Can eBay Keep It's Ship From Sinking?

eBay is caught between a rock and a hard place, and their share price is reflecting that, hitting a new five year low.

According to Morgan Stanley analyst David Joseph, who downgraded eBay today, the reason for eBay’s poor performance is an inability “to compete in buyer experience” with other online sellers. Joseph says that buyers are now looking for a simple buying experience, and the auction format isn’t that.



People also like and expect features like free shipping and one-click ordering that eBay — which isn’t actually controlling the sale of goods — has less leeway to offer, says Joseph.

Not surprisingly, eBay’s share of the ecommerce market, according to Morgan Stanley, has fallen 2% over the past couple of years, while Amazon’s has grown a point and a half.

For all their troubles with shifting buyer attitudes, the biggest point of trouble for eBay might be with sellers — the site’s lifeblood.

eBay’s moves to please buyers, which have included putting more emphasis on fixed price auctions and policy changes such as turning off negative feedback against buyers, have not been popular with sellers.

Many sellers feel that eBay has lost its soul and are now looking elsewhere to sell their goods.

Purveyors of handmade products are moving to sites like Etsy, while sellers of the antique, used, or collectible items that eBay originally built its business on are being pushed to classifieds sites like Craigslist. Meanwhile, fixed price sellers have opportunities to sell on other sites, such as Amazon, which can even also handle fulfillment.

So a question for you: Can eBay save itself?

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Kimberly's note:

Unless drastic and very GOOD changes are implemented soon, I don't personally think so. The entire landscape of eBay has changed, and not for the better.

As a buyer on eBay, I have simply stopped buying there. I find all the changes more than alarming.

I have a very hard time participating with my wallet in any business that seems to care so little for customer service.

As a former seller on eBay, I find it appalling that eBay has turned it's back on it's smaller sellers, for those are the sellers, that indeed as a BUYER, I always liked and appreciated most- the sellers that had those hard to find items that I enjoy collecting.

Now, when I do a search for an item I seek, it is frustrating, to say the least.

eBay has become too inconsistent for my tastes.

As a buyer, I have no confidence in eBay anymore.

~ Kimberly