The office supplies retailer say it sacrificed some sales to improve online profitability. It also redesigned its business-facing e-commerce site, StaplesAdvantage.com.
Profits for the online marketplace jumped 25.9%.
The value of merchandise sold on eBay Inc.’s marketplace rose 12.6% year over year in the second quarter ended June 30, eBay Inc. reported today. The company’s Q2 revenue grew 5.6% compared to a year ago.
For the second quarter ended June 30, eBay reported:
- The value of goods sold through eBay’s online marketplaces, excluding autos, rose 12.6% in the second quarter to $12.53 billion from $11.13 billion in the same quarter last year. 56% of marketplace revenue was from outside the U.S.
- The value of goods sold through eBay’s online marketplaces in the United States, excluding autos, rose 2.3% in the second quarter to $4.80 billion from $4.69 billion in the same quarter last year.
- Fixed-price sales represented 59% of marketplace volume compared to 51% a year earlier, reflecting eBay’s shift away from the auction format as more large and midsized retailers use eBay as a sales platform.
- Active users of eBay’s marketplaces totaled 91.8 million, up 3.8% from 88.4 million a year earlier. (Active users are those who have listed or bought on eBay in the previous 12 months.)
- Payment volume increased 28.1% year over year to $21.4 billion, of which 61% came from the company’s merchant services unit that handles online payments for e-retailers. Payments with eBay’s PayPal online payment service account for the majority of the rest, with Bill Me Later accounting for 1% of total payment volume.
- Active users of eBay’s payment services, which include consumers with PayPal or Bill Me Later accounts, increased 15.6% year over year to 87.2 million from 75.4 million.
- EBay’s total Q2 revenue rose 5.7% to $2.22 billion from $2.10 billion a year ago.
- Net income was $412.2 million, up 25.9% from $327.3 million a year ago.
“Our eBay turnaround remains on track, with strong performance in Europe, significant changes in the U.S. and continued improvements to the buying and selling experience,” says John Donahoe, president and CEO. “We continue to focus on delivering strong financial results, managing a healthy balance sheet and making the necessary investments to compete, win and satisfy our customers. We are becoming a more customer-focused and technology-driven company, delivering more innovative products and experiences and driving operating efficiencies to reinvest in growth.”
For the first half of 2010, eBay reported:
- Revenue of $4.41 billion, up 7.0% from $4.12 billion in 2009.
- Net income of $809.8, up 18.3% from $684.5.
"EBay reported 2Q revenues and EPS above expectations, driven by solid 28% growth in payment volumes and 21% growth in international GMV, offset by slower 2% growth in the core U.S. marketplace," wrote Colin Sebastian, a stock analyst who follows digital media and Internet companies at Lazard Capital Markets, in a research note.