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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). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.
Looks so good on them. Can’t wait til I hear the flush!
I’m actually surprised they didn’t claim the usual 2-3% revenue growth again lol. Now they claim they’re only slightly down or flat eh? No surprise that GMV declines yet again. Also no surprise for lower guidance. This company is in serious decline folks and it’s worse than their numbers and much worse than everyone thinks. It will continue to get worse and eventually they won’t be able to fudge their numbers any longer. That’s when the investor lawsuits and executive fraud convictions begin.
Typical Ebay……New CEO = Another set of hair brained ideas that won’t work. Happy next three years.
So Managed Payments was a bust… 20,000 users out of how many are signed up?
I feel they won’t hit the 10% unless they go on a major push forcing sellers into it.
The 10% is of total revenue which means the amount they can process drops right along with their business. That is why they were forcing the Power Sellers in now, trying to get more consistent processing dollars in from Sellers who they do not think can afford to leave them. I may be wrong but I believe they are finding that forcing the Power Sellers in has not been the best idea as many of them already sell on other platforms including Amazon and many of them are just moving their focus to these other platforms. Ebay is going to become less and less important to their revenue stream which is going to really start hurting Ebay because Wenig was so confident that his plan was foolproof because all Sellers need Ebay, but as Ebay is finding out that is no longer the case.
I really cannot wait to see what happens when Ebay tries to force Seller Hub on the Chinese along with Mangled Payments. They are still operating on the old Ebay platform and at some point they are going to have to make the move and I do not believe the Chinese will tolerate the glitch ridden crap that Ebay has continued to force down our throats.
Seems on the Motley Fool, the One on One Discussion Call on Ebay’s wonderful future is – well wonderful!
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Scott Schenkel — Interim Chief Executive Officer
“Sellers continue to share positive feedback on the more simple experience that pay them directly into their bank account while saving them money.”
“Moving to payments. Adoption is accelerating in the U.S. and was recently launched in Germany. Since we began intermediating payments on our site approximately a year ago, we have processed over $1.1 billion in payments for over 20,000 sellers. In September, in the U.S., we processed more than 9% of volume on our payment rails, accelerating close to the limit of our operating agreement.”
Question: Stephen Ju of Credit Suisse — Analyst
Okay. Thank you. So it looks like a number of sellers using your payment rails has accelerated. So wondering if we should assume that this is signaling a greater comfort around the stability of the platform and you will be looking to move even faster from here….? Thanks.
Scott Schenkel — Interim Chief Executive Officer
Yes. Look, first off on payments. Look, we feel great about our execution. Quite frankly, we’ve seen accelerated adoption,…… Since a year ago, it’s quite amazing. We have actually enabled over $1 billion of GMV as we talked about and as you called out. 20,000 sellers is a lot. Now we processed really up to the limit that we can for the next six months, seven months, until we get to the a little bit longer until we get the to the end of the operating agreement in July of next year.
The feedback, you know the feedback remains strong. Look sellers love a simpler experience that’s paying them directly into their bank account and saving them money, right? I MEAN WHAT’S NOT TO LIKE.
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So my take is – MEANING:
So – petty little non-receipt of payment in Managed Payments from small sellers is nothing to report really (?) (Sarc) for big-wigs from the corp to their fellow analysts in the stock-flow – ALL IS WELL and ON PLAN.
So you see – the big growth is well – Ads
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…(Scott Schenkel) Our near-term priorities are unchanged. We are delivering our 2019 commitments, including our growth initiatives of advertising and payments; improving seller capabilities and growing the buyer base. In addition, we improved our ability to vary the number of ads that appear in search results,…. There is incremental opportunity to grow Promoted Listings to adoption and conversion gains and we see more untapped growth in ad rates and product formats. All of these levers give us confidence in achieving our goal of $1 billion in total Advertising revenue.
In Q3, we exposed new buyers to popular eBay features after their first purchase and are encouraging app downloads with more aggressive calls to action to migrate users to our best customer experience.
Related to the long-term health of the marketplaces business, we are continuing on a path, started a few years ago to organize one of the world’s largest sets of unstructured inventory to power unique and compelling experiences. While progress has been made, we have changed our approach to make it EASIER FOR SELLERS TO PROVIDE PRODUCT DETAILS or aspects when they list items for sale. This is particularly relevant in categories like fashion and home where product aspects are not specific to a catalog ID.
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Yes, be aware – their BIG Growth will be Ads, so look forward to everything BUT the seller’s description to appear on the listing…
LInk to the Ebay CALL transcript:
https://www.fool.com/earnings/call-transcripts/2019/10/23/ebay-inc-ebay-q3-2019-earnings-call-transcript.aspx
Once it’s forced on everyone is when they will see the sellers leaving in groves.
They have to hope that between ads and interest collected by holding money it will make up for the lost revenue of sellers leaving.