The U.S. online shopping world's biggest day is here, but will strong web sales on Black Friday and Thanksgiving cut into Cyber Monday's take?
U.S. marketplace sales reached $7.3 billion in the second quarter. Global sales on eBay sites, excluding autos, totaled $18.3 billion, up 13% as sluggish activity in Europe and South Korea dragged down results.
The value of merchandise sold on eBay Inc.’s U.S. marketplace, excluding vehicles, increased nearly 16% year over year in the second quarter to $7.3 billion, eBay said today. The growth was spurred by mobile commerce and momentum in the auto parts and accessories and home and garden categories. The U.S. marketplace sales for Q2 are nearly exactly the same as the first quarter’s sales and represent a nearly identical year-over-year percentage increase as in Q1.
The value of merchandise sold on eBay outside the U.S. in the second quarter, excluding vehicles, increased 11% to $11 billion, for a total global merchandise sales value of around $18 billion, up 13% from a year earlier. Fixed-price sales grew 17% globally year over year and represented 69% of total values of goods sold on eBay.
"Macroeconomic headwinds in Europe and Korea will continue to be a challenge in the second half of the year,” says John Donahoe, eBay president and CEO. “But our core businesses are strong and we continue to attract millions of new customers each quarter through mobile innovation. We remain confident in our ability to meet our goals and drive global commerce innovation and leadership."
For the second quarter ended June 30, eBay reported:
- The value of merchandise sold worldwide on eBay, excluding vehicles, was $18.3 billion up about 13% from $16.2 billion a year earlier. About 60% of marketplace sales, about $11 billion, came from outside the United States.
- Net revenue for eBay marketplaces this quarter was $2.0 billion, up 10% from Q2 2012.
- Active registered users, that is, the number of people that bid on, bought, listed or sold an item on an eBay marketplace in the past year totaled 119.7 million, up 14% from 104.8 million a year earlier.
- Active users of eBay’s payment services, which include consumers with PayPal or Bill Me Later accounts, totaled 132.4 million, up nearly 17% from 113.2 million a year earlier. Bill Me Later offers shoppers deferred billing.
- PayPal’s revenue rose 20% year over year to $1.6 billion.
- PayPal's net total payment volume grew 24% to $43 billion, driven by consumers paying with PayPal and merchants using PayPal to process payments, both on and off eBay. EBay says PayPal made strides offline with PayPal Here, a device that plugs into a mobile phone or tablet and swipes payment cards, expanding the service into six countries. It also grew domestic merchant coverage by signing agreements with more than 50 merchant acquirers to facilitate use of PayPal in bricks-and-mortar stores in collaboration with the Discover card payment network.
- Net revenue from the former GSI Commerce Inc., now named eBay Enterprise, totaled $246 million for the second quarter, an 11% increase from $221 million a year earlier.
- EBay’s net revenue rose 14.7% to $3.9 billion in Q2 compared with $3.4 billion in Q2 2012. Net income totaled $640 million on a GAAP basis, down 7.5% from $692 million a year earlier.
For the first two quarters of 2013, eBay reported:
- The value of merchandise sold worldwide on eBay, excluding vehicles, was $36.62 million, up 13% compared with $32.38 for the first two quarters of 2012.
- Net revenue for eBay marketplaces was $4.0 billion, up 14.2% compared with $3.5 billion for the first two quarters of 2012.
- Payments revenue rose 14.8% year over year to $3.1 billion compared to $2.7 billion for the first two quarters of 2012.
- PayPal's net total payment volume grew 11% to $84.0 billion, compared to $75.5 billion in the first two quarters of 2012
- Net revenue from the former GSI Commerce Inc., now named eBay Enterprise, totaled $482 million for the first two quarters compared with $458 million for the first two quarters of 2012.
- EBay’s net revenue rose 13.4% to $7.6 billion compared with $6.7 billion for the first two quarters of 2012. Net income totaled $1.3 billion on a GAAP basis, about the same as the same period in 2012.
Analysts for Wells Fargo Securities LLC were impressed by eBay's strong user growth in the quarter. "We continue to be encouraged by the acceleration in active user growth in both the marketplaces and payments segments," they note in their summary on eBay's earnings. "This was the fourth consecutive quarter of acceleration for marketplaces and the fifth for payments, partially driven by strength in mobile that added three million new customers in Q2."
Colin Sebastian and Rohit Kulkarni, analysts with R.W. Baird Equity Research, also noted eBay's strength in mobile. EBay is expected to grow both 2013 mobile gross merchandise value, or sales of goods sold via mobile, and PayPal total payment volume to $20 billion each—which would represent a 100% year-over-year increase for each, they note in their report. "Along with PayPal, the eBay Marketplace is in an advantaged position to benefit from rapid growth in mobile, in our view, leveraging recent acquisitions that connect local store inventory with eBay’s robust online platform." Such acquisitions include Milo, which shows consumers products available in local stores and RedLaser, a mobile price-comparison app.