eBay, The Credit Crunch & Christmas

I’m a massive eBay fan. If I’m not buying, I’m selling and if I’m not doing either of those I’m browsing – it’s a 24 hour junk sale and I can’t imagine life without it. However in the current economic crisis with so many businesses suffering, is eBay destined to sink or set to thrive?

My first thought was that it’ll be more popular than ever. With people feeling too guilt-ridden to treat themselves to more expensive purchases, it’s the ideal place to visit for some retail therapy on the cheap. But looking within the eBay community it seems sales are slowing. Especially for products such as collectables and antiques – where a large portion of their business lies.  The BBC recently reported that eBay now expects 2008 revenues to total between $8.53bn and $8.68bn – below a previous estimate of $8.8bn to $9.05bn.

Could it be the case that the people who don’t use eBay never will do, and the people that do are tightening their purse strings? Like last year I expect I’ll do a large chunk of my Christmas shopping on eBay, however I will be spending less. Whatever happens I really hope eBay’s future is safe, and with a total revenue estimate of around $8.53bn, I think it just might be.