eBay 2020 Q2 growth is now predicted to be somewhere in the range of 23% to 26%. This is amazing news from a marketplace who’s growth has faltered in recent years and in the US has even seen contraction. Additionally, eBay are reporting 6 million new or reactivated buyers now using the platform.
It’s a long time since we’ve seen eBay report anything other than single digit growth and, if the marketplace can continue the trend, bodes well for the future.
Compare this new eBay 2020 Q2 growth forecast with the actual Q1 financial highlights and you can see just why 23% – 26% growth is off the chart:
eBay 2020 Q1 Highlights
- Revenue was $2.4 billion, down 2% on an as-reported basis and up 1% on a foreign exchange (FX) neutral basis.
- Active buyers grew by 2%, for a total of 174 million global active buyers.
- Gross merchandise volume (GMV) was $21.3 billion, down 1% on an as-reported basis and remaining flat on a FX-Neutral basis.
- Marketplace platforms delivered $2.1 billion of revenue, down 1% on an as-reported basis and up 1% on a FX-Neutral basis.
eBay 2020 Q2 Growth forecast
- Strength in global gross merchandise volume (GMV) seen in April has continued through May, and the Company now expects full Q2 volume growth rates to land between 23% and 26% as compared to the prior year period.
- All major verticals are accelerating significantly compared to previous quarters, including Home & Garden, Electronics, Fashion, Auto Parts and Collectibles.
- Demand strength is driven by increased organic traffic, better marketing efficiency, and higher platform conversion.
- Active buyer growth is accelerating, with approximately 6 million new and reactivated buyers added in April and May.
- More sellers are joining eBay through efforts like Up & Running. Since March 2020, tens of thousands of small business sellers have been added to the platform.
There is little doubt that most of this performance is entirely due to the coronavirus pandemic but, unlike competitors such as Amazon, eBay were uniquely positioned to benefit to the maximum extent possible. Amazon have 100s of 1,000s of employees running fulfilment warehouses doing actual work, whereas eBay’s business is to enable millions of small businesses to do the heavy lifting whilst a relatively few employees oversee and manage the technology. This lowers the risk for eBay as for every business or retailer who had to shut down during the pandemic there was another standing in the wings that had never sold on eBay before ready to sign up – or more accurately for many forced to sign up as their physical store was ordered by governments to be temporarily closed.
eBay have put a huge marketing program in place in the US calling June ‘Traffic Month‘, to proactively driving traffic to your listings. This is eBay’s time to capitalise on the unexpected growth and even with high street retailers reopening it is fully expected that many consumers will continue to spend online. eBay’s job now is to make sure consumer don’t just continue to spend online but that they spend on eBay.