EBay Q1 Sales Drop

Summary: eBay Chief Executive Officer John Donahoe admitted that the company is now struggling to cope up with the downward market trend as it failed to implement changes in its online marketplace, with shares falling 18 percent.

Meanwhile, the online giant expressed high hopes that sales will be better in the next few months.

Online marketing giant eBay Inc. on Wednesday expressed high hopes for the online retail store after beating analysts’ forecasts despite its lower sales for two consecutive quarters due to economic slowdown.
 

eBay Chief Executive Officer John Donahoe admitted that the company is now struggling to cope up with the downward market trend as it failed to implement changes in its online marketplace, with shares falling18 percent.

The official said that online consumers tend to spend less on small and fewer items during the two quarters which caused its downward sales. He added that monetary exchange value might also be one of the factors for the decrease in revenue since more than 50 percent of the online retail store profit came from outside the US.

Offseason market and goods liquidation might have also played its role in the downward sales as it prevents customer trust, the official said.

However, Donahoe said that they remain hopeful despite the cuts in revenue, citing that other business behind the online retail store continue to grow.

Paypal, one of the world leaders in online payment service, posted around $643 million in revenue or 11 percent growth in the second quarter. Meanwhile, Skype, eBay’s internet communications service provider, rose by as much as 20 percent or around $153.2 million.