Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Oct 19 2017 20:31:47

eBay CEO Devin Wenig Talks to Analyst in Q3 Call

By: Ina Steiner

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eBay showed signs of growth in July, August, and September after quarters of tepid performance. And while eBay CEO Devin Wenig said he was pleased with the quarter, he said there was still a lot of work ahead. He also issued a warning. "We recognize that making significant product changes can have a big impact on our ecosystem. We've been moving as fast as possible, while making sure we don't create disruption."

Wenig said his first priority was to nail the customer experience. He made the remarks to Wall Street analysts after company released earnings on Wednesday.

eBay revealed its total GMV (Gross Merchandise Volume) in the third quarter was up 8% year over year (or 7% FX neutral) to $21.7 billion, while revenue was up 9% (or 8% FX-neutral) to $2.4 billion.

Its Marketplace platform (not including StubHub or Classifieds) saw year-over-year GMV growth of 9% for the third quarter on an as-reported basis and 7% on an FX-Neutral basis, driven by acceleration in the U.S. and Europe, which led to revenue growth of 8% on an as-reported basis and 7% on an FX-Neutral basis. (Read the full financial release here.)

One of the factors that could help eBay grow its revenue: seller ads, called Promoted Listings. Wenig said eBay ended Q3 with over 50 million live Promoted Listings, with over 100,000 sellers using the product."

That resulted in 45% revenue growth sequentially, he said (that means compared to the second quarter of 2017, not year-over-year).

Wenig said eBay is in the early phases of Promoted Listings - growth is rapid, but it's still small, and he reminded analysts that eBay was removing a number of its third-party ads. But, he noted, there are 100,000 sellers using it, "and we have 20 million-plus sellers" - and it's not even open to all sellers yet.

His vision is to have AI (Artificial Intelligence) optimize placement of the Promoted Listing ads. "I think what you'll see in 2018 is that we'll move off the idea of fixed landing slots and we'll move to machines placing those first-party ads dynamically" so eBay is "best-monetizing every pixel on our mobile devices and our desktops." 

Wenig also said brands were important - "we're bringing brands to eBay at an accelerated pace," he said - it helps bring differentiated inventory to the Marketplace. 

Partnerships like the one it recently entered into with Spring were one way to go, he said, "But most of our activity is a direct outreach to brands," who are worried about the retail landscape and who is going to sell for them. eBay is now having a very different conversation with brands that it had trouble even talking to a year ago.

"Stay tuned on that. There'll be more to say about our approach with brands in short order."

Noting that the third quarter GMV growth was the fastest growth rate in 3 years, Wenig also warned that he didn't expect growth to always be linear as he makes decision to grow long-term success, "even when that pressures short-term results."




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Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: eBay Shill Buster This user has validated their user name.

Thu Oct 19 20:46:50 2017

What a joke, yeah we heard the same thing from Devin at eBay open how his changes were going to be painful, this guy is lost on earth, he has no business leading eBay and should be fired.

When he talks about change he is talking about the destruction he wrought with Seller Hub in forcing sellers into that abomination coded by idiots which seller hate.

He is talking about his idiotic Promoted Listings, he is talking about the new pages he is trying to force on sellers even in MyeBay which never needed to be touched by this clown in the first place.

Devin's changes are destruction, he needs to be escorted out of the HQ building by eBay security, that is the bottom line.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: eBay Shill Buster This user has validated their user name.

Thu Oct 19 21:12:41 2017

Wenig said his first priority was to nail the customer experience

LOL, the guy has been at eBay for what 5 years now and he still can't figure out that his best customers are eBay sellers, talk about someone who is dense, this guy takes the cake.

Yeah, he has done a good job with nailing this customer group down, you can see that when you read the Seller Hub forums, like I said, Devin is extremely delusional, he really believes the stuff that comes out of his mouth even though he is fooling no one.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: comments This user has validated their user name.

Thu Oct 19 21:26:50 2017

The key to bringing brands to ebay would be to NOT keep raising the fees every update. Quality brand products cost more then generic junk. I sell quality high end goods from branded companies and they are expensive!

When you raise prices you devalue my inventory, making it so I do not carry those products anymore. Its not a boycott or anything there is just no money to be made there so I REALLY don't buy it anymore. As you thin out the branded items you will start to see the void filled with generics.....and amazon/walmart/sams dropships making your competition more rich and more powerful.

Short term revenue spkies are only temporary until lingering devalued product is finally sold off and not replaced. Hence the reason so many price increases have not yielded sustainable growth, requiring more increases later.

Innovation, junk reduction, site maintenance and oversight of the internal teams, reducing 3rd party dropship resellers, and working with quality item sellers would produce a more sustainable growth.

Promoted listings are great. But charging % fees in certain categories is not helping you to "best monetize every pixel". When someone sells a generic they may be afford a 25% commission on a promoted sale but buyers may be annoyed with seeing junk. Where as if they saw a branded product that would obviously need less % due to product cost, they may be more likely to buy.

Quality matters. For example some may be content to go to the dollar store and pick up their cheapo lawn lights and replace the bad ones ever week, but many more would prefer to get nice ones that will last years. What customer is ebay really trying to serve?

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This user has validated their user name. by: toolguy

Thu Oct 19 21:33:49 2017

@comments

eBay has QUALITY lights, they cost more then I want to spend

We got 50 lights for $55 at the .99 cent store with no shipping cost

I prefer to go to the .99cent store as needed to replace the broken ones.

We replace about 1 per week.

I grab one each time I go to the 99 store for a buck, you can't get one shipped for under $2.77

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: eBay Shill Buster This user has validated their user name.

Thu Oct 19 22:23:28 2017

What I love is the fact that we have a CEO who has a propensity to promote scams like Seller Hub and Promoted Listings as innovations and legitimate programs to move eBay forward, this goes to show how misguided this CEO is and in turn the entire executive team that he charges with carrying out this extreme lunacy with programming that incorporates these bad ideas into the marketplace.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

This user has validated their user name. by: toolguy

Thu Oct 19 22:39:56 2017

@ebay shill buster

You don't have to buy into it, I'm not.

I have no seller hub or promoted listings. . .

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: ZZ This user has validated their user name.

Thu Oct 19 23:44:16 2017

Promoted Listings are a "zero sum game". There is no value added to the eBay sales numbers. It's just a way to get a better seat by tipping the Maitre D'

The best way to weed out the junk listings would be for eBay to make some Youtube videos on how to use the search engine. If they did that, management might discover some big flaws in their listing tree as clever users could show them advanced plays such as 'backtracking' the item specifics.

Let me give you an example: Say you want to buy a "Nike Golf" rain jacket. You wear a size XL approximately. You start off searching for "Nike jacket" so as to not miss anything. There are so many you want to narrow it down. Let's get rid of everything but size XL. But to do that you have to next click on the Mens Clothing; Coats and Jackets before the size specific appears. You click on XL and now you have narrowed the field.... too much. Most of the rain jackets are in either Golf, or Athletic. However, now that you have selected XL, you can back up the category tree to 'everything' and if you need to you can then step down into Athletic or Golf and XL will still be filtered.
Somebody should show Wenig a video of that so he could learn how goofy the category tree is. Maybe that's a better way to improve the buyer experience.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: eBay Shill Buster This user has validated their user name.

Fri Oct 20 00:06:34 2017

Promoted Listings are not a zero sum game, eBay can make up to 20% additional to their regular final value fee depending on how high ignorant sellers are willing to bid for these casino ads.

In addition to ripping off sellers for extra cash they corrupt the search engine programming also, they also defraud sellers who pay for stores and do not buy these fraudulent sponsored listings.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: Marzy This user has validated their user name.

Fri Oct 20 00:19:10 2017

For some reason, there continues to be eBay bashing by sellers. When will this group understand that eBay does not care about sellers?  Devin said he wants to get the Customer Experience right.  Get it? Customers, not sellers. If there are buyers, ie more buyers, there will always be sellers. Meaning he knows someone else will replace the merchant that gets fed up and leaves.  

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: Postthoughts This user has validated their user name.

Fri Oct 20 00:46:07 2017

I recently had an interesting conversation with a women who buys  fine jewelry, vintage costume jewelry, vintage purses and perfume bottles.  Her jewelry collection takes up an entire room in her home.  She told me she stopped looking on ebay.  She was sick of all the cheap merchandise from China that pops up even when searching vintage.  She also recognized that search was no longer giving her the same results and that it was full of non related items.  She now shops on places like Ruby Lane and is willing to pay more for a better experience without having to sift through garbage and unrelated items.

Another person overheard us and said they also stopped buying art on ebay for the exact same reason.  He looks for older paintings.  However, when he searches ebay, he said he has to sift through pages and pages of Chinese knock-offs and copies.  Some are nothing more than prints on canvas, while others are oil paintings on canvas of famous paintings in museums.  He said he hasn't spent a dime on ebay in over year.  

Both were long time buyers on ebay and both knew of others who felt the same way.  Wenigs artificial intelligence is failing miserably at improving the customer experience.  

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: ebayout This user has validated their user name.

Fri Oct 20 01:04:58 2017

What doth it profit a man...if his promoted listing gets blindsided by another seller with a lower price? After all...don't buyers arrange search by PRICE???

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

This user has validated their user name. by: RKTOYS

Fri Oct 20 06:52:05 2017

@comments
Good comment.  Margin compression is brutal.

Over in toys, "wholesale" and MSRP have been rising but the prices that customers are willing to pay remains frozen.  I literally cannot source items cheaply enough to pay eBay's fees at retail price.  It was even worse at Amazon before their burglary attempt.  There is no option but to sit on stuff until it's sold out elsewhere and _then_ use that leverage to get customers to part with MSRP so I can make a buck.

This market, specifically, is prone to going from thrift/procrastination to panic sometimes, though, and thank God for that because it's just about the only time I make real money anymore.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

This user has validated their user name. by: blueribbon1844

Fri Oct 20 06:52:18 2017

Marzy has risen from the grave, Halloween is near!

After being CEO for 5 years, He now wants to work on customer experience? Shouldn't that have been day 1, not 5 years later?

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: RL15 This user has validated their user name.

Fri Oct 20 09:49:41 2017


ceo says "revenue was up 9%"

no mention of the trs discount dropping to 10% from 20%. guess sometime soon the the moron will eliminate the other 10% and claim revenue is up again.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: epuise This user has validated their user name.

Fri Oct 20 09:54:34 2017

@Toolguy wrote:
eBay has QUALITY lights, they cost more then I want to spend
We got 50 lights for $55 at the .99 cent store with no shipping cost
I prefer to go to the .99cent store as needed to replace the broken ones.
We replace about 1 per week.
I grab one each time I go to the 99 store for a buck, you can't get one shipped for under $2.77

@Toolguy...
So, I assume your time, gas, etc. to get to the .99 store... costs nothing ?
"shipped for under $2.77..." that's POSTAGE, dude... delivered TO your house... a SEPARATE SERVICE... not a price of the GOODS...

THIS ^ flawed rationale is beyond words.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: epuise This user has validated their user name.

Fri Oct 20 09:56:35 2017

Wenig said eBay is in the early phases of Promoted Listings - growth is rapid, but it's still small, and he reminded analysts that eBay was removing a number of its third-party ads. But, he noted, there are 100,000 sellers using it, "and we have 20 million-plus sellers" - and it's not even open to all sellers yet...

And... when ALL Sellers "use" Promoted... NO ONE will be "Promoted"... it will just be what it is... a FEE HIKE.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

This user has validated their user name. by: eXtinctBay

Fri Oct 20 09:57:52 2017

@Marzy (Corporate Shill??)

What you (and eBay) do not understand is SELLERS are the customers here.

Sellers pay this company fees to list their merchandise. And for store subscriptions. And 9% commission on shipping which is PAID FOR BY THE BUYER.

Buyers pay no membership costs or money to eBay to use the site.  

You have Amazon and eBay confused. And Amazon does rightfully refer to their buyers as ''customers'' since most pay $99 a year for Prime.

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: GotToGetOut This user has validated their user name.

Fri Oct 20 10:15:15 2017

Promised listings are ridiculous.  I tried a few of the free ones on some of my current ads and it didn't help at all.

The only reason they might have increased profits is due to that 10% discount they took away from Top Rated sellers.  That's a tremendous figure for them and all profit.  Watch next it's the other 10% taken away when their profits can't be maintained quarter to quarter.  

They are trending down and will continue until their demise.  

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

by: JohnGermaine This user has validated their user name.

Fri Oct 20 10:15:49 2017

Sorry - not interested in paying you MORE to NOT show my listings.  Geez, what lunacy.  I'm looking at worst month ever, like when I first started selling!!

Perminate Link for eBay CEO Devin Wenig Talks to Analyst in Q3 Call   eBay CEO Devin Wenig Talks to Analyst in Q3 Call

This user has validated their user name. by: toolguy

Fri Oct 20 10:20:44 2017

@blueribbon

"After being CEO for 5 years"

He's only been CEO for 2 years and 4 months!

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