Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Oct 18 2018 21:24:17

PayPal Report Shows Troubling Signs for eBay

By: Ina Steiner

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PayPal CEO Dan Schulman was surprisingly critical of eBay's managed payments launch during today's third-quarter earnings call with Wall Street analysts, but he said managed payments had nothing to do with the softness in PayPal's eBay business. 

PayPal's eBay Marketplaces volume grew only 3% on an FX-neutral basis - that's compared to PayPal's Merchant Services volume growth of 28%. Given that PayPal is the most popular payment method on eBay, that is not a good sign. eBay will report its third-quarter earnings on October 30. 

For now, eBay managed payments excludes PayPal; it launched to a small number of sellers one week before the end of the quarter. 

Schulman made a point of saying that eBay sellers who moved to managed payments have left comments on eBay seller forums reporting a sales drop of 40 - 60% and were "clamoring to come back to PayPal." 

eBay buyers who land on listings from sellers enrolled in managed payments are not able to pay with PayPal - it won't be added until July 2019. eBay calls the rollout of managed payments a multi-year journey and this week said it has already managed more than $20 million in GMV, representing nearly half a billion dollars on an annualized run rate, to date.

eBay-related volume represented 11% of volume on PayPal in the third quarter, down from 13% a year ago and 20% three years ago. eBay and PayPal split in July 2015.

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Readers Comments

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

This user has validated their user name. by: CanBrit

Sat Oct 20 15:12:00 2018

@toolguy

THIS has never happened in 13 years.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

This user has validated their user name. by: toolguy

Sat Oct 20 15:23:14 2018

@ ebay shill buster

You can't compare Sears to eBay

Sears hasn't made a profit in almost a decade, eBay has made a profit every Q they've been in business except for 3 Q's. . .And all 3 have been in the last 2 years. . .

As far as catching "a falling knife"? Smart people catch it by the handle. . .

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

This user has validated their user name. by: toolguy

Sat Oct 20 15:30:16 2018

eBay is still working!

I list about 200 items a month

I sell about 100 items a month

That's a 50% turnover rate

Not as good as it used to be but still very VIABLE

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

This user has validated their user name. by: iheartjacksparrow

Sat Oct 20 16:07:39 2018

@toolguy - Who was saying eBay was going out of business in 2005? Because I was making lots of money back then. And I would spend lots of time on the discussion boards and don't remember anyone saying eBay was going out of business. It wasn't until JD started inserting himself into everyone's businesses in 2007 that things started to go bad.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: ebayout This user has validated their user name.

Sat Oct 20 16:54:31 2018

ebay is suing Amazon for "poaching" sellers.

ebay does NOTHING to either attract new sellers, or encouage existing sellers to stay.

Ever see a single ad calling for people to sell on ebay?
Sellers are/were the future of ebay. ebay has neglected the future.

You can't sell from an empty wagon/web site....Marketing 101.
ebay can't apply the simplest fundamentals.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: ebayout This user has validated their user name.

Sat Oct 20 17:28:36 2018

Gotta wonder about the fallout from the crowd that bought at $34 based on the "rumor".
How many serious investors were told afterwards by word of mouth what a dog ebay stock is?

Will the institutional shareholders dump on Monday because of no good prospects and lack of dividends? Given the 40M share dump on Friday, that might have been the start.
The news on the 30th can't be good. Waiting on the results would be worse.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: ebayout This user has validated their user name.

Sat Oct 20 17:41:47 2018

toolguy...

You're right. Sears cannot be compared to ebay.

Sears succumbed to competition.
ebay is succumbing to competition AND pin-headed management fueled by blind ambition.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

This user has validated their user name. by: toolguy

Sat Oct 20 18:48:22 2018

@iheartjacksparrow

"@toolguy - Who was saying eBay was going out of business in 2005? "

No less then a 100 posters on this forum!

I guess you never heard of the "NEG MEG" movement. . .

Anyone who's been here a long time remembers how HATED Meg Whitman was!

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by: P.Dorf This user has validated their user name.

Sat Oct 20 21:18:17 2018

@ Tool

"I guess you never heard of the "NEG MEG" movement. . ."

I thought that was her extremely costly attempt at becoming governor of CA ?

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

This user has validated their user name. by: iheartjacksparrow

Sat Oct 20 22:03:22 2018

@toolguy - Personally, I never heard a bad word about Meg while I was selling on eBay. There may have been people who didn't like her or wanted her to leave, but I never encountered any of those people. At least while she was in charge, I was making sales and making money. As soon as JD started to take control and the rolling blackouts began, I went from selling 95-99% of what I listed, to maybe 5-10% of what I listed. So I don't have anything bad to say about Meg. And, no, I don't remember the "Neg Meg" movement (actually never heard of it).  

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

This user has validated their user name. by: toolguy

Sat Oct 20 22:19:55 2018

@iheartjacksparrow

Do you know who "doc" is? (Ed Koon)

He hated Meg Whitman, even our beloved Ming hated Meg.

She was dragged thru the mud daily on this site!

eBay hasn't had a single CEO who has been liked and they never will, God could be CEO of eBay and would be hated. . .(sorry God no offense)

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: SANT1N1 This user has validated their user name.

Sat Oct 20 23:19:11 2018

@toolguy
"Anyone who's been here a long time remembers how HATED Meg Whitman was!"
Oh yes, the endless rants about Meg and her yacht, lol!

BTW, from Skip McGrath's blog posting today:

"If you have followed my newsletter, then you know I think eBay has become the most poorly managed eCommerce companies in the marketplace."

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: I Must be Crazy This user has validated their user name.

Sun Oct 21 00:11:28 2018

@SANT1N1

I read Skip McGrath's newsletters and know that he has been struggling with eBay's policies and requirements for a while. When the guy who made a reasonable chunk of change selling his proven system (basically wrote the book on the subject) for selling on your site LEAVES because it isn't worth the effort, one would expect management of said company to take notice. If he says it is the most poorly managed ecommerce company out there, I believe him.

That case in particular underscores the migration of sellers away from eBay. If that guy is leaving, safe to say thousands upon thousands of sellers, large and small have reached the same conclusion.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: ebayout This user has validated their user name.

Sun Oct 21 02:10:00 2018

I wish there a poll that showed how many sellers are leaving/have left ebay, or are cutting way back on sales due in small or large part to being fed up with financing the lifestyles of the idiots that run the place.
Would also like to see their total sales for the last 5 years.
I'll go 1st...total sales over $200K, excluding shipping.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: songe-d-automne This user has validated their user name.

Sun Oct 21 10:37:15 2018

I never had a problem with the way Meg Whitman ran eBay.

I had a huge problem when Donahoe took over - I got banned after selling 15 years. (Was a TRS with nearly perfect feedback) because they linked my account to one that had 5 neutrals out of 300+ feedback.  

Neutrals. That's pathetic. Because of my ban, I got 2 or 3 negatives at the end of my original account as I scrambled to come up with money to ship my remaining items that had sold a day or two before.

Irony was, they sent me shiny Top Rated Seller certificate in the mail a week after my permanent ban. Devin is just continuing the lunacy. They need someone familiar with e-commerce up there. He is clearly not.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

This user has validated their user name. by: CanBrit

Sun Oct 21 17:52:43 2018

@toolguy

What in heavens do you sell to have a 50% turnover rate???? Holy smokes. I'm impressed.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: walkabout This user has validated their user name.

Sun Oct 21 23:49:12 2018

@CanBrit

I think he sells aircraft related tools.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: ebayout This user has validated their user name.

Mon Oct 22 01:32:20 2018

Finally...

https://finance.yahoo.com/news/ebay-ebay-alert-johns
on-fistel-153400109.html?.tsrc=rss

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: ZZ This user has validated their user name.

Mon Oct 22 01:35:05 2018

The reason for the eBay stock price decline is because Paypal sort of released ebay earnings early for anybody with basic math skills. By doing the math on how many $ Paypal handled of eBay transactions for the quarter ended Sept 30, and comparing them to other quarters, you can figure eBay sales were up 3% for the quarter while the estimates by the Wall Street analysts were for twice that. That info was not supposed to be released yet. It was, and to miss your earnings estimates, the stock gets killed. That's how it stock prices work.  If eBay is doing 3% more business and you are not, that's a different discussion.

Perminate Link for PayPal Report Shows Troubling Signs for eBay   PayPal Report Shows Troubling Signs for eBay

by: Jazzy Jewelry This user has validated their user name.

Mon Oct 22 01:55:52 2018

I personally think that Meg Whitman did an excellent job when she was running eBay. I WAS MAKING LOTS OF MONEY BACK THEN....each new turnover of idiot CEO's after her saw seller fee's rise and benefits decrease.

Due to health issues I have not sold on eBay since 2015. I have now recovered and have a lot invested in inventory that I need to sell.

I'm not sure where to go or what to do???? I have been a seller on eBay since 1999 or 2000. I first started selling children's top brand used clothing, then in 2008 started selling my jewelry.

When the Top Seller BS rolled out I was always a Top Seller. My feedback has stayed at 100% all these years. My return rate was almost zero because I always made sure to detail every little thing in my auctions.

I never ran many listing at one time when I started selling my jewelry. On average I would sell 4-6 ring's month and I was thrilled!

I had a lot of repeat buyer's, which unforetunately their additional purchase feedback didn't count....never understood who would come up with that stupid idea

The jewelry I make/made was a "hobby" that built our savings acct up for emergencies or a short vacation. It really came in handy while going through cancer treatment in 2015. Without that money in savings we would have been bankrupted.

The holiday season and Valentine's Day have always been awesome for my sales on eBay. I don't foresee that being the case this holiday season or next Valentine's Day.

I loved what I did on eBay but I am now terrified to even try to sell off my inventory there. It's so sad that eBay board memebers have allowed the 3 idiot's, as I call them, to totally destroy what was once so awesome.

I think that 99% of those who commented here are absolutely correct in their statements.

I think when we see Skip McGrath calls it quits that pretty much says it all...

Please excuse typo's I have to use Google voice due to weakness in my hands.

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