“When Do We Start Calling eBay A Payments Company?”
A picture is worth a thousand words, so they say. This “Business Insider” article contains a revealing graph of eBay revenues since 2003. It shows quite starkly how eBay’s Marketplace revenue has stagnated since 2008, about the time that the headless turkey, John Donahoe, got hold of the tiller and started his “destructive renovations”.
So, it appears the eBay Marketplace has been stagnant since 2008. Conversely, Amazon’s marketplace has not stood still: it has consistently moved ahead in leaps and bounds; ergo the eBay Marketplace has effectively been in decline since 2008.
eBay’s “take rate” improved in Q42011 simply because it is now charging a FVF on sellers’ shipping and handling costs. What is eBay next time going to come up with to again pull the wool over analysts’ eyes?
The graph also shows the eBay-underpinning increases in revenue eBay has received from PreyPal during the same period, that is, from roughly when the “eBafia Don” effectively mandated PreyPal’s use on the eBay Marketplace. Business Insider apparently thinks therefore that eBay’s future lays in PreyPal.
Well, if anyone thinks that the retail banks are going to let such a clunky, parasitic upstart as PreyPal—who after all does no more than ride precariously on the back of those banks’ own payments processing systems—continue to nibble away at the banks’ area of expertise for any length of time, all I can say is, dream on …
Unfortunately for eBay’s chief headless turkey, Visa’s “V.me”, when it is up and running later this year, will put paid to whatever success that the clunky PreyPal has had with merchants outside of its mandated use on the eBay Marketplace—and soon thereafter both these unscrupulous and clunky entities will commence their long-deserved journeys down the gurgler.
Scott Thompson abandons the struggling eBay for the struggling Yahoo
PayPal claims PayPal Is Not a Payments Processor!
eBay / PayPal / Donahoe: Dead Men Walking
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