Retail isn’t the only industry going through major changes. The online marketplace eBay (EBAY) announced recently that its Chief Executive Officer, Devin Wenig, would be resigning from his position as of last month. Wenig’s resignation comes during a time of great change for the company, as it considers how it can adjust its business strategy to allow for the most lucrative future. For now, Chief Financial Officer Scott Schenkel will serve as the CEO while the board searches for someone that fits in the position.
Ebay has been struggling in recent years as Amazon increased its presence among third-party retailers. The combined efforts of Amazon’s in-house services, as well as its third-party connection to retailers from around the world, makes it one of the biggest online retailers next to services like Asia’s Alibaba and India’s Flipkart. While Amazon’s expansions made it easy for consumers to shop for just about anything from one online platform, it made things hard for eBay, which had to act fast to change its strategies in order to stay afloat.
A lawsuit eventually surfaced between eBay and Amazon, when the company accused Amazon of targeting its sellers to devalue eBay as a service. While the lawsuit didn’t end up going far or seeing much change from either company, it showed that eBay sees Amazon as a major threat to its success as an online retail platform. Wening served as CEO through all of this, having run the company from 2011 until now.
Changes In Store For eBay
Today, eBay is taking time to re-evaluate its business strategy during a period of major change for the company. The company announced earlier this year that it would be laying off positions and evaluating which of its assets it would be keeping. Among those assets is StubHub, the online ticket selling platform that lets consumers buy and sell tickets through a trusted service. Wening took to Twitter to discuss his leaving the company, revealing that the move came from disagreements between Wening and the board. “In the past few weeks it became clear that I was not on the same page as my new Board. Whenever that happens, its best for everyone to turn that page over. It has been an incredible privilege to lead one of the worlds great businesses for the past 8 years,” he wrote.
While eBay may not be in as hot of water as WeWork, another company that’s CEO was ousted from his position this month, the loss of a CEO due to disagreements between positions of power is never something to overlook. Wening’s departure from the company signals that there may be potential distress, a red flag for shareholders that could signal the company currently has a shaky future. As a tech company, eBay has fallen behind when standing up next to other tech giants. It may have played a pivotal role in the online retail atmosphere over the last couple of decades, but the ousting of a CEO could be the first sign of many that the company is having trouble overcoming its competition with Amazon.