40 Stores to Close... (part 2)

Money, investing, mutuals etc
pabenny
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Re: 40 Stores to Close... (part 2)

Post by pabenny » Tue Dec 04, 2018 1:25 pm

The financials at eBay appear healthy, but I rather wonder what's driving their discounting - repeated short-time offers of 10%, 15%, even 25% off for different country sites.

With standard UK seller fees at 10% - and presumably much less for big volume sellers, eBay must be losing money on these discounts. I can understand a one-time promotion to help hit quarterly results or and discounts across a limited range of sellers may be part-supported by sellers. But across the board discounts look like a sign of distress.

planteria
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Re: 40 Stores to Close... (part 2)

Post by planteria » Wed Dec 05, 2018 10:01 am

i wouldn't worry too much about ebay's business model.. they have the scale and cash to experiment with what works for the business. i've never owned the shares, but i wouldn't mind.

expressman33
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Re: 40 Stores to Close... (part 2)

Post by expressman33 » Wed Dec 05, 2018 4:09 pm

pabenny wrote:
Tue Dec 04, 2018 1:25 pm
The financials at eBay appear healthy, but I rather wonder what's driving their discounting - repeated short-time offers of 10%, 15%, even 25% off for different country sites.
You may notice that the price of goods often increases just before these discounts are announced ( but not always)

pabenny
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Re: 40 Stores to Close... (part 2)

Post by pabenny » Wed Dec 05, 2018 4:12 pm

Quite possibly when there is a limited range of sellers. But clearly not possible when the discount is site-wide.

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