eBay's Woes Won't End With Sellers' Boycott
"eBay is still the best place for sellers who have not achieved scale (required) for Amazon or Google," he says.
Beyond the fee change, eBay is also imposing a new rating system, which will influence the order in which sellers show up in searches on the site and that too could affect eBay's total listings.
A few months ago, eBay began allowing buyers to anonymously rank sellers based on their level of communication, shipping times, shipping and handling charges and the accuracy of their auctioned items' descriptions.
Next month, the company will use those rankings to sort which sellers should appear first in the site's search results. High-ranking sellers will rise to the top while low-ranking sellers will fall to the bottom.But Brown points out that high-ranking sellers aren't necessarily eBay's biggest sellers, so listings have a potential to fall. "One of our concerns around the stock right now is the tremendous amount of uncertainty," he says. Boyd agrees that there is still a lot of unknowns about eBay right now. But at the same time, the company had no choice but to make a move, given the rising competition surrounding it.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV