When earlier that year John Donahoe was named eBay CEO, succeeding Meg Whitman, he indicated that planned changes would inflict some pain in the short term. He wasn’t kidding. Figures released July 16 suggested that so far, Donahoe’s changes, aimed at reviving growth, have done little to reverse a market share loss to rivals such as Amazon.com.

For the second quarter, eBay reported profits of $460 million, or 35 percent a diluted share, on $2.2 billion in revenue. Those numbers exceeded analysts’ average expectations.

Too Many Changes for Sellers

But the pace of growth continued to decline in eBay’s core shopping business. The total value of goods sold on eBay’s site grew just 4 percent, excluding the benefit of foreign exchange, down four percentage points from the first quarter. Its shopping business grew 13 percent annually, down two percentage points from the prior quarter. Revenue from fees charged when items are listed and sold on

its shopping site grew just 9 percent from last year, down from 14 percent annual growth in the prior quarter.

Donahoe said during an earnings shout that he believes the major changes to eBay’s business — a new fee structure, system of rating sellers, and improved search technology, to name a few — will turn around the company’s shopping business in the expanded run. “We are making the bold changes essential for eBay to compete,” Donahoe said. “We feel that we are on the right path, and we are going to stick with it.”

Some investors signaled disquiet. The shares dropped 7 percent in extended trading, leaving eBay down nearly 21 percent that year. Many of the sellers who prepare their livelihood from listing items on eBay are additionally dismayed by the changes, saying they’re unable to adjust prices and shift strategy quickly decent to keep pace with eBay’s rapid-fire…

Orginal post by Mike

Mechanical Games Gizmo Gadgets Gismos Reviews Gadget Electronic Computers News