238
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SALES are Down. Cause: Recession? Suggestions welcome.

amazn suggests signing up for a prime (faster and free with no minimum order shipping) every time you check out without it.  They offer 1 month free if you havent had it before or recently.  They don't automatically sign anyone up for it, you have to have clicked through agreeing, with them showing the terms.  It does auto renew until you cancel, but can cancel anytime.  In the USA it offers more then here with their netflix type service.  Prime day last month was the first time there was pricing exclusive to prime subscribers,  they've been very successful with it, building a subscriber base like costco has memberships.   

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SALES are Down. Cause: Recession? Suggestions welcome.

My mom signed up for prime by accident before too but we caught it pretty early.

 

All it took was a few clicks on Amazn.com (yes she signed up for .com's by accident) to get a refund in a couple weeks.

Message 34 of 238
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SALES are Down. Cause: Recession? Suggestions welcome.

Here is eBay's explanation of why there are no  sales:

 

http://www.ecommercebytes.com/C/letters/blog.pl?/pl/2015/8/1439412948.html

 

If you can't find it, go to the website for  "Autionbytes" and the topic "A Sales Slowdown Leads eBay Seller to Investigate"

Read comments by pace306 and you will find a copy eBay's explanation

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SALES are Down. Cause: Recession? Suggestions welcome.

Here is a copy:

 

eBays admitting that they are in trouble:

We expect competition to continue to intensify. Online and offline businesses increasingly are competing with each other and our competitors include a number of online and offline retailers with significant resources and well-established brands. Moreover, the barriers to entry into these channels can be low, and businesses easily can launch online sites or mobile platforms and applications at nominal cost by using commercially available software or partnering with any of a number of successful ecommerce companies. As we respond to changes in the competitive environment, it may, from time to time, make pricing, service or marketing decisions or acquisitions that may be controversial with and lead to dissatisfaction among sellers, which could reduce activity on our websites and harm its profitability.

Our Marketplaces businesses face increased competitive pressure online and offline. In particular, the competitive norm for, and the expected level of service from, ecommerce and mobile commerce has significantly increased, due to, among other factors, improved user experience, greater ease of buying goods, lower (or no) shipping costs, faster shipping times and more favorable return policies. Also, certain platform businesses, such as Alibaba, Apple, Google and Facebook, many of whom are larger than us or have greater capitalization, have a dominant and secure position in other industries or certain significant markets, and offer other goods and services to consumers and merchants that we do not offer. If we are unable to change our products, offerings and services in ways that reflect the changing demands of the ecommerce and mobile commerce marketplaces, particularly the higher growth of sales of fixed-price items and higher expected service levels (some of which depend on services provided by sellers on our platforms), or compete effectively with and adapt to changes in larger platform businesses, our business will suffer.

Consumers who might use our Marketplaces sites to buy goods have a wide variety of alternatives, including traditional department, warehouse, boutique, discount and general merchandise stores (as well as the online and mobile operations of these traditional retailers), online retailers and their related mobile offerings, online and offline classified services and other shopping channels, such as offline and online home shopping networks. In the United States, these include Amazon.com (which recently opened an experimental brick-and-mortar store in New York City and continues to expand into new geographies and lines of business), Google, Wal-Mart, Target, Sears, Macy’s, JC Penney, Costco, Office Depot, Staples, OfficeMax, Sam’s Club, Buy.com (owned by Rakuten), Yahoo! Shopping, MSN, QVC and Home Shopping Network, among others. In addition, consumers have a large number of online and offline channels focused on one or more of the categories of products offered on our site.

Consumers also can turn to many companies that offer a variety of services that provide other channels for buyers to find and buy items from sellers of all sizes, including online aggregation and classifieds websites, such as craigslist (in which we own a minority equity stake), Oodle.com and a number of international websites operated by Schibsted ASA or Naspers Limited. Consumers also can turn to shopping-comparison sites, such as Google Shopping. In certain markets, our fixed-price listing and traditional auction-style listing formats increasingly are being challenged by other formats, such as classifieds.

Our online shopping comparison websites (Shopping.com) compete with sites such as Google Shopping, Buy.com, Nextag.com, Pricegrabber.com, Shopzilla, Buscapé in Latin America (owned by Naspers) and Yahoo! Product Search, which offer shopping search engines that allow consumers to search the Internet for specified products. In addition, sellers are increasingly utilizing multiple sales channels, including the acquisition of new customers by paying for search-related advertisements on horizontal search engine sites, such as Google, Yahoo!, Naver and Baidu. We use product search engines and paid search advertising to help users find our sites, but these services also have the potential to divert users to other online shopping destinations. Consumers may choose to search for products and services with a horizontal search engine or shopping comparison website, and such sites may also send users to other shopping destinations.

Bottom Line:

We may be unable to compete successfully against current and future competitors. Some current and potential competitors have longer operating histories, larger customer bases and greater brand recognition in other business and Internet sectors than we do.

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Wow.  Thanks for drawing attention to that.  It explains a great deal very clearly.  I was beginning to get downright paranoid about recent sagging sales (none since July 21st).  I sell under this ID and another.  Both are fading into the sunset.  I was, like others, beginning to think that somehow my items were being suppressed unfairly in the search engine for whatever reason.  Now, I know more about what is happening across the marketplace and I can begin to form decisions going forward.  Nothing lasts forever.  Everything changes;  and in the world of online sales, change comes swiftly and requires a constant reinvention of your business plan. 

 

Good luck to everyone here.  I still love eBay but it's not productive to sit and wish for the good old days.  Back to the drawing board.Smiley Happy

Message 37 of 238
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SALES are Down. Cause: Recession? Suggestions welcome.

The quote isn't attributed to anyone from ebay or any publication...or did I just miss that part on the ecommercebytere page?

Message 38 of 238
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SALES are Down. Cause: Recession? Suggestions welcome.

Well, I guess my observation was right: eBay may yet succeed in killing itself

 

"As we respond to changes in the competitive environment, it may, from time to time, make pricing, service or marketing decisions or acquisitions that may be controversial with and lead to dissatisfaction among sellers, which could reduce activity on our websites and harm its profitability."

 

Frankly, if this statement is accurately reported, this is one of lamest and most defeatist remarks that I've ever heard coming out of a corporate mouthpiece.    

 

The person who commented on eBay's poor site functionality as a result of all the outside ads running also had a cogent point -- even as a buyer on eBay, I've gotten fed up with jerky, lagging, unresponsive and interminably slow pages when trying to sift through a seller's store.  And I'm sad to admit that I just gave up and logged out of eBay.   I'm sure I'm not alone amongst buyers. 

 

How can anyone, after reading the entire statement you quoted above, still believe that eBay is not the problem?  

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@pjcdn2005 wrote:

The quote isn't attributed to anyone from ebay or any publication...or did I just miss that part on the ecommercebytere page?

_____________________________________________________________________

 

Further down on the page, the poster gives this information: 

 

This info is printed in eBays 10k yearly IRS statement.

Its a comprehensive financial statement and overview of every part of the company.

Its here: http://www.sec.gov/Archives/edgar/data/1065088/000106508815000054/ebay
201410-k.htm

 

************************

 

Interestingly, I just clicked on it -- it's the U.S. Securities & Exchange Commission, which is a bona fide oversight body, but the message that appears is: 

 

Oops! We can't find this file

We're sorry, but the page you're looking for might have been removed, had its name changed, or is temporarily unavailable.

 

So, if someone can find the original submission, it might be interesting to fact-check. 

 

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