CEO promises "new" eBay

Samantha Rose Hunt
16 March 2009, 1:15 PM


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Executives at eBay are shifting their focus away from ordinary people selling their used goods.


eBay executives have announced that gone are the days of competing with retailers such as Amazon.com and WalMart.com. Now, the company is moving into a completely different realm: mobile opportunity.

The company is aiming to develop wireless applications for the company’s PayPal payment processing system as well as its VoIP calling unit, Skype. John Donahoe, eBay chief executive said that the company will begin to center its efforts online in the “secondary market” of clearance and off-season goods, rather than the sale of ordinary people's used items.



The company hopes that its PayPal payment processing system will also drive more revenue. The company expects the system to deliver $US4 billion to $US5 billion in revenue by 201 -- an increase from the $US2.4 billion which was earned last year. If these forecasts are correct, then PayPal will become eBay’s greatest individual revenue producer. Over the next three years, Scott Thompson, president of PayPal, would need to double its volume to anywhere from $100 billion and $120 billion.

Donahue believes that the core auction market of eBay will continue to decline as the company moves toward selling fixed price (buy-it-now) listings. The company plans to push the site as an outlet for liquidating retail stock.

While this strategy may be very unpopular with eBay's traditional market of small-time sellers and buyers, it does mean that there will be an even stronger market opportunity for competitors to eBay to get a foothold in this space. eBay has repeatedly been criticised for abusing its near monopoly market power in the online auction space to disadvantage buyers and sellers with higher fees and unfair terms of trade.

eBay Australia last year attracted the fury of its users after it tried to force people to pay for their auctions using PayPal only, banning all other methods of electronic payment. The plan ultimately failed at the 11th hour, with eBay fearful of an unfavourable legal outcome against it.

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agami (New user):

ebay could certainly benefit from it's site being a bit more, dare I use the term, Web 2.0.

No I'm not referring to social networking or large rounded-corner gradient-shaded buttons. The current experience is very 1.0 and could benefit from some customisation controls available in some of the apps available on the Mac and Adobe Air (Multi-platform). Allowing users to sharpen their view and focus their ebay experience to how they like to use it. Making it more like an application and less like a web site. Different views for different activities (window shopping, bargain hunting, selling) and different access devices (PC, TV, Mobile, GPS a.k.a Location-based).

16 March 2009, 6:04 PM (4 years ago)report abuse Send to a friend reply

Tin (User):

So eBay want to remove the thing that makes it eBay... Wow... I'll bet that'll get them a great response.

About half the stuff I've bought off eBay has been one off, second hand stuff. Stuff I would struggle to find elsewhere... But if eBay want to ditch that market, they can look forward to customers ditching their services.

16 March 2009, 7:30 PM (4 years ago)report abuse Send to a friend reply

armork (New user):

Donahoe's insane course for his "new" ebay has led ebay into crisis and has rightfully caused buyers and sellers to flee ebay, while increasing the popularity of ebay's competitors! Ebay's constantly rising prices due to Donahoe's ridiculous, ever-changing and unfair policies has made transactions on the site unstable, at best and (some believe) possibly pure criminal, at worst. Donahoe's decisions have resulted in the longest and largest ebay boycott in it's history. The result in Donahoe's inept handling of ebay can also be seen in the numbers reported by the New York Times, auctionbytes.com and in Neilsen's ratings. Ebay's user numbers are DOWN by 14%, from May 2008. According to the Nielsen rating, the total number of displayed pages on ebay are also down. A comparison of May 2008 to May 2009 shows a current decline of 32% page views on ebay.

15 July 2009, 12:40 AM (3 years ago)report abuse Send to a friend reply

armork (New user):

"New" ebay, huh Donahoe??? Well, it's July 2009 now and the results of your inept, corrupt plans for ebay are apparent. Your ill treatment of ebay's buyers and sellers and insane policy changes have spurred the largest and longest ebay boycott in ebay's history. Previous ebay buyers and sellers are fleeing from ebay and have increased the popularity of ebay's competitors. The New York Times, auctionbytes.com, Neilsen and others are reporting the disasterous results from your destructive "new" ebay scheme. That data shows ebay user numbers are now down 14% since May 2008. Neilson's report also shows a decline in pages displayed on ebay. The 32% decline in page views from May 2008 should be a HUGE red flag for ALL ebay investors, buyers and sellers!


It's high time to get rid of Donahoe, whose previous training at Bain ONLY taught him how to DESTROY companies!

Here's a very handy chart I found for those wanting trading sites that offer fair treatment and pricing for their online buying and selling ventures:

http://i585.photobucket.com/albums/ss300/Pinkchristmascruise/ebayAlternativesj.jpg


Fire Donahoe and save ebay!

"EBay’s Traffic Drops Amid Identity Crisis"

http://bits.blogs.nytimes.com/2009/07/10/ebays-traffic-drops-amid-identity-crisis/

More ebay deceit:

http://forums.ebay.com/db2/topic/Clothing-Shoes-Accessories/Has-Anyone-Notice/510114670&start=0



15 July 2009, 1:18 AM (3 years ago)report abuse Send to a friend reply

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