eBay Ponders Challenges

There has been a lot of growth in the history of auction site eBay. But it’s admitting that the future might not be so rosy.

 

Reuters has reported that eBay’s annual shareholder filing – the document it has to file each year with the Security and Exchange Commission – reflects on “changing customer demands.”

 

The biggest immediate problem is the slowing in growth in its three biggest markets, which are the US, the UK and Germany.

 

"We face challenges in the US, UK and Germany, which are our three largest markets, as growth of listings, active users and GMV on the eBay.com platform in those countries has slowed," the filing stated.

 

GMV, or gross merchandise volume, is the amount sold on eBay, from which the site receives a cut.

 

But the company also admitted that the changes it made earlier this year in its policies on fees and marketplaces could have an impact on business.

 

"If these changes cause sellers to move their business away from our sites or otherwise fail to improve gross merchandise volume or the number of successful listings, our operating results and profitability will be harmed."

 

Although eBay has experienced a great slowing of growth in recent years, analysts predict a 14% rise this year over 2007. The company itself anticipates a 12% rise.