eBay Q3 2008 Financial Highlights

eBay has announced its Q3 Financial Highlights

Here are my top 10 key points from the above PowerPoint:

  1. 1. Revenue is up 12% y/y
  2. 2. 10% decrease in workforce
  3. 3. Looks like Bill Me Later will be a part of PayPal
  4. 4. Traffic is Flat
  5. 5. More inventory is on eBay
  6. 6. eBay is not happy with GMV
  7. 7. Classified up 59%
  8. 8. Ads up 127%
  9. 9. Vehicle sales impacted by economy
  10. 10. y/y Growth down 1%

During the call, ebayinkblog twittered the highlights. Here are few key twitters (as written):

  1. also the first time PayPal’s off eBay volume was bigger than on-eBay
  2. average selling price continues to fall – down 7% in Q3
  3. fixed price represented 46% of GMV adn grew 11% for the quarter
  4. we have made it virtually free for sellers to put fp inventory on eBay
  5. sellers with lower ratings are seeing their business on eBay decline. number of sellers achieving  4.8 DSRs and above is up 20%
  6. are these changes working? during Q3 the highest rated sellers in the US saw their ebay businesses grow. Their same store sales grew 26%

All told, there were not a lot of surprises. I think eBay is determined to stay the course and continue with the changes that they have implemented. DSRs and Best Match are destined to stay front and center in this strategy.

One item that really hit me hard is Ads are up 127%, which seems to show eBay is sacrificing its own traffic for ad revenue, which may be a bit short-sighted.

eBay stated in their call, that they had made inventory virtually free for FP listings. I’m not sure that sellers feel it’s virtually free – would love to hear from sellers on that point of view (coupling that with yesterday’s announcement that FP items are no longer eligible for free relist credits)

I also noticed that average selling price is down by 7% – I would have liked to hear that statistic for eBay fees (up or down)

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