eBay sales fall as GMV declines for fourth consecutive quarter?

[yekai2012]

Any thoughts?  Like many sellers, we were forced to diversify to other marketplaces. 

I started using eBay in 2000, left in 2008 and rejoined 2012.

My physical fishing store has over 4000 items, I can only list like 4% of them in eBay.  While eBay only doing the lazy thing (copy the top marketplace customer side of return policies) but eBay got completely fooled as the top merchant also had very sophisticated support and I would say fairer to sellers.

eBay survey or "Expression" is more like marketing stunt, I haven't seen any real follow up on suggestion, I tried to tell eBay how Amazon help sellers, I have an assigned rep I can call any time.  And obviously Amazon's logistic nowadays is way way ahead, but if anyone remember back in 2011 (not so long a decade ago?) eBay GMV was bigger than Amazon.

As to why eBay can only get 4% of my items, because Amazon FBA can absorb un-reasonable return shipping charge.   I told my Amazon rep without that support, I couldn't even sell on line.  The rep went back to his boss, got a deal for me that - exclude shipping mistakes, if I keep my return rate below 1%, Amazon will take care of return.  

As for eBay, anything cost over $20 to ship, eBay should know one return (obviously with bogus reasons), seller like me will take a huge hit and it will take 20 or more orders to make up for the loss (not to mention getting a used item back).    So there you go, the reason why eBay is only getting 4% of my inventory (and even far less percentage of my business). 

During severe inflation, one would thing eBay should be reaping the benefits from frugal shopping.  Not exactly, many sellers also need to limit the risk selling and we can't afford losing money.  I have automatic "risk disqualification" process to exclude listing item in eBay, basically a combination of the item value and the potential two-way shipping cost, and only 4% of my products are "eBay sellable".

And you wonder why eBay GMV declines...

[chapeau-noir]

Any thoughts?

Well, there are pages of them here:

Sales decline/GMV falls

I had no feeling of being 'forced' to expand to other sites - it's simply the natural course of online selling - in fact, I've never sold solely on here, anyway - there are always items that do better on other sites, and items that do better on here.

Amazon and eBay are completely different - eBay seems to finally be figuring this out. 

[dbfolks166mt]

      I never put much stock in the GMV since it is only one indicator of how well a company or me personally is/are doing. I would be more interested in eBay's net merchandise volume (GMV - returns and refunds) but that is a figure eBay will never release. I can sell $10,000.00 of items (GMV) and wind up with a net profit of let's say $100. In contrast I can also potentially sell $500 of items (GMV) and wind up with a net profit of let's say $200. So for me personally the GMV means nothing from my business perspective. 

     There have been a couple of things that have impacted all ecommerce sites, including Amazon, the first is the inflation and the second is the easing of the pandemic restrictions. Wall Street had predicted the later long ago as people began to return to B&M stores. The inflation has created a more severe problem, depending on what you are selling, as buyers disposable income shrinks in the wave of rising prices for necessities like gas, food, housing, etc. and they seek alternatives like thrift stores for clothing. Rising costs will also force eBay, at some point to either increase revenues (aka raise fees) or cut their costs. 

     Comparing eBay and Amazon is difficult other than they are both ecommerce platforms. They both started out at about the same time 1994-1995 but eBay today is pretty much what it was when it started. In contrast Amazon started out as a online bookstore and grew WELL beyond that. One big difference in the two as you noted is the logistical processes. EBay, although they like to think they are part of the logistical process, is still dependent on third party transport like USPS, UPS, FedEx..... Amazon in some cases is also dependent on third party transport for the last mile delivery but in many cases handle the logistics from end to end. With the USPS problems and Amazon taking delivery of 100,000 Rivian electric powered delivery vehicles I would not be surprised to see the USPS contract with Amazon for some deliveries. 

     Side question for you related to Amazon and shipping. USPS has added premium charges to packages that are over a certain size: $4.00 for 22-30",  $15.00 for 30" and greater and $15.00 for packages that exceed 2 cubic feet. This has impacted a number of sellers that were selling rods and reels on eBay. Has Amazon done anything similar with regards to shipping since they are dependent on third party shippers for the last mile delivery in some cases?

[mfdd2006 · Accepted solution]

Ecommerce landscape changes all the time.

For the month of July, I got only 1 sale in eBay, on one another new channel (not eBay or Amazon) I got 89 orders.  I find using Amazon for logistics and social media is the norm nowadays.  eBay is outdated.

Same items in eBay I have no choice but to sell at higher price because the selling cost in eBay is highest. eBay knows that, the last two years eBay is only reaping new revenue via their no-so-new payment system.  Overall GMV falling, sellers falling and thus buyers also failling and they were supposed to do good during product shortages in 2020-2021 so the shrink could be far worse.

The feedback system is killing eBay, I got 98.5% because of 1 nonsense negative feedback.  Back in 2008 I would have successfully challenge it. (with proof the buyer basically emailed/blackmailed trying to get a $12 item for free).  eBay didn't realize at 98.5% it  becomes a chicken and egg scenario.  Can't get new sales and I certainly won't sell at loss so the only option is leave it alone for a year.     

Nowadays "seller centric rating" site like eBay only command 4.2% ecommerce marketshare.   It is also quite humiliating for eBay keep sending email suggesting sellers to "lower the price" while eBay's selling cost is highest.   eBay even took out Paypal for sellers to pay for fees and shipping label (no more 5% cash back). It just shows how disconnected eBay is with reality.  If one works in eBay may have to look for job sooner their mass layoff to prop up balance sheet seems imminent.

[luckythewinner]

Any thoughts?

Sure.

The marketplace has matured and eBay has more competition for listings.

At the same time, the amount of inventory is not long growing exponentially because everyone in the world is now online and most are already selling their stuff somewhere.

Venues can really only show significant growth by cannibalizing other venues, and eBay has biggest corpse to cannibalize. 

Amazon is growing because of Amazon Web Services and Fulfillment by Amazon, not by adding third party sellers of Hummel figurines. (Oh, and losing money all the same).

[siamjane8]

I would agree with all of the challenges that lucky posted above.   And while those certainly have taken a toll on ebay there are many more self inflicted wounds that have driven down usership as well.

1. constant battle with its sellers and not listening to the needs of sellers- make them go else ware

2. constant site changes almost weekly - like a constant festering wound that will never heal- markets need stability and constantly changing everything makes sellers weary and overworked for nothing 

3. Lack of customer service - they can do little more than lip service

4. Lack of advertising- they though they were too big to waste money on advertising years ago and it has proven wrong- I actually meet allot of people still that surprisingly have never heard of ebay 

5. Probably the biggest issue is the search engine that is so irrelevant that you must go to google to find active ebay listings!  You should NEVER send your customers off site to find thing on that site EVER

6 .too much search manipulation and promoted listings- irritates customers

7 .That scandal where they hunted down people and threatened them did not really inspire confidence in the website and the highest members of its management which are mostly in jail or fined now.

8.Forcing desktop users to fight with a mobile app listing tool now has seriously hindered new GMV

9. once ebay changed their business model from mutual seller and ebay  growth from sales based on commission of sales- and switched to a new fee based revenue stream at the expense of sellers profit and growth, sellers lost confidence- ebay no longer had skin in the game and instead is just grabbing PL fees. Seller growth is no longer a priority for ebay and if sellers cant succeed- ebay will continue its GMV decline.

[fuzzface50]

is ebay really losing?

They might be losing some smaller sellers that sell low priced items but they seem to be trying to endorse your bigger sellers with these authentication programs for sneakers, watches, etc and the newest one I know of is the vault for trading cards. so this is bringing more faith in higher paying bidders/buyers.

so you lose 100 small time sellers vs. gaining a couple of bigger fish, which is better?

So is ebay really losing?

I know I would rather deal with a few rich people versus having a bunch of whining people complaining all over town they are not making money because of ebay.  I would put them out to pasture as fast as I can so they get over it so everyone can move on. 

explains why I stayed out of the CEO thread. 

[zamo-zuan]

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@yekai2012 wrote:

Any thoughts?  Like many sellers, we were forced to diversify to other marketplaces. 

I started using eBay in 2000, left in 2008 and rejoined 2012.

My physical fishing store has over 4000 items, I can only list like 4% of them in eBay.  While eBay only doing the lazy thing (copy the top marketplace customer side of return policies) but eBay got completely fooled as the top merchant also had very sophisticated support and I would say fairer to sellers.

eBay survey or "Expression" is more like marketing stunt, I haven't seen any real follow up on suggestion, I tried to tell eBay how Amazon help sellers, I have an assigned rep I can call any time.  And obviously Amazon's logistic nowadays is way way ahead, but if anyone remember back in 2011 (not so long a decade ago?) eBay GMV was bigger than Amazon.

As to why eBay can only get 4% of my items, because Amazon FBA can absorb un-reasonable return shipping charge.   I told my Amazon rep without that support, I couldn't even sell on line.  The rep went back to his boss, got a deal for me that - exclude shipping mistakes, if I keep my return rate below 1%, Amazon will take care of return.  

As for eBay, anything cost over $20 to ship, eBay should know one return (obviously with bogus reasons), seller like me will take a huge hit and it will take 20 or more orders to make up for the loss (not to mention getting a used item back).    So there you go, the reason why eBay is only getting 4% of my inventory (and even far less percentage of my business). 

During severe inflation, one would thing eBay should be reaping the benefits from frugal shopping.  Not exactly, many sellers also need to limit the risk selling and we can't afford losing money.  I have automatic "risk disqualification" process to exclude listing item in eBay, basically a combination of the item value and the potential two-way shipping cost, and only 4% of my products are "eBay sellable".

And you wonder why eBay GMV declines...

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As I'd mentioned in another topic lately, eBay SHOULD reap the benefits of frugal shopping...

But you're required to invest in PL to get either promoted OR organic impressions.

So it's unavoidable that the prices on eBay are going to be jacked up for any listings that customers see. Because without that investment, you don't get the impressoins/visibility.

EBay will give more visibility to a $110 item with higher promotion rates. That same item for $100 without promotions will be appearing in search 80-90% less than the $110 item. 

So eBay no longer gives frugal customers frugal prices. 

[luckythewinner]

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@zamo-zuan wrote:

But you're required to invest in PL to get either promoted OR organic impressions.

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IMHO that may be true when users search in saturated categories or use broad search terms.

But when I want a Roxy Music songbook and search for Roxy Music songbook, I get 6 results. Every listing that matches the search criteria gets an impression.

And when I want a Bob Seger Noah LP and search for Bob Seger Noah LP, I get 2 results. Every listing that matches the search criteria gets an impression.

IMHO choosing what to sell is the single most important decision a seller makes.

[valuebeltsplus]

Good list but your forgot "Deaf Ears" and "No access to management" plus "Increased rigidity to ideas".

For us, the loss of being able to speak to a live person regading an issue during Covid in 2020 was like the "last straw".  The whole site is a mess of duplications every where, antiquated format and getting any meaningful informaton cumbersome. It is what doesn't sell on eBay that is the money maker for them and losers for sellers. You can only milk so much off a seller before they leave.