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Devin Wenig is ‘happy’ with Q1 eBay results but marketplace sellers aren’t
“We’re really happy with the way the quarter started, it began exactly the way we wanted it to,” is how Devin Wenig described Q1 eBay results which saw some eBay sellers expressing their discontent at the increasing fees they pay to trade on eBay alongside fewer sales.
eBay’s first quarter results saw eBay contracted slightly when compared with the same quarter last year but eBay made more money. eBay marketplace GMV was $21,571 million in Q1 2019 compared with $22,547 in Q1 2018.
Speaking to CNBC, Devin Wenig eBay CEO attempted to reassure eBay sellers by saying that (gross merchandise volume) GMV will bounce back as it always does. He said that eBay are very confident in the long-term growth of the marketplace.
“We’re running a business in the high 20s margin in an industry that has many competitors that’s 2%-3% margin. That matters in commerce. We’re really happy the way the quarter started, it kind of started exactly the way we wanted it to.”
– Devin Wenig, president and chief executive officer, eBay
Payments and advertising is the new focus
eBay announced their focus on payments and advertising in a bid to increase profitability. Devin said this comes as a result of eBay reviewing low-value programmes and introducing “new businesses that are exciting.”
‘I don’t want to compete with Amazon, I want to create something different’
When asked why sellers sell more on Amazon, Devin replied that “I don’t want to compete with Amazon, I want to create something different.” There are millions of sellers selling on eBay, said Devin, Amazon is pretty good at what the do so the natural question is why are millions of sellers make their home on eBay?
He put down this success to eBay being a number one platform in every market globally. He also cited that eBay’s pricing, selection, policy and their velocity is incredible for small sellers. Devin said that he wants eBay to stand for more human commerce and a champion of small businesses. It is rare that you won’t get a better price or better choice on eBay, said Devin, and that’s why our business 22 years into this commerce war with Amazon is never been bigger and still thriving.
Champion of small business lol…( lie)
In reality and back on planet earth we are paying more than ever to sell on a marketplace which is being swallowed up by Amazon. This dolt cannot get it in his head AMAZON are competing with him and is only saving his overpaid corporate backside by charging everyone for promoting ( stealth fees)…
You either see big companies or China bay sellers at the top ( half that stock is fake)…
If eBay is to have long term sustainable future for Small biz we need rid of this chump…and all his Cronies…
Also is this the only photo floating about of this guy???
Well said Sam.
Agree with all of this, sales on eBay have never been as bad. My sales have gone down 76% by comparison with previous years.
Nobody can find anything worth buying on the site as it is full of rubbish from China that falls apart in a week if it arrives at all.
I don’t think it will ever be back to the site it was before these idiots took over. They have completely damaged what for me was a successful business.
Agreed! Hpw on earth do they expect small business to compete with these big shot retailers who are DUMPING their stuff on ebay? It’s really hard to convey the quality of an item over the internet, and although we sell better quality items, they sell theirs so damn cheap that the price is nearly irresistible.
For about a 1.5 years or so, I had sales clipping along at 2+ per Day (between 5 accounts), now I’m lucky to get that many in a week… At the busiest time of year! Once I find A better alternative I’m out! Four years of this makes the hair grey.
Devin, i have emailed you before, you probably don’t care, my husband is an army vet with a bad liver, we are literally saving money to save his liver and once again you held my funds in paypal. I just wanted to let you know I will no longer be using you to try to save my husband. you anger me, you stress me out, and i dont need that and neither does my husband. you lack compassion. I wish you the best.
“We’re really happy with the way the quarter started, it began exactly the way we wanted it to,”
Roughly translated that means, ” We are really happy with fleecing our customers (sellers) with ever increasing fees to help offset our complete inability to see the fact that they system isn’t working and genuine sellers are leaving in masses. The constant influx of dodgy Chinese sellers with no c.s and the flood of drop shippers with no stock or c.s is the perfect compliment to our unregistered business sellers. With our search and ranking system now completely ruined we are ina great position to once again fleece sellers for more money with are ‘sponsored item’ addition and others ways that they need to over come it. It’s hard to believe that we can keep coming up with an ever increasing raft of measures to make more money while selling less as not cost to ourself. To think so much of it started with the simple idea of practically joining in the organised fraud that that is the INR scam. From these small beginnings we have become one of the internets biggest assets to online fraud and we are happy to boast about out efforts to assist it.
All in all it has been a great start to the year for ebay. We soon hope to have a complete ‘identity’ make over soon, with a rebrand as ScamBay… The place you bring your hopes, efforts and livelyhoods… and watch as some clueless idiot wipes it away.
Anyone that claims you can’t make money out of ebay either hasn’t been a shareholder, or has never been a buyer on it!”
What a load of BS. Does he not realise how bad his statement sounds to sellers.
“We made more money even though your sales are down. So our increase was actually down to all you kind sellers paying us loads more in fees for getting less buyers. But we expect it to pick up as it always does.
Meaning we will make even more money from you and you may eventually get back to where you were”
“Oh! that’s before we hike up charges even more.”
The strangest part in the economics of all this is when FVF are 10% and they increase them to 11% a 10% fee hike do they not realize that kills it even more.
If we sell something for £1 and they take 10p now they want 11p a 10% fee increase do they not realize that when the wholesale prices increase on an item to a seller the seller charges more so if the item now needs to be sold at £1.10 eBay already got an increase to 11p
so when they increase their fees the item jumps 20% to the buyers that’s why sales are down. What school of economics did Wenig go to. Creaming it off our shipping fees as well so again an increase when the postal companies increase their prices
Natural inflation of wholesale prices will always increase eBays profits without any increases added again by them.
Wening should wear a balaclava or other mask and ride a horse called black bess.
Damn we need an edit button… few typos in there!
i got your point – well said 🙂
These days I use ebay for two things: (1) getting rid of stuff I no longer want to sell (OK, might mean a few decent bargains for people), and (2) getting rid of dross at knock-down prices, i.e. stuff falling short of the high standards I require when selling on my usual channels. In summary (for me), ebay is the global equivalent of a stall on Peckham market.
I noticed that in January, February and March that my monthly eBay bill was actually higher than my total turnover for the previous 7 days, but at least Devil is happy with his take! IT CANNOT GO ON!!!!!!!!!!!!!!!!!!!!!!!!!!!!
A quick glance at my last 30 day numbers compared with the same period last year:
eBay sales: -34.5% on last year
Amazon sales: +708% on last year
Website sales: +24% on last year
Pretty clear to me that eBay have lost the plot…..
Ebay has been hit with hackers that have stolen seller’s accounts and are listing items in their accounts . The number is growing every minute. Have a look at this post as someone is keeping tab at the many sellers that have been hit.