EBay CEO "cautiously optimistic"

By Alexandria Sage

NEW YORK (Reuters) - The chief executive of EBay Inc (EBAY.O) said on Thursday he was "cautiously optimistic" about the economy and consumer spending, while estimating that e-commerce will double in the next five years.

Speaking at the Reuters Global Retail Summit in New York, John Donahoe said he estimates that e-commerce would grow at a rate of two or three times retail sales during that period.

But in the uncertain economic environment, in which consumer spending continues to be weak and investors nervous, eBay cannot waste too much time worrying about market fluctuations, said Donahoe, acknowledging that jitters in the market could reemerge.

"But our focus, frankly, with a company the size and scale of ours, we can't get too focused on short-term movements in the market," said Donahoe. "What we need to do is capitalize during this period and make sure we're gaining share."

Part of the challenge is reinvigorating eBay's stalled marketplaces division, where consumers can sell or buy goods at auction or with fixed prices, search classified ads, and buy tickets to sporting events or concerts.

A new focus for eBay -- owner of Web payment service PayPal and telephone unit Skype, which it plans to carve out through an IPO -- is the secondary market, where it hopes to profit from large volumes of new but out-of-season goods.

"Everyone is looking for incremental sales right now," he said. "We don't have to provide incentives, everyone is looking for alternative distribution channels."

EBay was not set up to sell bulk items a year ago, nor was it easy for buyers to find such goods on its site, but recent listing changes have addressed those issues, Donahoe said.