Auction giant eBay pressed to reinvent itself as consumers’ buying habits evolve

[mandy]

There’s no denying the power that eBay Inc. has exerted in the online retailing world. Once perceived as the online equivalent to a garage sale, eBay has become a powerhouse of online selling with the value of all goods selling on eBay reaching a record $53.5 billion last year, up 19% over $44.3 billion the year before.

While that’s a big number, some analysts have started focusing on the growth number. And that tells a different story, they say, one that says eBay is right in looking for growth areas outside of its traditional auction model. Some analysts point out that 19% is below the market growth of 25% and that growth has slowed in other areas as well.

“EBay has been losing share since 2005,” says Jeetil J. Patel, managing director of Internet research at Deutsche Bank Securities Inc. Based on a Deutsche Bank formula that includes user growth, listings growth and average selling price, Patel pegs eBay’s 2006 e-commerce market share at 12.7%, down from 13.1% in 2005...

full article: http://www.internetretailer.com/article.asp?id=23582

[mandy]

A related article:

Time was, small-business owner Evan Prytherch considered eBay capable of performing e-commerce magic. Prytherch would list his entire music-accessory inventory on the auction Web site and within days it all seemed to disappear. Sold.

But in recent years, much of that magic is gone, Prytherch says. Shoppers are simply not buying all the inventory anymore. Some items languish without a single bidder. Many shoppers opt for other sites including Amazon.com, use sophisticated search engines such as Google and Yahoo!, or head to store sites directly.

Now eBay is making the biggest effort in its 12-year history to recapture the magic—and bring back the buyers. The company is completely revamping its flagship site...

full article: http://www.businessweek.com/technology/c...750709.htm