Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Oct 16 2013 16:21:50

eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

By: Ina Steiner

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eBay announced third quarter 2013 earnings today, October 16, 2013. eBay's conference call with analysts is at 5:00 pm EST. Here is the company's press release, you can view the full release with tables on the eBay investor website.

eBay Inc. Reports Strong Third Quarter 2013 Results
Total Company Enabled Commerce Volume Up 21% Year over Year, Generating Double Digit Growth in Revenue and Earnings

October 16, 2013 - SAN JOSE, Calif. - Global commerce platform and payments leader eBay Inc. (Nasdaq:EBAY) today reported that revenue for the third quarter ended September 30, 2013, increased 14% to $3.9 billion, compared to the same period of 2012. The company reported third quarter net income on a GAAP basis of $689 million, or $0.53 per diluted share, and non-GAAP net income of $837 million, or $0.64 per diluted share. Third quarter non-GAAP earnings per diluted share increased 17% driven primarily by strong top-line growth. GAAP earnings per diluted share increased 16%, driven by revenue growth and the sale of our investments in RueLaLa and ShopRunner.

Total company Enabled Commerce Volume (ECV) grew 21% for the quarter, to $52 billion. The growth demonstrates the power of the company’s global commerce platforms, technology assets and mobile commerce capabilities across Marketplaces, PayPal and eBay Enterprise. In the third quarter, cross-border trade, another competitive strength of the company, was $11 billion, representing 22% of the company’s total ECV. Mobile enabled commerce volume was up 75% in the quarter, with downloads since inception exceeding 200 million and the company's suite of mobile apps attracting 3.2 million new customers.

“We delivered strong third quarter results, with mobile driving a significant portion of our new user growth and continuing to transform how consumers shop and pay around the world,” said John Donahoe, President and CEO, eBay Inc. “Our scale and experience, the strength of our global commerce platforms, our technology assets and our mobile commerce capabilities strongly position us to be a leader in the commerce revolution under way. In the past 12 months we have enabled $200 billion of commerce volume, a 20 percent increase in a fairly lackluster macro environment. That growth demonstrates the strength of our core businesses and our power as a partner, not a competitor, to merchants, brands and retailers.”

PayPal delivered a strong third quarter performance with revenue increasing 19% to $1.6 billion. PayPal gained 5.0 million active registered accounts and ended the quarter with 137 million, a 17% increase. PayPal's net total payment volume (TPV) grew 25% to $44 billion driven by consumer and merchant use of PayPal both on and off eBay. Merchant Services net TPV increased 30% with a sequential acceleration of payment volume. PayPal continues to invest in leading payments innovation, growing its addressable market, and driving global consumer and merchant acquisition through seamless and simple experiences. Key developments in the third quarter included the launch of a fully localized offering in Russia and PayPal’s enhanced consumer app for iOS and Android. PayPal also delivered innovation offline by helping consumers save time and money through closed loop offers where merchants can put coupons directly into consumers' digital wallets. The enhanced PayPal consumer app gives customers in the U.S. and Australia convenient order-ahead and pay-at-table capabilities as well as the ability to check in and pay with the PayPal digital wallet at thousands of retail locations in the U.S., U.K., Canada and Australia.

Marketplaces also delivered a strong third quarter performance with revenue increasing 12% to $2.0 billion. Marketplaces gained 3.9 million active users in the period and ended the quarter with 124 million, a 14% increase. Gross merchandise volume (GMV), excluding vehicles, increased 13% to $18 billion. Fixed price GMV grew 18% globally and represented 71% of total GMV. U.S. GMV, excluding vehicles, increased 15% to $7.4 billion and international GMV, excluding vehicles, increased 12% to $11 billion driven by mobile and investment in buyer experience. The selection of items available on Marketplaces grew to over 500 million listings reflecting the success of consumer selling initiatives, particularly on mobile. Free shipping was provided on more than half of U.S. transactions in the quarter and the global shipping program continued to expand. In addition, the introduction and expansion of several local initiatives enabled customers to access local merchant inventory through apps to improve choice and reduce fulfillment time.

eBay Enterprise contributed $238 million in revenue for the third quarter, a 5% increase. Its Commerce Technologies generated $787 million in Merchandise Sales, a 13% increase, but revenue was pressured by a reduction in take rate. eBay Enterprise enabled its clients to grow same-store sales 13%, decelerating sequentially, but broadly in line with ecommerce growth rates. The company expects its broad omnichannel product portfolio, including complementary eBay Inc. assets, to be increasingly adopted by merchants seeking opportunities to grow their businesses while seamlessly meeting the needs of the connected consumer. eBay Enterprise launched four brands on its new suite of modular Commerce Technologies during the quarter.

See complete press release on eBay's investor relations website.




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Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: JustTheFacts This user has validated their user name.

Wed Oct 16 16:27:43 2013

Did anyone really expect ebay to report a loss.  

I have no doubt that if ebay was audited they would find ebay has been COOKING THE BOOKS for a long time.

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: quirkyantiques This user has validated their user name.

Wed Oct 16 17:07:41 2013

Book cooking 101. I'd like to bet that part of the sell through rate is tied to all those ''best price offers'' that only show the ORIGINAL price and not the price it actually sold for. A classic example was the comic book that showed as SOLD in completed auctions with the SOLD price showing $1,000,000.
When you actually clicked through to see what the heck sold for a million dollars it became apparent that a best price offer was accepted-the actual price it sold for was $3,000. Yet the sold section showed the sold price as $1,000,000. Shortly after this debacle the ability to see this telling information was removed.
How about the fact that none of the sellers that get suspended can close their accounts after being suspended? 10's of thousands of sellers are being kicked out on a regular basis. The inability to close their accounts leaves their accounts *active*, yet more number fudging.
The Global Shipping program ''continued to expand'' because they updated the user agreement to force all new users into the GSP whether they wanted to be in it or not-and I can assure you-most did NOT want to be in this program. Long term sellers also found themselves opted into this program and it takes quite a bit of fandango-ing to extricate yourself.
I would like to know what the GMV rate is for THIS country-not one that includes things like the opening up of Russia & China which is bound to produce an influx of listings.

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

This user has validated their user name. by: Rexford

Wed Oct 16 17:32:25 2013

Sure it did.  LOL

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: Steevo This user has validated their user name.

Wed Oct 16 18:54:23 2013

As slow as it is here that has to be the result of cooking the books.  

Now, as you know this is a federal crime for a public company. Faking your financial reporting.  

The SEC needs to investigate this.  

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

This user has validated their user name. by: WOODJUNGLE! ON EBAY

Wed Oct 16 19:02:40 2013

their forecasts don't meet expectations.  hmmmm.  that doesn't surprise me with how bad my sales are.  

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: Bloggo This user has validated their user name.

Wed Oct 16 20:37:26 2013

Lowball forecasts didn't meet expectations.

EBay Inc. CEO John Donahoe suggested that the 16-day partial U.S. government shutdown was partly to blame, citing ''uncertainty about the government.''

Hey JD,the partial shutdown began on October 1, not last quarter.

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: Ebay Seller-Ebay Buyer This user has validated their user name.

Wed Oct 16 21:01:09 2013

Ebay had some good numbers, but they have a poor and uncertain outlook for the 4th quarter.  Ebay is being realistic and blaming the bad economy; although John Donahue has chased away millions of buyers with his bad policies and bad treatment of sellers.  Ebay's greed in pocketing 10% of sellers shipping money has helped ruin the selling experience, which in turn has helped ruin the buying experience. More and more sellers seem to cheat on grading to make up for lost profits due to Ebay's shipping cut and ebay's higher fees.

Add to all this the wiping out of the middle class which leaves less and less potential buyers each year and it's no surprise Ebay stock will take a hit. I could see ebay down 10% within a week of this earnings report from $53 down to $48

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

This user has validated their user name. by: Ric

Wed Oct 16 21:02:37 2013

I would bet that the biggest chunk of reported Q3 increased revenue is slight of hand.

As everyone knows, eBay has been pushing returns like their life depended on it. There is a very key reason behind this move and that reason is of course, revenue.

Remember that when sellers are part of eBay's Managed Return Program, eBay charges sellers in the form of a fee for return postage costs. Also, if eBay refunds the buyer, eBay passes along that refund to the seller in the form of a fee.

Those fees are of course counted by eBay as "revenue" along with all other fees eBay collects.

So, of course, eBay is motivated to drive as many sellers as possible into using Managed Returns so that as the number of sellers in the program increases, and return transaction volume increases, eBay can continue to report higher "revenue".

eBay has a model built for "growing" this form of artificial "revenue".

Remember eBay's push for sellers to offer "free shipping"?

eBay grew their final value fee stream by pushing sellers to include shipping costs in the selling price of items. This allowed them to accomplish two goals... increase reported Gross Merchandise Value, and increase the amount sellers would pay in Final Value Fees (revenue).

eBay first encouraged sellers to offer "free shipping" and gradually ratcheted up the pressure over time in order to have it appear as though sales were actually increasing, when in reality, sales were flat. Increased GMV as reported by eBay was primarily due to the increased numbers of sellers including shipping costs in their selling price and did not reflect any significant transactional growth.

Later, when eBay's data pointed to them having maxed out the number of sellers switching over to "free shipping" eBay then imposed a final value fee on shipping costs which were not included in the selling price, basically saying to sellers... '.... if you are not going to help us artificially inflate our GMV, then we are going to charge a fee on shipping costs - which you will pay - so we can report higher revenue...'

This is the same process eBay will employ with Managed Returns. Right now, eBay will be satisfied with allowing sellers to choose to opt in to managed returns and let revenue from return shipping which is billed to sellers grow organically. When eBay's data indicates they have maxed out the number of sellers who willingly participate in managed returns, and eBay needs to show increased revenue,eBay will then make participation in managed returns mandatory across the board.

Keep in mind this has almost nothing to do with making returns easier for buyers, but rather is is all about eBay being able to establish yet another fee collected from sellers which will be reported as "revenue" to inflate eBay's profit picture.

These are the calculated slight of hand tricks that make the eBay quarterly reports such a colossal work of fiction, and that continue to bamboozle Wall Street analysts into believing eBay is growing when in fact transactional growth attributable to actual sales is non existent.

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: coindealz This user has validated their user name.

Wed Oct 16 21:21:09 2013

They are not cooking the books paypal is just a great product. Ebay the site is not their core business anymore.

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: NetWatch This user has validated their user name.

Wed Oct 16 21:26:46 2013

This sort of thing cannot continue indefinitely without somebody catching on. Investigative reporters love this sort of thing. And the SEC looks for this sort of thing. It's just a matter of time.

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: Massachusets Howler This user has validated their user name.

Wed Oct 16 21:57:17 2013

PP is a ''great product''- LOL! Excuse me while I WRETCH!

Bob Swan SAYS (today) that BUSINESS and sales on Ebay IS DECELERATING- the TITANIC is hitting the waves hard and even FORCED PAYPAL cannot SAVE them.

This was good for us today.
MH

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

This user has validated their user name. by: iheartjacksparrow

Thu Oct 17 00:00:11 2013

I just got an invitation to list 200,000 items on eBay!

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: Tiffee Jasso This user has validated their user name.

Thu Oct 17 00:15:59 2013

Yes I would tend to believe they have upped their GMV considerably. Especially, since they now have the ability to post 5 ads of the same 2 to 5 thousand dollar piece of designer clothing across the top of their auction and search pages.  

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

This user has validated their user name. by: Ming the Merciless

Thu Oct 17 00:50:08 2013

The Ho lies.

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: auctionguy This user has validated their user name.

Thu Oct 17 00:59:55 2013

Higher revenues at ebay are no doubt due to the new, "simpler" FVF fee structure that is a fee increase for most items sold.

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: Bloggo This user has validated their user name.

Thu Oct 17 02:02:38 2013

''to be increasingly adopted by merchants seeking opportunities to grow their businesses while seamlessly meeting the needs of the connected consumer.''
Who writes this stuff?

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

This user has validated their user name. by: The End

Thu Oct 17 05:44:11 2013

Ebay Stock has hit the ceiling.
It just can't make it past this limit. Never will.
Meanwhile, I picked a stock that has given me a 122% profit in 4 months  :o)

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

This user has validated their user name. by: The End

Thu Oct 17 06:00:26 2013

ALERT THE FTC :
On Ebay's purchase of Braintree :
"We believe that this deal makes reasonable sense strategically as it expands PayPal's distribution and removes a competitor," Mark Mahaney, an analyst with RBC Capital Markets, told Reuters.
THIS IS CLEARLY A VIOLATION OF  ANTITRUST LAWS.
Nuke "Ebaynstein".

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

by: blaumann2 This user has validated their user name.

Thu Oct 17 06:58:40 2013

http://www.nytimes.com/2013/10/17/technology/ebays-outlook-for-4th-qua
rter-disappoints.html?_r=0

Paypal
is the only financially healthy segment of ebay. Donahoe is destroying a once great company.

Perminate Link for eBay Grows US GMV 15 Percent in US, 12 Percent Internationally   eBay Grows US GMV 15 Percent in US, 12 Percent Internationally

This user has validated their user name. by: Rexford

Thu Oct 17 07:35:23 2013

"EBay Inc. CEO John Donahoe suggested that the 16-day partial U.S. government shutdown was partly to blame, citing ''uncertainty about the government.''

Didn't seem to affect Amazon's sales.

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