April 21, 2005

Many are starting to think that eBay is starting to collapse. One thing is for sure, eBay shareholders aren't very happy as they watch eBay's market cap deflate and its traffic diminish. According to comScore Networks, traffic to the eBay site dropped by 14% in February and another 5% in March, completing nine consecutive months of declining traffic. Sellers are upset at eBay over poor treatment and fee hikes and are now starting to view the entire Web as their marketplace, setting up Yahoo Stores and buying keywords on search engines. The only wildcard is eBay's PayPal service, which has huge potential for finally bringing micropayments to the Internet. The question now is whether eBay will continue to stumble or catch its second wind. See the article at the AlwaysOn network for more about eBay and its problems.

Here are the Links

The AlwaysOn / MarketWatch Article