Feeds

eBay revenues defy worldwide army of bitter users

The Upside of Anger (DVD) - $3.99

Bridging the IT gap between rising business demands and ageing tools

Despite a flagging economy - and some serious vitriol from longtime users across the globe - eBay is raking in serious dough.

During the financial quarter ending June 30, the world's most popular online auction house nabbed $568m in profits, a 20 per cent increase from the same quarter last year, and net revenues grew from $1.83bn to a hefty $2.2bn. That's also a 20 per cent a leap.

In recent months, the company has ticked off countless users with an endless stream of sweeping sales changes - including a ban on negative feedback about buyers, a botched search engine overhaul, and an ill-fated effort to force PayPal down millions of Australian throats. But so much of that Q2 revenue came from its core marketplace business. Marketplace net income topped $1.46bn, a 13 per cent increase from last year.

"In our Marketplace business, we felt good about our overall results as we implement changes designed to make eBay more competitive, with better experiences for buyers and more opportunities for sellers," newbie president and CEO John Donahoe said during a conference call with reporters and industry analysts. "Beneath those numbers, we're seeing some early encouraging signs for the changes we're making."

Donahoe acknowledged that many customers would use vastly different words to describe the changes, but he said that can't be helped. "We've...earned some criticism from our community as we've made changes through the first half of this year. When you have 84 million active users, anytime you make a change, someone is going to be upset."

And he argued that eBay is constantly responding to the, um, negative feedback from longtime users. "We listen and we incorporate their feedback with what we believe is best for the collective good of the marketplace. This is the art and science of our business. An open, honest dialogue with our community makes eBay stronger."

As an example, he pointed out that eBay recently backed off plans to prevent Australian buyers and sellers from using any payment method other than its very own PayPal. But the company is still intent on forcing sellers to at least include PayPal as an option. And just this week, a group of Aussie protesters announced plans to take legal action against the company.

"eBay is still pursuing its original plan by stealth, if you will," Robert Vandermeer, the protesters' ring leader, told us earlier this week. "If you go in and try to create a listing, it's still PayPal in your face all the time, if you to buy an item, when you go through checkout and want to pay, 90 per cent of the screen is basically PayPal blue, and you literally have to scroll to the bottom to the tiny fonts that tell you that you can pay by other means."

As you might expect, the ten-year-old PayPal is a cash cow. During Q2, PayPal revenue was up 33 per cent to over $600m and total payment volume grew to $14.9bn.

Donahoe says that PayPal makes the net safer for buyers and sellers. But there are others reasons he's intent on, well, expanding its reach. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.