EBay’s network has a limit

By Om Malik | Saturday, March 5, 2005 | 7:19 PM PT | 0 comments |

Nearly two months ago I had posted that EBay network might have an outer limits, and the reason they keep on increasing the charges for their service is that they know they have slow growth days ahead of them. In many more words, The New York Times reconstructs problems facing EBay.

Even so, others in the eBay universe are convinced that the company has a far bigger problem on its hands than it is willing to acknowledge. They include many longtime sellers and Wall Street analysts, long bullish on eBay, who now say they are uncertain about the company’s ability to sustain its torrid rate of growth. As they see it, Newtonian physics may finally be catching up with eBay after one of the most magical rides ever for the stock of a young company. For months, sellers have been fulminating over a long list of complaints, from fraud to fewer bidders per auction and lower selling prices to poor service from eBay.

Intrestingly, Business 2.0 had done a story (The World According to Ebay) on why EBay so desperately needs to grow overseas or face stock market reality check. Good to see we are getting to big stories first.

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  • [...] Anyway this deal brings up all those issues I have been talking about for the longest time – their looming battle with Google, and the limit of the eBay network. In other words, two issues which hover over future growth like monsoon clouds. In VoIP (the New Phone) Posted Thursday, September 8, 2005 at 7:57 AM PT [...]

     
  • [...] Ekype sBay Since yesterday afternoon the blogosphere is buzzing heavily with skype – ebay deal. Thousands of blogs/thoughts are pouring out their thoughts on this one. Here is my post which is Echo_Into_The_Blogosphere_Chamber++ “the limit of the eBay network has been reached & now they need a technology solution that is custom tailored to the performance-based marketing niche–one that allows merchants to pay for calls” Om Malik “There are two conveniently located stones under which to look: transaction revenue, and the freefone number business” Martin “This is great news for those in the Media/Web 2.0 space – valuations just got seriously amplified (and validated again) by the market ” Umair [...]

     

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