eBay

The well known company, like eBay definitelly is, has announced a very big profit at the end of the second quarter of 2008 by its high at 20%. This record profit is connected with name John Donahoe, who is the new President and CEO of the company. He started a new strategy in January, which emerged an anger from the side of the individual sellers. eBay has changed its fees and feedback and that‘ s the reason for the anger. The point of the new strategy is that they give more incentives to customer’s friendly sellers, those who deliver what they promise. Acting like this, eBay is shifting more of its business away from the auction model, what it the biggest problem for individual sellers.
Moreover, eBay has quietly partnered with Buy.com in order to improve the value of its shop. This fact of cooperation might be a reason of such a big profit in the second quarter, some believe. Donahoe said that they are more interested in “buyer-retention“ metrics than the amount of sold goods.
Net revenue for the PayPal service has increased for 33 % year-over-year, since the beginning of the last year. However, eBay continues in diversifing its business line.
Ebay owns also Skype, the Internet phone service provider, that posted a 51 % year-over-year profit. The company intends to increase its annual profit and they are not afraid of world global crisis.