Navigating the “Hard to Find” Holiday Season

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Six months ago you might have been surprised to hear that container ship capacity and microchip supply would be hot conversation topics, especially when talking about holiday shopping. But because the ports are visibly backed up and dealership car lots are noticeably empty, it’s hard not to pay attention. Disruptions in the supply chain are being driven by a complex series of events - and many of these are occurring halfway around the world. When it’s all added together, the things we take for granted as being on the shelf and delivered when we want - well, they just aren’t there. This is happening more frequently, whether searching for the perfect gift or looking for a new car to take you shopping.  

It’s safe to say that holiday shopping is already looking different this year, and there is more to come.  Nowhere is this playing out more clearly than on eBay, a marketplace driven by millions of sellers who are able to quickly adapt.          

Scarcity is just the beginning 

Much of the discussion has been around the increase in scarce inventory. eBay has always been the destination for people to shop for the impossible-to-find, and that won’t change, especially in a year when more items than ever are unavailable. If you’re looking for LEGO for yourself or someone on your list, you’ll likely be able to find LEGO on store shelves. The same goes for Hot Wheels, Barbies, iPhones, Jordans, and millions of other items. Where things start to get tricky is with one mindset, “I want this exact item and something similar just won’t do.” For instance, we’re months from Christmas and the 2021 LEGO Marvel Avengers advent calendar is already tough to come by, so buyers are paying a premium. 

Online marketplaces are driven by supply and demand and naturally backfill products that are sold out everywhere else. The most coveted drops will always end up on eBay - like Prada’s Cleo handbag or Sony’s PlayStation 5 - and when you’re trying to find a specific sneaker style, vintage watch or must-have toy, there’s no better place to turn. For those who really want the latest video game console or the top toy of the season, these items will be available on eBay, just as they have been every other holiday. 

But the abundance of hard to find inventory on eBay isn’t new, and it’s definitely not the full picture. The larger story here is that disruptions to the supply chain are significantly changing the way people shop, and this will have lasting implications well beyond the holiday season.  

A significant shift 

Two years ago, consumers were fed up with Christmas ads that ran before kids went back to school. eBay even launched a campaign, The Holiday Chill, inviting people to do just that - chill, when it came to holiday shopping. Yet, 20ish months later, we’re seeing and feeling the urgency of getting an  earlier-than-ever jump on the season. People have really started to dive into holiday shopping - making sure they can secure the perfect items on their gift lists and wish lists.  

However, it’s not just about a season that starts in September. What we’re seeing is that consumers are actually shopping differently - and taking a more open-minded approach to the type of inventory they’re buying. Just like the chip shortage created scarcity for new cars - driving demand and higher prices for used vehicles - we’re seeing a similar downstream effect in everything from handbags and home appliances to sneakers and stereo equipment. This is evident based on the incredible movement in pre-owned inventory: we’re seeing five pre-owned watches and three pre-owned handbags bought every minute on eBay.

What shoppers want now
People are discovering the unique, the nostalgic, and the pre-owned, with purchases that reflect individual interests. This isn’t expected to change, just because we enter the holiday timeframe. Pre-owned and collectible inventory is largely insulated from many supply chain disruptions, and Sneakers are a great example of this - a booming category with an average of 1.64M daily listings. Enthusiasts come to eBay for a rich assortment of styles, and many of the most coveted pairs are pre-owned. A pair of sneakers is bought every 4 seconds on eBay, and pre-owned pairs are selling 15% faster, month over month - a trend we expect to continue.   

For some time, younger consumers, particularly Gen Z and Millennials, have demonstrated a strong preference for pre-owned. When it comes to luxury, a new study by Vogue Business revealed that 69% of shoppers are buying pre-owned. 

In recent months, all types of luxury brands - Rolex, Louis Vuitton, and Nike - have addressed high-profile inventory shortages driven by supply chain issues. When this happens, people turn to eBay for many solutions and options, and a full assortment of their most iconic styles and lines. As a result, we’ve experienced significant upticks in sales of scarce brands, compared to this time last year.   

For cool, unique gifts that are always available, collectibles mean big business on eBay - ranging from countless varieties of Funko, limited edition comics, and Pokemon everything. In North America, we continue to see substantial growth with approximately $2 billion of GMV in the first half of the year, equal to all of 2020, as collectors seek out authentic, graded and rare items. Both cards and collectibles are enthusiast categories that have been nearly impenetrable on eBay, and the marketplace has always been one of the only places to find certain boxes, packs and limited editions.  

Giftable items and beyond 

Not long ago, there was a stigma attached to gifting anything that wasn’t brand new and in season. But with the rise of clear condition grading and a renewed focus on sustainability, refurbished items are topping gift lists and wish lists. On eBay, sales of certified refurbished products - small kitchen appliances, home entertainment, outdoor power equipment - are up 25% since June. 

Another category where people are particularly interested in extending the life cycle of the items they own is Motors. Industry data tells us that over the past year, the average age of a car sold has increased by more than a year, and the average mileage has increased by approximately 3000 miles. It’s becoming far more common for consumers to fix up the car they already own and wait for a correction in the supply chain - and our recent data supports this change in behavior as we’ve seen an incredible uptick in sales for auto parts and accessories. In fact, a wheel is sold every six seconds, a vintage car part is bought every 11 seconds, and 14 complete engines are sold every hour.  

Wrapping up 

A season - or a year - marked by uncertainty is not new. Some categories will experience significant shortages and long-lasting shifts in consumer behaviors, while others will see very little disruption. Regardless, this is eBay’s core strength - a marketplace powered by millions of sellers with a distributed supply chain that ensures eBay is THE destination for the unique, the rare, the coveted, and the hard to find. 

We will continue to work hard and build this momentum, with your help. As always, thank you for selling on eBay. 

Jordan Sweetnam 

SVP + General Manager, Americas Market