Can eBay Auction Off Its Laurels?
from the leaping-twenty-foot-chasms-in-two-ten-foot-jumps dept
The luster on eBay continues to fade. As mentioned in Bambi Francisco's pessimistic long view on eBay, eBay's traffic has been on the decline for 9 consecutive months, according to ComScore. EBay is in a tough spot. Tough competitors lie in every direction: Amazon and Overstock are mounting a frontal assault with their own p2p auctions while Google and Yahoo quietly build marketplaces and drain talent away from eBay. Faced with the spectre of decline traffic and revenues, eBay raised their rates for their sellers, angering one of the most vocal groups of eBay loyalists. Though not all sources indicate declining traffic (Alexa, for example), eBay is feeling the difficulty of sustaining continued growth infinitely. EBay's operating income is almost twice that of Yahoo and Google; however Yahoo and Google have comparatively diversified revenue streams and opportunities. EBay needs to show that it can grow its revenue without simply trying to fleece their loyal seller base. EBay has not launched or acquired anything of note in the past few years (launching Craigslist clones don't count). Then again, maybe eBay is just resting on its laurels -- a business that makes over $1B in operating income a year is not too shabby.