How Did eBay’s Same Store Sales Compare With Amazon’s In July?

August 17th, 2016 by Trefis Team
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eBay (NASDAQ:EBAY) continued to report positive same-store-sales (SSS) growth for the third straight month in July 2016, owing to growth in eBay Motors (parts and accessories) sales and eBay Fixed-Price sales, which was partially offset by declining marketplace (auctions) sales. In comparison, Amazon (NASDAQ:AMZN) and Google Shopping (NASDAQ:GOOG) reported year-over-year SSS growth of around 6.4% and 34%, respectively. Interestingly, Amazon’s SSS growth declined sharply from 11.6% in June to 6.4% in July, largely driven by a sharp increase in competition among sellers, which was likely due to a substantial increase in the number of new sellers on its platform. The average e-commerce growth rate predicted by comScore for July 2016 was 15%. [1]

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eBay Motors has consistently reported near double-digit growth rates in its same-store-sales in the last eleven months. This has helped eBay report overall positive SSS growth rates in the same period. In March 2016, eBay announced that it had acquired Cargigi Inc., a provider of online advertising and marketing services for the auto industry. The company believes that, through Cargigi’s technology, its eBay Motors dealers will be able to grow and manage their businesses, all the while enhancing buyers’ shopping experience. It will be interesting to see the impact of this acquisition on eBay Motors’ sales growth over the next few quarters. Read more here.

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eBay reported strong Q2 results last month, with revenue increasing 6% year-over-year (y-o-y) to $2.2 billion during the quarter, which beat the Reuters consensus estimate by $60 million. Revenue was driven by a 3.6% growth in marketplaces sales (primarily eBay Motors) and 14% increase in marketing and advertising. ebayq21.1In the third quarter, the company expects revenue between $2.16 billion and $2.19 billion, implying growth of 3-4% over the same period last year. It also expects non-GAAP EPS of $0.42 to $0.44 per share, reflecting a decline of 2% to 7% y-o-y, driven by strength in the U.S. dollar and partially offset by positive impact of its share repurchase program.ebayq23.1

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Notes:
  1. July 2016 ChannelAdvisor Same Store Sales (SSS), Channeladvisor.com, Aug 12 2016 [↩]