eBay looks to deepen its presence in the Middle East
eBay (EBAY) is looking to the Middle East to grow its e-commerce business. The company has partnered with a Middle Eastern e-commerce startup associated with a Dubai billionaire to extend its customer reach.
Beginning in the second half of this year, eBay intends to start selling popular products from the United States and elsewhere on Noon.com. eBay will aim to reach shoppers in Saudi Arabia and the United Arab Emirates (or UAE) through its Noon.com listings. Noon.com began operations last year. The online retailer is backed by Mohamed Alabbar, the Emirati businessman whose company built Burj Khalifa, the world’s tallest building.
eBay isn’t buying a stake in Noon.com
Although eBay isn’t buying a stake in Noon.com, the companies intend to collaborate in several areas, including joint marketing.
The e-commerce market in the Middle East is poised to more than double to $69 billion by 2020, according to PayFort. Saudi Arabia and the UAE are the largest e-commerce markets in the region.
eBay’s revenue grew 12%
eBay made $2.6 billion in revenue in the first quarter, representing an increase of 12% YoY (year-over-year). Amazon’s revenue rose 43% YoY in the quarter. Walmart (WMT) and Target (TGT) grew their online sales 33% and 28% YoY, respectively, in the quarter. Alibaba (BABA) reported a 61% YoY increase in its revenue in the first quarter.