EBay Financials Stay Soft As Amazon Market Share Thrives
EBay was the first to offer a global online marketplace. It was founded 27 years ago in 1995. But these days, it continues to bleed market share.
EBay went online at the time Amazon’s founder Jeff Bezos was still stuffing books into packages in his garage in Bellevue, Washington. He then had plans to expand his online bookstore into a global phenomenon.
Almost three decades on, Amazon looks like eventually becoming eBay’s nemesis. The world is embracing online ordering and home delivery on an unprecedented scale post COVID. While eBay is surviving, it isn’t thriving like Amazon is.
In eBay’s latest financials, the company’s earnings guidance for the current quarter came is below expectations.
While quarterly results are better than expected, gross merchandise volume was $US18.2 billion, down two percent on an as-reported basis, reports investing.com.
“For Q3, the e-commerce platform guided adjusted EPS in a range of $0.96 of $1.01 on revenue of $2.46B to $2.52B. That compared with Wall Street estimates for adjusted EPS of $1.02 on revenue of $2.47B,” the report says.
Amazon on the other hand is booming. In April, its shares rose more than 10 per cent after the company smashed Wall Street sales projections in its first-quarter financials. In the US Amazon enjoys more than 10 times the retail e-commerce market share of eBay.
“The e-commerce giant posted sales of A$192.25 billion, an increase of 9 per cent year-on-year, and some 50 per cent higher than Wall Street estimates,” ChannelNews reported.
“Amazon has forecast revenue between A$191.6 billion and $200.66 billion for the current quarter.”