It was interesting to see how online marketplaces performed in the first quarter of 2020, since it reflects how sellers on their platform fared.
eBay’s US GMV was down 4% year-over-year in the first three months of the year, but it reported a surge in buyer demand in April that resulted in double-digit Marketplace volume growth.
Amazon grew North America sales 29% in Q1 and saw an increase in paid unit growth of 32% worldwide.
Etsy, a much smaller marketplace, grew GMS 16% in the first quarter, and it saw over 100% growth for the Etsy marketplace in April. (GMS grew 32% in Q1 including its Reverb musical instrument marketplace.)
With stagnant GMV, eBay has been counting on revenue from Promoted Listing ads and Managed Payments, and in mid-July, it will migrate more sellers into the program.
That’s no surprise to sellers, but what did come as a major surprise was learning of eBay’s plans to roll out a completely new fee structure. Last week, eBay revealed it is merging payment processing fees into Final Value (commission) fees beginning July 20th.
Check the article in today’s issue for more details about this radical change and how sellers who are impacted are reacting to the news.
Happy Mother’s Day, and thanks for reading.