Feeds

eBay losing its 'magic' - CEO

Auctioneers - please come back

The next step in data security

Has the shine come off online auctions? eBay chief Meg Whitman has acknowledged that the site has lots some of its "magic", as the balance tilts away from home sellers to professional retailers.

Not that eBay is grumbling too much. The company reported profits of $310m on turnover of $1.4bn for 2Q 2006 yesterday. eBay also has $4bn cash in the bank. $9bn worth of trading went on under its roof in the period.

But revenue growth is faster than profit growth, which rose only one per cent sequentially, and this brought a frank admission from Whitman.

"The marketplace has been overwhelmed with identical, often poorly-priced items that have diluted the magic of the eBay experience," she said. "This has resulted in fewer return visits, higher exit rates and fewer bids per listing. In turn, conversion rates and successful listings have declined and eBay's GMV growth has not been as strong as we would like."

To remedy this, she said, eBay will raise the profile of the auctions and raise prices for stores. That won't be popular.

eBay said that is has 78 million active users, 20 per cent more than a year ago, and there are 35 per cent more listings. But as a sign of its changing nature, fixed price listings - usually tagged "Buy It Now" - are up 35 per cent year on year.

The company offered no clues on how to turn Skype, which cost eBay $1.6bn, from an expensive albatross into a money spinner.The "communications" revenues grossed only $44m revenues in the period. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.