An undeniable bright spot was the tight expense control, illustrating that the company is managing to expand rapidly into new selling areas and countries without running up costs too high. This expense discipline may be possible because layoffs and closures have exacted downward pressure on salaries, both on incumbent workers and new hires. So one has to wonder whether cost growth can remain restrained if Easy Al succeeds in reflating the tech bubble. Some have speculated that this increase in GMS per listing is due to firms selling high-cost tech items on eBay, an activity that should slow when inventory gluts are reduced. But what really matters is what share of the rising GMS eBay actually gets to book as revenue, an item called the take-rate.
Fees decline as the item prices gets higher.
Dutta says that eBay aims to increase the take rate by devising new fee structures. Detox would like to hear about them. In keeping with TSC's editorial policy, Peter Eavis doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. Read our conflicts and disclosure policy .