Friday, 1 August 2014

How Google SEO Changes Hurt Ebay's Quarterly Revenues

By Nazar Bryant


It may be hard to see why Google changing their SEO practices is hurting the bottom line for eBay. Well, that's what you will get some information on below. This is something that not only hurts eBay, but a number of people that depend on SEO practices.



CFO Bob Swan stated that search engine positioning was a major factor in regard to less traffic to eBay's core market places. It was a challenging quarter because of lower conversions and slower active buyer growth.

As a result, eBay has decided to reengage existing clientele, as well as bring in new customers, using strategies including coupon in, increased market spending and advertising, and providing more seller incentives. The problem seems to be solely based upon tactics that are not allowed by Google, which forced them to penalize eBay in some way. Hopefully these changes will take effect quickly as third-quarter earnings need to be higher to compensate for the previous quarter.

Although it could be said that many of the scripts running that use eBay listings could have also heard eBay indirectly, it's enough to say that Google has done something, pointedly against eBay, and that the search engine tactics that they were using need to be revised to get everything back to normal, something that may be difficult for eBay to achieve in the next few months.

They are definitely against paid search, stating that it is literally ineffective when it comes to advertising major brands simply because everyone already knows who they are. This should be a wake-up call, however, for eBay to play smarter game, one that will keep them under the radar, and allow them to benefit from the Google search engine.

Although eBay has stated that it will advertise more with Google, it has never said that Google Adwords was a viable form of generating revenue. In fact, it is blatantly stated that it doesn't work, especially for the name brand products that are offered on the online auction giant. This should prove to be interesting over the next few months as Google and eBay hash things out. With quarterly earnings down, they will have to make a significant comeback to balance their books. We shall see what happens the third quarter of 2014.




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