eBay Forecasts Slow Holiday Sales Amid Competition in Australia

by CiCi

eBay is bracing for a challenging holiday season as it struggles to hold market share in Australia against giants like Amazon and newer entrants such as Shein and Temu.

Having operated in Australia since 1999, eBay hosts around 40,000 local businesses on its platform and attracts approximately 12 million unique monthly visitors. However, the company has projected a global revenue of $2.53 billion (A$3.85 billion) to $2.59 billion (A$3.94 billion) for the December quarter, with adjusted earnings around $1.22 (A$1.86) per share. This falls short of analyst expectations, which averaged $2.64 billion (A$4.02 billion) in revenue and $1.23 (A$1.87) per share in earnings, according to Bloomberg.

eBay CEO Jamie Iannone attributed the weaker outlook partly to the shorter shopping season between Thanksgiving and Christmas this year. In response to increasing competition, eBay is concentrating on niche markets like car parts, luxury items, collectibles, and refurbished goods. To attract luxury buyers wary of counterfeit goods, eBay has invested in authentication services and now provides guarantees on vehicle parts and refurbished products.

For the third quarter of this year, eBay reported a 3% revenue increase to $2.58 billion (A$3.92 billion), just above analyst estimates of $2.55 billion (A$3.88 billion). Despite eBay’s stock rising by 44% over 2024, shares dropped by approximately 8.5% following the latest earnings report.

In the background, Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), is preparing to release its 10th and final Digital Platform Services Inquiry report on March 31, 2025. This report will examine international regulatory changes, competition, and emerging consumer issues within the digital marketplace, all of which could further shape Australia’s competitive landscape in digital services.

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