Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sat May 18 2019 00:08:20

eBay Pitch to Investors May 2019

By: Ina Steiner

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eBay released a slide deck of an investor presentation dated May 2019 in which it paints a positive picture of the company. It also argued against a shareholder proposal that calls for a mandate to have an independent Chairman of the Board. 

eBay outlined its strategic priorities:

- Best Choice (greatest selection including "incredible deals")
- Most Relevance (easy-to-find and compare items with a data-driven and personalized shopping experience)
- Most Powerful Selling Platform 

For the latter priority, eBay outlined the following:
- For business sellers: the potential to drive profitable sales and build a brand;
- For consumer sellers: an easy way to declutter, sell and make money;
- A partnership, not a competition.

eBay also outlined its Long Term Growth Initiatives as follows:

- Continue to make foundational investments to improve the long-term health and competitiveness of our Marketplace while setting the stage for significant growth opportunities in Payments and Advertising.

- Further build out a comprehensive catalog, to enable improved user experience while addressing customer imperatives such as trust and shipping.

- Focus on delivering significant product experience changes for new customers while evolving the experience for our existing base of users. 

eBay pointed to how it has whittled down its portfolio by spinning off PayPal in 2015, divesting itself of Mercado Libre in 2016 and Flipkart in 2018. But it said it was able to provide meaningful returns to shareholders through share repurchases, and bragged that it improved Total Shareholder Return since the 2015 spinoff by 35%.

eBay devoted a large portion of the presentation to Board and Corporate Governance Practices.

While it has had an independent Chairman of the Board since 2015, some shareholders want to make it a requirement that it do so. Prior to 2015, company founder Pierre Omidyar had served as Chairman since the company went public (Omidyar was not considered independent).

In the section of the slide deck devoted to executive compensation titled, "Compensation Program Aligned with Business Goals and Culture," it stated, "Our compensation program is heavily performance- and equity-based and aligns management with stockholders."

The timing is interesting - the financial community is still absorbing the Wall Street Journal's annual CEO Pay Ranking report where there was skepticism about top CEO compensation. "Heads they win, tails they don't lose much: Once again, CEO pay lines up poorly with performance," tweeted a USA Today reporter along with a link to the article.

(You can take a look at the compensation of eBay CEO Devin Wenig in this April EcommerceBytes blog post.)

There's more to see in the presentation slides, which you can find on the SEC.gov website. Let us know what you think.



Comments (43) | Leave Comment | Permalink

Readers Comments

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

This user has validated their user name. by: iheartjacksparrow

Sat May 18 10:45:33 2019

"A partnership, not a competition." (Presumably that last part was directed at Amazon.)

Apparently eBay doesn't know the definition of 'partnership' since they seemingly do everything possible to take advantage of, and squeeze money out of, their "partners." If eBay truly was their sellers' partner, they would work to insure that sellers were successful, thus insuring eBay's success.  

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: Snapped This user has validated their user name.

Sat May 18 11:10:06 2019

"Just a bit outside."
- Harry Doyle (Bob Uecker), 'Major League'

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

This user has validated their user name. by: toolguy

Sat May 18 11:49:03 2019

@iheartjacksparrow

You don't think eBay is successful?

Pierre's little "Auction Web" went from a $1 million company to a $30 billion dollar Company!

I call that SUCCESS

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: RL15 This user has validated their user name.

Sat May 18 12:38:28 2019

smoke, mirrors, lies.

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: WhatsUp2656 This user has validated their user name.

Sat May 18 13:41:26 2019

Really? Here are a few links to reference for investors to consider.

eBay outlined its strategic priorities:
https://community.ebay.com/t5/Selling/Sales-are-dead-bu
t-its-not-just-GTC-that-s-an-issue-its-bad/td-p/29656000/page/7

https://community.ebay.com/t5/Selling/I-believe-I-figured-the-real-WHY-on-the-GTC-change-and-its-not/td-p/29642653

https://community.ebay.com/t5/Seller-Hub/Has-anyone-at-all-had-a-Bump-in-Sales-or-Happy-since-the/td-p/29677498/page/12

Referencing
the above:
- Best Choice (greatest selection including ''incredible deals'') FALSE!

- Most Relevance (easy-to-find and compare items with a data-driven and personalized shopping experience) TRY IT AND SEE FOR YOURSELF.

- Most Powerful Selling Platform - Sales have declined rapidly in the past several years and with angered sellers losing what little they have left after a sale, I believe they (like myself) will find other ways of selling their products with Shopify, Google and many other ways, will be their choices over the next few months.

I believe Wenig bragging proudly how sellers are “flocking” to promoted sales (while admitting sales are DOWN) was an INSULT for many of us. He is ruining any hopes of eBay improving; as to say we are that stupid.

I do believe his first quarter report will and has already ruined eBay in my opinion. I have no interest in giving an extra penny to him. I also question the validity of what his behavior is, such as I will be investigating extortion. Forcing sellers to use this feature or most likely listings will NOT show up. It has been my experience when they are not and I contact reps, they say I need to promote them to be sure they show up. Of course, I am just giving my own opinion.

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: SANT1N1 This user has validated their user name.

Sat May 18 14:33:51 2019

Can someone explain to me how, as a buyer, I am being served by ebay pushing search results that favor whatever seller is willing to pay the most $$ (to ebay) to have their listings (or off-site ads) parked in front of my eyeballs?
Yeah, ebay, I know you're giving us longer and longer refund windows, free return shipping, no questions asked refunds, etc., but does that make up for all the skewed results I have to wade through just to find what I want???

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: thievesBay This user has validated their user name.

Sat May 18 14:54:22 2019

@WhatsUp2656

Agreed. Everything eBay does and presents itself to be is a sham. Whenever Wenig speaks or makes any statement it's always rehashed corporate jargon and catch phrases. Nothing of substance. Not to mention the lies. Most of what he says is completely opposite of what they're really doing. When are Wall Street and investors going to really look into what's going on here and not take Wenig's word for it? eBay is in need of SEC and FTC investigation. Imagine all the goodies that they would find.

Those eBay Community links you posted are just a minute percentage of the daily problems. Most are aimed at eBay issues. Site problems, glitches, policies, schemes to charge sellers multi layers of fees, checkout errors, customer service issues, on and on. Then there's the sickening cheerleaders that populate any negative comments. They seem to live there 24 hours a day in defense of this company. Paid shills? On top of that, eBay will delete threads. No free speech allowed if it's hitting the nail on the head too well. eBay is a cesspool that cares nothing about customers that use their site. Their only interest is putting as much money into their own pockets by any means possible.

Another thing shareholders should question eBay about is the incessant insider selling of shares and virtually no buying. How does this never seem to get noticed and publicized? eBay looks like a company with no confidence in itself and their only interest is for the executives to cash in at a relentless pace. For such a large company, they've got to be the absolute worst offender of this. Take a look for yourself. Truly disgusting if this was unknown to anyone. Pay special attention the number of shares bought and sold:

https://www.nasdaq.com/symbol/ebay/insider-trades

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

This user has validated their user name. by: CanBrit

Sat May 18 14:58:26 2019

"Most Relevance" 🤣🤣🤣🤣🤣🤣🤣

Dear Mr. Wenig: I sell Fine Quality Vintage Jewelry. I'm not sure you actually know what that is. You very kindly send me a lot of emails with suggestions of what I might like to buy. According to your suggestions, you think I am interested in cheap, fake, silver rocks from India and China. Is that the best your "incredible AI" can do? Really. I think you must have gone mad from the power, manipulation, narcissism and are truly dumb as a post.

You do occasionally send me a piece that is actually "Fine Quality" however I would never give eBay $32,000 in a million years. 🤣

Quit the rhetoric and BS. Get an IT department that is actually staffed with top notch professionals. Keep your grubby hands out of our pockets. Why do we have to pay YOU more to get our items seen. I have a store. YOU are supposed to send me the business. Why have a store at all? That's what you're teaching everyone. It's what you're going to get. Stop lying to the board. Tell them the real number of active buyers and sellers. You pad everything, everywhere. Nothing is real or true.

Dear Board: Wake up! The ineptitude of this fool who has been placed as captain of the ship makes you all look like imbeciles who couldn't manage an ice cream cart. Use what brains you have left and do the right things.

Unbelievable. 😒😒

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: Ebay Little Shop of Horrors This user has validated their user name.

Sat May 18 17:42:55 2019

Oh, gee, is somebody getting nervous over their salary? A bit anxious? Getting those night sweats, is he? I remember those. I dont get those anymore; I dont sell on Ebay anymore.

A CEO who also is chairman has one priority: to protect his salary. Pity if he's fired or replaced, he has to reimburse the company for about a third of his salary and all perks. That includes the jet rides. Probably not the Phantom Rolls Royce; that is probably his outright.

A fake. A fraud. He looks ridiculous.

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: maxmad This user has validated their user name.

Sat May 18 17:57:23 2019

i guess if you're going to lie, might as well go all out, and spew out as much bs as you can ,

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: Ebay Little Shop of Horrors This user has validated their user name.

Sat May 18 18:05:12 2019

Finally, my opening for Pierre Omidyar. Of all the incompetents on the Ebay board, no one hurts more than Pierre.

The original, broken lazer-light seller, who has always had power here. He owns more shares than anyone. A Buddhist.

Where was he through all these nightmares? I used to have respect for Buddhists. Not now. What was he doing when JD was a rampant lunatic, when Wenig was chosen?  

All these atrocities, what was he doing? Watching Wenig dismiss US sellers for Chinese? Sitting in the corner in a lotus position chanting "om". Exactly where was he?

This one broke my heart. There will always be evil, but a Buddhist?

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

This user has validated their user name. by: iheartjacksparrow

Sat May 18 21:57:24 2019

@toolguy - Sellers hate eBay because their sales have dropped, they're getting hit with fee after fee after fee, and the site barely functions. Buyers hate eBay because they can't find what they're looking for and most of what's on the site is Chinese or counterfeit. eBay's quarterly growth borders on the non-existent. If eBay is making any money at all it's because they are getting listing fees, promoted listing fees, fees on shipping, fees for paid ads on listings, money from returns they encourage, increased fees if you fall "below standard," and now money on their newest schemes, GTC and re-lists of cancelled/returned merchandise. If eBay is such a success, why is it that they have to keep playing games and have to keep finding new ways to squeeze money from their sellers, you know, their partners?  

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: pace306 This user has validated their user name.

Sat May 18 22:15:28 2019

%101 BS

eBay: Increasing Balance Sheet Risk (Invest With Discipline
Invest With Discipline)

eBay: The Biggest Lemon In The Tech Sector (Gary Alexander)

eBay: Not Worth The Risk (Sean Gardner)

eBay: Terrifying GMV Performance (Gary Alexander)

eBay: Not A Value Play Yet

Soft data report dings eBay

eBAY Q2: Running Out Of Gas In A Competitive Environment

eBay Deletes 500,000 Guides And Could Lose A Billion Page Views

and the list goes on and on and on ...... time to start listening to its USERS aka its sellers and not people like DW.

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

This user has validated their user name. by: toolguy

Sun May 19 05:16:27 2019

@iheartjacksparrow

"If eBay is making any money at all it's because they are getting listing fees, promoted listing fees, fees on shipping, fees for paid ads on listings, money from returns they encourage, increased fees if you fall "below standard," and now money on their newest schemes, GTC and re-lists of cancelled/returned merchandise."

A business is formed to make a profit. The above you mention is how eBay makes it's money! ~ FEES

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: Snapped This user has validated their user name.

Sun May 19 09:45:29 2019

"The above you mention is how eBay makes it's money! ~ FEES"

The context of the impropriety regarding collection of those fees is not diluted by that.  

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

This user has validated their user name. by: RKTOYS

Sun May 19 11:08:44 2019

"A business is formed to make a profit. The above you mention is how eBay makes it's money! ~ FEES"

And if those fees don't deliver sales, eventually they stop being paid.  Then what?  Do you have any idea how many sellers out there won't go past the 50 free listings because it's not worth paying for listings?  For a company that desperately wants to be an advertiser of car insurance and cellphone covers, limiting the surface area for ads by grasping at dimes and quarters in listing fees is pretty stupid.

Toolguy...you're in the aircraft tool business.  Don't you realize that at some point somebody has to actually _do_ something besides put their hand out?  Everything this fool does is unproductive, word salad, or both.

He's just like my last boss at DOS - doesn't know what he's doing, won't ask for or accept help, and won't take responsibility.  I quit that job as soon as I found something else.  I'll quit eBay at the earliest opportunity too.

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: Snapped This user has validated their user name.

Sun May 19 11:13:27 2019

"The above you mention is how eBay makes it's money! ~ FEES"

The context of the impropriety regarding collection of those fees is not diluted by that.  T

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

This user has validated their user name. by: toolguy

Sun May 19 13:14:28 2019

@iheartjacksparrow

How do you think eBay should make it's profit?

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

This user has validated their user name. by: RKTOYS

Sun May 19 14:47:49 2019

I've got a better question.  Why doesn't eBay just set up a recurring withdrawal and shut the website down.  That way they can take every dime they think they're entitled to with no overhead for pesky details like service delivery?

Perminate Link for eBay Pitch to Investors May 2019   eBay Pitch to Investors May 2019

by: Ebay Little Shop of Horrors This user has validated their user name.

Sun May 19 17:42:39 2019

Why does Ebay have to make any money? Why can't it be chopped up and sold? If anyone is going to make money off you, why not someone smart, competent, whom you can respect? Why is it Miss Execution or nothing?

(That's my new name for Wenig. Elliott's letter said Ebay's poor performance was due to misexecution. So now, he's Miss Execution.)

There won't be a lapse in sales; there will be an increase. Current sellers won't miss a beat. They'll be grateful.

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