eBay has misplaced all gross sales development from the pandemic’s e-commerce surge and can end 2022 with GMV at 2019 ranges.
In response to eBay’s steerage, eBay’s international gross merchandise quantity (GMV) in 2022 will attain $72.7 – $74.7 billion. That’s practically an identical to the $72.1 billion GMV in 2019. Its GMV will shrink by roughly $14 billion from $87.6 billion in 2020 and $87.3 billion in 2021.
eBay had little development over the five-plus years main as much as 2020. When Covid got here, eBay benefited from different retailers being out of inventory. That introduced many patrons again to eBay – thus leading to a $14 billion spending improve in 2020 that it sustained in 2022 – but it surely finally was a short lived surge.
eBay is giving up the pandemic’s features in worldwide markets quicker than within the U.S. – for instance, within the second quarter of 2022, U.S. GMV was nonetheless up 15% from Q2 of 2019, however worldwide GMV was down 3%. Gross sales within the U.S. will end the yr above 2019 ranges however might weaken additional in 2023.
E-commerce within the U.S. was up a staggering 80% over the identical 2019 Q2 – 2022 Q2 interval that eBay grew 15% within the U.S. Whereas e-commerce penetration figures haven’t increased drastically through the pandemic, e-commerce spending has elevated enormously. As a result of eBay didn’t sustain, its market share is down to three.5% from 10% less than a decade ago.
eBay has hundreds of competitors that took classes on eBay and constructed a enterprise round improved expertise. It’s shedding gross sales to marketplaces like StockX, Etsy, Vinted, Farfetch, Fb Market, and others. Nevertheless it nonetheless has 5 classes producing over $10 billion in gross sales: Motors, Components & Equipment, Electronics, Collectibles, Residence and Backyard, and Trend.
However, eBay has refocused on choose classes it calls “focus classes,” and high-spending customers nicknamed “fanatic patrons.” Focus classes embody jewellery, sneakers, purses, and collectibles like buying and selling playing cards. Fanatic patrons – roughly 12% of lively patrons – store on eBay a number of occasions a yr and spend greater than the typical consumer.
Thus whereas eBay is way greater than the few classes and a choice of customers, it has centered on niches and patrons it could serve effectively. That doubtless means GMV and lively patrons will proceed to drop earlier than eBay finds a backside and settles into its new position.