eBay gains great popularity in UK

Nielsen recorded eBay with 14.447 million unique users during October 2007 which rose gradually to a record of 15.841 million unique users last month. That's year-on-year increase of 9.6%, according to Nielsen.

So how can eBay be losing 10% of users in a year in the US, while it gains 9% the UK ? Analyst Jim Clark of Mintel said there's a obvious credit crunch factor: "UK consumers are the most sophisticated in Europe and it makes sense that they are trying to do more online to increase the value of the pound," he said.

Mintel research had shown that there was a 5% increase in visitor numbers to price comparison sites in the UK between July and October, and consumers are increasing their expenditures at supermarket sites. This means consumers are "removing the possibility of impulse buying," said Clark.

eBay's decision to stop allowing negative feedback was found to be very suspicious by original audience of lone sellers. Moreover, users have been inspired to try rival sites with lower listing fees. "eBay is the main price point, so that is the price to beat. Generally, consumers are more aware of other sites [like Etsy]."

Clark also added that security is a factor; consumers will prefer established brands they know rather than web entities.

The UK has heavy broadband penetration, and may be ahead of the US in trends. Further into the recession eBay will have a better idea if it is working in its favor, or against it, reports Newsonfeeds. 

eBay might end up trying to offload Skype, the well-respected VOIP service it acquired in 2005, as one Twitter suggested.