Scoop has an Ethical Paywall
TradeMe investors bail, profits slip
NBR looks at TradeMe's recent performance in Trade Me sits at crossroads, testing investor patience — the story is only available to subscribers.
After peaking last year with a value of NZ$2.15 billion, TradeMe's share price now values the company at $1.4 billion. The business has lost a third of its value in a year.
A boycott by Real Estate agents is only one problem the online auction business faces.
TradeMe dominates New Zealand online retail to the point where there's little scope for further growth.
It hasn't succeeded with attempts to sell new goods. Savvy online retailers operate their own stores and already thin margins means little room to make money if TradeMe clips the ticket.
The company's only growth strategy seems to be increasing prices.
That's why Real Estate agents are not using the service. They aren't willing to pay increased fees to sell houses.
While reading the story I realised I haven't used TradeMe much in the last year and how little the site comes up in conversation.
Bill Bennett
Freelance journalist.
Auckland-based Bill Bennett writes technology and business stories that are directly relevant to New Zealand readers.
His emphasis is on telecommunications, but he also covers other aspects of technology and business. You can find his features in the New Zealand Herald and hear him regularly on RNZ Nine to Noon and the NZ Tech Podcast.
Bennett's The Download Weekly newsletter is published every Friday. You can sign up for it here.
If you want to support his work, you can make a donation to his PressPatron account.
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