eBay said its business is performing significantly better than the expectations it shared in its April 29th earnings release.
eBay shared the news in a press release announcing it was raising quarterly guidance. While it’s not adjusting full-year guidance at this point, it expects its 2020 performance to “likely” be above the ranges announced on April 29, 2020.
“The Company expects to update full year guidance in connection with its Q2 2020 earnings announcement after evaluating business dynamics in June,” it wrote.
eBay revealed the following facts about its performance:
- Strength in global gross merchandise volume (GMV) seen in April has continued through May, and the Company now expects full Q2 volume growth rates to land between 23% and 26% as compared to the prior year period.
- All major verticals are accelerating significantly compared to previous quarters, including Home & Garden, Electronics, Fashion, Auto Parts and Collectibles.
Demand strength is driven by increased organic traffic, better marketing efficiency, and higher platform conversion.
- Active buyer growth is accelerating, with approximately 6 million new and reactivated buyers added in April and May.
- More sellers are joining eBay through efforts like Up & Running. Since March 2020, tens of thousands of small business sellers have been added to the platform.
- Classifieds revenues are performing at the high end of previous expectations disclosed on the Q1 earnings call with automotive subscription revenues recovering as dealerships reopen across international markets.
eBay also summarized the following “Buyer and Seller Investments”:
- To further engage new and existing buyers, eBay is making additional investments in marketing and technology to retain new buyers and increase purchase frequency. In addition, expanded consumer seller promotions are encouraging more buyers to sell which historically has increased customer lifetime value on the platform.
- eBay continues to provide sellers the platform, solutions and support needed to grow their business and thrive. The Company is deploying investments in order to support sellers during this time, including:
- The Company has declared June “Sell on eBay ” month. Significant efforts are underway to drive the trial of eBay ‘s powerful selling platform. In the US, first-time sellers are invited to sell completely free on eBay . The promotion lasts throughout the month and is valid on up to 5 sales.
- Up & Running programs continue to expand around the world. In addition to the previously announced markets (US, UK , Canada , Greece , Ireland , Italy , Israel and Russia ), eBay also launched Up & Running adaptations in Mexico and Brazil in May.
- The Company is continuing its listing promotion through the end of July in the US with 50,000 additional free fixed price listings per month for store sellers and 200 additional free listings per month for non-store sellers.
- The Company extended seller performance protections, established at the onset of COVID-19, through July 19, 2020 .
You can find the full press release including a section on “Supporting Our Communities” and the revised guidance for the quarter on the eBay website.
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