Glory Days: eBay's Search for a New Road Back to the Top

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Glory Days: eBay's Search for a New Road Back to the Top PART 1 OF 5

Can eBay Impress in 2017?

Can eBay grow with a growing industry?

The e-commerce industry continues to grow at a great pace, thanks in part to deeper Internet penetration and the rise of local shopping apps. Of course, the growth of this industry bodes well for eBay (EBAY), but the challenge is that as the industry grows, new players are joining in and existing ones are strengthening their positions, leading to tough competition for vendors and shoppers.

According to eMarketer, Global retail online sales are projected to grow to $4.1 trillion in 2020 from $1.5 trillion in 2015.

Can eBay Impress in 2017?

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Revamping eBay’s advertising business

But if a recent report from the Record is anything to go by, eBay looks prepared to tackle growing competition in the industry. The Record report talks about eBay revamping its advertising business—an operation that it has previously given little attention, despite its huge growth potential. In revamping the advertising business, eBay is building its internal sales team to reach out to brands to buy advertising space on its platform.

While online advertising is a lucrative business, eBay will have to wrestle market share from major advertising brands such as Facebook (FB) and Alphabet’s (GOOGL) Google to grow its advertising revenue.

Driving more seller value

EBAY also recently talked about creating more value for merchants who use its marketplace to connect with customers. In a blog post on its website, the company highlighted three main themes that it wants to focus on in 2017 to drive value for its sellers. The themes revolve around shipping more seller tools and making it easy to sell on the marketplace.

If these efforts help eBay to attract more vendors and shoppers to its platform, it could protect its e-commerce market share against attacks from the likes of Amazon.com (AMZN) and Alibaba (BABA).


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