Analyst expects more buyers to ditch eBay for Amazon and Google
Financial analyst Steve Weinstein has revealed in a research note that he expects eBay to have trouble engaging buyers and will see only small increases in revenue in the near future.
He writes: “We continue to view core eBay growth as disappointing when compared to other e-commerce companies. We believe the sustained underperformance reflects confused brand identity and an inability to provide a compelling experience for buyers and sellers.”
Weinstein says he Weinstein expects eBay’s marketplace revenue to rise 0.3% in Q4 vs. Q4 2014 to $1.835 billion. That’s above the Wall Street consensus estimate of $1.833 billion.
In the ecommerce battle between eBay, Amazon and eBay eBay is increasingly being seen as the venue for “bargain hunters”. For my money Weinstein does sum up eBay’s problems succinctly. It’s not entirely clear what eBay is for in the ever more crowded space and there’s work to do on the buyer and seller experience. We’ll see if 2016 is the year that eBay rediscovers its mojo.