eBay Takes a Big Hit. eBay MarketPlaces Down 16%

The news wasn’t all bad. PayPal continues to do well growing 11% and passed eBay in revenue

eBay stock reacted. It was down 12% today trading in the $11.50 range.  This gives eBay a Price/Earnings ratio of around 8 to 1.  Normally when you see a PE this low on a growth company it would indicate a pretty good buying opportunity, but a lot of investors are still forecasting deflation and we may yet see some more retail chains declare bankruptcy.

As an eBay seller it is easy to see this news and become discouraged but all is not bad.  Considering the overall economy online sales are actually holding up fairly well.  High priced consumer goods are taking the biggest hit, but bargain products, used goods and collectibles are holding up pretty well. 

This week I spoke and/or emailed ten different collectible dealers who sell on eBay.  All of them reported OK to Strong sales growth.  One dealer was flat and a sports card dealer I spoke with said that sales volume is good but prices and margins are down. All of the others I spoke with said their sales were strong and prices were holding up.

I also spoke with a seller who specializes in used baby clothes, toys and other products and she said her business is booming.  My daughter-in-law listed a small lot of used toddlers clothing the other day and it was snapped up within 30 minutes at the BIN price.

Used booksellers are also reporting positive results.  Over the past couple of weeks I have spoken with three folks who recently purchased my book How To Make Good Money Selling Used Books on eBay, Amazon and The Internet. All three of them reported good results with one of them making over $1000 the first month.

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