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Ebay CEO to step down

Posted Jan 22 2008, 03:22 PM by Kim Peterson
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EBay chief executive Meg Whitman will retire from the post soon, the WSJ reported today. And that means eBay is at the most critical point in its history. The retirement news isn't a surprise; we discussed the idea of her resignation earlier this month. Whitman, 51, has been giving her top executives more responsibilities recently and could be grooming one to replace her.

EBay investors weren't too thrilled today. The company's shares fell more than 4 percent to close at $27.13. I thought the market would react more favorably, considering that eBay's share price has dropped by almost a third since October.

Whitman's legacy has some black marks, such as the overpriced Skype acquisition and the increasing anger among a user base irritated by high fees. I don't think she's done enough to improve the user experience, and as a result companies like Amazon have become a serious competitive threat. But what outshines those flaws is this: Whitman has kept the company growing and profitable, which is exactly what a CEO should do.

The person eBay's board appoints as successor will say a lot about how the company views itself. The WSJ speculates that John Donahoe, the president of eBay's stagnating auction business unit, is in line to replace her. If Donahoe is promoted, eBay's board is probably looking for more of the same from the company's leadership -- and honestly there isn't much wrong with that.

But bringing in someone fresh would signal that eBay is ready for a change. Ready to abandon its cautious, conservative approach and become more than an auction site. Ebay has huge potential to expand into new areas, and those moves, while risky, could revitalize the company.

Ebay's quarterly results are out tomorrow. Perhaps we'll find out more about a Whitman resignation then. 

Update: The news is out (click here for more detail). Whitman is leaving in March but will remain on the board. In a conference call today, she said, "It's time for eBay to have new leadership, a new perspective and a new vision." Donahoe will be the new CEO, and in the same call said he'll make eBay easier and safer to use.

Here's what others have to say about the news:

NYT Bits:  "Ultimately, if Ms. Whitman’s strength was her conservative ability to give the eBay auction concept a chance to grow and achieve its potential, there may be a strong case for a need for change."

Digital Daily: "Certainly she leaves a storied career behind her. She led the company through its 1998 initial public offering, and from there through some 40 quarters of sequential revenue growth. An impressive achievement by any measure–Skype acquisition be damned." 

Silicon Alley Insider: "We think the move will be good for eBay's stock price and, likely, good for eBay. Meg had a strong run, especially in the early years, but eBay has lost its strategic focus, and we think the company will benefit from having a new leader. " 

Seeking Alpha: "Whitman has been an emblematic leader for eBay but I also think the time has come for a change in leadership. The earlier this change comes, the better." 

BloggingStocks: "Ms. Whitman has done an admirable job as CEO of the company, as evidenced by the stock's strong performance since its IPO. But over the past five years, shares of eBay have provided essentially flat performance as the company struggles to find ways to deal with slowing growth in the auction business." 

Comments

 

The constant fee increases and limits to what could be placed in an auction is what drove me away from selling on eBay. I signed up back in 1999, had an eBay store front, was a powerseller and push came to shove... eBay shoved me right off their site from the high fees.

It was far cheaper to run an out of the box shopping cart (VPASP) on a DSL with my own doman name than continue to pay the fees.  My only cost now is my DSL line, no more listing fees, reserve fees, final value fees... fees fees fees... plus all my items stay up for sale 24/7 without expiring! No auction site can beat that!

In my opinion... eBay is more of a buyers marketplace than a sellers marketplace nowadays.

EBAY is the grand-daddy of auctions on the internet and Meg has done a fine job . It is time however for some changes. Some of the new things that have been added to EBAY should go away they don't help sales. The fee structure needs to be addressed it has just gotten out of hand. EBAY Motors fees are absurd for selling cars,trucks,trailers, boats. High listing fees and high end of auction fees. Some items in these catagories can't be listed due to the high cost cutting out good sales.There really should be some type of discount for Pay Pal fees when using EBAY. I will continue to list things on EBAY due to there saturation of the internet but would really like to see fee changes. After all EBAY IS THE WAY!!!

Fee Bay. I quit using then when it got a non deserved negative feed back. They wanted to charge me a ridicules fee to investigate the case. You can’t call them. I have never dealt with a business that you can’t contact by phone to quickly resolve an issue. The juice wasn’t worth the squeeze.      

I sold on Ebay for over 6 years till a customer told Ebay i never sent him the item.When i had a Recept to show that the buyer did get the item and Signed for it.But ebay took his word over mine and refunded his 600.00 this took my fee money so i couldn't pay the fees.Ebay was my only income since i'm not working.They then closed my account and ended my 700 items <some with bids> and demanded payment from me! They not only Ruined me but screwed me as well.I have yet been able to pay the fees since i'm not working.This was wroung for ebay to do,but they can do anything they want.I just want my account back and the past fees dropped so i can get back on my feet.Mybe since they won't talk to me on the phone.Mybe they will read this!

I must say the fees have become prohibitive. I used to sell quite a bit but got so fed up with all the fee hikes and just plain stupid daily changes that I quit e-bay. Their feedback system is horrendous. If you have a buyer who doesn't pay, you don't dare leave a negative because you know you will get one back. But, e-bay came up with a very fair way of dealing with unfair negatives. Pay us more money and we will mediate for you. What a rip-off.

Personally, I'm very happy that other sites are becoming more competitive and reaching out to sellers. E-bay became too full of themselves and forgot that without sellers, (and there are alot of disgruntled sellers) you really can't have the buyers. So keep raising the fees and force the sellers to sell as you want them to sell and raise the fees some more. That's what e-bay has been like for too long.

I agree that there is way tofraud on E-BAY MOTORS. I hope whoever takes over they can do something with all the fraud that goes on.

Ebay has grown on our backs as sellers. We get a pay cut every year and Ebay gets richer. They acquired Paypal whcih is another chunk out of us. But it is the price of doing business. I hear that Ebay sides with the seller. Well I must not be the seller that Ebay sides with then. I know there are a lot of scams that run on Ebay everyday which drives away a long of users. You can only be scammed once and from then on you have a bad taste. But there is always more then one side to a story. Ebay does have the problem of closing selers without good cause and once that happens most sellers wil not finish the orders. But Ebay does expect to get paid for the items sold but has also cancelled them. I hope along with most on Ebay that this helps make the market fair and what it used to be like. But if not we can expect to be bent over again and see their stock take a little hit again and again.

I feel fees have always been too high but my biggest complaint now is the lack of knowledge of the customer service department and unprofessional trust department and total lack of concern for the seller.  I had an item removed from being sold without them even telling me why and fees charged for no reason.  When I contact ebay about the issues they never know how to respond and it takes along time to find out; why?  Anyhow, I've never had issues like this before since I've been with ebay in the beginning and I see them as not caring about its customers which sucks for me!  Good bye Meg, your sucked profit at the cost of loosing your customers and upsetting them!  I look forward to someone that runs the company from their heart, not their bottom line!

They should apply the 4 steps to fix ebay, although one is already in progress; Step 4!!

Have over 3000 feedback and Ebay is a retirement hobby, but  like many others I am considering leaving Ebay due to the high fees (especially when an item does not sell). Will look for another auction site as Ebay does not seem to care about it's sellers.

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