eBay Deathwatch Continues. . .

EBay’s Income Drops 31% as Traffic Declines – NYTimes.com

The turbulent economy battered eBay, and the online marketplace reported its profit fell 31 percent and that it had its first revenue decline since it started in 1995.

The one big question that link raises is: Who will win the race to bankruptcy?  eBay or The New York Times?  Place your bets now!

4 thoughts on “eBay Deathwatch Continues. . .

  1. Besides their policies changing faster than people can post, one thing that’s probably affected eBay is … pirating. At one point eBay was a great place to get cheap cd’s and dvd’s, sometimes real bargains could be found if you checked around enough. A much better deal for people is.. FREE, and the tech savvy people who first dominated eBay were also the same people that started using it less when they realized that paying nothing always beats paying a discount. Ebay losing both 2nd hand dvd and music sales – is a HUGE loss that can’t really be recovered. Bigger items such as electronics and furniture-etc. – always did better locally do to shipping charges – and sites such as craigslist and kijiji is where those sales ended up going.

    Ebay won’t dissapear anytime soon, but it will have to change what it is drastically if it wants to survive. My guess is that it’ll end up essentially being a trading house for industrial goods between businesses. While that sounds awful for eBay, it isn’t nescecarily so, as industrail expenses account for 70% of all dollars spent in the marketplace.

  2. One thing becoming more and more apparent is that the internet is ultimately a big mirror on the non-internet society. There is no magical quality inherent to the internet that will cause a site/service to change teh way things have always worked.

    Ebay is ultimately a flea market. Ask yourself, how often do you go to a flea market? For most people, the answer is twice a year or less. There are some diehards who go at least twice a month, but most people don’t.

    Ebay thrived at first because it seemingly captured all that was good about a flea market without being dragged down by all that’s negative. After the novelty of flea marketing online has cooled, eBay is settling into the same position off-line flea markets inhabit in society. That’s somewhere above yard/garage sales and discount resellers like TJ Maxx.

  3. Last sentence above should have ended: “..and BELOW discount resellers like TJ Maxx.

  4. eBay will survive as a source for collectibles and antiques. Rare and one of a kind items. There are better ways online to buy most other things. I guess that ties into the flea market analogy above.

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