EBay sales have declined
eBay's GMV in descent: How the marketplace in Germany wants to pick up speed again
ebay did last weekDiscouraging business figures presented: While sales stagnated in 2019, the marketplace volume, adjusted for currency effects, fell by two percent compared to the previous year. From Las Vegas, interim boss Scott Schenkel sent mainly perseverance slogans. With ebay Germany, the “Managed Marketplace” principle is on the right track. The development must be continued consistently, says Oliver Klinck, CCO at ebay Germany, in an interview with shopoffer.de.
Especially in comparison with the Amazon figures also presented last week, eBay's balance sheet looks even bleaker: The marketplace giant grew in terms of sales by 22 percent in 2019 to $ 280.5 billion and now has 150 million Prime customers worldwide. The differences appeared particularly serious in the fourth quarter: while Amazon celebrated a record Christmas business and significantly exceeded its own sales forecasts, the GMV on ebay collapsed by 4 percent in the fourth quarter, and user numbers stagnated for the first time in a year and a half.
After all: German dealers could see a ray of hope in the figures between the lines. On the international marketplaces the GMV could be increased at least minimally compared to the previous year. The international Christmas business, above all on ebay.de, went well, and around Cyber 5 (Black Friday to Cyber Monday ”they achieved“ strong results ”there).
But even if ebay Germany is doing better than the group average, one thing is certain: Dreilinden is under pressure. The marketplace is losing ground compared to the overall market. We asked Oliver Klinck, Chief Commercial Officer at eBay Germany, what to expect from his marketplace this year.
Mr. Klinck, eBay's total retail sales (GMV) decreased 4 percent year-on-year in 2019 compared to the previous year. What about eBay Germany?
Oliver Klinck: It is true that the global trading volume of Ebay's marketplace business was 2% lower year-on-year in Q3-2019 and 4% lower in Q4-2019. The trade volume in the USA fell by 6% and 8% respectively, among other things as a result of the introduction of the Internet Sales Tax in more and more states of the USA. The trading volume outside the USA, on the other hand, grew by 1% after adjusting for exchange rates, in Q4 we see a slight decrease of 1%. Unfortunately, we cannot make any specific statements about Germany.
Even a stagnating GMV cannot be a declared goal for eBay. What exactly do you want to do in 2020 to increase GMV on eBay.de again?
Klinck: We would like to win more new buyers for eBay and focus on the end-to-end addressing of specifically defined core target groups. At the same time, we will focus on retaining the buyers we were able to win for eBay last year in the long term. We will also place particular emphasis on the further development of our business in certain areas. These will be certain vertical areas (e.g. vehicle parts and accessories) as well as horizontal areas such as remanufactured goods.
Another focus will be on making it easier for our existing more than 3 million commercial and private sellers to post and sell their listings on eBay - in order to enable dealers to do more business.
As part of the "Managed Marketplace" initiative, there were already many innovations for retailers in 2019 ...
Klinck: Yes, 2019 was mainly about the further development of eBay into a "Managed Marketplace", on which we control the marketplace experience more closely and thus make it easier, more convenient and more reliable, from which buyers and sellers benefit equally. With the end of the beta phase and the further development of eBay Fulfillment to enable merchants to deliver items faster and more reliably, as well as the start of the new payment processing in 2019, we have consistently pushed forward two of the central pillars of the Managed Marketplace.
We have also made further progress with the third pillar, the further development of the eBay catalog in order to better structure our data and make it easier for buyers to find exactly what they are looking for. This is important because: A positive development in sales for dealers on eBay depends to a large extent on whether the correct item characteristics are stored. We will continue to drive the development of eBay into a managed marketplace in 2020. There were also improvements in seller protection and the seller cockpit Pro, the integration of the Terapeak research tool, more efficient marketing tools for dealers and the large dealer event eBay Open for intensive exchange.
What is the response from German retailers to these many innovations? Are they satisfied with their performance on eBay Germany?
Klinck: The development at eBay dealers in Germany is very different. There are many retailers who have grown very well in the past year, as well as those where sales have stagnated and also retailers with falling sales. This was dependent, among other things, on the general market development in individual vertical areas, the development of demand for individual product areas, but also on how well the dealers designed and marketed their offers on eBay - for example with a view to the design of the item descriptions that Maintenance of article characteristics, the quality of communication with customers or the use of marketing tools such as advertisements on eBay.
Category: MarketplacesTags: ebay, marketplaces
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