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%.

luckythewinner · ‎04-22-2022

@a_sharper_image wrote:
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.

For some more perspective, GMV in the next quarter (Q4 2021) rose 6.4%

a_sharper_image · ‎04-22-2022

As we would expect going into holidays. The average online increase was approximately 11% so we didn't do quite so well.

If merchandise sales are down while eBay profits are up, where do you suppose that difference comes from?

ms.rodriguez* · ‎04-22-2022

There were 2 postal increases last year. Of course, ebay made a huge profit. This year, there will be 2 more price increases for USPS. Plus let's not forget the $4.00 surcharge on packages that are 22 inches long and the 15.00 surcharge for those packages 30" or longer. That is alot of $$$ in Ebay's pockets. Then of course, Ebay raised their final value fee across the boards. Of course, they should easily make more profit this year than last year.

slippinjimmy · ‎04-22-2022

Revenues are up for the most part because of Managed Payments which was really kicking in during Q3, the rest is mostly ad money.

GMV was down in Q3 as it was on almost all online sites as the Covid effect dropped off a cliff.

Of course it's all old news, Q1 report is next week.......

FYI - "Revenues" does not equal "profits"

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ittybitnot · ‎04-22-2022

If merchandise sales are down while eBay profits are up, where do you suppose that difference comes from?

@a_sharper_image

I believe in part it was from revenue from "seller services" i.e. people paying for promoted listings. They made more on the sales that way. When postal increases happen, eBay gets a 'raise'.

reallynicestamps · ‎04-22-2022

Plus let's not forget the $4.00 surcharge on packages that are 22 inches long and the 15.00 surcharge for those packages 30" or longer.

I guess that goes to prove the old adage "some things are not meant for mail order".

Revenues are up for the most part because of Managed Payments which was really kicking in during Q3,

That makes sense. Until MP became site wide, eBay was losing fees to Paypal.

MP is a return to their situation pre-2015, when all PP profits came to eBay, its sole owner.

in part it was from revenue from "seller services" i.e. people paying for promoted listings.

Yes.

And other , non-member, advertising. Remove your Ad Block Plus account sometime and watch what happens!

I'm wondering if the Wall Street punters are down on eBay enough for me to buy stock again. I've been looking at it vaguely since they started paying dividends, instead of playing quarterly games for the gamblers.

I got my pension fund started at the turn of the millennium by selling half my eBay stock every time it split.

a_sharper_image · ‎04-22-2022

"Revenues" does not equal "profits"... lol oh yes, I am well aware of that when I calculate in all my costs. One of the largest for me is shipping from my distributors so I'm always looking for smaller items, though my first love is large swords and so on.

Yes, I look forward to Q1 2022 report. and hoping we don't lose more Buyers.

chapeau-noir · ‎04-22-2022

@reallynicestamps wrote:
Plus let's not forget the $4.00 surcharge on packages that are 22 inches long and the 15.00 surcharge for those packages 30" or longer.
I guess that goes to prove the old adage "some things are not meant for mail order".

Revenues are up for the most part because of Managed Payments which was really kicking in during Q3,
That makes sense. Until MP became site wide, eBay was losing fees to Paypal.
MP is a return to their situation pre-2015, when all PP profits came to eBay, its sole owner.

in part it was from revenue from "seller services" i.e. people paying for promoted listings.
Yes.
And other , non-member, advertising. Remove your Ad Block Plus account sometime and watch what happens!

I'm wondering if the Wall Street punters are down on eBay enough for me to buy stock again. I've been looking at it vaguely since they started paying dividends, instead of playing quarterly games for the gamblers.
I got my pension fund started at the turn of the millennium by selling half my eBay stock every time it split.

I was horrified when I looked at my listings on someone else's system who had no ad blocking.

_______________________
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Hell is empty. And all the devils are here.

bonmoy · ‎04-23-2022

And some of those profits come from Ebay charging the buyer a percentage of the state sales tax which the buyer has paid.

luckythewinner · ‎04-23-2022

@a_sharper_image wrote:
If merchandise sales are down while eBay profits are up, where do you suppose that difference comes from?

I suspect they came in part because as Managed Payments rolled out, eBay reclaimed more and more of the payment processing fees that sellers used to pay to PayPal.

I also suspect they came in part from the 12% increase in revenue from optional Promoted Item fees paid by sellers who feared they had too much competition.

theteamsetguy · ‎04-23-2022

Unless a seller is shareholder I don’t know why any seller would care how much eBay is making? As with any other public company the management’s job is to maximize returns for the shareholders.

As a successful seller I want eBay to be profitable so that they will be around for a long time.

It is up to the seller to find a business model that works on this or any other platform they sell on.