How Did eBay’s Same Store Sales Compare With Amazon’s In October?
eBay (NASDAQ:EBAY) continued to report positive same-store-sales (SSS) growth for the sixth straight month in October 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 13% and 42%, respectively.
The good news for eBay is that it has registered a significantly higher average growth of 4.1% in the five month from June through October compared to the 3.1% registered in the first five months of 2016. Interestingly, Amazon’s SSS growth of 12.7% was lower than its average growth in the first five months of the year, 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. Amazon’s average growth in the last five months ending October 2016 was 10.6% compared to an average of about 15% in the first five months of the year. The average e-commerce growth rate predicted by comScore for October 2016 was 15%. [1]
eBay Motors has consistently reported near double-digit growth rates in its same-store-sales in the last twelve 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, while enhancing buyers’ shopping experience. It will be interesting to see the impact of the acquisition on eBay Motors’ sales growth over the next few quarters. Read more here.
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Notes:- October 2016 ChannelAdvisor Same Store Sales (SSS), Channeladvisor.com, Nov 3 2016 [↩]