From Motley Fool:

(talking about ebaY)

"This company is now doomed. The success has gone to their head. I have been buyer and seller at ebay. I just cannot see where they will make money from.

Here are some of the softcomings I see:
1. For items costing less than $50, the total fees eat up 10% of sale. That is high, unless margins are quite high in the first place. I do not agree that margins are high when selling on ebay. For higher priced items still the total cost may still run upto 7-8%. Thats not easy on sellers, they are going to balk.

2. With the high fees one expects Ebay to assume some risk of sale (like guarantee the payment etc). They do not. All transaction risk is transfered to sellers.

3. New feedback/shipping charges/payment method policies make it even less desirable for sellers.

Now ebay can say they have buyers, sellers will come there. But they need both sellers and buyers to be successful. No company can be successful when it squeezes its vendors out of any profit.

I think this company is going down to zero."

 

 

BTW, ebaY shares closed at a dismal $13.71 today. Down from around the $40.00 range last year at this time.

lmao!

Wheeeeeeeeeeeeeeeeeeeeee!