San Jose, California-based auction website, eBay, on Wednesday, posted dismal fourth quarter earnings, which showed 31 present fall, which resulted in dropping its shares down nearly 6 percent.

eBay stated that one of the reasons of the fall of its revenues is the traditional retail sales hurting its Internet auctions and "Buy It Now" offerings.

According to eBay, it gained $367 million, or 29 cents per share, in the quarter, which was down from $531 million, or 39 cents per share, in the year-ago quarter.

Thus, the company’s net profit came down to $367m (£264m) from $531m. Its total revenue dropped 6 percent to $2.04 billion, missing analysts' expectations for $2.12 billion. For the entire year, eBay gained $1.78 billion, or $1.36 per share, and its revenue amounted $8.54 billion.

For the fiscal 2009 first quarter, the company expects to adjust its earnings of 32 cents to 34 cents and looks forward for the revenue between $1.8bn and $2.05bn.