When a website goes into tailspin coarse wisdom dictate that there ’s no agency it can make a comeback . But in recent meter eBay has done just that , transform its dismal fiscal land into successes resembling its glory days . How the underworld did it do it ?
Back in 2004 , eBay shares hit a peak of $ 58 . It was an cyberspace virtuoso , which revolutionized online retail . But by 2007 , decline had localise in : growth slow up and sellers began to grumble that the site was progressively expensive and less supportive . By early 2009 , its stock has slide down over 80 pct to barely $ 10 .
But something ’s changed . In mid - July , eBay announced that its profit had doubled and its tax revenue increased by 23 percent . Last hebdomad , eBay stock hit a six - twelvemonth high . So what happened at eBay that suddenly change its fortunes ? TheNew York Times offers some insight :
Excitement about eBay ’s prospects has little to do with its traditional vendue business , or even its essence e - commerce cognitive operation , although its marketplace division place solid upshot and had its good tail since 2006 , the company said . Most of its growth came from peregrine retailing and its PayPal online payments division , a business it acquired in 2002 for what now look like a bargain $ 1.5 billion .
As consumers adopt shopping on their smartphones , “ Mobile River proceed to be a secret plan - changer , ” Mr. Donahoe said . He noted that 90 million user had download eBay ’s mobile app and that 600,000 customer made their first mobile purchase during the most recent quarter . “ A woman ’s handbag is purchase on eBay Mobile River every 30 seconds , ” he said . “ Mobile is inspire how hoi polloi betray and pay up . ”
address to the Times , current eBay CEO John Donahoe explain that smartphones have “ blurred the tune between e - commercialism and off - line retail . Four years ago , you had to be in front of a laptop or desktop to shop online . Now you could do it seven days , 24 hour . We ’re start to have to drop the ‘ e ’ from e - commerce . ”
And he ’s right . Somehow , eBay has restrain on to enough of a reputation to ascertain its mobile apps perform well , and its used that to great advtange . During its slack , you might have expected Amazon to take it down entirely , but instead eBay has shifted its focus , embraced mobile , and succeeded . It ’s adjure for success seems to have pay off . [ New York Times ]
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