When PayPal split from eBay a few years ago, eBay was considered the least exciting company. But that’s certainly not the case on Wall Street this year.
eBay shares have risen more than 30% this year, while PayPal’s have plunged more than 20%.
Companies had a totally different 2021. PayPal, which now allows people to buy and sell bitcoin, is subject to volatility in the cryptocurrency market and concerns over its rumors that it intends to buy Pinterest, although PayPal said the deal wasn’t happening.
Ebay, on the other hand, made a big comeback during the pandemic, thanks to bets on various parts of the fast-growing e-commerce market – namely, sneakers, sports souvenirs and auto parts.
O CNN Business spoke with eBay CEO Jamie Iannone, who rejoined the company in April 2020, about transforming the company into a retailer.
“This is part of a multi-year eBay recreation. These categories we’re focusing on are huge,” said Iannone, who was an executive at Barnes & Noble and Walmart before returning to eBay, where he worked for most of the 2000s.
Focusing more on recurring buyers
Iannone helped push eBay into markets where buyers are willing to spend a lot of money several times a year. And Wall Street likes that.
eBay shares have risen more than 70% since Iannone returned to the company. This is better than PayPal and general market earnings during the same period. The pivot for young and passionate buyers has been a big win for the company.
Iannone said eBay realizes there’s a big difference between its casual shoppers and so-called power shoppers, who make purchases of nearly $1,000 several times a year.
That’s the audience that eBay is putting a lot of its attention on, Iannone said, because it makes more sense to serve loyal customers rather than spending a lot more money on marketing and advertising just to grow the overall user base.
“Some of [compradores] wake up, get a cup of coffee and go to eBay,” Iannone said. “We were very focused on acquiring buyers and getting them at any cost. Now we are counting on the enthusiasts”.
As a result of this new focus, Iannone said eBay made more money selling collectable cards in the second quarter of this year than in that category in the full year of 2020, for example.
‘Accidental Entrepreneurs’ Give eBay a Boom
Iannone said he loves meeting people who have opened stores on eBay and now live off of it. This includes someone who was fired by the Orlando Magic basketball team during the close of the 2020 NBA season and now sells sneakers full-time on eBay.
It’s a common story during the pandemic, he said, when many people left the traditional workforce.
“These are the accidental entrepreneurs,” Iannone said, adding that while most people on the platform say they have started selling on eBay to increase their income, nearly 15% are doing so because they lost their jobs.
The company is also harnessing the power of social media and the community of influencers – including a tennis marketing campaign on TikTok.
The company increased its efforts to authenticate the value of items such as shoes, baseball cards and musical instruments. For example, eBay has just acquired the Sneaker Con sneaker authentication service.
And Iannone himself recently bought a “badly used” oboe for his daughter on eBay.
“Ebay was a pioneer in the exchange and re-commerce of collectibles,” said Iannone. “We are inclined towards this. It’s all about regaining trust in the platform.”
Motor vehicle accessories are the next big area of focus for eBay, he said, adding that when he needed a part for a windshield, he found a perfect fit on eBay for $9 that would likely cost $40 at dealership.
Buy now and pay later – but not with bitcoin
The company is also adopting more modern payment methods to continue to attract younger Generation Y and Generation Z customers.
eBay now accepts Apple Pay and Google Pay, and is experiencing the “buy now, pay later (called BNPL)” trend in the form of an Australian partnership with Afterpay.
“This helps to attract new customers to the platform. People like to use it for high-priced items,” said Iannone. “The BNPL is bringing in a younger demographic.”
But one trend that eBay is still not embracing is bitcoin. Given the volatility in cryptocurrencies, Iannone said the company will not accept any of them as a form of payment “for the foreseeable future.”
(Translated text. Read the original article here)
Reference: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
