eBay

maxine*j · ‎05-04-2022

From Reuters (link below) today:

May 4 (Reuters) - EBay Inc (EBAY.O) on Wednesday became the latest e-commerce retailer to give a gloomy revenue forecast as growth slows after two years of rapid expansion during the pandemic, sending its shares down 6% in extended trading.

The company projected second-quarter between $2.35 billion and $2.40 billion, compared with the average analyst expectation of $2.54 billion, according to IBES data from Refinitiv. Its full-year forecast was also below market estimates.

The dour view reflects the expected hit from a return of pre-pandemic shopping habits and stubbornly high inflation, which is likely to curtail consumer spending. It also mirrors weakness seen at larger rival Amazon.com Inc (AMZN.O) last week.

In the first three months of the year, EBay's gross merchandise volume - a widely watched figure for the e-commerce industry's performance - slumped 20% to $19.4 billion.

Revenue fell 6% to $2.48 billion, but came in slightly above expectations of $2.46 billion.

While the company's first-quarter adjusted profit was better than estimates, its forecast for earnings in the current period of 87 cents per share to 91 cents per share was below the average analyst view of $1.01 per share.

The e-commerce sector has grappled with a jump in costs in recent months due to a tight labor market and the ongoing supply chain crisis.

https://www.reuters.com/business/retail-consumer/ebay-forecasts-current-quarter-revenue-below-estima...

ckimodog · ‎05-04-2022

@maxine*j

Thanks Maxine!

inhawaii · ‎05-04-2022

2.48 billion? Poor ebay. I feel so bad.

Perhaps we as sellers should voluntarily ask for a fee increase to help them out. 😉

Long Train Runnin' - The Doobie Brothers

anjofak · ‎05-04-2022

Oh lordy...

May the 4th be with you all!

tsme35 · ‎05-04-2022

I'm betting 2nd quarter's going to be even worse, not just the increase of everything but also the huge loss of large packages with the USPS $15 surcharge. I had a 40% decrease in sales just from the loss of fishing rods I can't sell anymore.

slippinjimmy · ‎05-04-2022

It's been "gloomy" everywhere!

Etsy, Amazon, Posh, Mercari, NewEgg even Walmart are reporting mediocre results and "gloomy" predictions for the future.

So many headwinds facing all retailers and especially etailers.

Wayfair - down 66.5% from 1 year ago

Poshmark - Down 68% from 1 year ago

Etsy - Down 40% from 1 year ago

Amazon - Down 23% from 1 year ago

eBay - Down 6.5% from 1 year ago

Walmart - Up 10% from 1 year ago (all based on their B&M operations)

Paranoia strikes deep
Into your life it will creep

maxine*j · ‎05-04-2022

@inhawaii wrote:
2.48 billion? Poor ebay. I feel so bad.
Perhaps we as sellers should voluntarily ask for a fee increase to help them out. 😉

Or we could do those charity listings. You know: " 10% of the purchase price of this item goes to eBay for use by its board and c-level executives to spare them the humilation of having to fly business class or eat non-waygu beef."

-

oldwestgold · ‎05-04-2022

Well, last I checked eBay had taken well over $125k in commission fees to date from my sales. I have given my fair share.

maxine*j · ‎05-04-2022

Definitely, which is why the Reuters article began with, " ... EBay Inc (EBAY.O) on Wednesday became the latest e-commerce retailer to give a gloomy revenue forecast..."

-

inhawaii · ‎05-04-2022

@maxine*j wrote:
@inhawaii wrote:
2.48 billion? Poor ebay. I feel so bad.
Perhaps we as sellers should voluntarily ask for a fee increase to help them out. 😉
Or we could do those charity listings. You know: " 10% of the purchase price of this item goes to eBay for use by its board and c-level executives to spare them the humilation of having to fly business class or eat non-waygu beef."

Don't be ridiculous.

Nobody eats non-wagyu beef.

Long Train Runnin' - The Doobie Brothers

stephenmorgan · ‎05-04-2022

@inhawaii wrote:
2.48 billion? Poor ebay. I feel so bad.
Perhaps we as sellers should voluntarily ask for a fee increase to help them out. 😉

Careful, that is probably already in the works since everyone has been converted to Managed Payments now.

chapeau-noir · ‎05-04-2022

The online red and the B&M green tracks pretty much with what I've been reading about and seeing in my travels - offline retail is doing well, online suffering.

“The illegal we do immediately, the unconstitutional takes a little longer.” - Henry Kissinger

"Wherever law ends, tyranny begins" -John Locke

natoman777 · ‎05-04-2022

Well let's see.. 2020 Covid lockdowns - most in person stores closed. People stuck at home - covid money sent and they used it (online purchases).

2021 - states more open - people excited to get out of the house

2022 - gas prices up, inflation...

I wonder if any of these factors has anything to do with this 🤣

m60driver · ‎05-04-2022

@tsme35 wrote:
I'm betting 2nd quarter's going to be even worse, not just the increase of everything but also the huge loss of large packages with the USPS $15 surcharge. I had a 40% decrease in sales just from the loss of fishing rods I can't sell anymore.

Yes, the postage rate increases, both the recent oversized item increase and just the general rate increases are slowly having a negative impact on sales. When it now costs me over $6 to mail a small relatively inexpensive widget across the country and it costs a brick and mortar store only $1 to bring the same item into the store, well you get the point. I have several former bread and butter items that I no longer bother to pick up. for resale. For example, I use to pick up coffee mugs for resale but with the freight these days it just isn't worth it as the demand is just not there above a certain price point. These ongoing postage increases may be one reason that Ebay is focusing on higher priced "luxury" items as the postage remains relatively insignificant.