|Fri Apr 3 2015 19:32:13|
eBay Is Losing Shoppers Says Analyst
By: Ina Steiner
In January, eBay reported an abysmal fourth quarter, blaming its Google penalty and data-breach password reset, and executives told Wall Street things were going to get worse before they got better. Now comes a report from a Wall Street analyst saying he's seeing a decline in visits to eBay for the month of February.
When we looked at Cowen & Co.'s Internet Retail Tracker report for January '15, the results of its proprietary Consumer Tracking Survey of approximately 2,500 consumers in January 2015 showed signs of improvement for eBay sequentially, but remaining pressured compared to January 2014.
took a look at Cowen's survey for February and found that while the industry as a whole dropped for the month, eBay was the largest decliner year-over-year:
"eBay, which has been under pressure since mid 2014, saw its troubles continue in February, as visits declined more than 2% year over year, which reinforces management comments on the fourth-quarter call detailing a deeply challenged Marketplace business unlikely to recover till the second half of 2015," the Cowen analysts wrote."
eBay readily admits times are tough for its marketplace business. This week, it launched some new seller promotions focusing on commission discounts rather than free listings. The strategy raises the question, should eBay concentrate its marketing efforts on buyers or on sellers as it struggles to boost sales on its marketplace?
If you were eBay, how would you get sellers to list desirable products, and how would you compel shoppers to come and take a look?