The e-commerce giant eBay beats estimated earnings as consumers chooses to purchase goods in their website resulting to a profit hike.
With the Internet’s exponential growth over the years, innovations have made it possible for the operations of the computer easy enough. With the increased popularity of online ordering or what we call as e-commerce, shoppers prefer to purchase online than going to the actual retail store.
eBay, an American multinational e-commerce corporation that simplifies consumer-to-consumer and business-to-consumer sales through its website is one of the many popular e-commerce sites.
The online marketplace encountered slow revenue growth. It struggled in competing with other e-commerce platforms, especially Amazon. eBay then focused on promoting its program and payments business. The platform also introduces new features to both its sellers and buyers. eBay worked on its website as well, making the site simpler.
These efforts by the e-commerce platform resulted in a much better second-quarter report for eBay. According to eBay, the number of people visited and made a purchase on their website increased to over 4% or 182 million users.
eBay also claims that more than 940,000 sellers favored the promoted listings. These resulted in a massive $89 million in advertising revenue.
Haris Anwar, senior analyst at the financial markets platform Investing.com said, “The results show eBay’s new revenue sources are working to fuel growth in the bottom-line profitability. The company’s renewed focus on advertising and its new payments business are boosting sales, and that’s enough for investors to get excited.”
eBay also announced a partnership with the Indian e-commerce startup Paytm Mall making eBay’s goods available in the South Asian nation. As part of the deal, eBay is taking a 5.5% stake in Paytm Mall.
“As part of this collaboration, eBay is making an investment in Paytm Mall for a stake of approximately 5.5%,” says Devin Wenig, Chief Executive Officer of eBay.
eBay’s total net income in the second quarter was $402 million (46 cents per share). Revenue inflated to over $2.69 billion compared to $2.64 billion last year.