eBay Inc (NASDAQ:EBAY) is facing hard times. After the PayPal spin-off, the company is facing massive declines in its user base. It has huge competitors in e-commerce and payments business. With Facebook gearing up its efforts in the e-commerce industry, eBay Inc (NASDAQ:EBAY) has yet another behemoth to beat after Amazon and Alibaba. In a program on The Street, Jim Cramer said that eBay Inc (NASDAQ:EBAY) is losing in the bigger picture and Facebook has a clear advantage. The source article quoted a survey from Cowen and Company, a firm which surveys the e-commerce market of the US in order to weigh the players and companies. Cowen and Company says that while the overall e-commerce market in the US faced decline last month, eBay Inc (NASDAQ:EBAY) is the worst player which faced its eighth consecutive monthly decline as compared to the last year.
The survey noted more than 2% decline in the visits and sales on eBay Inc (NASDAQ:EBAY) year over year. The source said that these declines are not going disappear overnight and the company will have to devise a strategy and a comprehensive plan to tackle the increasing competition.
eBay Inc (NASDAQ:EBAY)’s competitor Amazon faced an increase in sales and visits in the same month of February and this is a red flag for eBay Inc (NASDAQ:EBAY). After PayPal, eBay does not have any payments ecosystem as well. It is trying to develop its own payment method, but that too is far from completion.
The source said that eBay Inc (NASDAQ:EBAY) will continue to suffer till the second half of 2015, at least.
Carl Icahn’s Icahn Capital Lp is the largest institutional investor in eBay Inc (NASDAQ:EBAY) with over 30.80 million shares in the company by June 30.
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