eBay analyst day news roundup.

March 11, 2009

ChannelAdvisor ChannelAdvisor By ChannelAdvisor

Some news reports are hitting from analyst day that I thought readers would be interested in so I’ve captured some of them here for your reading+viewing pleasure.  Tomorrow and later tonight the stock analysts will chime in as well and I’ll try and summarize some of their findings.  Also, I have the Citi call with Mahaney (contact him if you want to participate) at 11am ET tomorrow (3/12/09) and after that will be publishing our thoughts on the analyst day and the implications for sellers here.

Before jumping into that, eBay has two downloads up from the day:

  • The presentations are all in this jumbo file
  • There’s a little backgrounder here (financial background and bios).
Most of the press took eBay’s lead and talks primarily about the PayPal opportunities.
  • ($ub required) The WSJ has an interesting piece out called ‘eBay retreats in Web Retailing’.  In it Geoff covers the fact that eBay basically said today they won’t compete head to head with Amazon on in-season product. Yours truly has a quote in here.
  • NYT has a blog post by Brad Stone here.  Brad interviewed JD and this quote was concerning.  I can guarantee you that Amazon sees eBay as a competitor: ““Everyone is saying, it’s eBay versus Amazon. We aren’t trying to be a retailer. We’re not trying to fill our shelves with every new iPod. If our sellers can find new ones and resell it, that’s fabulous.””
    •  There are two possibilities here:
      •  JD is aloof and doesn’t want the press to think Amazon is a competitor.
      •  eBay really doesn’t believe Amazon competes, just like McKinsey told them that google isn’t a competitive threat.  Either way, it’s a weird way to approach this.
        • Maybe eBay hasn’t seen the marketplace that Amazon is operating over there?  Last I checked, I think they may have ipods that are both new and used over there -oh, but they are a retailer so that’s different.  Crazy right?  Well read that quote again.
  • AP story is here 
    •  JD quote – “..But we were faced with the innovator’s dilemma. We were the largest, biggest, successful, profitable, and we knew we needed to make changes but the changes we’d made were always incremental because we didn’t want to upset the apple cart,” he said.”
    • Analyst quote – Derek Brown (aka Dr. Brown), an analyst with Cantor Fitzgerald, said he got the sense from the presentations that the changes eBay implemented last year didn’t quite yield the results it had hoped, and that eBay is now speeding things up in an effort to bring the market back to them.”Are they making the right changes in the right order and will those changes bear the fruit they hope? It remains to be seen,” he said.
  • Reuters story is here – JD quote: ““Its (paypal) potential is enormous,” Donahoe told Reuters. “It’s not just a stepsister …, it’s a second core.”
    •  Analyst quote (shout out to eBay Strategies friend – SteveW!) “The question is: will those changes make the experience competitive with other online retailers like Amazon or Zappos who aren’t standing still. That’s hard to say,” Pacific Crest analyst Steve Weinstein said.
  • FT is here 
There were two CNBC stories today from Jim Goldman.  The one early in the day was about eBay vs. Amazon (smackdown!).  Then at 8pm ET he interviewed JD – both are embedded here for your viewing pleasure.

SeekingAlpha disclosure – I am long google and amazon.