EBay, the online auction site, has blamed poor economic conditions for weak sales in the current quarter, after slow revenue growth in the three months ending June 30. Net income rose to $460m (£230.2m) from $376m a year earlier.
The average selling price fell by 6% in the second quarter, while gross merchandise volume – the value of all goods that users sell on its sites – rose by 8%. EBay says this is the smallest increase since 1999.
Earlier this week eBay won a US legal challenge from Tiffany & Co over the sale of counterfeit goods. The decision means that eBay will not be forced to make sweeping changes to its auction system. The ruling came just weeks after French courts ruled in favour of Louis Vuitton last month, fining the auction site £32m for failing to prevent the sale of fake Louis Vuitton products on its site.
The auction site banned its sellers from leaving negative comments about buyers at the start of this year. It is also battling with trust problems among its users.