Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Nov 1 2018 22:22:21

eBay CEO Devin Wenig Addresses the China Issue

By: Ina Steiner

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eBay CEO Devin Wenig did not seem overly concerned with current US-China trade and postal issues when speaking with Wall Street analysts on Tuesday, despite the company's exposure - in 2014, he referred to eBay's "really big China export business to Europe and the United States." During Tuesday's call, he outlined several ways eBay has helped its Chinese sellers importing into the US.

"A majority of our China inventory is now warehoused in the United States," he explained in response to a question about tariffs. "Obviously they're not our warehouses, but we've helped our Chinese sellers with warehousing domestically, so that wouldn't be subject to those quarters."

He said tariffs on Chinese goods had had very little impact thusfar. "Most of the tariffs have been consumer goods, and we haven't seen very much." With regard to USPS postal changes impacting Chinese imports, he said "it's a little early, we're pretty well positioned if those changes take fruition."

Wenig referred to SpeedPAK, a new shipping service eBay rolled out to help Chinese sellers reach US consumers through multiple delivery options that would not be subject to proposed postal changes, a reference to the Trump administration's decision to pull out of the Universal Postal Union and "self-declare" higher rates for goods coming from China.

In fact, Wenig said he thinks eBay is better positioned than other companies when it comes to US government action regarding China:

"I wouldn't say there is no impact, but actually, in some ways, if the changes happen for everyone importing China inventory, we think we're about the best positioned given that we've been in this business for a long time, and we've taken a lot of changes to shrink time and distance and costs for Chinese sellers and build diversity at the last-mile."

Some might wonder if Wenig is tone-deaf to the current political environment. A sign came today that the administration has not finished taking economic actions in response to what it sees as the China threat, with the potential for more collateral damage to retailers.

The United States Justice Department launched the China Initiative to combat what it called "Chinese economic espionage against the United States," which it said has been rapidly increasing. Among the goals of the DOJ's China Initiative is to "Evaluate whether additional legislative and administrative authorities are required to protect our national assets from foreign economic aggression." 

Wenig also appeared oblivious to the concerns of eBay's US sellers who resent what some perceive as its favoritism to Chinese sellers that harms their own exposure in the marketplace, resentment that is being fueled by the political rhetoric.

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Readers Comments

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: Grady This user has validated their user name.

Fri Nov 2 16:16:59 2018

He's lying, as usual.
He either has warehouses, or merchandise, or some combination of both. Where are they accounted for? They are IN CHINA !!!!

He's full of Xhutta

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

This user has validated their user name. by: The End

Fri Nov 2 17:42:39 2018

FIRSTLY : Dispense with the "Deer caught in the headlights" stock photo of "Wenford".
Secondly : bar anyone selling Chinese merch on Ebay.
Lastly : Reward people selling Made In America merch on Ebay.

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: OnlyPollyPocket This user has validated their user name.

Fri Nov 2 21:01:38 2018

@The End

OMG!!!  I have always thought that photo of him looks like a deer in the headlights OR the doof that always got picked last for any team in grade school.

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: BargainzBabylon This user has validated their user name.

Fri Nov 2 21:54:09 2018

Zoolander.  

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: Silver Ice King This user has validated their user name.

Fri Nov 2 22:36:24 2018

@Ebayout

Ebay does not have any inventory at all.  They even call our inventory theirs as it makes investors think they actually have something that they do not.  

If they indeed did have inventory and did not report  it, which even Wenig is not stupid enough to try and do, it would understate their income considerably and would cause Ebay to be subject to revised audited Financial Statements for every quarter they actually did have inventory with a complete restatement of all the numbers as well as be subject to Tax Fraud, Tax Evasion, Back Taxes and probably even RICO violations.  They would definitely be in violation of Sarbanes Oxley and would probably wind up sending both Wenig and the CFO at a minimum to prison on a variety of charges.  The extent of the changes that would be required would be determined based on whether the  misstatements have a material effect on the Financial Statements as they are currently reflected.  Financial Statements are never certified to be accurate or correct, but only to be a fair representation of the Company;s Financial position on that date, which is a huge difference for a company the size of Ebay.

The CPA firm that signed off on it, Price Waterhouse, would probably be out of business in nothing flat due to all the lawsuits filed against them for not finding anything leading them to find said inventory prior to now unless it had just happened.  This would probably have a worse outcome than Enron because of all the changes that were put into place after that.

That inventory is probably buried somewhere on the Balance Sheet under their investments in the Chinese companies or partnerships and due to the rules for accounting for these transactions are probably properly classified this way with no disclosures needed about the inventory.  Ebay has been making large investments in the Chinese Economy in various Port Cities to make them better suited to be manufacturing cities which also serve as Ports for quicker shipment and delivery.  This has been Wenigs goal for many years now but Ebay does all it can to hide the announcements of these partnerships and when they get mentioned on their boards, most quickly disappear just like posts suggesting that Sellers combine their monies and purchase enough Ebay stock to be able to attend the Shareholders meeting as that is the last thing that Ebay wants to have happen.  If that were to happen the investors would learn an awful lot about EBay that they have been sheltered from.

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: ebayout This user has validated their user name.

Sat Nov 3 00:35:27 2018

@Silver
No inventory? How do they then claim sellers' gross sales as THEIR cost of goods sold on their tax return, and the sellers are claiming a goodly portion of those SAME costs on their tax returns, and rightfully so?

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

This user has validated their user name. by: Bill

Sat Nov 3 00:41:13 2018

If eBay has warehouses in the US storing Chinese goods and these are sent out as being shipped with the cheap rates that China gets they are committing Postal Fraud and are subject to an investigation by the FTC, SEC, The Post Office and the DoJ.
If Price Waterhouse has been certifying these financials they will end up the same as Arthur Anderson did with the Enron fiasco and they will be out of business.
Pure and Simple.

eBay = Dead Man Walking

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: TomH This user has validated their user name.

Sat Nov 3 03:50:56 2018

''FIRSTLY : Dispense with the ''Deer caught in the headlights'' stock photo of ''Wenford''.

Completely agree.  I recommend transposing one of the danger type road signs over his face. There are many that would be suitable...

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: maxmad This user has validated their user name.

Sat Nov 3 06:02:09 2018

They talk like it's their inventory, and this is one of the major problems that has caused ebay so much trouble.

HEY EBAY, YOU STOCK, AND SHIP NOTHING, YOUR JOB IS ONLY TO EQUALLY PROMOTE AND SELL OTHER PEOPLES ITEMS, WHEN YOU FINALLY UNDERSTAND THIS BASIC CONCEPT ONLY THEN WILL YOUR FORTUNES RETURN.

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: maxmad This user has validated their user name.

Sat Nov 3 07:01:06 2018

@Canbrit

Yes, something is VERY STRANGE on some items that are coming from China, as we have both experienced, sometimes items are arriving in record time, as if they were shipped from only a few miles away,

I think either China or ebay is not telling the truth about where certain items are really originating from,

It's TOTALLY impossible for an item shipped from china to arrive in less then two weeks, IMPOSSIBLE, these items must be stocked elsewhere in the US, or maybe they are shipping them from a warehouse ship located at sea,

BUT THE REAL QUESTION IS ,,,,,if they where shipped from the US, the shipping cost would be way higher, some of my items are less then 2 dollars, TOTAL

They have found a way to circumvent paying normal shipping costs, and they are using e-packets, these faster packages are clearly stating they are originating from China,

Taxpayers and sellers are paying higher and higher post office shipping costs, they are literally getting reamed

I would like to know what is going on here, there is way more to this story, then what Devil Boy is saying,

Someone really needs to look into this, how is it that China can stock warehouses in the US like a regular business, but get away with shipping their items , thru the post office for practically nothing, when the rest of us are paying thru the nose ,

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: angryllama This user has validated their user name.

Sat Nov 3 07:03:56 2018

@ebayisscrewed    Ummm as to Global Shipping Program. You  DO REALIZE that the program is (as of last night) still ENTIRELY VOLUNTARY and that sellers have to CHOSE to opt INTO that FUBAR / SNAFU / AWFULLY Expen$ive Program, right?
YOU as a seller are free to ship OUT from USA using FedEx, UPS, or USPS.  By UPS you are likewise FREE to use either Rather Expensive International PRIORITY rate of ... up to 4 pounds you can use the $ignificantly cheaper International First Class labels.
NO, I am not defending Wenig or any of his MOB at eBay.  Just don't want to see any of the FEW things they have not yet screwed up TRASHED improperly.

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: angryllama This user has validated their user name.

Sat Nov 3 07:14:15 2018

TYPO OOPSIE.   I Failed to Catch that the FIRST S failed to register when I typed USPS and it went up on this site as UPS in error.  So far as I know UPS has NO cheap or CHEAPER rates for export out from the USA.

Honestly, even if they DID and unless THEY could also provide the CONVENIENCE of the way that EBAY PAYPAL Pitney-Bowes INCLUDES the DATA necessary to use THEIR labels as BOTH the shipping label AND the harmonized CN-22 Customs statement I would NEVER even think of every shipping export using FedEx OR UPS.  The paperwork from those 100 percent COMMERCIAL Carriers is just over the top more difficult to understand, yet when any SHIPPER signs off on the Paperwork one is placing one's own NECK on the chopping block.

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: Shackles4Devin This user has validated their user name.

Sat Nov 3 10:53:06 2018

The Devil's Earnings Call is nothing more than Verbal Diarrhea.
He's a Psychopath. Sue me Devil. Then you'll be required to take a psych evaluation. Psychopaths refuse to do that. He knows something is not quit right but, just can't put his finger on it. Devil wonders why he gets so angry, paranoid and defensive.
The Diarrhea that he spews is meant to deflect and has no basis in reality. Don't believe a word that he says.
Look at the photo. That's not a deer in the headlights. That's a psychopath. Look at his eyes. Do you see empty? Do you see a person with emotion in those eyes? No, they look empty. And, the Botox, geez get someone else to inject. The brows aren't even. The huge forehead is flat, the crow's feet are gone and the space between his eyes shows no furrowed brow. He's getting filler injections too. Look at his bottom lip and compare it to the top. In the plastic surgery world his bottom lip is a classic textbook case of ''pouty lip''. That photo is a Psycho who thinks he has ''swag''. LMAO  

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

This user has validated their user name. by: FidoMaster
Web Site

Sat Nov 3 11:51:51 2018

The ECB comments do not disappoint in the entertainment category this Saturday morning.

I offer up my Devin ''Fish Gape'' Zoolander contribution: http://bit.ly/2EZhomg

This is the look Wenig practices in the mirror on eBay's corporate jet while flying back home on weekends, prepping for his Hamptons Magazine photo shoots to appear suave:

http://bit.ly/2F0sTd3

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

This user has validated their user name. by: CanBrit

Sat Nov 3 13:04:57 2018

@maxmad

Unfortunately, I threw out the packaging my last batch of ring boxes came in, but a friend of mine is in Canada. She buys boxes from the same people I do. I asked her to keep the packaging from the ring boxes she receives.

Each one has a sticker for Canada Post that cannot be seen in the system. The really strange thing is that the numbers are in sequence to a certain degree, like they've been purchased in a block. Two of her packages came in with only 1 number difference in the postage number. Really strange.

These stickers are added, it seems, once the package enters the country. There certainly is something not quite right about it all.

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: maxmad This user has validated their user name.

Sat Nov 3 14:24:18 2018

I think The China sellers with ebays help, must have devised a way to ship multiple quantities bulk items into the USA and Canada, (most likely other countries, ) warehouses or very close, once the item sells they appear to be using a china shipping label to get it accepted into USPS / Canada Post mail system, and off to the customer it goes,

Definitely something fishy going on, as mentioned NO POSSIBLE WAY you could get an item supposedly shipped direct from china in less then 2 weeks, on average if you get the item at all, from china your looking at 2-3 months

Devil boy should be worried, forget about tariffs, if or when the US pulls out of the USPS subsidized almost free china shipping it will be game over for ebay, and their favorite china sellers literally overnight



Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

This user has validated their user name. by: toolguy

Sat Nov 3 14:58:25 2018

@ebayout

"How do they then claim sellers' gross sales as THEIR cost of goods sold on their tax return"

THEY DON'T

eBay has never claimed gross sales of product from the eBay site, they only claim the fees they charge sellers. . . .

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

This user has validated their user name. by: toolguy

Sat Nov 3 15:01:08 2018

@Bill

Items shipped from US warehouses that chinese sellers use is shipped using "endicia" labels with "Comerical Based Price" postage

Nothing illegal about it. . . .

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

by: ebayout This user has validated their user name.

Sat Nov 3 15:22:03 2018

@tool
Wrong nomenclature...my bad.
ebay sells ZERO items...whence ANY cost of goods sold?

Perminate Link for eBay CEO Devin Wenig Addresses the China Issue   eBay CEO Devin Wenig Addresses the China Issue

This user has validated their user name. by: Bill

Sun Nov 4 00:08:18 2018

Tool:
I thought you never bought anything from China so how do you know what labels are used. A few people on here said that they bought from China and it came within a week supposedly with China shipping labels. Sometimes you need to think before you type.

eBay = Dead Man Walking

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