Wednesday, January 19, 2005

eBay earnings (melo)drama

eBay Puts Loyalty to the Test

"Get ready for a bit of drama during eBay's (EBAY:Nasdaq ) earnings report Wednesday," writes Kevin Kelleher for

Some eBay sellers have lashed out over a recent fee increase: "Thanks eBay! This $3,000+ per month seller is done for good on Feb. 17," writes one Power Seller on the company's message boards.

Meanwhile over at, their online
auctions have increased 50 percent in the five days since eBay's announcement.

What you're seeing is a repeated pattern at eBay.

My friend and ex-client, Eric Jackson, has written an excellent book called "The PayPal Wars: Battles with eBay, the Media, the Mafia, and the Rest of Planet Earth." Back when Eric soldiered for PayPal as the company's marketing director, he witnessed many a ham-fisted, bone-headed maneuver from his competitors over at eBay.

Yeah, this is a naked book plug.

However, despite my blind loyalty, this book should be required reading for every eBay investor and MBA student in the country. In fact, here's a professor who says the same thing:

"The Genius and Struggle of PayPal" -- Ludwig von Mises Institute