Ebay faces counterfeiting issues while its on low share

Ebay’s shares are down by 23% and is now in the lowest economic level since 2001.

Highlighting the problem of counterfeit merchandise sold on the site, that the company provided a tip to German police for seizing 20 tons of designer clothing last month. Bloomberg says that though it is good to see eBay taking a serious attempt on reducing fake goods, the company should fix the issue. Jeffrey Lindsay Bernstein, a Research analyst notes in the story- eBay is “only as good as its worst seller in the minds of its customers.”

The story also says that eBay has been sued by a number of luxury brands for not doing enough to insure fakes and counterfeits. Some of these are, Moet Hennessy Louis Vuittton, L’Oreal, LVMH Rolex and Hermes International.

eBay CEO John Donahoe and CFO Bob Swan have spoken at the Goldman Sachs conference in San Francisco indicating no imminent further reduction in insertion fees, but that they will trend lower over time.  They also said that the company is ready to sell Skype, the VoIP software at the right price.

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