eBay’s revamped platform showing signs of acceleration
eBay’s (EBAY) Marketplace segment’s GMV (gross merchandising volume) grew by 5% YoY (year-over-year) to $19.8 billion in 2Q16. Its revenue increased by 3% YoY to $1.8 billion. The company noted a 2% rise in transaction revenue while marketing services revenue grew by 11% during the quarter.
eBay has taken several strategic measures aimed at revamping its core Marketplace business. This unit includes more product offerings, integrating a large number of small sellers, integrating product reviews, and improving its SEO. All these initiatives are slowly helping the company to reinvigorate growth, as noted by the management and as evidenced in its 2Q16 performance.
Management noted that 3.1 million new product reviews were added to its platform during 2Q16. This doubled when compared with the prior quarter to reach a total of ~12 million. Moreover, it is encouraging to see that the US users who land on its platform through the SEO channel are converting at higher rates—at ~10%.
Consistent double-digit growth in Classifieds segment
eBay’s Classifieds segment marked another strong quarter as the segment managed to pull its sixth consecutive double-digit revenue growth. The top line for this segment increased by 15% YoY to $207 million, driven by strength in the automotive vertical in Germany (EWG), Canada, and Netherlands. Meanwhile, the segments’ real estate vertical also performed well in Germany and Canada.