eBay has failed to take advantage of the current economic conditions and as a result may find itself in trouble. That was the message from investment firm Wedge Partner, which warned that the online auction company's business is "deteriorating".Despite the vibrant market for people looking to sell on unwanted items, the changes that eBay has brought into place have caused considerable seller discontent, as reported by PC Retail back in February.
"Seller discontent with eBay is on the rise due to higher fees and other changes, and we believe eBay has seen numerous sellers migrating away from the platform and create their own selling sites," wrote Wedge Partners analysts Brian Blair and Ryan Hunter.
"We don't have a handle on how much of the slowdown is due to economic conditions and how much is due to competition and execution, but we do believe a decline in these key metrics presents continued risk for the company," they added.
Warning that shares have plummeted by 30 per cent compared to the same time last year, they said that around ten per cent of the company's workforce – 1,500 people – may find their jobs at risk.
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