eBay revealed on Wednesday that globally, across the board, listings declined 6 percent in the second quarter of 2007 compared to the same quarter last year, while Gross Merchandise Volume (GMV) grew 9 percent (taking out the effect of currency exchange). Store listings were down 25 percent, and core listings were down 2 percent.
In the U.S., listings fell by 8 percent while GMV grew 10 percent.
GMV is not eBay's revenue - it is the value of items sold on the site. In other words, the sellers' gross revenue. Meanwhile, eBay's gross revenue from its Marketplaces business grew 26 percent year-over-year, which it attributed to the following:
continued strength in non-GMV businesses, such as Shopping.com, Rent.com, classifieds, and advertising;
the recently acquired StubHub tickets business, "which features a higher take rate than our eBay platform";
eBay's joint ventures in China and Taiwan, "where we're no longer recognizing local GMV, because we now hold a minority interest";
the format of the vehicles business, which has been shifting: "While GMV for vehicles is slowing, we are monetizing this business through other platforms such as our classifieds business, and our local motors format";
pricing actions taken in the last 12 months.
I played around a bit with the numbers on the AuctionBytes blog (http://blog.auctionbytes.com). Please jump in and add your comments. I'd love to see your theories on why listings are down. And why, if listings are down, GMV is up.
During a conference call with analysts after releasing second quarter financials, eBay CEO Meg Whitman said eBay will release in the next 6 months more changes to the site than it has over the past several years. If you're like me, you cringed upon hearing this, but we've already seen plenty of changes and have heard about some of the changes yet to come.
AuctionBytes is surveying readers to find out what sellers think of the changes. The survey also polls eBay sellers on how their businesses have fared over the past 2 years. If you are an eBay seller, please take a few minutes to take the survey. Aggregated results will be published in a future issue (individual responses will not be revealed). http://tinyurl.com/34sg2l
Note that if you've already taken the survey because you read about it in AuctionBytes Newsflash or in the Blog, the survey link will take you to a thank you page.
We received 184 comments on the AuctionBytes blog about a recent article in AuctionBytes Newsflash written by David. And what's striking is not only the quantity of comments, but the quality. People are sharing their own experiences, their thoughts about what is going on and how they are coping with some of the challenges they are facing as online sellers. If you do one thing this summer, read the article and then go to the blog and read all the comments from your colleagues (and leave your own comments). This is rich data - think of it as free market research:
After reading the article, one reader named Pam wrote that, "While it was interesting to see all the analysis of eBay's ups and downs and of what eBay has done for or to sellers, it doesn't answer the crucial questions: What the heck has happened to all the buyers? Where have they gone, and why? In theory, the reduced number of sellers in my category - less competition - should benefit me in increased sales. It hasn't. Why? Has there been any study of this done?"
Indeed, eBay's claims during its Wednesday conference call that it is seeing higher Average Selling Prices and conversion rates have many people puzzled.
If you'd like to add your thoughts on any of these issues, you can leave a comment on the blog, or you can call the AuctionBytes Hotline toll-free at 1-877-222-0856. We have a new podcast in which sellers answer the questions, "What is the single biggest challenge that you face as an online seller?" and, "What are the best and worst policies or features eBay has implemented over the past 2 years?" (http://podcast.auctionbytes.com).
Thanks for reading, and I hope you are enjoying the summer.
About the author:
Ina Steiner is Editor of AuctionBytes.com and author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). She has a background in marketing and research in the high-tech and publishing fields. If you have story ideas, comments or questions, send them to ina@auctionbytes.com.
