What the numbers say: EBay's revenue has not expanded consistently over the past decade. The company's revenue peaked in 2012 when it hit over $14B. The e-commerce firm experienced a sharp decline in 2013 when revenue fell to $8.3B and then remained relatively stable. EBay's revenue has risen in recent years, climbing from about $7.4B in 2019 to $9.8B in 2022.
Relevance: EBay's business model is different from that of Amazon. EBay operates primarily like an auction house that links buyers and sellers. It provides access to a wide range of niche items, collectibles, and used merchandise and offers a substantial selection of new products. Amazon, however, functions more like a comprehensive online retail store and charges its sellers higher fees. While the global collectibles market is expected to grow to $522B in 2028, eBay appears to have found little success in converting this strong market into steady revenue growth.
Brands that should care: E-commerce platforms may benefit from avoiding eBay's business model and instead focusing on providing a wide and reliable product range. Retailers that specialize in selling collectibles may also consider branching out into other product categories if they seek more reliable growth.