UPDATED: eBay Inc. Portfolio Roadmap Preview by John Donahoe

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FEATURED POSTRichard Brewer-Hay / Thursday, March 12th, 2009

UPDATED: eBay Inc. Portfolio Roadmap Preview by John Donahoe

Remember to please visit http://ebayinkblog.com/legal/ if you have any questions regarding forward looking statements in this blog post.

And we’re off and running here at eBay Inc.’s 2009 analyst day. CEO, John Donahoe set the tone this morning by addressing the past, the present and the future with an emphasis on how eBay Inc. is determined to lead and innovate in the ecommerce world, rather than mimic or follow.

A New eBay
He stressed that eBay is no longer an online auctions company, nor a retail company, but an ecommerce platform provider with a simple, unified vision: to connect buyers and sellers.

Repeating his assertion from past earnings’ calls that “we are a strong company, getting stronger” John cited PayPal’s continued growth, acceleration in classifieds, advertising and StubHub businesses and, echoing what I heard at the Accel Digital Symposium at Stanford last month, Skype’s position as a great standalone business. “When we bought Skype,” he said. “We were wrong. We thought it would reduce friction in commerce and payments.” He went on to say that we’re done apologizing for Skype. It’s a great business that is well positioned as a communications leader.

eBay Inc. 3-year Outlook and beyond – PayPal Will Become Bigger Than eBay
John really emphasized the power of PayPal stating he believed it will become the leading online global payments network by 2012. “No Paper, no plastic – just PayPal”. He also stated that eBay will win the global secondary marketplace and will be a leader in ecommerce.

Given the schedule of the day, and the speakers to come, one got the impression that John was merely scratching the surface on what is going to come out of the day’s presentations. I’m sure some people will find some aspects more interesting than others. For me, I’m looking forward to hearing about how we plan on using technology to better our customer’s experiences (regardless of platform). Whether it be PayPal, StubHub, eBay Marketplaces, etc., I want to know how technology will be relevant to our customers. Just because we can do something, doesn’t mean we should.

UPDATED 3/12/09:
View Jim Goldman’s exclusive interview with John Donahoe on CNBC by clicking HERE.

Read Scott Thompson’s follow-up post from yesterday’s analyst day over on the PayPal Blog.

Cheers,
RBH

Related Links:
NY Times Bits Blog: Chief Promises a ‘New EBay’ and Talks Up PayPal
eBay Strategies: eBay Analyst day – Part II PayPal by Scott Thompson
eBay Strategies: eBay Analyst day cheat sheet
Mobile Tech Today: eBay’s Big Plans for PayPal
eBay Strategies: eBay Analyst day – Part I Intro and Donahoe Opening remarks
AuctionBytes: EBay Analyst Day Notes, Part Two
AuctionBytes: EBay Analyst Day Notes
MocoNews.net: eBay’s Mobile Plans for PayPal
Seeking Alpha: eBay – Where It Stands and Where It Should Be Headed
BusinessWeek: EBay’s Big Plans for PayPal
Mobile Guerilla: eBay to Expand PayPal After RIM Deal
Ecommerce Journal: PayPal to announce plans to work up a market
More

Add a Comment

Amber / March 11th, 2009 at 11:01 am

“eBay Inc. is determined to lead and innovate in the ecommerce world, rather than mimic or follow.”

So far, all we’ve seen is a poor attempt to be Amazon without actually holding inventory.

If that’s not being a mimic–maybe I need a new dictionary?

Der eBay Investor mit Day John Donahoe: PayPal ist der wirkliche Star des Portfolios : onlinemarktplatz.de - eBay, gewusst wie! / March 12th, 2009 at 12:13 am

[...] Die Liste der Redner erscheint sehr ausgewogen hinsichtlich der Besetzung der Marktplatz-, PayPal- und Skype-Verantwortlichen. Interessant ist, dass zum ersten Mal seit langer Zeit mit Mark Carges auch wieder ein Technologie-Verantwortlicher mit auf der Liste steht. Der Raum, in dem das Meeting stattfand, glich eher einem Klassenzimmer. 3 Bildschirme waren angebracht und wer sich für mehr Details interessiert ebayinkblog hat die Bilder. [...]

Analyst Days in the age of Twitter | IR Web Report / March 12th, 2009 at 2:09 am

[...] posted a blog post about the first part of the day and uploaded photographs from the event to the photo sharing [...]

Doctor Deals / March 12th, 2009 at 3:26 am

RBH,

Thank you for your live twitter today from eBay’s Analyst day.

I just got done listening to the entire day’s event and come away with one major question that never seemed to be addressed.

In several places eBay executives talked about things they want to do for the “customer”.

My question as an eBay Top Seller with 4.9 Across the Board DSR’s and about $100k a month in sales is:

Who exactly does eBay consider to be their “Customer”?

Would it be possible for you to follow up on this very important definition so that I can put many of the things eBay said into context?

Thank you,

Compliance Building · Investor Relations 2.0 / March 12th, 2009 at 9:02 am

[...] also compiled the twitter updates into a traditional blog post: eBay Inc. Portfolio Roadmap Preview by John Donahue. (Did I just call a blog post [...]

eBay Inc. Portfolio Roadmap Preview by John Donahoe | eBay Ink : PlanetTalk.net - Learn the truth , no more lies / March 12th, 2009 at 2:29 pm

[...] Read more from the original source: eBay Inc. Portfolio Roadmap Preview by John Donahoe | eBay Ink [...]

Paul / March 12th, 2009 at 3:29 pm

I saw the article in today’s Wall St. Journal and I feel like Mr. Donahoe has Taken the fun out of Ebay with outrageous final value fees on items that sell for peanuts and forcing us sellers not to take money orders or personal checks from buyers in the USA on 99% of the items sold. I feel like I have lost good bidders because some folks will NOT work with paypal at all due to fraudulent experiences that have left them with sour taste. There are other auction/online sites as Craig’s List and onlineauction.com where the sellers have more flexability. The sellers are leaving because of they feel like Ebay only wants to cater more to the Ebay Stores instead and building up too many rules and Regualtions. Look at where ebay started, Mr.Donahoe. Small time sellers were the ones that made Ebay happen.
It is time for Mr. Donahoe to wake up and smell the coffee and listen to the sellers. The more you alienate, the more business Ebay will miss out on and other sites will do very well. Also Ebay needs to get out of Skype and not be so tight with Paypal.

JJH / March 12th, 2009 at 4:56 pm

“A New eBay”. Phooey. There was NOTHING wrong with the old eBay. On the OLD eBay I made $1000 a month. On the “New” eBay I’m lucky to sell anything. I don’t even get any looks. What a shame. Who lost here? BOTH OF US.

Anthony / March 14th, 2009 at 7:23 am

Many would say that the damage has already been done, several years ago when it all started changing without a concise direction. Finally, something official which states what everybody else has been thinking. Time will tell whether eBay can ride this on-going storm, but its highly likely that it’s peak is in the rear view mirror. The small business community is out and corporate business is in….

Roger / March 14th, 2009 at 10:41 am

The analysts are not buying into the doubletalk and conveniently weak in-house predictions for the already known lack of growth for eBay in 2009. And neither are the sellers. What a clever way to think that the share holders will be fooled by this nonsense so they won’t scream for someone’s head when the 2nd quarter results come in. They will not buy it either.

As I continue to see my STR decline lower and lower, I hope to continue making some bucks short selling this stock to compensate for the current direction eBay takes.

J B Althouse / March 14th, 2009 at 6:36 pm

I was away from ebay for several years. Recently we decided to clear excess stuff out of the house. It’s all used, mostly worth only a few $ but too good to trash. I was disappointed at the increased complexity of selling simple stuff and particularly unhappy with the imposed shipping charge limit. Shipping has in several cases eaten most of the auction receipt. If the bidder wants the item why shouldn’t he pay the full cost? If I have on nearly all items I have bought from various online vendors. I put any value on my time I wouldn’t sell on ebay. Now that I think of it I guess I need to get acquainted with other sites.

Candy / March 14th, 2009 at 11:08 pm

What I got out of analysts day seemed very clear to me. Ebay will get rid of the majority of sellers and will rely on huge sellers selling liquidation items. End lots, discontinued wares, etc. With large sellers such as these they don’t need much in the way of customer service as these companies can be responsible for themselves. Ebay won’t have to worry about fraud either. Get with it folks – Mr. Donahoe said it – let it sink in so you can prepare yourself to move on. I realized months ago that my time on Ebay has come to an end.

Doctor Deals / March 17th, 2009 at 8:55 am

RBH,

Sorry, I am still not clear with the response you provided and would appreciate clarity from eBay Management if you can get it.

On the eBay.com Marketplace, who is eBay’s “Customer”?

Does eBay consider Sellers, Buyers or Both their “Customer”? And if both, when interests of these two groups do not align, which takes priority as the primary “Customer” eBay feels they must serve?

There was a fair amount of talk during the Analysts Day about what eBay wants to do for the “Customer”, and if we do not know who the eBay “Customer” is in these plans then they cannot be put into context.

Thank you,

permacrisis / March 17th, 2009 at 9:06 pm

Poop, meet propeller.

Candy / March 20th, 2009 at 11:44 am

Doctor Deals – you are a hoot :-) I can tell you that if you buy from my website then YOU are MY customer. I buy my webspace from Godaddy – you are NOT their customer….I am their customer and thankfully, they don’t forget that!

permacrisis / March 22nd, 2009 at 6:59 pm

As a holder of a trailerload of the type of Secondary Market items described on Analyst Day, I can tell you firsthand they will be very hard to move. Many brick and mortar retailers have ALSO adopted an outlet strategy, to get them thru this crunch. As they close the poorer performing stores, they put the excess in dump bins at the remaining locations. Oftentimes, flea guys buy these.

Physically, this works. Online, not so much as shipping costs foul the dynamic. Closeouts do well in open-air marketplaces, and you will see this in the upcoming flea season- you will be inundated by some really unbelievable bargains.

But the only unbelievable bargains you’ll be seeing on ebay are the loss-leaders, complete with a box-stuffer flyer drawing the buyer away from ebay for good. Offered in this way, these deals are actually a cheap form of advertising. And like ebay’s own click-ads, they are a one-shot deal.

With today’s cost of shipping, an item must compel to sell. Antiques and collectibles fit that bill. One-of-a-kind items which expire, shown in a time ending soonest format, are the only chance you’ve got. Let the surplus stuff ride piggyback, as before.

The “15 minutes of fame” afforded an individual seller is really the only value proposition ebay can even offer anymore– especially as the brand itself becomes so maligned.