eBay 2Q 2019 results are in: Marketplace Sales down 1% for the second quarter in a row

[orangehound]

eBay's financial reports are here:  https://investors.ebayinc.com/financial-information/financial-summary/default.aspx

For those who want a quick summary, eBay reported that the second quarter sales on the eBay marketplace are down 1% (when you account for foreign exchange rates) when compared to the same period in 2018.  

That was similar to what was reported in the first quarter of this year ... that is, sales down 1%.

So, while other marketplaces are seeing year-over-year increases of 20-50%, eBay treads water.   This means eBay is losing market share.

[mam98031]

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@greg5000 wrote:

@mam98031  wrote:

Sorry about that.  The paragraph above the Disclaimer paragraph [which is in green] should also be green as it is your comments.  My bad!!!  Sorry for the confusion.

Your opinion that GMV is "less trustworthy" because it is a gross number just doesn't hold true in the financial reporting world.  It is standard.  That was my point.  A simple misunderstand how this number is reported.  

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No worries.

GMV as a metric is an indicator of "growth," but here we have a decline in GMV and with the additional factors, such as returns & cancelled/unpaid items, I have a concern. 

When important data within the metric can shift in a negative direction, but the number shown by the metric doesn't change, there's an obvious concern with calling this metric "trustworthy."

If you're outdoor thermometer always read 72 degrees, but it's actually 110 degrees, is that a good indicator of the temperature?  Not sure if the analogy helps, but I think you get my point.

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It's an accounting term.  Like many different accounting terms it indicates growth or reductions for many types of businesses.  

I understand you are of the opinion that cancellation, unpaid items and returns are on the rise.  And they may be.  We have no stats to prove that one way or the other.  But even if it is on the decline, the GMV is what it is.  The GMV isn't a number that will ever reflect a reduction for those things.  You are arguing a point that just isn't going to change unless you want to lobby for different accounting rules.  I do however understand how this can be confusing or illogical for some that aren't familiar with the terminology of some of the financial stuff.

What Are Gross Sales?

Gross sales is a metric for the overall sales of a company, unadjusted for costs incurred in generating those sales, as well as things like discounts or returns from customers. The gross sales metric is calculated with a simple equation, where all sales invoices or related invoices are totaled.

[greg5000]

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@mam98031 wrote:

No problem.  You are entitled to interpret it any way you see fit.  As for me, the post was directed to me and I responded with my interpretation.  

@greg5000 

@sharingtheland 

@tunicaslot 

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You have a lot of posts, so I'm not sure which one you're referring to? 

I would say we all have the right to interpret it any way we see fit.  I'm not a fan of the word "entitled."

en·ti·tled

/inˈtīdld,enˈtīdld/

adjective

adjective: entitled

1. believing oneself to be inherently deserving of privileges or special treatment.

[tunicaslot]

OMG - too much reading into things - I'm out of here!

[greg5000]

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@mam98031 wrote:

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@greg5000 wrote:

@mam98031  wrote:

Sorry about that.  The paragraph above the Disclaimer paragraph [which is in green] should also be green as it is your comments.  My bad!!!  Sorry for the confusion.

Your opinion that GMV is "less trustworthy" because it is a gross number just doesn't hold true in the financial reporting world.  It is standard.  That was my point.  A simple misunderstand how this number is reported.  

------------------------------------------------------------------------------------

No worries.

GMV as a metric is an indicator of "growth," but here we have a decline in GMV and with the additional factors, such as returns & cancelled/unpaid items, I have a concern. 

When important data within the metric can shift in a negative direction, but the number shown by the metric doesn't change, there's an obvious concern with calling this metric "trustworthy."

If you're outdoor thermometer always read 72 degrees, but it's actually 110 degrees, is that a good indicator of the temperature?  Not sure if the analogy helps, but I think you get my point.

---

It's an accounting term.  Like many different accounting terms it indicates growth or reductions for many types of businesses.  

I understand you are of the opinion that cancellation, unpaid items and returns are on the rise.  And they may be.  We have no stats to prove that one way or the other.  But even if it is on the decline, the GMV is what it is.  The GMV isn't a number that will ever reflect a reduction for those things.  You are arguing a point that just isn't going to change unless you want to lobby for different accounting rules.  I do however understand how this can be confusing or illogical for some that aren't familiar with the terminology of some of the financial stuff.

What Are Gross Sales?

Gross sales is a metric for the overall sales of a company, unadjusted for costs incurred in generating those sales, as well as things like discounts or returns from customers. The gross sales metric is calculated with a simple equation, where all sales invoices or related invoices are totaled.

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The finance lesson isn't necessary, I have many years working for large International Companies and was a member of the Leadership Team for my last.

My points regarding GMV and the concerns I have are on target.

[brettyg599]

I too have never posted, and I thank you for stepping forward yessssik.  If noone speaks up everyone assumes there is a lot of people that aren't feeling the pain.  

We are all feeling it, anyone reading this and struggling you are not alone.  It is not you, your items, your pictures, your pricing, it is EBAY.  Sure those things may help you slightly, but right now the environment has everything stacked against you.  Keep your head up, and try not to stress.  In the end all you can do is your best.

[uncseniorsportsfan]

I think it has been promoted listings not mandatory GTC that has killed sales for many sellers.  As it has been pointed out by duplicating sponsored listings - other sellers are being shut out of search.   

GTC hasn't been the money maker for eBay that promoted listings are - rather it has been a smoke screen designed to make those sellers who couldn't afford additional fees believe that it would bring more sales through google search.  

[reallynicestamps]

@gracieallen01 

It shows 940,000 sellers now using promoted listings with 250 million listings promoted and generating $89 million in revenue.

Since the seller only pays for the Promoted Listing if it sells, that's an interesting group of numbers but not a useful one.

I would be interested to know what the average percentage sellers were willing to pay, how many transactions paid the PL fee and how much the average PL fee paid was.

But I suspect that would be confidential information.

The interesting part is that the revenue is probably for ebay, not sellers.

So on average, the sellers are paying $2.80 for a Promoted Listing? Or for a successfully Promoted Listing?

[dasarock]

@zamo-zuan 

by the same token and at the same time, using the promoted listings itself is self defeating AND has a snowball effect...

-- the trending promo rate is 5%, everyone tops it by .1%... soon the promo rate is 20% and higher .... it's just a monkey feeding itself and making ever more $$$ for ebay.  

-- yet even promoting you are getting, maybe, the same visibility that you did from the pre-promo period.  

-- and at the same time, there are fewer actual listings shown in search because the doubled promo listings are each taking up 2 slots... and ebay is reducing the total number of search results shown.

so how do you win?  even the stats show there is no overall growth in number of sales.  per the #sales to #listings (the same listings that are ever increasing while sales numbers are static) you have even less of a chance to actually make a sale, just based on numbers.  this is just basic math will tell you that this is true. (i am not talking about value of sales, but basic number).

so for what sales there are that are promoted, ebay takes an ever larger chunk of the profit.  good for them, self-defeating for the seller in the long run as the trending rate will just continue to rise.  inflating prices to cover promo rates is not the answer either because most items on ebay are priced within a very tight profit margin to begin with in order to be competitive with others...

[reallynicestamps]

Promoted Listings allows the seller to choose what rate she will pay for the promotional bump.

My choice is one per cent.

Given that my items are mostly OOAK, or scarce (which is not the same as 'in demand' of course) , I find this gives me a lot more views.

I also am optimistic that a buyer viewing my Promoted lot will also take a look at my Store. I have a link to my Stores in every description as well as the eBay link every listing has.

[gracieallen01]

It would depend on what the items sells for and what the % the seller pays.  Pretty good if it is a $500 item - not so good if it is a $5 item.

[coolections]

Stockholders where reasonably happy. The quarterly report caused the stock to gain 2% today. I guess people are still selling here and buyers are still buying here. Looks like Ebay won't be closing shop anytime soon.

[uncseniorsportsfan]

At least not until Wenig oversees the sale of Stub Hub and classifieds,  cashes out his stock options at an inflated price, and rides off into the sunset - leaving a declining marketplace to be sold to the highest bidder,  perhaps those folks in India.   

[goodluckselling]

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@greg5000 wrote:

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@goodluckselling wrote:

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@soccerteeth wrote:
The Crash sale Ebay ran only targeted specific sellers. Were you one of them?

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The crash sale was not targeted at sellers at all?  Not sure how you get that.  The crash sale was targeted at buyers with fantastic deals.

Good Luck Selling!

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I think what @soccerteeth  was referring to was, which specific Sellers eBay was promoting (i.e. targeting) on the site for the Crash Day sale.  I would also use the words "partnered with" to best describe this. 

I've been a frequent Buyer here for years and I didn't even receive a message about the sale, so not sure how Buyers were targeted?  I didn't see any TV ads either.

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Only 6 Million links  -  https://www.google.com/search?client=firefox-b-1-d&q=ebay+advertises+crash+day+sale

[sharingtheland]

Only 6 Million links  -  https://www.google.com/search?client=firefox-b-1-d&q=ebay+advertises+crash+day+sale

How was a shopper supposed to know to google "ebay crash sale" in the first place?

It's up to 7.2 million now.

[sharp_edgeknives]

His stock options will become FULLY vetted after 5 years,if he leaves earlier he will lose. So we are stuck with him.