Recs

1

Do You Think You Can Run eBay?

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Shares of eBay (Nasdaq: EBAY  ) opened lower this morning, after the head of its marketplace division announced that she would be stepping down. Lorrie Norrington is leaving for "personal family reasons" after spending just two years at the helm.

eBay's marketplace subsidiary watches over the namesake auction site, the StubHub ticket exchange, and the company's many global online classifieds endeavors. Despite making inroads into mobile commerce and perpetually tweaking its seller terms in order to appease disgruntled power sellers, this isn't really the division that's been driving eBay these days.

PayPal is the best reason to grab a piece of eBay these days, growing faster than eBay.com.

A replacement wasn't named in yesterday's press release, and the gig is going to be a challenge for whoever steps up.

In the past, eBay has covered for its marketplace shortcomings through acquisitions. Whether it was StubHub or South Korea's Gmarket, eBay has already bought up most of the beefy targets short of Latin American speedster MercadoLibre (Nasdaq: MELI  ) . It could also make a play for crafts marketplace Etsy before it goes public.

The Internet was the perfect catapulting vehicle for eBay in the 1990s, but now it's also a threat. Charging folks for online auctions isn't easy in this era of Craigslist, Facebook, and countless other outlets for free listings.

It would make sense for eBay to move closer to more conventional e-tail. It will never be Amazon.com (Nasdaq: AMZN  ) , but it wouldn't be a shock to find eBay snapping up Overstock.com (Nasdaq: OSTK  ) next year. It could pair that up with a purchase of B2B surplus marketplace Liquidity Services (Nasdaq: LQDT  ) to create immediate diversification away from consumer auctions.

The one thing that eBay can't do is stand still. The market is evolving quickly, and eBay has a vacancy that needs to be filled just as fast.

What would you do if you were the new head of eBay's marketplace division? Share your thoughts in the comments box below.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

MercadoLibre is a Motley Fool Rule Breakers pick. Amazon.com, eBay, and Liquidity Services are Motley Fool Stock Advisor recommendations. Motley Fool Options has recommended a bull call spread position on eBay. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community.

Longtime Fool contributor Rick Munarriz is a satisfied eBay user with 178 positive feedbacks to show for it. He does not own shares in any of the companies in this story. He 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.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 22, 2010, at 2:16 PM, Patricia013 wrote:

    I have no idea how Donahoe is running Ebay - he changes his goals as often as he changes his socks. He let go of a successful business model that merely needed tweaking. Hence, stagnant sales, stagnant stock prices and a tarnished reputation. I believe a panel made up of a good mix of buyers and sellers along with a CEO who understands online sales could run Ebay efficiently...and throw the majority of the draconian policies that have put a roadblock into sale right into the trash where they belong! Never have so many suffered so much loss at the weird idea of one CEO! Nobody should be treated like criminals - as the sellers are treated now and NOBODY should have to gamble on losing their item, their money and their selling account on the say so of a scammer buyer as is happening now! Nuff said!

  • Report this Comment On September 22, 2010, at 9:17 PM, ValleyGeekGirl wrote:

    If I was Donahoe I'd sack half the exec and slim down the company. Like the previous comment above, apart from treating customers like criminals, it should treat its employees better. The company has a habit of losing its key staff - particularly women as result of diversive management treatment - and believe me there has been a looong list of women leave over the last 2 years, and many equally talented men. People leave because of the sour ethos in this ailing company.

  • Report this Comment On September 23, 2010, at 2:00 AM, Castlerock wrote:

    I am both a seller and a buyer on Ebay and have never felt like a criminal. I've had people claiming that the item was not delivered but with a simple delivery confirmation number it has been enough to r4esolve the issue on my favor. Delivery confirmation is bought at a discount for only $0.19 when creating the USPS label on line. To me the problem is that the service nikel and dimes you to post your listing i.e. Price over 1 dollar you pay $0.25, you want a subtitle then you pay $0.50 etc... I think th service needs to evolve in an even more personalized way. I am sure theres lots of stuff out there that I need to buy and just don't know it yet :)

  • Report this Comment On September 23, 2010, at 2:16 AM, dgmennie wrote:

    The basic problems with eBay over the past decade are its increasingly harsh and stupid policies that (now) prevent easy, unfettered communications between buyers and sellers. I'm going to assume this was initiated to prevent the growth of "off eBay" transactions. But as enforced policy it has expaned beyond reason. Yes, there are certain basic operating procedures that must always be in place. They still remain recognized as necessary and ethical by almost everyone. But when creativity is abandoned, there is NOTHING that can be done by fiat to stuff ever more money annually into the coffers of eBay management.

    The best thing that could happen now is for eBay to return to its business model of the late 1990s. But since entrenched special interests will no doubt block any such action, the marketplace will have to speak by removing business from eBay until the entire structure implodes. Meanwhile, I am hoping that someone with deep pockets, faith, and integrity can develop a competing auction site that brings back the best of the original eBay, albeit updated for the 21st century. Lets not sweat the small potatos of buyers and sellers getting together directly on occassion, especially when the ultimate price is to turn a fun marketplace into a police state or gulag.

    Where in today's overcompensated CEO universe is the fabled "vision" of business leaders when you really need it?

  • Report this Comment On September 23, 2010, at 6:36 PM, Patricia013 wrote:

    @ Castlerock as a seller you've had almost every single right taken from you. You can no longer give negative feedback to a buyer no matter how bad the transaction. You can be negged by a deadbeat buyer who does not pay. You may be forced to refund a buyer who still has your item! The solution to the majority of transactions gone bad favor the buyer and the seller is often left without his item, his money and with a negative by a scam buyer. Read Ebay's discussion boards, read the many posts on Seller Central go over to auctionbytes.com and read those articles and comments....while your at it read the lawsuits, of which there are many. I'm happy to hear you have not had a problem but that doesn't mean the problems do not exist.

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 1309093, ~/Articles/ArticleHandler.aspx, 5/26/2012 1:05:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 12,454.83 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
NASD 2,837.53 -1.85 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/25/2012 4:00 PM
MELI $74.73 Down +0.00 +0.00%
MercadoLibre CAPS Rating: ****
OSTK $6.70 Down -0.03 -0.45%
Overstock.com CAPS Rating: *
LQDT $62.82 Up +0.27 +0.43%
Liquidity Services CAPS Rating: ***
AMZN $212.89 Down -2.35 -1.09%
Amazon.com CAPS Rating: ***
EBAY $40.35 Up +0.68 +1.71%
eBay CAPS Rating: ****

Advertisement