How well you did in the first three months of the year depends on where you were selling. eBay executives made a “significant reduction” in marketing in the first quarter that resulted in a drop in GMV (the value of goods sold on its marketplace). US sellers took the biggest hit – GMV dropped 6% in the US in Q1.
But while sellers sold less, eBay made more, seeing an increase in revenue of 4%. How? In part by taking more fees from sellers: CEO Devin Wenig said sellers were “flocking” to Promoted Listings, for example.
Etsy sellers had a better quarter as the company reported 19% growth in sales on its marketplace (GMS). It grew its own revenues by a whopping 40%.
Sellers on the two marketplaces should brace themselves after Amazon announced a move to next-day delivery for Prime members. Executives at eBay and Etsy were already pushing sellers to offer fast and cheap shipping, and the pressure will only intensify.
Many small sellers rely on the USPS to deliver their packages, and one of our most popular stories in the past month was, “USPS Boss on Packages: Scanning Good, Throwing Bad” – it clearly struck a nerve!
All too often, shipping costs are a double-whammy for sellers thanks to returns. In today’s issue, we look at a brand new offering designed to prevent returns abuse. We were really intrigued by the concept, and what’s more, it was invented by an eBay seller. Let us know what you think of it!
Also in today’s issue we present the Online Sellers Guide to eBay’s Spring Seller Update. Today’s Collector’s Corner column covers the first-ever Great American Coin Hunt, and we end with letters to the editor.
Thanks for reading.
UPDATE: We got word today about PayPal’s policy on refunding fees for cancelled orders and refunds – see the blog post here.