Sales on eBay in the US declined 9% in the fourth quarter, and the number of sold items globally shrunk 4%. In the US, eBay’s market share of online shopping is second only to Amazon, but while the rest of the market is growing, eBay is shrinking.
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The Year in Review looks at the state of marketplaces and makes predictions on what’s to come next. The report analyzes Amazon, eBay, Walmart, Jet, Target, Wish, and Google marketplaces through more than forty charts based on Marketplace Pulse data. It is our biggest and most comprehensive research report yet.
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eBay search results now start with five sponsored product ads. The company has recently adjusted the mix of promoted and non-promoted listings at the top of search results, which previously rarely had ads. The default search page format has 48 listings plus an additional 13 sponsored listings.
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eBay GMV was down by $1 billion, and the sold items growth has turned negative for the first time in the company’s history. The company reported $20.4 billion in GMV in Q3, down -5% year-over-year from $21.4 billion. Sold items growth was -3%; it hasn’t grown since 2018 Q1.
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On August 31, 2009, Walmart announced the Walmart marketplace, expanding existing assortment by offering additional products from a select group of retailers. At the time it added nearly one million new items to the catalog from just a few sellers. Ten years later, the marketplace has grown to over 28,000 sellers, which all together bring 45 million items to the Walmart online catalog.
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The new Google Shopping homepage, now hosting 2,000 stores, attempts to unify the company's shopping efforts into one. Google has merged the marketplace-turned Google Express into Google Shopping, a service which used to focus on price comparison.
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eBay introduced Managed Delivery, a fulfillment service not unlike Fulfillment by Amazon (FBA), enabling sellers to store, pack and ship their products through logistics partners managed by eBay. Replicating what drove sellers to use FBA is the hardest challenge eBay will have to solve.
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On Prime Day 2019, the biggest winners were known brands and Amazon devices, as Amazon-owned private label brands took a back seat, according to Marketplace Pulse research. Over a million products were available with a Prime Day deal, but as competing retailers like Walmart and Target launched their shopping events, Amazon shifted focus to exclusive products and new product launches.
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eBay reported $21.5 billion in GMV in Q1, down -4% year-over-year from $22.5 billion on an as-reported basis and -1% on a foreign exchange (FX) neutral basis. Further, for the last four quarters, sold-item growth was 0% – zero percent.
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After a decade of trying Amazon is giving up on the one market it failed to grow. However, while Amazon struggled to grow, not only has China e-commerce exploded in growth, so has the number of successful businesses from China selling through Amazon.
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