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Live and Let Die for eBay

By Rick Aristotle Munarriz | More Articles
July 15, 2009 | Comments (11)

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I didn't see you at eBay's (Nasdaq: EBAY  ) annual expo this summer.

Oh, I forgot. June came and went with nary a trace of eBay Live, because the leading auction site decided to cancel the annual fete.

It's just as well. The event may have been widely popular -- attracting roughly 10,000 guests willing to fork over $100 for tickets last year -- but this humbling economy isn't ripe for lavish blowouts.

eBay's new outreach efforts will instead celebrate eBay's 15th anniversary next year by hosting a series of smaller events around the country. "eBay: On Location" will kick off in Orlando, Fla., in February, and will wrap up in the company's home base of San Jose, Calif. Several cities will be added along the way.

That's the right approach. eBay has tried to reach out to the seller base it has alienated in recent years. The 1990s were easy for the world's leading online marketplace operator. When giants including Yahoo! (Nasdaq: YHOO  ) and Amazon.com (Nasdaq: AMZN  ) launched rival auction sites, eBay easily vanquished the competition, despite its stiffer fees.

But things haven't been as easy on this side of the millennium. The proliferation of Craigslist and other sites offering free classifieds has eaten into eBay's market. For active sellers, Yahoo!, Microsoft (Nasdaq: MSFT  ) , and Google (Nasdaq: GOOG  ) offer cost-effective, text-based ads that can be targeted perfectly through search-query keywords.

The auctioneer has counterattacked with its own classified sites, but that's not going to be enough.

eBay needs to mend fences, and that appears to be what it's doing right now. It's giving casual sellers a reason to return, by offering five listings a month with no insertion fees. It will have to go further to smooth over jaded power sellers, but there is hope on that front: Two analysts were upbeat about eBay's flagship marketplace business last week.

Mending fences in 2009. The mother of all traveling road shows in 2010. Who needs eBay Live when the auctioneer would rather be alive?

More items in the eBay bid basket:

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Google is a Motley Fool Rule Breakers pick. Amazon.com and eBay are Motley Fool Stock Advisor recommendations. Microsoft and  eBay are Motley Fool Inside Value selections. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz is a satisfied eBay user, with 177 positive feedbacks to show for it. He owns no shares in any of the companies in this story and is also a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance. The Fool has a disclosure policy.


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  • Report this Comment On July 15, 2009, at 11:21 AM, Patricia013 wrote:

    Just for once why don't you people get the story straight. This are no more Ebay Lives because 1) Ebay can no longer afford it; and 2) Ebay management would have to wear body armor to meet their sellers in mass these days! They have made Ebay such a "fun" experience that sellers and many buyers would happily stone them! Ebay's core is dying - outsiders don't know it, and can't see it so they write using ebay's talking points. What a disservice! Sit down with some sellers - pick ANY regular sellers and ask them about their experience on Ebay and the treatment they receive there these days.

  • Report this Comment On July 15, 2009, at 11:41 AM, wizard85 wrote:

    "Longtime Fool contributor Rick Munarriz is a satisfied eBay user, with 177 positive feedbacks to show for it. He owns no shares in any of the companies in this story"

    WHOOoo, 177 feedback does not an expert make, If anything it shows ha barely knows what he is talking about .. My guess he is a paid shill writing to prop up the stock so buddies of his can DUMP IT before the 22nd the day the 2nd qtr results hit the fan .. The sell through rate has dropped through the floor. There are many documented phoney bidders goofing up good sellers auctions giving many the appearence that eBay is doing much better than they are. these poor sellers have to go through hell trying to get the fees back from all these "NEW" bogus non paying sellers .. Many sellers have lost their sellers accounts over refusing to pay fees for items that didn't actually sell .. check out ebays acual recievables compared to what is owed to them this next qtr .. you will see they have a ton of cash that sellers are NOT going to pay. If you buy this stock, Let me know, I have a bridge for sale .. Allan Kraig

  • Report this Comment On July 15, 2009, at 11:51 AM, MaxMyer22 wrote:

    Good article Rick. I've been to local events and they were greatly beneficial for much less costs to me, and it's a move with consistent with eBay's streamlining.

    Patricia013, I am a smaller seller myself and still today eBay is a wondeful venue. I'd talk to Rick any day about it. In fact I'm part of a network of smaller sellers who use eBay successfully today, even more with the changes. Some people just can't handle change or changing markets. A handful of people have been complaining for more than a year now (mostly the same ones on every blog they can find in a day); they need to learn to move on.

    Your comment that eBay can't afford an eBay live event just shows a lack of knowledge about eBay and their financial position. I would venture to say that the local events will cost the same or more. But both seller and eBay will get greater value in return.

  • Report this Comment On July 15, 2009, at 2:43 PM, MichaelHolcomb wrote:

    "The event may have been widely popular -- attracting roughly 10,000 guests willing to fork over $100 for tickets last year -- "

    Ha! Widely popular? I don't know where this eBay mouthpiece is getting his numbers, but the last eBay Live was Dead Dead Dead.

    There are still videos of the last eBay Live up on You Tube to prove it. What a lying sack!

    Rick, hang it up, we all know what you are, and we know that you have no journalistic integrity whatsoever.

    eBay has created more business enemies than any other company in history. All of these enemies are yours as well.

    How does that make you feel, Rick?

  • Report this Comment On July 15, 2009, at 5:02 PM, vermonter43 wrote:

    Rick definitely is out of touch with both eBay and the sellers of the unique items that once made the site a special place to go. The five free listings promotion is a desperation offer. What successful company has to give its product away? Rick fails to mention the one-way feedback system which allows buyers to comment on a seller's performance, but prevents under pain of suspension a seller from negatively commenting on any buyer, EVEN A BUYER WHO JUST SCAMMED THE SELLER!! Rick ignores the DSR system which allows an uninformed or vengeful buyer the chance to knock a seller off eBay by giving the seller a "1" rating. Good old Rick fails to mention the 21 day hold eBay/PAYPAL puts on seller funds. Also missing from Rick's missive is the new eBay/PAYPAL poison pill, the 20% floating reserve (10% of two month's gross) sales PAYPAL will hold to protect itself from sellers. Gosh, Rick, where did you do your research? Meg Whitman's living room? eBay's policies have ruined or come close to ruining tens of thousands of sellers in this tough economy. Stoning is too good a fate for any eBay management who would have attended EBAY LIVE. eBay senior management should be forced to SELL ON EBAY THROUGH ALL ETERNITY. They might get some idea of what hades is like... Wait until July 22-23 when eBay announces its second quarter results. Old JD will be out there with his standard "the dog ate my homework excuse" -- Bad ol' macroeconomic ate my revenue. Bad, bad dog Macro. Bad, bad management JD....

  • Report this Comment On July 16, 2009, at 8:50 AM, EventHorizon1984 wrote:

    A larger selection of comments on 'eBay Dead! 2010' can be found at:

    Auctionbytes:

    RIP eBay Live

    July 13 2009

    http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/comments/...

    Tamebay:

    eBay Live! is dead and buried

    July 13 2009

    http://www.tamebay.com/2009/07/ebay-live-is-dead-and-buried....

    Powersellers Unite:

    eBay Cancels 'eBay Live' Annual User Conference

    July 14 2009

    http://www.powersellersunite.com/post-267365.html

    eBay Discussion Boards:

    EBAY Live in Orlando cancelled

    July 14 2009

    http://forums.ebay.com/db1/topic/Halfcom/Ebay-Live-In/510116...

    Ebay live is dead

    July 14 2009

    http://forums.ebay.com/db1/topic/Auction-Listings/Ebay-Live-...

    A fair sized collection of comments on eBay can be found at The Wall Street Journal article "AuctionBytes Bites Back at eBay".

    http://blogs.wsj.com/digits/2009/04/29/auctionbytes-bites-ba...

    Readers should note the handful of posters that post material similar to what is found in the Motley Fool comment section, but with different names.

    "Technology in this case is a double-edged sword. There's no doubt the Internet makes counterfeiting easier. The other side of that is that technology makes it harder to be anonymous."

    Hani A Durzi II, ex-eBay PR Spokesperson

  • Report this Comment On July 16, 2009, at 12:50 PM, NYMArts wrote:

    Dear R.A.M.

    You have ZERO seasoned experience.

    Your take on Ebay borders on the SUCK UP meridian.

    Really, just Stop It.

    nymartsDOTcom

  • Report this Comment On July 16, 2009, at 2:01 PM, ithinkim wrote:

    ASK ME .....I have been selling on ebay for 11 years this august....I have seen it all...they need a miracle to mend my fence....I only hang on because it is the only show in town right now...I've been screw'd over way too many times......they are Idiots and Morons.....I pray every night Google would set up an auction site...I have over 1330 active listings and would move them over in a NY second......

  • Report this Comment On July 16, 2009, at 5:20 PM, morandy wrote:

    I am having a blast watching ebay come apart. I used to love them as much as I hate them now. Judging by these comments it sounds like everyone that was alienated by ebay is running back. Yeah right. They stabbed their core in the back trying to make big money off the giants. Without the core no one is there to buy. How stupid can you be? Only idiot comments like "we are prepared to go the distance on these changes" and dont worry about the noise could possibly be dumber. This is like the crew telling the Captian - we are sinking - and the Captian replies FULL STEAM AHEAD !- but we are sinking - FULL STEAM AHEAD ! Congradulations ebay Captians, FULL STEAM AHEAD, right to the ocean floor, where ebay belongs. Good riddance.

  • Report this Comment On July 19, 2009, at 3:54 PM, NYMArts wrote:

    Just got a thought :

    eBay's 15th anniversary is a Thinly veiled "Fond Fairwell".

    Good bye Ebay, HELLO Bonanzle :o)

    Money Orders and Checks Rule the Day !

    BTW : Bonanzle has Over 6000 Gorgeous Vases, and THOUSANDS of Excellent Top of the line Hats and Fancy Headware.

    Virtually Every Category is coming to life with TONS of selections of Everything imaginable.

    Just found a View Master with about 10 different discs.

    Bring your ANTIQUE SIGNED LAMP BASES.

    Bonanzle just aquired Over 10 THOUSAND New Members in only 30 days :o) Over 78,400 members now.

    See You There

  • Report this Comment On July 19, 2009, at 4:26 PM, alexreising wrote:

    Hey NYMArts....

    That website sucks. It looks like a highschooler put it together. Go peddle your wares elsewhere.

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