eBay says post-COVID growth will slow
You could call it a statement of the obvious or maybe a physics reminder of the laws of gravity. But no matter how you frame it, the fact remains that eBay has just told investors that its second quarter growth will be 8-10%, down from the scorching 42% pace it comes from. to post in the first trimester.
The outlook for the original 25-year-old online marketplace follows equally cautious – or realistic – predictions from several eBay mega-cap e-commerce rivals that digital growth in the post-pandemic era will fail. will not be as robust as it is. has been in the past 12 months when consumers were largely locked in their homes.
EBay CFO Andy Cring told investors on the company’s conference call that the company’s directions reflected the “correlation between mobility and gross GMV,” meaning more people are able to to go out, the less they turn to digital stores to buy and sell things. .
“In January, the pace of [COVID] vaccines were very different from what they are today. Mobility improved throughout the quarter in most markets, ”said Cring, also highlighting the additional one-time profit from the third round of federal stimulus checks in mid-March.
“So when you look then on a quarterly basis, the biggest difference between Q1 and the outlook for Q2 would be the fact that mobility is in a better place today than it was at the start of the first quarter, ” he mentioned.
EBay’s slowing growth outlook follows similar comments recently from Shopify, Facebook, Google and Pinterest.
Sneakers, watches, trading cards
Turning to the first quarter, for the three months ending March 31, eBay said revenue increased 42% to $ 3 billion, on a 29% increase in gross merchandise volume from 27.5 billions of dollars.
In particular, eBay said sales of sneakers worth more than $ 100 increased at a triple-digit rate and luxury watches rose 38%, more than double the pace achieved in the fourth quarter.
At the same time, eBay said its core trading card business saw more than $ 1 billion in sales in the first quarter, and active buyers in the category doubled. To build on this momentum, eBay said it has unveiled a new image listing tool that leverages computer vision technology to scan collectible cards and streamline the time it takes to create an listing by up to 75%.
According to CEO Jamie Iannone, who took over the top job a year ago, eBay’s metrics for buyers and sellers improved in the first quarter.
“Active sellers grew 8% to 20 million globally as more small businesses join the platform and more consumers engage and sell,” Iannone told investors during the call. “Active buyers increased 7% to 187 million globally and we are retaining buyers acquired over the past year at rates similar to pre-pandemic and we are seeing greater customer satisfaction in several categories as well as an increase in spending per buyer. “
ReCommerce and payment initiatives
One of the trends that is also benefiting eBay right now is the increase in reCommerce and the demand for buying and selling used clothing, shoes and accessories.
To respond to these changing market dynamics, the company announced that it launched its first ‘Recommendation Report’ last quarter, which found that 87% of US sellers responding to eBay’s survey said they had sold goods. used in 2020, and nearly three quarters. of salespeople surveyed started selling second-hand goods last year for additional income.
Additionally, in an effort to acquire more buyers, eBay said it is also rolling out new ad formats for its display and social marketing, including video, and leveraging a mobile approach to advertising. first to increase the engagement of Generation Z and Generation Y customers through social shopping. like his new “eBay Sneaker Showdown”.
On the payments front, eBay said it continued to increase its share of monetary transactions and processed 52% of global volume on the platform in the first quarter, noting that 4 million sellers had migrated globally to the new platform, including more than 80% migration completed in the first quarter. United States