The Disaggregation of eBay

From a nice Gary Rivlin piece on troubles at eBay in the weekend NY Times:

“For a lot of our sellers, the average selling price is getting less and less and their eBay fees continue to go up,” [said the head of the Professional eBay Sellers Alliance (PESA)]. “So their profitability is declining.” As a result, he said, “a lot of sellers have disappeared off eBay” – a trend that eBay’s “aggressive” fee increases, he said, are likely to accelerate.
Where will they go? Some sellers will do what [the head of the PESA did]: realize that it is much more economical to operate your own online store and to buy keywords from search companies like Google and Yahoo to point potential buyers to your site. He maintains a presence on eBay, he said, but outside the confines of eBay, where hard-to-believe deals are the coin of the realm, he can charge more for the same shoes.

Related posts:

  1. eBay: Too Big to Fail?
  2. eBay Aquires Minority Interest in Craiglist
  3. The (Invisible) eBay Economy
  4. Reverse eBay: Why not?
  5. Data-Mining Web Services & John Kerry Waffle Head

Comments

  1. b7j0c says:

    Ebay is over. The fees suck, the fraud is ridiculous. The competitors are circling. No one likes PayPal (amamzingly Ebay acquired the one firm with customer service and fraud stories even worse than their own).
    The stock is sort of levitating right now, the market is just beginning to adapt to the meme that their once “ultimate stock” is a dead fish. This will take a while, but in any case the upside days for Ebay are gonzo.