Whatever happened to the good old days when eBay was a trusted household brand name? Trust and community values were eBay Inc cornerstone. Today the once wunderkind of cyberspace plods ahead desperately trying to find it’s way.
A good analogy why eBay Inc has fell from grace, and how to fix it
Gary Alexander of Seeking Alpha published this article on 04/25/2019 laying eBay as an investment out in detail line by line and paragraph by paragraph.
I find investors’ enthusiasm on this decaying name quite confusing. eBay and its management team have a gift of making their no-growth situation appear attractive to investors, even as all of eBay’s core metrics appear to be in decline. This quarter, investors are particularly excited about eBay’s Q2 guidance, which beat Wall Street’s more dour expectations.
Revenue of $2.64-$2.69 billion (+1% y/y growth at the midpoint) came in higher than analysts’ consensus of $2.65 billion. But since when is zero growth something to celebrate? Recall that in FY18, eBay had clocked in 8% y/y revenue growth – not altogether impressive, but at least in the high single digits. Expectations for eBay have sunk so low that even meager 1% growth is enough to lift this dead stock.
Devin Wenig mentioned “steady sold item growth”, whereas the number of sold items was flat as it has been for the past four quarters. Essentially the decline in sold item ASPs was the driving contributor behind the decline in GMV. Second, Wenig also mentioned “positive buyer growth” but in reality, buyers were also approximately flat.
I remember first discovering eBay back in 1999 as a source to sell used cars. It takes an old-time seller and buyer to visualize how this wunderkind of eCommerce has fell from grace. Corporate greed and out of control scams took their toll on the marketplace built on trust and community values back in the mid 2000’s.
In my personal opinion the first step in restoring eBay’s former glory is a total management change. Get rid of Devin Wenig and his team. Brian Burke director of community development is another who is alleged to be hurting the brand name by attacking former sellers like myself who out eBay corporate wrongdoings.
These coding issues should be corrected immediately. Here’s a few examples!
- Non Existent Former Subdomains Hemorrhaging SEO Backlink Juice: Site changes have left these two subdomains unlinked from the sites DNS wasting oodles of previous back-links that could bring in sales. Even a hobbyist like Doc knows dead links are a no-no for serious webmasters.
- Why Are eBay Stores Redirecting To Home Page: When browsing a webpage on my smartphone then clicking a link to view a sellers eBay store i was redirected to the home page. I’m wondering why this happened? The same link clicked on a desktop pc went to the store like it should.
- Non Responsive eBay Site Pages Obsolete Hurt Sales: Recently when reading a blog post on my smartphone, I clicked to view a sellers eBay feedback and was shocked the page was not mobile friendly. The feedback page was nearly impossible to read unless flipping my phone sideways.
There’s 15 years of eBay observations published to date. eBay has literally screwed their golden goose to death. It started back in the early to mid 2000’s with European scammers selling non existent used cars at unbelievably low prices. When the trust and community values started to fade because of fraud, bad management and inept policies such as letting buyers screw sellers and other idiotic policies did eBay in! 😥
In this video I talk about some of my eBay experiences. The hacking and the still ongoing smear campaign where trolls were allegedly hired to smear my stellar eBay feedback into the ground. It’s the thanks i got for warning car buyers about fraud!
Have questions? Comment below or on my forum. 😉