I’ve been a seller on $ebay for many many years. It’s my only income outside of rental properties.
EBay did an update in April that seems to have broken their search result algorithm. I’ve seen hundreds of seller complaining about a significant drop in sales since the update. Personally, mine are down 80%.
It’s not the reopening or a broader economy issue. My etsy sales are pretty much flat during the same time period.
After doing some more digging, I found that many of my listings are just not showing up in search results. Many other sellers are reporting the same.
What ever eBay did with their “update” has made it so that even if you’re a Top Rated seller offering same day handling with free shipping and you’re also paying eBay to promote your listings…they just don’t show up.
So, some of this will likely mean that they are just buying from other eBay sellers. But those sellers are more expensive, so the buyer may check Amazon. But this also isn’t just one category, so there are likely items that only have a few people offering them…if they aren’t showing up then those buyers are going elsewhere.
Bottom line, this can’t be helping sales and it’s been going on since almost the very start of Q2.
So I’m thinking hard about entering some options that bet on eBay missing their guidance for Q2. Just thought I’d throw this out to the fellow apes.
There’s no DD on this, no solid reason other than the personal experience of me and many other sellers seeing that eBay broke their system and is now excluding some of their best sellers from search results. I wouldn’t be honest if I didn’t say that I’m hoping a drop in share price gets the CEOs attention. I had to cut all my employees hours by 90% since this happened and shut down my recent attempt to open a brick and mortar as part of the reopening. The online sales were the only way I could afford a sustained loss to try this. So we got out of our lease early and moved to a little warehouse until this passes.
Thoughts on the best way to take advantage of a missed earnings would be appreciated. I’m thinking of going basic with just buying puts.