eBay’s quarterly profits to the end of June are down 29% year-on-year, the Telegraph Business reported today.
Profits for the three month period were US $327m compared to last year’s US $460m to, while sales in its ‘marketplace’ (eBay.com as well as sites such as shopping.com and StubHub) dropped 14%.
eBay attributed the drop to the increased strength of the dollar and the economic climate.
The news of shrinking sales and profits may be alarming to eBay traders who’ve carved a business out of trading on the site. It seems that while consumers are increasingly looking online to find the best bargains during the recession, the more frivolous and impulsive spends on items on eBay may be being cut back on.
However, other parts of the eBay empire are doing much better than the overall enterprise. PayPal’s sales rose by 11%, while Skype, also owned by eBay, saw sales increase by an impressive 25%.