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eBay (EBAY) denies any impact from seller strike

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Despite some conflicting reports that indicate that the current sellers strike on eBay (NASDAQ: EBAY) has led to a 13% decline in product listings, eBay claims that the strike has had no effect on its listings.

According to company spokesmen Usher Lieberman, the company definitely "didn't feel an impact from the strike." While sellers have hoped that the current boycott would lead to the reversal of the latest fee changes, Lieberman has declared that no changes will be made.

So now we are basically in posturing mode between eBay and its sellers. The sellers have decided to extend the strike another week in hopes that eBay will reconsider its decision. My advice to the sellers: don't hold your breath. Even if eBay does start to feel some pain from the strike, chances are low that it will give in.

Having said that, who knows what effect another week's boycott will have on eBay's position. A big reason why the site may not have seen too much of an impact on the number of items listed might be related to the fact that prior to the strike, eBay launched a massive promotion that reduced the cost of listings down to 20 cents.

That promotion seems to have helped combat the strike, and now we will have to see how well business on the site holds up in an extended strike. The strike is now being scheduled to last until March 3, so there is still time for the boycott to make a difference in the minds of eBay management, but once again, I wouldn't hold my breath on this.

What about all our vocal eBay users out there? How long are you willing to stand on the sidelines waiting for eBay to give into your wishes? What is going to happen come March 3 if eBay does not reverse its recent changes? Are you willing to say goodbye to eBay forever?

Here is an interesting write-up from my fellow BloggingStocks writer Gary E. Sattler on what he thinks is going through the minds of eBay executives.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

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Last updated: July 04, 2009: 06:34 AM

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