Auction site eBay was able to significantly increase its turnover and profit in the third quarter. The company took full advantage of the corona crisis and is raising its annual expectations.
Profit doubled
In the period from July to September eBay achieved a turnover of 2.6 billion dollars (2.2 billion euros), an increase of 25% compared to the same period last year. Net profit more than doubled to 664 million dollars (568 million euros), writes Business AM.
Gross trade volume (the value of goods sold) rose by 22% and broke the 25 billion dollar (21.4 billion euro) mark last quarter. Worldwide there were 183 million buyers.
The corona crisis gave e-commerce, which was already in full development, an extra boost. Of course, platforms such as eBay benefit from this. The good results are therefore not a complete surprise, but they do exceed expectations.
Outlook
For the fourth quarter, eBay expects to be able to achieve a growth in turnover of between 19 and 22%. The company is also raising its annual expectations and is now assuming an annual turnover of 10.04 to 10.11 billion dollar (8.60-8.66 billion euro). Up to now, the online marketplace has counted on a maximum of 9.8 billion dollar (8.4 billion euro).
With the end-of-year period approaching, eBay has concluded agreements with various courier companies so as not to charge extra shipping costs during that peak period. In this way, the auction site wants to guarantee profitability for its sellers during the holiday season.
