eBay Users And Shareholders Clash Over Management
from the on-the-(chopping)-block dept
It’s no surprise that as the chorus of complaints about eBay has grown louder, the company is in the midst of a major slump in its stock price. These things are bound to go together as the company’s financial health is based on that of its buyers and sellers. And many of the sellers’ complaints go right at the core issues facing the company. Multiple sellers have noticed, for example, that they must list items many more times to get them to sell than they needed to a year ago. In turn, sale prices are on the decline as well. And while it’s usually shareholders that agitate for management changes, in this case, the company’s merchants are calling for changes at the top. This puts the company in a unique quandary. Most companies don’t have the same classes of stakeholders. Yes, companies have customers to satisfy in addition to shareholders, but customers rarely care about management. And if customers stop liking a product, they can go elsewhere. That’s not (yet) the case with eBay users. Obviously, shareholders are frustrated by the company’s performance of late, but in a time of difficulty, changing top brass might only add to the uncertainty. Considering that a growing number of internet companies are predicated on handing control over to the user, a la eBay, how the company handles this dilemma will be an important case study for others to watch.