I'll trade you a cocker spaniel for a cocky panel
I'm not sure what eBay
The email was entitled "Resetting the Balance of the eBay Marketplace," but read on and tell me if eBay is balancing the marketplace or forcing its most active sellers to play seesaw with a sumo wrestler.
Yes, eBay is keeping its core listings in check. It is the fixed, longer-lasting store products that eBay is gunning after in its latest rate hike. The company's idea of "resetting" is to make it more expensive than it has been to put up items under the store format and convince active sellers to opt for the more conventional auction platform. Wouldn't the more logical solution have been to lower core listing fees instead?
Hear me out. I'm not some disgruntled citizen of the eBay community. If eBay is able to get away with ratcheting up its fees to the stratosphere, I would be all for it. The problem is that after years of perpetual hikes, patrons are getting fed up with the nickel and dime approach to taking thicker slices of their auction proceeds. The proof was in the report itself.
Over the past year, eBay's marketplace revenue inched 22% higher, even though the gross merchandise value of goods that were exchanged rose by only 18%. That's a pretty troubling sight once you realize that eBay is taking more money out of its auctioneers (relative to final bid prices) than it was a year ago. In other words, eBay may already be pricing itself out of the market as it tempts the elasticity of its pricing. Keep watching the gross merchandise value metric in future quarters. If it continues to grow at this anemic pace, eBay may no longer be a growth stock and it will likely regret inching up rates at a time when it should have been attracting more listings instead.
No static at all
Let me get this straight. XM Satellite Radio
CinemaNow and later
Just days after Movielink announced that it would allow film buffs to burn DVD copies of the digital movie downloads they were buying, rival CinemaNow followed suit. What's next? Will multiplex operators now offer to deliver $8 tubs of popcorns and $5 cups of soft drinks to my home, make my living room floor all sticky, screen a dozen ads before the feature presentation, and set a cell phone to go off at the most critical part of the movie? Man, and we wonder why movie theater chains are struggling!
At least this particular threat is aimed less at the suburban theater operator and more at the retail distribution market. If you've seen shares of Netflix
Until next week, I remain,
Longtime Fool contributor Rick Munarriz recommends windshield wiper fluid when trying to look back. He does own shares in Netflix. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.