I digress from Bonanzle to give my 2 cents on Ebay's 4th Quarter 2008 report.
Well, Ebay's 4th quarter 2008 report is out. It is dismal indeed in spite of John Donahoe's spin. This is exactly what veteran sellers have been expecting since Mr. Donahoe began his "disruptive innovation" a year ago. I predict by the end of the first quarter this year there will be NO denying Ebay has taken the wrong path - Mr. Donahoe will NOT be able to spin the decline of Ebay's business or blame 100 percent of it on the economy.
Over 11 years ago the Ebay phenomenon was born and took flight. During these years the company grew to massive proportions. It seemed everything they touched turned to gold and the sellers who flocked to them brought them even more riches then Pierre and Meg could fathom. On the other hand, Ebay became a haven for the elderly, the disabled, the stay at home moms and the out of work dads who needed income. Both sides were very very happy. Then Ebay's success became "expected" and Ebay became more and more arrogant. "If you want to sell here you'll do this and that and pay this and that...ad nauseum". Then they became SO big they felt they were invincible and they had John Donahoe step in to take the company apart and rebuild it into a cheap and cheesey Amazon clone so they could get even bigger and more wealthy. No...don't invest the sweat equity - Ebay is so big they don't have to do that...they can simply have "diamond sellers" do all the work and then Ebay can sit back on its throne and scoop in all the money! give the diamond sellers free or low listing fees and raise fees on the small sellers...heck they have to either take it or leave it! Unfortunately, it reached a point where a LOT of those small sellers had to leave it...they simply couldn't make profits. Well, John, Pierre, Meg...what do you think of your big invincible company now? You never believed in the sellers who built Ebay - you called them "noise" and beat them into complying with your outrageous draconian policies - pay your outrageous fees! Gave buyers the power to scam and cheat your sellers. What do you think of your company NOW! This is just the start of Ebay's long and painful death!
Even I think this post is depressing even though I believe it to be true. Let's have something happy for today's painting. How about a watercolor - "Sunny Garden Path"