Although less than one-tenth of 1 percent of transactions are fraudulent, according to company estimates, fraud strikes disproportionately high-priced items such as computers and automobiles. Some customers have lost tens of thousands of dollars.
"Fraud protection is crucial for survival," Alvarez said. "If eBay is creating an environment that is not safe for e-commerce, people will leave. It's like shopping in a bad neighborhood -- people just don't want to do it, and they have plenty of options."
Ebay shares lost US$1.32 to close at US$64.38 on the NASDAQ Stock Market before the earnings were released. They gained US$2.62, or 4 percent, in the extended session.
RSS