Despite consistent efforts and change is marketing and designing plans, EBay was unable to convince investors that these efforts were taking shape, especially as its reporting sales growth continued to trail e-commerce goliath Amazon.com Inc.
Among the recent changes made in the way the firm functions, the key decisions taken by Devin Wenig, EBay’s Chief Executive Officer, include redesigning the website’s homepage so as to make it more personalized for visitors, up its expenditure on marketing, and making navigating through 1 billion listings much easier. These efforts resulted in a sales gain of 3.7 per cent in Q1, which is almost similar to that registered in the previous period. EBay parted ways with PayPal Holdings Inc. nearly two years ago and since then, CEO Devin Wenig’s aim has been to make the firm a place where customers go to for novel items otherwise not found on Amazon.
An industry analyst is of the opinion that the company has been struggling to present consistent results and even though the previous quarter exhibited promising growth, this quarter has been rather uninspiring, only affirming its inconsistency.
What the Numbers Reveal
In the first quarter of the current year, EBay earned 2 million new active buyers to reach a total of 169 million. This is a rise of 4 per cent from the same period the year before. As far as the gross merchandize volume is concerned, the company reached US$20.9 billion, reporting a 2.4 per cent increase in terms of the value of goods via transactions. However, this is almost similar to the growth reported in the last quarter. The e-commerce company’s shares dropped 4.5 per cent after wrapping up at US$33.85 at the New York Stock Exchange.