Survey Says: Amazon is Eating eBay's Lunch

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If you are an eBay seller with or without a home dropshipping business, you might be interested in a recent report concerning eBay and Amazon that basically says what a lot of us knew anyway: Amazon is eating eBay's lunch.

According to a report released by Citi Investment Research and Analysis, Amazon shows significantly more traffic and growth than eBay and will continue to do so unless and until eBay manages to veer off its present course of apparent self destruction.

eBay’s traffic lagged far behind Amazon’s. In fact, eBay traffic will soon be second to CraigsList.





This report predicts that eBay will continue its decline in traffic due in part to several key factors, including “transition/execution issues in the U.S. with the new pricing policies and search algorithms.”

The report goes on to mention some of the most recent changes in eBay policies, notably the so-called reduction in fees for sellers and the dumping of thousands upon thousands of eBay store items into core search.

Here is what the Citi report has to say about these particular changes:

“Our checks with key eBay seller sources like ChannelAdvisor, which we detailed in a May 6th note, indicate uncertainly over the impact of these changes, with specific concerns over both whether the net fee impact to Sellers could actually be an increase given a rise in some Final Value Fees and whether the new Search results could actually create a less relevant/more cluttered Buyer experience on eBay.”

It goes on:

“We believe that Buyers will continue to migrate away from eBay---taking Sellers along with them---until the overall convenience and trust and safety of the eBay marketplace has materially improved.”

YES!

Is this not exactly what eBay sellers have been trying to convey to management for the past few years---since the current CEO started his disastrous “disruptive innovation” strategy?

If research firms such as Citi can see it, eBay sellers can see it, and others outside the upper echelons of eBay can see it; including buyers who land on the dysfunctional mishmash of eBay’s Search results pages and are voting with their feet as they leave in droves…..why, oh why, can’t the eBay Board of Directors see it?

What are they waiting on?

John Donahoe has had several years now to improve eBay and the result is what you see in the graphs above.

His ill conceived and poorly executed plan for Disruptive Innovation is a resounding failure in anybody’s books. It has accomplished nothing except the steady decline of what was once a thriving marketplace.

At this point, since the Board of Directors seems satisfied to allow this systematic ruin of eBay to continue unchecked, maybe the best solution would be to chuck them all out, the CEO included, and install some people in their places who are able to read the 10 foot tall handwriting on the crumbling wall of eBay before it is completely lifeless and damaged beyond repair.

If what has happened to eBay was a movie, this would be the point when the villagers arm themselves with torches and storm the castle to get rid of the Frankenstein monster before he can wreak any more havoc and mayhem.

Instead, this film seems more like a "Nightmare on eBay Street" with an unlimited number of sequels as one ruinous change follows another.

A lot of buyers and sellers have decided NOT to stay tuned for any upcoming new releases!

If you liked this article, you may also like this one: http://blog.dropshipaccess.com/bid/29544/eBay-Sellers-Are-You-a-Top-Rated-Seller-or-a-Dishonest-Dirtbag