EBay Struggles To Remain Relevant Amongst Consumers — Retail Bum

EBay’s stock tumbled after the company’s earnings projections for the current quarter fell short of analysts’ estimates — the latest sign of the eCommerce company’s growing challenge with staying relevant and maintaining its customer base in the U.S.

The San Jose, California-based company is facing difficulties retaining its customer base primarily because it is losing market share to eCommerce giant Amazon and traditional retailers like Walmart, who have enhanced their online offerings. To top that off, a decline in consumer spending has affected overall revenue from sales commissions, prompting the company to explore alternative avenues for revenue generation.

In a statement on Wednesday, July 26, 2023, the company announced that earnings per share for the period ending in September 2023 will range from 96 cents to $1.01, slightly below analysts’ estimate of $1.02.

The company’s stock was down 5% in after-market trading following the announcement.

In the quarter, gross merchandise volume, which represents the total value of goods sold on eBay, experienced a 2% decline, amounting to $18.2 billion. Surprisingly, this figure surpassed analysts’ average estimates. However, active buyers decreased by 4% from the previous year, leaving the company with 132…