If eBay were an item the online auction site sells, the product listing might read: "shows signs of age, wear and tear." Buyer feedback wouldn't instill much confidence.
EBay, once-ubiquitous, doesn't generate the "must see" buzz it once did. We just aren't rushing back each morning like we used to, and we are not alone. According to the auction industry Web site AuctionBytes.com, which crunched Nielsen data, eBay traffic declined in April and May, both sequentially and year over year. Page views for May were down 32% from a year earlier.
EBay will release second-quarter earnings Wednesday. The company posted revenue of $2.02 billion in the first three months of the year, a $171.6 million decrease due to "difficult macroeconomic conditions."
The news is not all bad for eBay. Revenue increased 12% last year, and free cash flow of $2.3 billion set a company milestone. On the user end, the site still collects more clicks than rival Amazon.com.
In a July 6 advisory by Sandeep Aggarwal of Collins Stewart, the analyst sounded an optimistic note about the company.
"The changes eBay has been implementing to transform its Marketplaces business for the past 18 months are working now and beginning to bear fruit," he wrote, specifically citing improvements to the site's search function and increased selection.
All well and good, but will customers be reinvigorated?