Feeds

eBay losing its 'magic' - CEO

Auctioneers - please come back

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.