EBay Inc. said its gross merchandise volume, which is the value of all goods sold on the site, fell 5% to $18.4 billion in the first quarter of 2023, the eighth consecutive period in which that key metric number dropped.
The number of active buyers on the marketplace also fell — dropping 7% to 133 million during the period ending March 31, 2023. That too is the eighth consecutive quarterly drop.
Revenue rose 1% to $2.51 billion from $2.48 billion a year earlier.
EBay ranks No. 6 in the 2023 Digital Commerce 360 Online Marketplaces Database. A drop in eBay sales in recent quarters pushed the San Jose, Calif.-based marketplace from the No. 5 slot it held in the 2022 Database.
CEO Jamie Iannone is trying to reduce expenses to align with declining sales. In February, eBay announced it would cut about 500 employees, or 4% of its workforce.
EBay aims to sell more luxury items like watches to boost revenue while also offering refurbished items to appeal to price-conscious shoppers. In an effort to lure collectors, eBay provides a service to trade and authenticate trading cards, collectible sneakers and other items. It has been building climate-controlled vaults to store them.
In March, it announced a new “verified condition” badge for used heavy construction equipment sold on the site to assure buyers the machinery has been inspected.
eBay sales: Q2 outlook
EBay said it expects sales growth in the second quarter. The marketplace forecast revenue between $2.47 billion and $2.54 billion, an increase from the $2.42 billion reported in the same period a year ago. Analysts had estimated $2.43 billion in revenue in Q2.
For the fiscal first quarter ended March 31, 2023, eBay reported:
- The eighth consecutive quarter in which both GMV and active users fell.
- Revenue of $2.51 billion, an increase of 1% year over year.
- $841 million of operating cash flow and $709 million of free cash flow from continuing operations.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.
Bloomberg News contributed to this report.
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