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eBay Grows Sales 21% in Q4, Gives $5 Billion to Shareholders in 2020

eBay
eBay Grows Sales 21% in Q4, Gives $5 Billion to Shareholders in 2020

eBay grew Gross Merchandise Volume 21% in the fourth quarter to $26.6 billion in the fourth quarter, year-over-year. It grew revenue 28% during the same period to $2.9 billion.

Interestingly eBay plowed the proceeds of the sale of its business units not back into the company coffers, but to shareholders through share buybacks totaling $5.1 billion in 2020, as well as paying $447 million in cash dividends.

In February of 2020, it sold StubHub for $4.05 billion in cash, and in June it announced it was selling eBay Classifieds Group for $2.5 billion in cash and approximately 540 million Adevinta shares.

Today, it announced the eBay Board of Directors had expanded share repurchase authorization by an additional $4 billion and declared a quarterly dividend of $0.18 per share, a 13% increase from the prior quarterly dividend.

In Q4, eBay said over 38% of global on-platform volume was processed through Managed Payments, with over 50% of the payments migration completed in the US.

eBay exited the quarter with over 1 million sellers migrated to its payments program globally.

eBay Promoted Listings generated over $215 million of revenue in Q4, up 60% on an as-reported basis and up 57% on an FX-Neutral basis. eBay’s total advertising revenue reached a new milestone in 2020, passing $1 billion in revenue for the year.

eBay announced full-year 2020 revenue was $10.3 billion, up 19% on an as-reported basis and up 20% on an FX-Neutral basis; and GMV was $100.0 billion, up 17% on both an as-reported basis and an FX-Neutral basis.

eBay CEO Jamie Iannone was quoted in Wednesday’s earnings press release: “I am proud eBay was able to be there for our buyers, sellers and community, especially in the face of a global pandemic. We finished the year with strong financial results, but what inspires me most is the support we’ve been able to extend to small businesses – providing them with tools, resources and access to millions of buyers globally. We will continue to invest in product and technology in order to deliver the best marketplace in the world for our customers.”

You can find the full press release on the eBay corporate website.

Ina Steiner on EmailIna Steiner on LinkedinIna Steiner on Twitter
Ina Steiner
Ina Steiner
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.

4 thoughts on “eBay Grows Sales 21% in Q4, Gives $5 Billion to Shareholders in 2020”

  1. Why no acknowledgement on the multiple glitches and site errors that have ruined sales for many sellers?

  2. 21%? Wow, how did they skew the numbers for that one?

    If USPS keeps up with the disaster that they are ebay is doomed. I always bought on ebay, now I am buying on Amazon. You cant even get better buys on ebay anymore. Amazon is clearly ahead in every way.

  3. Covid-19 is the gift that keeps on giving to eBay.

    Because you cant really sell everyday commodity items on eBay, you have to HOPE and PRAY that something will keep people inside and help relieve their boredom (there really isnt much to watch on TV these days)(maybe you could watch the genius’s on Oak Island dig up some more wood if it strikes you).

    So for eBay, bad weather, floods, sickness’s are a plus. While they of course dont wish anyone any direct harm (except sellers of course) – its a boon when these things happen.

    Had Covid-19 been eradicated and there had not been any bad weather – eBays %21 would be the normal %3-%4 like always.

    Like a stopped clock thats right 2x a day, even the stupid sometimes get lucky – aka eBay.

    Besides – Im sure that the numbers were “greatly massaged” to get to 21 (which is just right close enough to be %50 of Amazons %44)

  4. THere sure must be some skullduggery afoot. Ative buyers grew by 7%???? HAHAHAHAHA. One of these days some brilliant mind has to be able to prove what a load of BS that is. Active Buyers surely have to be down 28% if we’re talking about reality. But of course we’re not. The usual smoke and mirrors will keep on going until someone wakes up or Wall Street6 implodes. I don’t care which….either one would work.

    Oh Jamie…………keep taking those accolades. In the near future, you will be going the Wenig Way………..down, down, down. Or maybe as an alternate, hide out in some lovely warm island to avoid prosecution-. (Better idea to keep the family safe from the Mob)

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