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EBay's first quarter revenue increased 15.9 percent, and current quarter forecasts continue to increase

EBay has released its wildly successful first quarter results, and is predicting a favorable second quarter as well. 

For two years, eBay has been revamping its auction and shopping website in an effort to compete with online retailers like Amazon. EBay was popular during the dotcom boom, and as time went on, it gradually lost that popularity. 

But now, things are really turning around for eBay. At an investor meeting earlier this year at eBay's headquarters in San Jose, California, executives reported that shares of eBay increased nearly 8 percent after announcing that PayPal revenue could double in as little as two years. In addition, eBay has stayed relevant by releasing a new mobile app that allows scan technology to compare prices on a mobile device, and users can then checkout securely with PayPal. According to eBay, attempts like this would increase adjusted earnings per eBay share by 10 to 14 percent by 2013 on total revenue of $13 billion to $15 billion.

EBay has also struck a few deals in order to stay in the online shopping ring. For instance, eBay just made a $2 billion purchase of e-commerce services firm GSI Commerce in March in an effort to persuade more businesses to use eBay to sell to customers.  

Now, all of these attempts have proved to be beneficial to eBay. Its first quarter results ending March 31 of this year showed that revenue rose 15.9 percent to $2.55 billion, and the net income was $476 million, or 36 cents per share. One year earlier, the net income was $398 million, or 30 cents per share.  

Also, the number of active users grew 5 percent during the first quarter, and eBay expects to pass 100 million users during this quarter. 

The marketplaces revenue increased 12 percent in the first quarter, and was higher than any other quarter last year. In addition, PayPal revenue increased by 23 percent. 

As far as the current quarter goes, eBay expects adjusted earnings of 45 cents to 46 cents per share on revenue between $2.55 billion and $2.65 billion. EBay predicts $1.93 to $1.97 per share on revenues of $10.6 billion to $10.9 billion for all of 2011.  

"We're focused on redefining retail and leading the next generation of commerce and payments," said John Donahoe, eBay chief executive. 

Wall Street predicted first quarter revenue of $2.48 billion, and predicts 46 cents per share on revenues of $2.52 billion. 

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ebay used to be good
By swampthing1117 on 4/28/2011 5:36:15 PM , Rating: 3
won't use it anymore. They go out of their way to protect fraudulent buyers and don't protect sellers. Their fees have gone through the roof. Just isn't worth it anymore.

I just use craigslist for the most part.

RE: ebay used to be good
By CloudFire on 4/28/2011 5:55:31 PM , Rating: 2
Agreed. I still use ebay but only to sell smaller things. If I wanted to sell more expensive items, I use other outlets. It is pretty disheartening though, their seller's fee is outrageous.

RE: ebay used to be good
By Mitch101 on 4/29/2011 8:39:00 AM , Rating: 2
Totally agree with both of you. I sold a CPU and some memory not long ago. Between the e-bay fees, paypal fee (only decent one), and fraudulent first buyer (fake paid trasaction e-mail tried to pass hoping I would ship before catching or checking) causing me to relist and be charged twice on a listing as if I sold two with nobody from e-bay ever getting back to me on the fees. I had been a member since 2000 with 100% feedback. You can only sell to people with very high volume and ratings. Too many people bid then never pay for the item hoping you ship it or just get carried away. Are you going to dispute a $40.00 transaction halfway across the country? E-Bay jumped the shark for me about a year ago and after this last transaction I need to find something else. Craigslist is even worse with free comes even more fraudsters but at least it doesnt cost nearly as much as e-bay.

Fraudsters show up immediately and are everywhere on the new and smaller sites that popup too killing off anyone from ever really challenging e-bay.

RE: ebay used to be good
By Pirks on 4/29/2011 10:03:10 AM , Rating: 2
Can you put a restriction on your auction so that only people with feedback of say 50+ and 100% can bid on it?

RE: ebay used to be good
By Motoman on 4/30/2011 6:23:11 PM , Rating: 2
No. I think you can set something for like a minimum of 2 unpaid complaints...

...but the problem with buyer feedback is that it is meaningless. ALL buyers have 100% feedback - BECAUSE EBAY WON'T LET SELLERS LEAVE NEGATIVE FEEDBACK TO BUYERS.

Yup. Read that again to let it soak in if you need to. Sellers can only leave positive or neutral feedback to buyers. Ergo, it's a mathematical impossibility for a buyer to have a rating less than 100%. Which makes the entire feedback system a mechanism for buyers to indiscriminately abuse sellers - who have no recourse against abusive buyers.

eBay/PayPal is the greatest shame of the internet age.

Back on topic
By Pirks on 4/28/2011 4:29:52 PM , Rating: 2
So how do you guys protect yourself from fraudulent buyers? Say the buyer claimed he received empty box from ya - how can one prove the buyer a liar? Is there even a remote technical possibility do that in such a way that guarantees that eBay will trust you, the seller, not the fraudster?

RE: Back on topic
By CloudFire on 4/28/2011 5:59:48 PM , Rating: 2
An idea that popped up in my mind is taking a short video of the item in the box as you are wrapping/shipping it out at the post office, and end the video once the item is received by the postal worker. With smartphones widely available now, it's very easy to record a video on the go. I would probably do something like this as a safeguard when selling expensive items such as laptops. And of course get delivery confirmation, insurance when needed, etc

RE: Back on topic
By Motoman on 4/29/2011 8:33:03 AM , Rating: 2
There is no way. eBay/PayPal will side with the buyer essentially every time.

eBay/PayPal is wildly hostile towards sellers, and they get away with it because they're a monopoly - there is effectively no other option for online auctions but eBay, and no way to accept payment but PayPal.

...there is also no other organization more richly deserving of a regulatory smackdown. Unless your company is actively engaged in killing kittens, eBay/PayPal is more evil than you.

By Pneumothorax on 4/28/2011 4:30:09 PM , Rating: 3
Recently sold several high dollar items on ebay. Not only do they have high auction fees, they'll also ALWAYS SIDE WITH THE BUYER Sold a Macbookpro for a decent price. Shipped with tracking, buyer calls his CC and does a chargeback and contacts paypal claiming I sold him an empty box. Ships back 'empty box' to me and provides tracking info to paypal claiming he shipped it back. Now paypal is completely believing the buyer and won't give my back my money. So now I'm out of a laptop and cash. Still checking with my lawyer buddies to see if anything can be done, but the lawyer fees probably won't make it worth it.

By Motoman on 5/1/2011 12:29:44 PM , Rating: 2
Take your case to small claims court. Sue both parties - eBay/PayPal and the fraudulent buyer. Small claims court costs very little, and if you win, you generally can force the losing party to pay your court fees.

But your case is not atypical, and is a perfect example of how horrifically abusive eBay/PayPal has become. I can say with full confidence that there is no organization in this country more deserving of earth-shaking regulatory modification than eBay/PayPal.

I don't side with ebay or paypal
By vision33r on 5/1/2011 12:57:18 AM , Rating: 2
However, some of the claims are a bit outrageous.. If ebay/paypal really are that bad as you guys described. Why are there still thousands of sellers continuing to list and do business? Maybe ebay/paypal doesn't always side with fraudulent buyers and they do side with honest sellers.

If sellers are losing a lot of money, you bet they will take their business elsewhere such as Amazon auctions.

Imo, ebay does a better job than Amazon at fraud prevention overall.

By Motoman on 5/1/2011 12:26:49 PM , Rating: 2
Why are there still thousands of sellers continuing to list and do business?

Because there's no functional alternative to eBay for a national/world wide auction system. And once you're on eBay, you have no alternative but to accept PayPal. So your choice is either to use eBay/PayPal, or don't auction your stuff.

Maybe ebay/paypal doesn't always side with fraudulent buyers and they do side with honest sellers.

I suppose if a case as egregious, you could obviously take your case to court and immediately win, dragging eBay/PayPal down with the fraudulent party...but their track record is horrific. You have essentially no chance to win a dispute as a seller - sellers are a captive party to eBay/PayPal because of their monopoly status. Buyers can choose to use or not use eBay at their caprice. Therefore, eBay supports and endorses buyer abuse of sellers...because the sellers just simply have to put up with it, and without buyers eBay/PayPal would no longer function.

If sellers are losing a lot of money, you bet they will take their business elsewhere such as Amazon auctions. realize that Amazon gave up YEARS ago and shuttered their flagging auction site, right? Amazon Marketplace exists, but is not an auction site - it's a regular retail site, which obviously serves a totally different purpose than an auction site.

Imo, ebay does a better job than Amazon at fraud prevention overall.

You have clearly never been a seller on eBay. eBay supports, endorses, and enforces the abuse of sellers at the hands of buyers. A barrel full of rabid monkeys brandishing chainsaws would be a safer place to conduct business than eBay.

By Motoman on 4/29/2011 8:30:38 AM , Rating: 2
"EBay's Q1 Results Beat Wall Street Estimates, PayPal Revenue to Double Within 2 Years"

And they say crime doesn't pay. Suck it, Batman!

By Machine-Head on 4/30/2011 2:02:35 PM , Rating: 2
eBay/PayPal is a monopoly that is extremely abusive to Sellers. Like others have said, they always side with Buyers in disputes, despite what the circumstances are.

They keep raising their fees in a bad economy and have just started charging final value fees on shipping as well. With every price increase, they try to make it sound like they’re doing Sellers a favor.

eBay/PayPal has strayed far from its initial values and principles, transforming into a abusive and evil corporation. Mr. Donahoe and eBay/PayPal are in need of some governmental investigation and regulation.

"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein

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