eBay Inc (EBAY) Is a Sitting Duck in eCommerce Space: Alexandra Cain


In an article on SMH, it was reported that eBay Inc (NASDAQ:EBAY) has increased its gross fee cut on overall products that are bought and the shipping costs are also there, which are billed to the customer separately. This makes it a massive fee cut for eBay Inc (NASDAQ:EBAY) and a lot of customers are not happy with this. The source mentioned that the new fee policy is buried deep inside the latest policy document which is not read by most of the customers. The latest fee increase is hurting small businesses and professional auctioneers who buy things in bulk. eBay Inc (NASDAQ:EBAY) has increased its gross fee cut from 4% to 9%, which creates a lot of burden for the end buyer.

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The source mentioned that when eBay Inc (NASDAQ:EBAY) was contacted for an explanation on this fee increase, the spokesperson said that  fee cut makes up only half a percent of its business. The company keeps on revising the fee structure from time to time. She also rejected the notion that eBay favors the large businesses as compared to small business. She said that eBay has one policy for all.

The article mentioned a specific small business owner, who has more than 30% of her sales coming from eBay Inc (NASDAQ:EBAY). A minute fee increase from eBay can hurt established businesses.

The source said that although eBay Inc (NASDAQ:EBAY) is a business juggernaut which has been a source of a plethora of small business, it’s about time for eBay Inc (NASDAQ:EBAY) to review its policies or get ready to be ruined by a startup. The source gave the example of Uber, which ate all the taxi business.

Carl Icahn’s Icahn Capital Lp is the largest institutional investor in eBay Inc (NASDAQ:EBAY) with over 30.80 million shares in the company by June 30.

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