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eBay reported its earnings for Q1 2018, revealing that its revenue reached $2.58 billion, up 12% year-over-year (YoY) on an as reported basis. Its marketplace's gross merchandise volume (GMV) performance was promising, climbing 13% YoY to $22.5 billion. This builds on the 9% YoY jumps in GMV that it saw in each of the last two quarters, which followed at least six consecutive quarters of underwhelming 3% YoY growth, or less.
BI Intelligence
eBay has been working to recruit brands and sellers to grow its product catalog and further improve its marketplace's GMV and overall performance. If eBay's marketplace can feature products that competing retailers and marketplaces don't have, it may be able to attract new customers and sales.
- The company is focusing on bringing in new brands, CEO Devin Wenig said in eBay's most recent earnings call, and the company is happy with its rate of brand acquisition. Brands give eBay more products to attract shoppers with. Wenig appears to believe that eBay is an attractive channel for brands because other channels, like brick-and-mortar, are struggling, and other marketplaces, like Amazon, compete with their sellers with their own products, while eBay does not.
- eBay has been working to make selling on its marketplace easier, which may encourage merchants to sell through it, further growing its product selection. It recently streamlined the process of listing products, making it easy to add products to the marketplace to save sellers time. Similarly, it introduced an augmented reality (AR) tool to help merchants determine which size box to ship with. Both of these moves should help eBay recruit small vendors with minimal selling experience and niche offerings to its marketplace, giving it an edge over competitors
In order to get more consumers to shop with it, eBay is scaling its Guaranteed Delivery program, which will bring it closer to even footing with other shipping offerings.Because eBay features a number of sellers, its marketplace doesn't offer consistent delivery speeds. However, eBay launched Guaranteed Delivery in Q4 2017, which gets shoppers their orders in three days or less. The program currently features over 30 million items in the US, and many of the sellers using it have seen sales jump. And, as eBay adds new merchants and products to the program, consumers may be more likely to shop with eBay because they won't have to worry about long delivery times.
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