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EBAY Boosts Seller Experience With Advertising Solutions
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eBay (EBAY - Free Report) shares have gained 22% on a year-to-date basis, outperforming the Retail-Wholesale sector’s 12.5% growth. The company is benefiting from solid momentum across its robust advertising offerings. Hence, it is making concerted efforts to further expand its advertising products, thereby enhancing the seller experience.
The company recently rolled out the updated “eBay Advertising” tool that simplifies advertising, increases listing visibility and supports stronger sales velocity, aiming to help sellers grow their sales on the platform.
The updated version also features a revamped Seller Hub Marketing tab and an Advertising tab, providing a comprehensive view of campaigns and detailed reporting. It also offers recommendations, suggested campaigns and trend-based campaigns, leveraging eBay's AI to uncover market trends.
eBay is also gaining solid traction across Offsite Ads solution, which enables sellers to participate more actively in extending the reach of their listings through cost-per-click ads placed on external services. This product leverages eBay's decades of advertising technology investment on behalf of those sellers, enabling advanced targeting, campaign management and pricing optimization.
eBay is expected to continue gaining solid momentum among sellers on the back of these advertising offerings.
Year-to-Date Performance
Image Source: Zacks Investment Research
Deepening Focus on Sellers Boost Prospects
eBay is taking continuous strides in enhancing the seller experience by offering innovative seller tools.
In this regard, the latest rollout of an AI-powered background-enhancement tool powered by the open-source model Stable Diffusion bodes well.
The tool is capable of removing the current image backgrounds and replacing them with a backdrop of choice automatically. This tool positions eBay well to gain substantial traction among several sellers who lack the skills or tools to create professional-looking backgrounds.
eBay’s launch of a mobile consignment concierge, the Luxe Line, remains noteworthy. It offers a convenient selling experience, allowing visitors in Los Angeles and Las Vegas to directly access expert sellers listing and selling luxury items.
The above-mentioned efforts will aid EBAY in capitalizing on the solid growth opportunity present in the global e-commerce market, which, per a Mordor Intelligence report, is expected to hit $8.8 trillion in 2024 and reach $18.8 trillion by 2029, witnessing a CAGR of 15.8% between 2024 and 2029.
Amazon’s introduction of an AI tool for sellers, which can write product listings from a series of keywords, remains noteworthy. The tool marks the first integration of large-language models into the company’s e-commerce business.
Meanwhile, Shopify introduced an AI image editor to its Magic Suite, enabling sellers to create professional product photos and generative image fill.
Etsy’s continuing efforts to support sellers with new tools and insights, such as a Growth Page with customer insights to help sellers grow their businesses and a new earnings calculator to assist sellers in understanding various inputs that go into their profitability is further strengthening its foothold in the e-commerce space.
Conclusion
EBAY’s expanding advertising offerings and seller tools, coupled with its strong competitive position, are expected to boost its long-term prospects.
Moreover, its robust managed payments offerings and strong traction in Promoted Listings are other positives. Strength in eBay’s financial services offerings is also a plus.
These factors are expected to continue driving the overall financial performance of the company in the near term.
The Zacks Consensus Estimate for 2024 total revenues stands at $10.26 billion, indicating year-over-year growth of 1.5%.
The consensus mark for 2024 earnings is pegged at $4.70 per share, indicating a 10.9% rise from the year-ago figure. The figure has been revised upward by 0.2% in the past 60 days.
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EBAY Boosts Seller Experience With Advertising Solutions
eBay (EBAY - Free Report) shares have gained 22% on a year-to-date basis, outperforming the Retail-Wholesale sector’s 12.5% growth. The company is benefiting from solid momentum across its robust advertising offerings. Hence, it is making concerted efforts to further expand its advertising products, thereby enhancing the seller experience.
The company recently rolled out the updated “eBay Advertising” tool that simplifies advertising, increases listing visibility and supports stronger sales velocity, aiming to help sellers grow their sales on the platform.
The updated version also features a revamped Seller Hub Marketing tab and an Advertising tab, providing a comprehensive view of campaigns and detailed reporting. It also offers recommendations, suggested campaigns and trend-based campaigns, leveraging eBay's AI to uncover market trends.
eBay is also gaining solid traction across Offsite Ads solution, which enables sellers to participate more actively in extending the reach of their listings through cost-per-click ads placed on external services. This product leverages eBay's decades of advertising technology investment on behalf of those sellers, enabling advanced targeting, campaign management and pricing optimization.
eBay is expected to continue gaining solid momentum among sellers on the back of these advertising offerings.
Year-to-Date Performance
Image Source: Zacks Investment Research
Deepening Focus on Sellers Boost Prospects
eBay is taking continuous strides in enhancing the seller experience by offering innovative seller tools.
In this regard, the latest rollout of an AI-powered background-enhancement tool powered by the open-source model Stable Diffusion bodes well.
The tool is capable of removing the current image backgrounds and replacing them with a backdrop of choice automatically. This tool positions eBay well to gain substantial traction among several sellers who lack the skills or tools to create professional-looking backgrounds.
eBay’s launch of a mobile consignment concierge, the Luxe Line, remains noteworthy. It offers a convenient selling experience, allowing visitors in Los Angeles and Las Vegas to directly access expert sellers listing and selling luxury items.
The above-mentioned efforts will aid EBAY in capitalizing on the solid growth opportunity present in the global e-commerce market, which, per a Mordor Intelligence report, is expected to hit $8.8 trillion in 2024 and reach $18.8 trillion by 2029, witnessing a CAGR of 15.8% between 2024 and 2029.
Competitive Scenario
Growing initiatives to deliver enhanced seller experience will help this Zacks Rank #3 (Hold) company in competing with its peers like Amazon (AMZN - Free Report) , Shopify (SHOP - Free Report) and Etsy (ETSY - Free Report) , which are also making increasing efforts to strengthen their position in the e-commerce market on the back of strong seller momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amazon’s introduction of an AI tool for sellers, which can write product listings from a series of keywords, remains noteworthy. The tool marks the first integration of large-language models into the company’s e-commerce business.
Meanwhile, Shopify introduced an AI image editor to its Magic Suite, enabling sellers to create professional product photos and generative image fill.
Etsy’s continuing efforts to support sellers with new tools and insights, such as a Growth Page with customer insights to help sellers grow their businesses and a new earnings calculator to assist sellers in understanding various inputs that go into their profitability is further strengthening its foothold in the e-commerce space.
Conclusion
EBAY’s expanding advertising offerings and seller tools, coupled with its strong competitive position, are expected to boost its long-term prospects.
Moreover, its robust managed payments offerings and strong traction in Promoted Listings are other positives. Strength in eBay’s financial services offerings is also a plus.
These factors are expected to continue driving the overall financial performance of the company in the near term.
The Zacks Consensus Estimate for 2024 total revenues stands at $10.26 billion, indicating year-over-year growth of 1.5%.
The consensus mark for 2024 earnings is pegged at $4.70 per share, indicating a 10.9% rise from the year-ago figure. The figure has been revised upward by 0.2% in the past 60 days.