AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

AuctionBytes Blog The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Thu July 23 2009 10:50:54

eBay CEO John Donahoe Shares Thoughts on Q2 Results

By: Ina Steiner

Sponsored Link

eBay announced second quarter earnings yesterday, and CEO John Donahoe and CFO Bob Swan presented them to analysts in a conference call and took questions. Here are some excerpts from the presentation and Q&A. You can read more in today's AuctionBytes Newsflash article.

On Progress of Marketplace Business
"We feel good about the progress we made in the core marketplace business in the second quarter, and I think Lorrie and her team are doing a nice job of steady progress in addressing the fundamentals of that business. And the user metrics and the customer metrics are showing signs of improvement."

On Free Shipping
"Free shipping has basically held up because in many ways, all we did was to use a carrot to make our sellers aware of how much buyers were responding to free shipping. And now our sellers are aware of it, and they'll respond and they are responding. So in certain categories it’s essential and it makes a big difference. In other categories, it makes less of a difference and we'll do what we usually do, is, we'll let the marketplace determine the right level of free shipping by category, and sellers will respond to what buyers do."

On Monday's Forthcomng Announcement to Sellers
"I will make an editorial comment - one of the things we've gotten better at is not surprising our sellers with a set of constant changes, and so as you know, we are only making two sets of changes a year and we have pre-wired or previewed these changes with several sellers and gotten good feedback. And you'll hear things around rolling out our buyers resolution's process and rolling out multi-SKU, and a variety of other things that will be announced on Monday, and the impact has been reflected in our guidance."

On Fourth-Quarter Marketing Plans
"We'll do in Q4 like we have the last couple of Q4s, is do what we need to to support our sellers to be successful. A couple of years ago, that was TV advertising. Last year, we used coupons, and we'll make the decision going into Q4 about what elements of the marketing mix we'll do to support our sellers during the holiday season."
 
On Bill Me Later's Availability on eBay
"In time for this holiday season, we expect Bill Me Later to be available as a payment choice within the PayPal wallet, both on eBay and everywhere PayPal is offered in the U.S."

On eBay's Push into Secondary Markets
"The area we are really focusing early on is in our deals of the day, because often these merchants want to move a deep SKU, which is they want to move a lot of items quickly. And so, we have examples where 6,000 and 7,000 items will sell out in a matter of a couple of hours. So we are very pleased with the progress on this. These merchants really like the ability to move high volumes of SKU and the margins are good. There's no material difference in the margins there because they pay a take rate, they have a lower cost to serve and we do a lot of volume. So I think this is the way of really accentuating an opportunity in the market as more and more new in-season inventory is coming into the secondary market"

On Search and Catalog
"Our search platform continues to make strong progress. In early July, we completed the infrastructure that will allow cataloging eBay items for search to be scalable a lot easier, and you heard Mark Carges just talk about that at our Analyst Day. And so, we are seeing an increased number of items being cataloged, and I think we're well-positioned to make continued advancements in search on the eBay marketplace."

On Opening PayPal Platform to Developers
"Now in both eBay and in PayPal, we are making progress on opening our platforms up to third-party developers so that others can innovate on top of those platforms. And let me just draw your attention to tomorrow, we'll be announcing that the beta phase for the PayPal platform, which is I think just tremendously exciting, because it will be the first global payments platform that is open to third-party developers, and you are going to see the beginnings of application innovation done by third-party developers that I think will be analogous to the iPhone. You are going to see PayPal being pulled into more and more situations and more and more applications where payment is necessary, and I think it's going to absolutely accelerate the pace and direction of innovation of PayPal, so we are very excited about that."

eBay Webcast of earnings call  (with link to slide presentation)

Transcript of Earnings Call via SeekingAlpha

 




Comments (51) | Permalink

Readers Comments

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: just me

Thu Jul 23 11:01:07 2009

Excuse me while I go throw up.

To much ego spin here.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: buck efay

Thu Jul 23 11:07:58 2009

Geez, to hear this guy tell it, you'd hardly even realize stock, sales and every other metric used to judge a company were not down by another 14% over a year ago.
spin away, monkeys

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Jim McFivere

Thu Jul 23 11:35:20 2009

''...all we did was to use a carrot to make our sellers aware of how much buyers were responding to free shipping.''

Oh yes, thank you for the carrot. I would never have realized that something free would be of value. Like listing fees, final value fees or free PayPal.

I got your carrot.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Gailete

Thu Jul 23 11:35:29 2009

Are these guys even speaking English? So much babbling that could mean anything.

"Search continues to make strong progress" does it? I used to be able to input a search at ebay and find what I'm looking for. Now it is easier to start all searches from Google because the ebay search doesn't work. The Google search does which means people are going off to other markets than ebay.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: speckles

Thu Jul 23 11:40:57 2009

"And let me just draw your attention to tomorrow, we'll be announcing that the beta phase for the PayPal platform, which is I think just tremendously exciting, because it will be the first global payments platform that is open to third-party developers,that is open to third-party developers"

Maybe it's me, but that's one scary statement.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: shipping out

Thu Jul 23 11:50:37 2009

"and sellers will respond to what buyers do."

we sure will few more will leave and sell elsewhere as ebay keeps pushing us out the door

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: ebay profits are down

Thu Jul 23 11:54:24 2009

Free shipping? Surely you mean shipping included in the item cost JD? Of course that means shipping cost plus 10% to cover your FVF fees. So your free shipping is actually costing the buyer an extra 10%. Nice spin.
Shame on you JD for lying to the buyers, shame on them for believing it.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: unaware

Thu Jul 23 11:59:58 2009

On eBay's Push into Secondary Markets
''The area we are really focusing early on is in our deals of the day, because often these merchants want to move a deep SKU, which is they want to move a lot of items quickly. And so, we have examples where 6,000 and 7,000 items will sell out in a matter of a couple of hours.''....

Sounds like eBay wants to be the new QVC....

Yep, no doubt about it, they had to hit me over the head with a brick but finally I get it... I will indeed have to move my antiques and collectibles business somewhere else or onto my own web site and get out of eBay. Like others, I will always do a little bit of something on eBay (if that will be possible in the future) but I am absolutely convinced that I have to move on. I spent the last four days off of eBay (no new listings) and instead grabbed those thousands of Music CDs that I have been putting off dealing with and listed them on Amazon (600 up, another 2000 or so to go). Then I will start in on listing my 25,000 books on Amazon... then I will try to figure out what to do with the antiques and collectibles. For the most part, eBay and I are finished. I have 4500 or so eBay feedback's which are 100% positive and 4.9s across the board and yet eBay can't make it work for me? My sales are down 50 to 60 percent in the last two years and I can assure the problem is not my merchandise or me as a seller. OK I am sure the economy has some to do with it but there just is not the same number of quality of buyers for antiques and collectibles as there once was on eBay... eBay should be ashamed of itself for driving them away. I should be the kind of seller that any venue (if eBay can be called that anymore) would fight to have as a seller (or should I say customer) but yet eBay does not want me. Sorry for the rant but that's it for me... move on folks, there's nothing to see here.  

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: x_powerseller

Thu Jul 23 12:11:20 2009

Wallstreet analyst are simply CRIMINALS!  A company such as eBay has been losing for THREE quarters, with the latest a whopping 29% and they are still touting the stock and claiming it is stabilizing?

Just looking at the Devil’s (JD) picture makes me want to vomit.  

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Joe Webb

Thu Jul 23 12:14:57 2009

John spins like the flushing toilet that is EBay, treating the sellers that built EBay like sh!t. The few stragglers who have stayed, that is.

It's barely worth looking for unique items on EBay anymore, at least the stuff I am interested in, and you can bet that I'll avoid EBay for anything that I can buy somewhere else.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Patricia

Thu Jul 23 12:40:59 2009

""We feel good about the progress we made in the core marketplace business in the second quarter, and I think Lorrie and her team are doing a nice job of steady progress in addressing the fundamentals of that business. And the user metrics and the customer metrics are showing signs of improvement."

What a putz - no other word for it.  Ebay loses 29 percent (one third) of its revenue - Donahoe spins it - analysts gush about it and fools run out to buy the stock!  I give up - these people are all insane!

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Mr Obvious

Thu Jul 23 13:10:15 2009

Knowing of ebay's bedfellows, Goldman Sachs and Cramer, and having viewed the March 12 2009 Jon Stewart/Jim Cramer videos from Comedy Central, and read the recent write up on GS by Matt Taibbi of Rolling Stone, any reasonable person can see this corp's shares are being manipulated to the nth degree.

Geesh, which do we cue? The Twilight Zone,  Darth Vader's or the Three Stooges Themes?

How far does the corruption go?

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Suzie Cutie

Thu Jul 23 13:33:47 2009

To the village that lost its idiot.
You'll find him in a boardroom in San Jose. Just ask for John D.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: kathy_the_green_fish

Thu Jul 23 13:42:19 2009

Free shipping as a carrot?

I'm sorry, but when you didn't use free shipping your item was impossible to find on search.

Sounds more like blackmail than carrot...

Bill Me Later?  Extend credit without any background checks.  Who covers the default?  Maybe the sellers?  Brilliant in this economy.

Thank you CEO John Donahoe for making my decision to stop selling last year free of any regrets.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Another Wronged Seller

Thu Jul 23 13:59:50 2009

Are JD and I looking at the same financials?

Every recent quarter is another loss, of revenue, of earnings(and of sellers and buyers although that fact isn't in the financials) Every metric is down and despite that the stock is up over 8% today.

I guess some investors prefer to listen to the analysts shilling for ebay rather than doing their own homework before investing.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Mr. West

Thu Jul 23 14:03:42 2009

This guy is a straight moron.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

This user has validated their user name. by: Mercy the Mingless

Thu Jul 23 14:11:50 2009

From yesterday's earnings call transcript -

Two question answers that should have sellers and investors scratching their heads.

Douglas Anmuth - Barclays Capital

''Thanks for taking my question. A couple of things on the marketplace business...comment...on when you expect to launch more of a broader marketing campaign around the marketplace business? Thanks.''

John J. Donahoe

''We’ll do in Q4 like we have the last couple of Q4s, is do what we need to, to support our sellers to be successful. A couple of years ago that was TV advertising, last year we used coupons and we’ll make the decision going into Q4 about what elements of the marketing mix we’ll do to support our sellers during the holiday season.''

(It is August.  Donahoe has no holiday season marketing plan.  But he'll get right on it in Q4)

Justin Post – Bank of America/Merrill Lynch

''Thank you. I was wondering if you could talk a little bit about the planned marketplace improvement announcements for the back half.''

John J. Donahoe

''One of the things we have gotten better at is not surprising our sellers with a set of constant changes, and so as you know, we are only making two sets of changes a year and we have pre-wired or previewed these changes with several sellers and gotten good feedback...''

(Donahoe has ''tested'' marketplace changes affecting all sellers in the upcoming 2009 holiday season with ''several sellers''.)

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: kw

Thu Jul 23 14:42:03 2009

I feel badly that I missed the carrot called free shipping. When I was still selling on ebay I seem to recall that free shipping cost the seller more plus lined ebay's pockets with additional fees.  If that's a carrot, I'm giving up anything that resembles a vegetable.

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Ho NO

Thu Jul 23 14:43:21 2009

You know where you can stick that carrot Ho......

How about Free listings, or a flat rate like Amazon?  Now that's a carrot. That's incentive....

eBay CEO John Donahoe Shares Thoughts on Q2 Results   eBay CEO John Donahoe Shares Thoughts on Q2 Results

by: Linda

Thu Jul 23 14:46:39 2009

Thanks John, for taking my listing fee, filter search based on DSR, making the buyer experience skued in finding my items.  Oh......and now I can spend more money to help buyers find my goods buy puchasing key word search.  Just plain brilliant!

Click to view more comments
1 2 3  [Next Page]


Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.