eBay

a_sharper_image · ‎04-22-2022

I just wanted to share this article from digitalcommerce360, just to give us perspective 🙂 You'll be delighted to know that while our sales fell by 10%, eBay profits were up by 11%.

Total gross merchandise volume (GMV) for eBay Inc., which includes sales on its international marketplaces, fell 10% to $19.45 billion in the third quarter 2021.

The marketplace said the decline in GMV was tied to shoppers returning to in-store buying as the pandemic wanes. “The macro benefits to our business from mobility was significantly diminished in Q3 as restrictions faded across the globe, where we continue to see modestly positive underlying growth in our business,” Steve Priest, senior vice president, chief financial officer for eBay, said in the earnings call Oct. 27. Compared with Q3 of 2019, GMV grew 9% on an FX-neutral basis.

Revenue in Q3, which ended Sept. 30, 2021, reached $2.50 billion, up 11% from a year earlier. eBay’s revenue figures reflect the fees paid by eBay’s sellers on the marketplace, which are roughly 12% to 13%.

glasser · ‎04-26-2022

In other announcements, eBay has stated that future revenue growth will come from advertising (that's PL and ads they sell on the site...like we need more 😞 ) and through payments and fees. eBay has already raised fees both in terms of % and with the increased fees on sales tax and now more expensive shipping. ( Side note: eBay should lobbying hard with the PO and other carriers to get price reduction for its sellers. But will it if higher shipping costs makes them more money???)

Growth is going to be very hard for eBay going forward. It has lost its first mover advantage a long time ago, people are comfortable shopping anywhere on the internet, and competition is strong. Therefore, to grow revenue, it must get more from existing channels.

And yes, @theteamsetguy a healthy and profitable eBay is in all sellers interest. If and a big IF here,: to survive eBay needs continues to invest in improvements to the site and technology, increase and improve marketing for new customers, innovate and chart a course into the future of online commerce, and maintain a platform where its sellers, the largest pool of potential revenue, can thrive and grow their businesses.

luckythewinner · ‎04-26-2022

@a_sharper_image wrote:
So you don't care if those profits eBay makes is at Sellers expense? Interesting.

eBay has always made its profits at seller's expense.

That aside ..

The fact that eBay is essentially collecting the same fees that PayPal was collecting does not affect my bottom line. And neither do the increased revenues from optional promoted listings, because I do not pay them.