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EBAY Boosts its Financial Services With Business Cash Advance
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eBay (EBAY - Free Report) partnered with Liberis to roll out Business Cash Advance, a new financing product which is available on the latter’s embedded finance platform.
The product offers flexible funding of up to $1 million in working capital, specifically tailored for small to medium-sized businesses.
It also provides a seamless online application process, extensive financing options, fast access to capital, flexible payment schedules, and transparent reporting on the eBay Seller Hub, allowing sellers to track payment progress and reconcile sales proceeds.
eBay aims to boost its seller momentum by enhancing the experience through Business Cash Advance.
Moreover, it has added strength to the company’s financial services offerings.
Year-to-Date Performance
Image Source: Zacks Investment Research
Expanding Portfolio Aids Prospects
Per a Mordor Intelligence report, the global e-commerce market 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. eBay is well-poised to capitalize on this solid growth opportunity on the back of its expanding portfolio offerings, which acts as a key growth catalyst. Its shares have gained 22.7% on a year-to-date basis, outperforming the Retail-Wholesale sector’s 13% growth.
eBay recently expanded its advertising offerings with the launch of 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.
It unveiled a ‘shop the look’ generative AI-powered feature within the iOS mobile app to offer personalized recommendations for customers, thereby boosting fashion retail offering.
This interactive feature suggests similar items and outfit inspirations based on customers’ shopping history, enabling fashionistas to shop preowned and luxury items that match their personal style.
eBay also partnered with PayPal (PYPL - Free Report) to bolster its payment offering.
Per the terms, eBay integrated PayPal’s mobile payment service, Venmo, as a new payment method at checkout, catering to the evolving preferences of digital natives. Venmo, a popular choice among Gen Z and Millennials, allows buyers to pay for purchases with their Venmo balance or linked bank accounts, debit cards, or credit cards.
Amazon’s integration of generative AI into its online shopping experience through personalized size recommendations, a "Fit Insights" tool for sellers, AI-powered highlights from customer reviews, and reimagined size charts remains noteworthy.
Shopify, on the other hand, introduced an AI image editor to its Magic Suite, enabling sellers to create professional product photos and generative image fill.
Conclusion
The company is benefiting from its robust financial services offerings and its strong competitive position in the e-commerce space. Its expanding advertising offerings and seller tools, robust managed payments offerings and strong traction in Promoted Listings are other positives. 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 its Financial Services With Business Cash Advance
eBay (EBAY - Free Report) partnered with Liberis to roll out Business Cash Advance, a new financing product which is available on the latter’s embedded finance platform.
The product offers flexible funding of up to $1 million in working capital, specifically tailored for small to medium-sized businesses.
It also provides a seamless online application process, extensive financing options, fast access to capital, flexible payment schedules, and transparent reporting on the eBay Seller Hub, allowing sellers to track payment progress and reconcile sales proceeds.
eBay aims to boost its seller momentum by enhancing the experience through Business Cash Advance.
Moreover, it has added strength to the company’s financial services offerings.
Year-to-Date Performance
Image Source: Zacks Investment Research
Expanding Portfolio Aids Prospects
Per a Mordor Intelligence report, the global e-commerce market 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. eBay is well-poised to capitalize on this solid growth opportunity on the back of its expanding portfolio offerings, which acts as a key growth catalyst. Its shares have gained 22.7% on a year-to-date basis, outperforming the Retail-Wholesale sector’s 13% growth.
eBay recently expanded its advertising offerings with the launch of 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.
It unveiled a ‘shop the look’ generative AI-powered feature within the iOS mobile app to offer personalized recommendations for customers, thereby boosting fashion retail offering.
This interactive feature suggests similar items and outfit inspirations based on customers’ shopping history, enabling fashionistas to shop preowned and luxury items that match their personal style.
eBay also partnered with PayPal (PYPL - Free Report) to bolster its payment offering.
Per the terms, eBay integrated PayPal’s mobile payment service, Venmo, as a new payment method at checkout, catering to the evolving preferences of digital natives. Venmo, a popular choice among Gen Z and Millennials, allows buyers to pay for purchases with their Venmo balance or linked bank accounts, debit cards, or credit cards.
Competitive Scenario in the E-commerce Space
A strengthening portfolio will help this Zacks Rank #3 (Hold) company in competing with its peers like Amazon (AMZN - Free Report) and Shopify (SHOP - Free Report) , which are also making increasing efforts to strengthen their position in the e-commerce market on the back of their robust portfolio offerings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amazon’s integration of generative AI into its online shopping experience through personalized size recommendations, a "Fit Insights" tool for sellers, AI-powered highlights from customer reviews, and reimagined size charts remains noteworthy.
Shopify, on the other hand, introduced an AI image editor to its Magic Suite, enabling sellers to create professional product photos and generative image fill.
Conclusion
The company is benefiting from its robust financial services offerings and its strong competitive position in the e-commerce space. Its expanding advertising offerings and seller tools, robust managed payments offerings and strong traction in Promoted Listings are other positives. 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.