ChannelAdvisor Scot Wingo By Scot Wingo

eBay Q1 2016 Earnings Preview – What Sellers Should Watch For

After the market closes on Tuesday, April 26, 2016, eBay will report their Q1 2016 results.  With the backdrop of e-commerce growth at ~15% according to comScore and the ChannelAdvisor SSS for eBay coming in at 4.4%, all eyes will be looking for signs of renewed growth in GMV from eBay’s various growth initiatives.

The eBay Q1 Results Tracker for Sellers

Here is a dashboard for the key metrics that we’ll be watching for in the call, along with what Wall St. is predicting and also what eBay has guided to:

ebay_q1_16_dashboard

Growth-  It’s All About Growth

When I talk to sellers about eBay, the number one topic on their mind is: “Can eBay get significant growth going again?”  What they generally mean by this is can eBay get their growth back to in-line or (even better!) greater than the e-commerce growth rate.  So both sellers and Wall St. are looking for signs of this.

Other Items We’re Watching

In addition to the key performance indicators in the results tracker, we’ll also be listening for:

  • SDI  – eBay continues to focus on SDI (Structured Data Initiative) as a huge initiative that may return the company to faster growth by both helping with SEO and improving the buyer experience.
  • StubHub/Classifieds – Just like when eBay was married to PayPal and the team spent considerable time focused on how fast PayPal’s growth, it seems like StubHub and Classifieds are where much of the growth is.  Since these are combined with the eBay marketplace, they may mask lower growth on core eBay GMV.  We’ll be tracking that closely to get a feeling for the underlying actual ‘organic’ growth of the eBay marketplace.
  • Google SEO – eBay is approaching the two-year anniversary (May 2014) of the ‘Google Action’ that really hurt eBay’s free traffic from Google Search Engine Optimization (SEO).  The company has been working hard since then to get out of the ‘penalty box’.  We’ll be listening for any hints for a light at the end of the SEO tunnel (SDI is part of this).

This blog post was written by Scot Wingo, Co-founder and Executive Chairman, ChannelAdvisor.

 

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