Top Takeaways
- Overall, 2020 closed out well ahead of expectations with marketplace GMV up 18% in Q4.
- Our active buyer base grew +7%, lifting the annual base to 185M – with a record one out of every 10 U.S. holiday shoppers purchasing on eBay.
- Sustained growth has us investing and leaning further into eBay’s vertical playbook and new product experiences to achieve our tech-led re-imagination vision.
Seller Community --
Just a few hours ago eBay announced another strong business quarter, with 18% GMV growth and unprecedented traffic levels. Again we exceeded all expectations — in every area including active buyers, new sellers, traffic, conversations and sales — and you deserve our sincere gratitude.
We recorded eBay’s biggest Cyber 5 in the U.S., with one out of every 10 U.S. shoppers flooding the site seeking hard-to-find and sold-out items. Refurbished gifts emerged as a top trend — with many products selling out completely. So thank you for the incredible effort you put into your eBay businesses. The amazing variety you offered, unparalleled quality you supplied and exceptional service you delivered made all the difference.
The past quarter demonstrated significant progress towards the vision Jamie outlined last summer to “become the platform of choice for sellers.” We emphasized item pages to make it easier for shoppers to like or share an item, and provided more exposure by granting direct access to seller stores. We improved buyer conversions by enhancing search relevance and streamlining sort and filter options, allowing app users to find what they are looking for faster. We placed greater focus on protecting sellers against counterfeits and fraudulent returns. And we launched new product experiences like Authentication for luxury watches and sneakers.
The results? Luxury watches (over $2000) saw double-digit GMV growth in Q4, and $100+ sneaker sales tripled. And while this is great news for our luxury watches and sneakers sellers – more importantly these categories actually lifted sales in other areas. For example, the average customer who purchased a pair of $100+ sneakers went on to spend a total of $2500 on eBay overall – with 80% of that spend in categories outside of sneakers. It’s this sort of unique, cross-category shopping opportunity that we intend to translate into more buyers, more opportunities and more sales for you.
A few more factors that are contributing to these results:
- Investing in new marketing campaigns that reach more Gen Z and Millennial customers – including a TikTok dance challenge with 4.7 billion views, real world experiences that bring eBay to life, and celebrity and athlete partnerships.
- Increased automation to our Seller Initiated Offers feature – which enables custom deals to individual buyers.
- Optimization of search, which resulted in faster traffic growth and delivered more visibility to listings.
- Strength of our native app: 95% of eBay store subscribers that have migrated to the newest experience saw a 20% average increase in visits.
- Managed Payments continues to roll-out so that buyers around the globe can use their payment method of choice, while saving you money with a simpler eBay experience.
As I review the list of key 2020 moments, I can’t leave out the $100M invested to support small businesses around the world. Through programs like Up & Running, recent grants, and our new Seller School, we’re providing access training and resources for entrepreneurs to start selling online and connect with eBay’s global community. You also raised nearly $123M globally in charitable donations. This generosity is emblematic of the spirit of economic opportunity that’s core to who we are.
These results cap off a year that was incredibly difficult for so many people - and I think it’s important to reflect on personal and professional challenges that were faced. But the collective response continues to play a central role in what lies ahead. It’s critical that you know we’re not taking these positive results lightly or for granted. As our CEO, Jamie Iannone, said on today’s call:
"I am proud eBay was able to be there for our buyers, sellers and community, especially in the face of a global pandemic. We finished the year with strong financial results, but what inspires me most is the support we've been able to extend to small businesses -- providing them with tools, resources and access to millions of buyers globally. We will continue to invest in product and technology in order to deliver the best marketplace in the world for our customers."
To echo Jamie’s sentiment, I’m not at all astonished at what we (eBay and our community) accomplished last year. The effort and drive to deliver was intense, exciting and sometimes terrifying – but I don’t think I’ve ever felt more proud. There’s so much work yet to do, but I want to take at least a minute to celebrate the progress so far.
So here’s to 2021. And as always, thank you for selling on eBay.
Jordan Sweetnam
SVP + General Manager, Americas Market
If you weren’t able to listen to the conference call, you will be able to find the replay on the eBay, Inc. Investor site.
*Note to Sellers as of April 11, 2022: Thank you for using Seller School. Want to continue learning how to level up your business? Try eBay Academy today.
