Is John Donahoe Finally Turning eBay Around?

48 Comments

Is any tech CEO more reviled by his or her own customers than eBay’s (s ebay) John Donahoe? In online forums, sellers seethe about the higher fees and site changes he’s implemented. They write and sign petitions calling for his ouster. Even eBay employees voted him onto Glassdoor.com’s “Naughty List” of CEOs with the highest disapproval ratings.

But while just a few months ago, Donahoe seemed destined to steer the e-commerce giant into irrelevance, a consensus is now starting to emerge that he may instead be turning it around. Investors have driven the stock up 71 percent since it hit a 52-week low on March 9, compared with a 44 percent rise in the Nasdaq. Collins Stewart analyst Sandeep Aggarwal said last week that he sees “many evidences of turnaround” at the company. And the ever-volatile Jim Cramer rebuffed viewer demands to put Donahoe on his gimmicky “CEO Wall of Shame,” saying the stock could rally further.

ebayvsnasd

Most of Donahoe’s changes are small but significant, in that they go a long way toward safer, easier shopping. For example, Aggarwal estimated that more than half of the items sold on eBay are now available for free shipping, up from less than 10 percent last year. “Free shipping” is important as it’s a phrase that generates higher conversion rates in online ads. eBay’s own search engine now promotes more reliable sellers. Recent fee changes have, by Aggarwal’s count, increased the number of listings beyond those found on Amazon. Perhaps most encouraging: Donahoe has finally come up with a coherent description of the new eBay: It’s not Amazon (s amzn), or even Overstock.com (s ostk). It’s an online big-box discounter, like Costco (s cost).

Other parts of eBay’s cluttered corporate structure are being addressed as well. Donahoe sold StumbleUpon back to its founders and is mulling the retirement of the Kijiji classified site. Skype is gathering enough momentum to allow for a sale or spinoff at a respectable price.

Strategically, much of these changes make sense, but it’s not clear to what degree they’re resonating, especially with consumers. Quantcast data suggests weekly traffic to eBay continues to erode relative to Amazon’s. And comScore’s data from April, the most recent available, showed a 15 percent year-over-year drop in eBay traffic — although that’s a slight improvement over the 20 percent declines logged in both February and March.

ebaytraffic

Even if the changes work, they don’t address what may be the biggest challenge to eBay’s future: Craigslist. Yes, eBay owns a significant stake in Craigslist. But Craigslist’s for-sale listings, which are free to post, still compete with eBay’s fee-based listings. During the last recession, people looking to raise quick cash by selling their stuff turned to eBay. This time, they turn to Craigslist.

If Craigslist wanted to kneecap eBay, it could find a way to make its for-sale listings nationwide, not just locally, and facilitate shipping arrangements. There’s no way eBay’s fee-dependent revenues would be able to compete with free. That would make the challenges John Donahoe faces today look small.

48 Comments

Rip

EBay policies caused me to quit selling even before Donahoe came along. Donahoe only finished putting the rest of the nails in the coffin.

Ask yourself this. Why is Donahoe dumping so much of his eBay stock on an automatic sale? Go to Yahoo and check the insider trading and you will see the latest dump was on 12/29/10. In the not too distant future I fully expect this guy will disappear abruptly.

JR

As an eBay PowerSeller for over a decade, with millions of dollars in sales, I can tell you that the situation at eBay is getting worse, by the day. Each morning brings new outrages, and sellers of almost every kind are getting fed up, to the point of no return. Thanks to Donahoe, today fraudulent buyers hold massive sway over all but the largest sellers. Their small numbers are hugely magnified, since Donahoe has removed any consequences for their actions with his insane “no negative” policy. This alone should give any competent analyst pause for optimism regarding eBay’s long-term health, since it flies in the face of common sense. On the other side, buyers too are fed up, since eBay is indeed much like the Mafia, facilitating seller fraud, protecting shill bidders, stalling for time, spinning the data, etc. As Phil Cohen has pointed out, integrity does matter, and when the entire system loses credibility, people will not play anymore. What should really sober up the analysts is the fact that the high level of seller dissatisfaction is a ticking time-bomb. Make no mistake, eBay is literally at risk of total COLLAPSE if virtually ANY credible alternative to eBay should emerge. How many realize that it is generally agreed, and now completely embedded in the eBay seller culture, that the “minute” Google, or MicroSoft, etc. decide to seriously challenge eBay, sellers will jump ship en masse? Overnight, eBay could implode. Analysts, get with the program! This is incredibly significant over-hang on the investment, and it needs to be taken into account. No exaggeration, even one minor announcement from a big contender could literally send the eBay stock price into a tailspin.

To contact me, please see my blog.
gatheringstormsahead.blogspot.com

eBuster

Sorry it posted twice.

Brenda

See the ‘Matrix’
www,ebuster,co,uk/Matrix/Matrix.aspx?SellerName=girlbiker51

your 100% clean but now try
www,ebuster,co,uk/Matrix/Matrix.aspx?SellerName=mehmet2013
and then ask eBay why they have a problom with you and not this gang.

makes me so angry hope you sort it out.

eBuster

Having been scammed myself on eBay to the tune of £3850 and discovering that eBays first reaction was to hide data and to then play along with the Birmingham Trading Standards, buying time hoping that none of the data relating to a serial scammer would be available to the general public from place like Google cached pages or GoofBay for more than a few months, I set myself a mission and that was to ensure this never happened again if I could help it.

Well that was some sixteen months ago and since then I have amassed terabytes of data which enable me and a few friends to run off daily financial reports which often turn up irregularities and eBay response when challenged about the figures is to present a wall of silence and to delete any forum posts made as soon as these figures are mentioned.

eBay has so many conflicting figures such as the 233 million world wide members it says it has and you will find that number published all over the place but if you look carefully at other eBay official documents then you discover much more realistic figures and eBay claims in much smaller print that they only have 14 million members in the UK and since eBays US market is only slightly larger than the UK market then even by eBays standards you are left looking a figure somewhere in the region of 30 million and yes I can confirm the figure to be slightly higher if you include anyone that has brought or sold anything during the past 12 months and you also go on to include everyone listed on the first page of feedback for each active member, then sure you can creep above the 35 million figure if you try even longer than I have been counting the numbers.

In reality the true number of active members is much lower than this because eBay is now awash with scammers buying and selling feedback on a massive scale, gangs from China who conduct millions of fake transactions before unleashing themselves onto the general public and that’s before you investigate bidding history on just about any item that has more than ten bids only to discover most the hidden bidders are new, have little or no points as indicated by yellow stars or no stars at all.

Mathematically it’s reasonable to assume that if half the bidders have been with eBay for six months or less then eBay figures would need to be revised down by a factor of 50 percent which bring this once dominant player down to size and this figure is backed up if you consider the amounts reported by eBay for tax purposes even whilst hiding behind Swiss bank accounts and having offices in countries where labour is cheap and laws are somewhat more unpredictable.

Many of EBay’s sellers are quite happy and the reason is simple, it’s because they are not shifting the goods and making a profit like they were able to do a few years ago and to rub salt in the wounds eBay has been treating them with what only can be described as utter contempt.

Watching eBays figures is really a sideline to my main task of catching scammers but as part of the process I been involved in the process of capturing the points, feedback and listings for much of the past year which enable myself and others to monitor the Actual Sales Ratings (ASR) of all the sellers based over a long period of time and I freely admit we have some very good results especially with one (Can not mention names) of the top sellers achieving an ASR well over 50% most weeks with many Buy it now (BIN) selling several time over however these type of sellers are far and few between and the vast majority of big sellers are doing well if they achieve much more than a one percent ASR whilst the smaller sellers tend to do much better and I except this really is quite a bold statement to make, that is if you don’t have the data to back this statement up however anyone including eBay is quite welcome to view the data at eBuster,co,uk for free.

Sorry I nearly forgot to throw into the equations ten of thousands of member names that have been replace by 16-40bit globally unique computer generated numbers (GUID’s) that you may have noticed whilst viewing feedback that look similar to this 12a60c4ae456902da48213345a334b2b33a34533 or the accounts that are ‘No longer a registered User’ NARU

It would not be fair if I didn’t confess that due to technical difficulties with internet connections, eBays servers going slow, or hard drives becoming corrupted that a very small percentage of the data has been missed now and then but I must point out that this small discrepancy only increase the ASR for sellers and have little to no impact on the number of recorded active members.

Outside of eBay I suspect I am one of the few people able to throw any light on the mystical figures repeated all over the internet and my own personal prognosis is something akin to a sinking ship but of course I could be wrong as could be a peer review of these figures so maybe someone with closer connections to eBay should ask eBay to come clean with verifiable numbers and not leaked reports put out by one of the many gatekeepers sites only to be repeated by another ten.

members from the free press are welcome to check this out.

eBuster

Having been scammed myself on eBay to the tune of £3850 and discovering that eBays first reaction was to hide data and to then play along with the Birmingham Trading Standards, buying time hoping that none of the data relating to a serial scammer would be available to the general public from place like Google cached pages or GoofBay for more than a few months, I set myself a mission and that was to ensure this never happened again if I could help it.

Well that was some sixteen months ago and since then I have amassed terabytes of data which enable me and a few friends to run off daily financial reports which often turn up irregularities and eBay response when challenged about the figures is to present a wall of silence and to delete any forum posts made as soon as these figures are mentioned.

eBay has so many conflicting figures such as the 233 million world wide members it says it has and you will find that number published all over the place but if you look carefully at other eBay official documents then you discover much more realistic figures and eBay claims in much smaller print that they only have 14 million members in the UK and since eBays US market is only slightly larger than the UK market then even by eBays standards you are left looking a figure somewhere in the region of 30 million and yes I can confirm the figure to be slightly higher if you include anyone that has brought or sold anything during the past 12 months and you also go on to include everyone listed on the first page of feedback for each active member, then sure you can creep above the 35 million figure if you try even longer than I have been counting the numbers.

In reality the true number of active members is much lower than this because eBay is now awash with scammers buying and selling feedback on a massive scale, gangs from China who conduct millions of fake transactions before unleashing themselves onto the general public and that’s before you investigate bidding history on just about any item that has more than ten bids only to discover most the hidden bidders are new, have little or no points as indicated by yellow stars or no stars at all.

Mathematically it’s reasonable to assume that if half the bidders have been with eBay for six months or less then eBay figures would need to be revised down by a factor of 50 percent which bring this once dominant player down to size and this figure is backed up if you consider the amounts reported by eBay for tax purposes even whilst hiding behind Swiss bank accounts and having offices in countries where labour is cheap and laws are somewhat more unpredictable.

Many of EBay’s sellers are quite happy and the reason is simple, it’s because they are not shifting the goods and making a profit like they were able to do a few years ago and to rub salt in the wounds eBay has been treating them with what only can be described as utter contempt.

Watching eBays figures is really a sideline to my main task of catching scammers but as part of the process I been involved in the process of capturing the points, feedback and listings for much of the past year which enable myself and others to monitor the Actual Sales Ratings (ASR) of all the sellers based over a long period of time and I freely admit we have some very good results especially with one (Can not mention names) of the top sellers achieving an ASR well over 50% most weeks with many Buy it now (BIN) selling several time over however these type of sellers are far and few between and the vast majority of big sellers are doing well if they achieve much more than a one percent ASR whilst the smaller sellers tend to do much better and I except this really is quite a bold statement to make, that is if you don’t have the data to back this statement up however anyone including eBay is quite welcome to view the data at eBuster,co,uk for free.

Sorry I nearly forgot to throw into the equations ten of thousands of member names that have been replace by 16-40bit globally unique computer generated numbers (GUID’s) that you may have noticed whilst viewing feedback that look similar to this 12a60c4ae456902da48213345a334b2b33a34533 or the accounts that are ‘No longer a registered User’ NARU

It would not be fair if I didn’t confess that due to technical difficulties with internet connections, eBays servers going slow, or hard drives becoming corrupted that a very small percentage of the data has been missed now and then but I must point out that this small discrepancy only increase the ASR for sellers and have little to no impact on the number of recorded active members.

Outside of eBay I suspect I am one of the few people able to throw any light on the mystical figures repeated all over the internet and my own personal prognosis is something akin to a sinking ship but of course I could be wrong as could be a peer review of these figures so maybe someone with closer connections to eBay should ask eBay to come clean with verifiable numbers and not leaked reports put out by one of the many gatekeepers sites only to be repeated by another ten.

John

“Sales are down as a direct reaction to policy changes for sellers. I am a powerseller and my sales are down 70% since the changes last month.”

As you can see your not alone in the least

Philip Cohen

eBay: Dead Man Walking

All these analysts must be having their opinions programmed directly by eBay’s Department of Spin. Gentlemen, stop kidding yourselves, the eBay marketplaces are continuing their journey down the toilet, period! And undoubtedly that will be reaffirmed, once again, on Wednesday. Well done John!

Let me then cut straight to the chase with a simple statement from an ex regular eBay user’s point of view: eBay (aka “the eBafia”) is a criminal organization!

How could that be, you ask? Well, with some effort and some multi-auction analysis, it can be very clearly demonstrated (see the below link) that shill bidding fraud by unscrupulous professional sellers, at least on nominal-start auctions, is rampant on eBay auctions, and the executives “in the know” at eBay, unless they are actually as stupid as they apparently think all we simple consumers are, cannot but be aware of that criminal activity. And yet they do nothing proactive nor truly effective to prevent such criminal activity—indeed, they have done the very opposite, they have introduced a non-unique masking of bidding IDs, which serves no material purpose other than to further obscure such criminal activity and aid and abet said unscrupulous sellers to, by fraudulent means, maximize their sale prices, thus maximizing eBay’s FVF. (It’s even worse in the UK, where buyers have got absolutely no chance of detecting the unscrupulous professional sellers that infest eBay auctions.)

It’s called “criminal facilitation” and, in most civilized countries, anyone who knowingly facilitates such criminal activity is also considered to be a criminal. It’s as simple as that! Is it any wonder that buyers are staying away and this business is now going down the toilet?
http://www.auctionbytes.com/forum/phpBB/viewtopic.php?p=6502877

PayPal is a banking-type service, a service that would be more competently carried out under the auspices of the banking community via their credit card company partners. Without the bankers’ knowledge of the entities involved in the transactions, PayPal will always be handicapped—even more so while under the management of such incompetents as those who currently control eBay.

The head turkey at eBay, “Noise” Donahoe, will occasionally talk of the possibility of selling off PayPal because he is just barely smart enough to know that when the major credit card companies do get off their butts and introduce a like card/terminal-less payments system to complement their credit card system, they will do it properly, and the “clunky” PayPal will then sink like a stone—other than, possibly, on what is by then left of the Donahoe-ever-shrinking eBay marketplace.

From an ex buyer’s point of view, an introduction to an introduction to the full sad story at
http://www.auctionbytes.com/forum/phpBB/viewtopic.php?p=6503466

Brenda

Please – Will ANYONE HELP US – PLEASE JUST READ

Hello, My Name is Brenda Rankin eBay ID girlbiker51. I have been a eBay Seller since Sept of this year. Have a 100% Perfect Score, My Bill Always paid, As Quoted by eBay in their personal Rating of me is

“ABOVE AVERAGE”. I just open My Own Combination Neighborhood Ebay Store / Collectibles / Antiques / Surplus. I was Going Like a Rocket, Gaining New Customers Daily from simple housewives to Local Politicians. They would bring ALL Kinds of Stuff for me to List and Sell For them on Ebay. I am 51 yrs old, disabled and my husband is Terminal with Advanced Progressive C.O.P.D. and Heart Disease. This is our ONLY Source of Income. Things were going Great until 7 Days Ago. Suddenly WITHOUT ANY WARNING – EMAIL – PHONE CALL – LETTER or even a MESSAGE Left in my Message Box on Ebay, Everything Came to a DEAD STOP!!! As I was Creating a New Ad and Ready to Submit, I get this note as follows, (actually copy) –

We regret to inform you that your eBay account is prohibited from listing additional items at this time. In order to maintain a safe trading environment, selling limits are occasionally placed on accounts. This selling limit is in no way meant to question your record with eBay or standing within the eBay community. To resolve this situation, please contact eBay’s Safe Harbor Department using the Webworm on the following help page.

We sincerely value you as a member of our trading community and look forward to a continued successful relationship. We appreciate your cooperation in resolving this matter as quickly as possible. {e25288-141474x}

I have sent over a Dozen Emails and Phone Calls to Ebay Asking Why, What Is Wrong, and How Long. For SEVEN DAYS (7) I have yet to receive an answer form ANYONE!

I Have NOT Broken a SINGLE RULE, Not A SINGLE COMPLAINT, Bills All UP TO DATE, Credit Card and Checking Account. I have been investing a LOT of Money Daily getting ready fro the Holidays. My Customer Base was Increasing 3 fold weekly. And Now, we are LOOSING Everything We Have. Besides the Fact I have Lost The RESPECT – TRUST and CONFIDENCE from My Area and Old and New Customers alike. They don’t and won’t believe me when I try to explain I have done nothing wrong. In all my life I have NEVER Been so Humiliated, Disgraced, Shamed and Disrespected like this.

And the Two WORSE Part is, For One, Did Nothing Wrong to Deserve it, Two, No One Warned me and Now for 7 Days of Pleading, Asking and even Begging, for a Answer and or Response, Still Nothing to this Date and Time of Oct. 14, 2009 4:00 pm est. I ask as Humble as I know how, PLEASE, WILL SOMEONE Hear and Listen To My Cry for Help and Seek out Why I have been done in this matter and will I ever be allowed back to Sell Again? We are now preparing to Sell Everything we own and move from the area. We are in Total Disgrace and Without Any Other Customers. This act of Ebay, has Literally DESTROYED Us and Our Business in 1 week. Please, Help. Brenda Rankin at bikerbrenda51@hotmail.,com

Ryan

I run my own business on ebay, and my brother runs one too. My father also has an account on ebay. we all live in a building with provided internet. Ebay has suspended my account and refuses to tell me why. They told my borhter that his account is linked through finacial information to another account but won’t tell him how. They told my father that all he had to do was pay the fees that he owed. Fees that Paypal would not let send to ebay for over six months. after he fought with ebay for a montha and a half paypal finally released his fund to him (over $1500 that was illegally held) after paying his fees they then removed him as a seller and closed his store down. My borther and I are still suspended with no expination and for no reason. We both have %100 5 star possitive feedback rating.

Ebay is nothing but a buch of lying thugs. I recomend you leave while you still can. There are many other sites that offer the same survieces one that I would recomend is onlineauction.com I am not curently selling on there but trust me I will be if I don’t see some drastic changes soon.

Steve Tate

wait and see what the 4th qtr earning are for 2009. sales are plummeting now due to donahoes top rated seller county fair badge program. Its going to be dismal. then we will see a spike up for the first qtr 2010
due to minimal 20% discounts on final value fees from ebay. come jan.2010 there will be many less top rated sellers ” who get the 20% discount” than there are now April ends the 20% discount for powersellers which will raise the earnings report for the 2nd qtr. SO all earning reports for the first half of 2010 will be artificial. F**cking donahoe is pulling the wool over ebay stockholders. I dread to see what he is going to do to the sellers come 2nd half of 2010; If ebay is still breathing.

NYM Arts

I used to sell my invention on Ebay.
I found this page (Blog) by punching in “Donahoe Ruining Ebay”.
I can’t imagine it getting any worse.
The Good Ole Days on Ebay……..a Very Fond Memory……We had Good Times…..Met alot of Wonderful people.
I just can’t believe it’s All Gone.
How could they have let this happen ?

Jim

As always, statistics have been used to create false truths and half/truths. So, you get a stock that was 40.73 (2 short years ago) and then drop it to 9.91 in less than 2 years. Then the stock recovers to a paltry $17.00 and people are calling John Donahoe a success (currently $15.99)! Now that is funny. Lets look at the stats another way and say that they have devalued more than 150% since John Donahoe took over. Pat that guy on the back will you. You have to laugh at experts who know nothing of what they speak. They try to influence people into believing rubbish. Buy some rubbish now, it’s all over ebay…and it’s cheap too!

Bob B

As a long term seller (and buyer), we are now officially leaving ebay for other, friendlier venues.

Donahoe does NOT have ebay on the upswing. Rather, his changes have done nothing more than focus on making the numbers look good to wall street, all the while allowing the foundation to crumble. He’s playing a shell game, and eventually all shells will be empty.

RicRoe

@ Bob

Best of Luck in your post eBay experience. You are joining a group that seems to be expanding every day.

eBay is goinf to face the fruits of their labors sooner or later. One look at sellerdome.com details the exodus of long term, formerly successful sellers.

Last time I looked at the statistics for the top 100 USA sellers as shown on sellerdome, fully 28% had either become NARU or had zero items listed. You can see the exodus of sellers clear as day when you consider that eBay has lost more than a quarter of their top sellers from that list.

When the biggest successes find that it is no longer profitable to remain associated with eBay, then it is even more obvious why smaller sellers and millions of buyers have walked through the exit door which John Donahoe so kindly holds open.

Fees increase, sellers pull out taking unique merchandise listings with them, buyers can not find what they are looking for and stop purchasing. eBay volume has been in steady decline while at the same time, Amazon and other sites see double digit sales increases.

Somehow, John Donahoe is considered to be turning eBay around.

Ponderous…but maybe not.

If the definition of turn around is to reverse course and become the opposite of what it once was, then maybe, yes, Mr Donahoe can be considered to be completing a turn around.

J SToker

So now if someone should want to come along and start a new ebay that is now what ebay once was, I wonder what sort of profit could be made from it.

Tita

As others have said, they lost their identity. If you want knock offs and brand new junk and hundreds of listings showing the same stock photo, there’s always Walmart and the dollar stores. The Amazon Lite approach is failing miserably. Endless search “improvements,” slow loading new pages and bizarre feedback policies have certainly curtailed activity.

Many of the best sellers, big and small alike have found that they can have have their own websites without the hassle and with more than one payment option. I really used to enjoy it, strange feedback and crazy packing methods and all. Now it’s too much like work.

Paul

It is up 71% to the 52 week low that occured roughly 1 year into Donahoes tenure following a big plunge. The stock is actually trading at approximately half what it was prior to his massive disruption campaign. So he hasn’t even recovered the ground he lost yet, why is everyone in the financial community applauding?

YES!

THANK YOU!

These contrived financial reports and analysis piss me off!

Donahoe has RUINED eBay, not turned it around!

permacrisis

Person to person buying and selling was what put ebay on the map. Ebay was the everyman’s web presence because your item was all that mattered. You werent judged on how much money you had preloaded into your paypal account, how many $$$ you ate on your shipping, or any of the other wacko spaceshot policies dreamed up by non sellers.

The bare-bones ebay concept is still a great idea and I hope the smaller competitors start to merge. It would be a dream come true to see a YahooAuctions-style company appear and give ebay a good dropkick. Or have napster-like auctions between computers, with no centralized host site. (This was under development in the late 90’s- ebay STAMPED it out.)

Not every seller is a business, but all have some nice items to offer. I just hope it’s not too late for person-to-person sales on the internet.

Trixie

I completely agree that person-to person buying and selling is what made eBay a friendly and fun online market, but oh how times have changed. In addition to soaring listing fees, final value fees and PayPal fees, eBay has done its sellers a huge disservice. eBay’s newly implemented Detailed Seller Ratings (DSRs) have left every seller at every buyers’ mercy. Sellers no longer have the opportunity to leave negative feedback for buyers and trust me – some buyers are just looking for an axe to grind. While I have never received a complaint and my DSRs are solid, I haven’t sold anything on eBay for the last three months because I decided to focus on my creative efforts instead of selling my personal collectables. As a result, eBay “docked” my last three transactions from my overall feedback. Instead of having 62 zippy little gold stars on my “number of ratings,” I now have 59. I won’t bore you with the details of eBay’s explanation, but suffice it to say, I have been penalized for my absence on eBay. I’ve been a seller since 1999 and I am furious.

The only good thing I can write about Meg Witman is that her eBay email address was formerly available. John Donahue’s email address is being protected. From little old me? eBay has crushed more than one small business owner and I hold John Donahue responsible.

I live in California and the while what is going on with eBay anger me, the thought of Meg Whitman possibly being our governor is terrifying!

Former eBay buyer

John Donahoe has succeeded only in destroying the main reason I shopped at eBay in the first place: Unique, one-of-a-kind items, and rare/vintage stuff. He’s focused totally on “new new new,” and all that’s left are junk sellers importing crap knock-off stuff, and DVD’s — both of which are better purchased elsewhere. All my favorite sellers have left, and the influx of “clearing out the garage” folks — which is where i used to get MANY of the items I bought there — seems to have decreased as well. eBay should be doing GREAT right now with the recession, but they’re flailing because Donahoe wants to remake something ugly that works into something “new” and shiny, that sucks. I think it’s past the point of no return at this point. The emerge a completely different entity, and much less valuable, like Borland did when it tried “reinventing” itself in the 90’s.

Yeti_Forest

I am abandoning ebay for good starting from today. Can you believe they antagonised me 4 times in a month for various reasons?? It seems they are weeding out ALL the smaller sellers. I am sending mails to all my past ebay clients to tell them I moved now! I am not angry, I am MAD! Mad enough to give up 4000+ good feedback reputation. They just do not welcome my company at all!

RicRoe

John Donahoe wants Costco like bargain hunters. JD fails to realize that eBay once had these buyers by the millions.

eBay has been alienating these buyers in huge numbers starting back as early as 2005. It’s no coincidence that the alienation started just after JD joined eBay as President of Marketplaces.

System changes, policy changes, faulty search methods, huge fee increases, and poor implementation across the board have all served to combine and push buyers and sellers away from eBay in record numbers. Now, JD wants them back….Go figure.

In just over a year since formally taking over as CEO, JD has claimed to have one answer after another to bring eBay back. Each has failed to produce results so he rolls out another and it fails.

When will he realize that futility is the act of making the same mistakes over and over again yet expecting a different result?

First it was Diamond Sellers, results – none.

Then it was to mimic Amazon, without all the things that makes Amazon a success, another failure.

A few weeks ago, the latest salvation was going to be liquidators.

And now, eBay wants to be Costco.
.
Sooner or later, when JD runs out of schemes and business models to poorly imitate as he continues trying to bamboozle shareholders into thinking he has a solid paln, he will get around to the one that has been staring him in the face all along…. Let eBay be eBay by returning to its roots.

JD needs to stop giving speeches to other organizations and instead, communicate directly with his remaining users.

Maybe JD should take a page out of Auctiva founder and CEO Jeff Schlicht’s playbook, and publicly apologize to buyers and sellers.

Apologize for dismissing and ignoring complaints from buyers and sellers, and for referring to them as ‘noise’.

Apologize for systematically destroying the sense of community that was the cornerstone eBay was founded upon.

Apologize for all the poorly thought out changes and all the horribly implemented system revisions.

Apologize for and roll back the massive fee increases which have alienated sellers, driven up prices, and motivated buyers to find real bargains on other sites like Amazon.

The answer has been staring JD in the face all along, but he has been to arrogant and refuses to see it.

Try something new – turn eBay into….well… eBay.

Tom

John Donahoe has implemented changes to Ebay that have totally ruined my buying experience. He has insulted all customers publicly and the “new” Ebay treats customers terribly. I no longer buy there. I take my money somewhere else.

Timebomb

Well said RicRoe…

Truly eBay is now a ship without a captain, rudder or sail…eBay management has no clue as to the direction eBay needs to go.

All of John Donahoe’s “magic” has been done with mirrors to fool Wall Street and the Investors..JD talks out of both sides of his mouth…He has lied about the true health and vigor of eBay and cooked the books to make eBay appear healthy….

There needs to be a full investigation by the Wall Street governing board to review the stock sales of Meg, Pierre, and other top management from 2007 to present..Insider Trading was obvious – Meg and Company knew that the Jan 2008 John Donahoe roll-out was going to tank eBay, and they were right!…..there should some eBay principals be paying the same penalty to society that was forced upon Martha Stewart for stock manipulation…Jail time!!

Read this blog for unbiased true picture of where eBay is at present…. http://ebay33ebay.blogspot.com/

Gwen

eBay is going the way of the dinosaurs…..extinct…I have bought and sold on eBay since 2000, and this year is the worst year on record for sales. I am lucky if I get one sale per month. Dispicable isn’t it? The category I list in generally has oodles of listings and bidders galore that produced record high final end prices. Now, forget about it. The bottom has dropped out, and I am packing it in. Since Donahue took over, it’s been nothing but bad news bears. Don’t hold out for a turnaround with him at the wheel. He’s on a collision course and he’s taking you all along for the doomed ride. Get out while you can people! It’s time to move all your eggs into another basket or two. Forget about FeePay once and for all!!!

Roman Berry

Lessee here…

eBay traffic? Down and still trending down for months on end.

eBay profits? Not bad, but coming at the expense of things like 21 day holds on PayPal withdrawals by sellers (huge float to draw interest there), increased fees and just generally the generation of a lot of ill will among all but the largest sellers.

Evidence of turnaround? Apparently the stock price. And what does the price of a stock really tell us? I submit that except in the case of a company in severe distress, it tells us nothing more than stock investors still move in herds.

eBay turning around? Ya know, from my perspective as a small occasional seller there in days gone by, the answer has to be a resounding no. eBay has well and truly lost touch with its roots. It’s on the way to doing what all corporations seem to do eventually and that is utterly forgetting who they are, where they came from and what it was they originally set out to do.

Turning around? No. A blip in the stock price? Sure.

jd

People who think Paypal tries to increase float in order to earn interest income are morons.

Roman Berry

That’s what I call a nice, reasoned argument, especially when that isn’t even what the post you are responding to says. None the less, it doesn’t take a genius to figure that when you hold money from a massive number of transactions, even when those individual transactions may be small, that the float is in fact quite a considerable sum.

I won’t get into labels and name calling. As a general rule, I find that people who resort to that sort of thing right off the bat do so because they have no real argument to make. YMMV.

Patricia

I have read that the “float” on that held up money is upwards of 40 million dollars a year and that does not include the new “rolling reserves” that also holds back sellers’ money. They now say that 40 figure has probably doubled! Paypal, not under banking regulations, can do as it darn well pleases…and that’s just what Ebay is making it do. I can tell you I’ve had a Paypal shopping cart system on my website for many years and they do NOT act the way they do in Ebay transactions! On my website, I am Paypal’s customer and I’m treated with respect – on Ebay I’m just one of the herd to be milked for as much revenue as possible!

Yuvamani

Interesting to see that you think Craigslist is the impending threat not Amazon. Craigslist website is awesome for what it does. Though a national craigslist seems improbable. Craigslist would need to have merchant reputations ( Right now everyone who is not an abuser is assumed to be good) , Change search and add browse. All together it would ruin what craigslist is .. And seriously why would you use craigslist if the chances of fraud are much much higher

Michael Levit

Although the eBay stock is headed north, it has less to do with the core marketplace and more to do with the simplification of the corporate structure. Amazon’s third party sellers are growing >30% YoY while eBay is shrinking (albeit single digit points)… As eBay has raised prices and changed their algorythm, they have pushed out the great deals and the fun from their marketplace making a collision with Amazon inevitable.

Patricia

Well, you can listen to the guru’s like Jim Cramer (who just a couple of months ago called ebay that “hapless” company) you can look at your mysterious figures. Down in the trenches the sellers will tell you a different story and so far that story has been upheld by the declining last two quarters Ebay reported! Before January, 2008 I had my sights set on powerseller status – which is difficult because I make everything I sell. Business was good – money was rolling in for me. 2008 was the big turning point for small sellers. I’ve sold only 11 items in the past month and my last 3 items are sitting stagnant with only ONE view between all three in the last 24 hours. Is it me? No…go to the discussion boards and you will see the same complain all over. Read the comments threads on articles and you’ll see it again and again. How Ebay is hiding this is beyond me. They are masters of only ONE thing – manipulation of figures to present them in the very best light and to hide the rot underneath. So….at this point I can only see Ebay turning more and more to failure. They lost tons of buyers because most of Ebay’s buyers are also sellers – a fact they keep on ignoring. I see failure for Donahoe and its well-earned.

Should Donahoe ever be able to dismiss most of its sellers and turn into a cheap Amazon clone there is still one fact they don’t understand. They’ve lost the reputation they once had – they’ve become the most hated company on the internet and they won’t outlive it. Thousands upon thousands of sellers who were put out of business will continue making “noise” and using word of mouth will see to that!

10+ year constant Ebay seller.

Matt

“Before January 2008 … money was rolling in for me … [but] I’ve sold only 11 items in the past month”

Have you ever heard the word ‘recession’ said?

John

Sales are down as a direct reaction to policy changes for sellers. I am a powerseller and my sales are down 70% since the changes last month. NOT RECESSION! Donahoe is trying to turn eBay into an Amazon; they do not care about the seller they make changes without providing a bulk edit platform that works in hopes that the masses will just let GTC listings relist and absorb the rate hike. A real example… a listing last month that cost me $0.35 this month would be $1.85, who has time to go line by line and edit hundreds or thousands of listings so you simply end the item, eat the rate hike or join the ebay exodus. Ecrator here I come. No more Monopoly; I could see the writing on the wall when they sent me an email stating that I could only accept ebay owned Paypal payments.

Ebay PowerSeller and sometimes PowerBuyer.

Mr.Dumont

“They lost tons of buyers because most of Ebay’s buyers are also sellers”

An excellent point that I am writing into a paper on the subject for my MBA. I came to this site as it was quoted in my e-commerce textbook. The general idea of my paper will be that Ebay is so busy trying to become Amazon.com and Craigslist that they forgot who eBay is and who their customers really are.

Philip Cohen

Don’t forget to include a few chapters of eBay’s blatant criminiality: their deliberate, planned, facilitating of shill bidding fraud on unsuspecting, trusting buyers.

In the meantime, for anyone seriously interested in the utter incompetence and deviousness of eBay’s executive management generally, and in particular eBay’s deliberate and demonstrable criminal facilitation of the rampant shill bidding fraud being perpetrated on unsuspecting buyers, by a great many unscrupulous professional sellers via nominal-start auctions, an introduction thereto (along with some PayPal horror stories thrown in for good measure) can be found at http://www.auctionbytes.com/forum/phpBB/viewtopic.php?p=6502877

Jeffrey McManus

But there is no company in the history of startups that hasn’t diluted like that. eBay’s lawsuit against them was sour grapes.

Kevin Kelleher

A controlling stake, no. But judging from the way Craigslist tried to dilute that stake down, I’d bet they think it’s significant.

Scott

If eBay is all about profit, loss, corporate success, and squashing competitors, then maybe it is being turned around. But if eBay is about community and customer experience, then I’d suggest that eBay has lost its way.

Jeffrey

eBay owns 25% of Craigslist. Anything less than 51% of a privately held company that will never go public isn’t a significant stake.

Ryan

eBay bout 25% OF cRAIGSLIST FROM a sigle person. What an asshole watch in a year they’ll be distroying craigslist too.

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