What's happening to online marketplace systems?

[Sgt_Kickaxe]

I'm referring to online places where you can list a garage sale type item or homemade goods for either local or regional sale... and their associated payment options.

The stock prices of these online marketplaces and payment providers, some of them member of the S&P 500, are all on the worst performers list for this year.

From the S&P 500 as of Feb 17th
- Paypal, down 44.2%
- Meta, down 38.2%
- Etsy, down 39.8%

Is something happening to online marketplaces and payment options? Are we becoming less free to sell our junk online?

Perhaps linked: Some countries, like Canada, now require all financial dealings with said companies to be reported for tax purposes and if you own a collection of Pokemon cards or other items worth a little you need to report them as an asset. Why? Perhaps because it has trade value? I don't know... this is a question based on observations. Perhaps a war on Crypto is spilling over into garage sale items?

You'd think that at a time when people are losing jobs and having to stay home that they would be selling more junk, not less. I mean you can see more junk online, but fewer sellers? Something is happening, but what?

[graeme_p]

I was reading about a change in US law which will make it a lot more difficult to use trademarks to sell goods - i.e. more legally required checks for counterfiets. Platforms will have higher costs which they will have to pass on to sellers.

its part of the whole "make platforms responsible for UGC" push

[Sgt_Kickaxe]

That may spook investors, but would it also make someone wanting to clear out junk from their garage avoid using these platforms? There are more of those given all the job losses, so where's the disconnect here?

Another possible reason is the link to the whole "you will own nohing and be happy" movement. There would be no need for places to sell your small goods, or make/receive small payments, if you own nothing to sell in the first place. Could this be the "wealth in the know" cashing out early?

The number of people writing about their difficulties with each of these platforms is also increasing, which you'd expect during a pandemic where use increases a good deal... but the stock prices suggest LESS use, not more. Something's changing, the more you look the more you feel it imo.

There is a lack of discussion about what's drubbing those stock prices too, even at 40% down - thoughts about what's changing?

[Dimitri]

Bubble

[graeme_p]

That may spook investors, but would it also make someone wanting to clear out junk from their garage avoid using these platforms?

Probably not yet, but once they start passing costs or hassle on it will make them avoid it.

Etsy is mostly for buying new stuff. Even on ebay I mostly by from business sellers, not individuals.

[tangor]

I see it as an indication that our "use and dispose" economy means that most of our "junk" no longer has any value ... it never had value to start with.

YMMV

[Sgt_Kickaxe]

Depends on what you consider junk, and whether you live in a big city or in the countryside.

[topr8]

>>Etsy is mostly for buying new stuff. Even on ebay I mostly by from business sellers, not individuals.

for sure, also ebay is heading in that direction - or at least they only really want 'professional' sellers with large numbers of listings.

I personally think that these marketplaces are saturated, there is so much stuff on them - most goes unsold and smaller sellers become disillusioned.
there is also only so much you can take from business sellers in fees.
i've also noticd quite a lot of selling of second had clothes on instagram - either direct or on small marketplaces i'd never heard of.

however, with regard to paypal for instance - they own iZettle and in the face to face field i work in, iZettle machines have become almost ubiquitous ... how much profit they make i don't know, as their rates are very good (as are their competitors, square etc) compared to the traditional processors (for small/low turnover traders)