EcommerceBytes-NewsFlash, Number 3111 - July 18, 2013     2 of 4

eBay Marketplaces Grew 16 Percent in the U.S. in Q2 2013

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eBay revenue grew 14% to $3.9 billion in the second quarter of 2013, year-over-year, and net income was $640 million. eBay's total Enabled Commerce Volume (ECV) grew 21% for the quarter, to $51 billion. ECV is a fairly new metric and is defined as the total commerce and payment volume across all three business units consisting of Marketplaces GMV; PayPal merchant services net total payment volume; and eBay Enterprise (formerly GSI Commerce) merchandise sales not earned on eBay or paid for via PayPal or Bill Me Later during the period (it excludes volume transacted through the Magento platform).

Cross-border trade in the second quarter was $11 billion, representing 22% of the company's total ECV.

eBay CEO John Donahoe said macroeconomic headwinds in Europe and Korea would continue to be a challenge in the second half of the year, but said core businesses are strong - "We remain confident in our ability to meet our goals and drive global commerce innovation and leadership."

eBay Marketplaces Growth
eBay sellers sold $18.3 billion in goods on its marketplaces in the second quarter of 2013, excluding vehicles, up 13% year-over-year. Marketplaces revenue was up 10% to $2 billion (or 12% excluding the gain from the resolution of an indirect tax dispute in 2012).

  • eBay Marketplaces gained 3.5 million active users in Q2 and ended the quarter with 120 million, a 14% increase.

  • Fixed price GMV represented 69% of total GMV.

  • Fixed price GMV grew 18% from $11.3 billion in Q2-2012 to $13.4 billion in Q2-2013.

  • Auction GMV grew from $4.8 billion in Q2-2012 to $4.9 billion in Q2-2013 (eBay's calling it 1% growth).

  • U.S. GMV, excluding vehicles, increased 16% to $7.3 billion.

  • International GMV, excluding vehicles, increased 11% to $11 billion.

  • U.S. GMV growth was driven by mobile and momentum in the Motors Parts & Accessories and the Home & Garden categories.

eBay Marketplaces: New Users
eBay Marketplaces gained 3.5 million active users in the second quarter, ending with 120 million, a 14% increase. Active user growth driven primarily by mobile, site enhancements and emerging markets.

Donahoe said new users were coming from mobile and from BRIC and emerging markets. The mobile users are younger, and while they have less disposable income, he likes their lifetime value. Users from BRIC and emerging markets skew a little younger and purchase lower ASP goods (Average Selling Price). He said eBay is working on increasing both frequency and ASP with each of the segments to convert them into long term users.

It's too early to see if there are differences, he said, but they're in segments that are fundamentally strong and important to eBay's business, according to Donahoe.

Highlights from Post-Earnings Conference Call
CEO Donhaoe and CFO Bob Swan took questions from Wall Street analysts after eBay released its second quarter earnings. In his presentation, Donahoe said "Retailers and brands need a partner, and that's who we are - a partner, not a competitor. Our success is strongly tied to enabling others to win, whether an entrepreneur or a global brand. Commerce is never a zero-sum game. And in this period of disruption and innovation, we believe technology should enable more opportunity for everyone."

  • eBay Marketplaces Top Rated Sellers outpace ecommerce growth: their same-store sales grew 22%. They account for 45% of eBay's U.S. GMV in Q2.

  • Half of all U.S. Marketplaces transactions included free shipping in Q2.

  • eBay is "investing in ubiquity" when it comes to PayPal.

The full earnings press release, including PayPal and eBay Enterprise data, is posted on the eBay Investor Relations website.

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About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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