According to a report by the New York Times on January 29, an upcoming article in Information Systems Research states that eBay saved consumers $19 billion in 2007. With the declining stock price, and the recent fee structure changes, at least we are getting some good news about eBay this week.
The article explains that this type of consumer savings is hard to track, since many eBay auction winners win items below the price they would pay. In other words, many consumers on eBay win items below their maximum bid - so it is really impossible to determine how much eBay saves consumers. Researchers at ISR have reported that eBay saved consumers $7 billion in 2003, and $8.4 billion in 2004. Based on this information, the projection for consumer savings in 2007 is $19 billion.
The NY Times article also discusses how eBay could fare during a recession. Consumers continue to look for new ways to save money and purchase goods more economically. I've always said that as an eBay seller, my business will thrive in a recession. Although spending may be down in general, consumers will choose to purchase items in the most economical manner possible - and eBay provides the marketplace for just that - consumer goods at a lower price than retail.
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