Key Points
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eBay’s core growth areas are gaining momentum: Focus categories, consumer-to-consumer selling and recommerceārepresenting about 70% of its businessāgrew 20% in the second quarter. Collectibles, particularly trading cards, toys and coins, were key sources of strength.
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Live commerce and AI are expanding the marketplace: eBay Live grew eightfold year over year, while its AI-powered Magical Listing tool helped U.S. users create 50% more listings per lister. The company is also applying AI to search, card scanning and marketing.
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eBay is investing in future growth while returning capital: Vehicles, Depop, advertising, authentication and shipping are strategic priorities, alongside efforts to attract younger shoppers and convert buyers into sellers. eBay plans to return 90% to 100% of organic free cash flow through dividends and share repurchases.
eBay (NASDAQ:EBAY) outlined its strategy for expanding growth in collectibles, consumer-to-consumer selling, recommerce, live commerce and vehicles during a conference fireside chat featuring Chief Executive Officer Jamie Iannone and Chief Financial Officer Peggy Alford.
Iannone said the company has sharpened its focus around categories and marketplace activities where it sees the strongest momentum. He said approximately 70% of eBay’s business is tied to focus categories, consumer-to-consumer, or C2C, activity, and recommerce. Collectively, those areas grew 20% in the second quarter, according to Iannone.
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The CEO also pointed to investments in artificial intelligence, trust tools and shipping capabilities as foundational components of the company’s strategy. He said newer businesses including eBay Live and vehicles are adding growth opportunities, with the vehicles business reaching “hundreds of millions of dollars of run rate.”
Consumer trends and marketplace differentiation
Alford said the company continues to see greater consumer resilience in the United States than in international markets. However, she said eBay’s platform can appeal both to enthusiasts making discretionary purchases and to value-oriented shoppers seeking deals through recommerce.
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“We tend to thrive in environments when the economy’s doing really well, as well as in times when it’s tougher,” Alford said, citing the diversity of the company’s marketplace.
Iannone said eBay’s competitive position is supported by its scale, including 2.6 billion listings, 136 million buyers and 30 years of marketplace data. He said 90% of the company’s listings are “non-new in-season” goods, creating inventory that may not be readily available elsewhere online.
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He also highlighted the company’s authentication, vehicle fitment and transaction-support services. These include Authenticity Guarantee in categories such as watches, sneakers and handbags, eBay Guaranteed Fit for motors parts and accessories, and vehicle-related services such as financing, delivery and title transfer.
Collectibles, live commerce and C2C growth
Alford said growth in eBay’s focus categories has been broad-based, with particular strength in collectibles. Trading cards have performed especially well, she said, alongside toys and coins. eBay has developed trust and friction-reduction tools for trading cards, acquired TCGplayer and partnered with PSA, according to Alford.
eBay Live, the company’s live-selling format, grew eightfold year over year in the second quarter, Iannone said. He described the format as combining content, commerce, community and entertainment.
According to Iannone, 90% of sellers that begin using eBay Live remain active on the format, and those sellers have growth rates three times higher than comparable sellers not using it. Buyers in collectibles who begin watching eBay Live purchase 70% more than comparable buyers, he said, with a significant share of that activity occurring in eBay’s core marketplace.
The company has also emphasized converting buyers into sellers. Iannone said buyers who become sellers are two to 2.5 times more valuable as buyers on the platform. These C2C sellers can also bring unique goods to the marketplace that may not be offered by traditional businesses.
Iannone said eBay’s AI-powered Magical Listing feature has simplified the selling process. In the U.S., the company has seen 50% more listings per lister using the technology, he said. The company has also expanded shipping tools, including eBay International Shipping, to help sellers access demand outside their home markets.
AI, younger shoppers and advertising
Iannone characterized AI as a structural tailwind for the company. Beyond listing tools, he cited natural-language search, card-scanning technology and marketing applications. The company’s card-scanning tool has generated more than 80 million scans, with roughly 500,000 scans per day, he said.
He also said eBay is seeing new buyers through agentic commerce experiences, and that about half of those buyers later return directly to eBay for another purchase. Trust and enablement features become increasingly important in an AI-driven commerce environment, he added.
The company also discussed its acquisition of Depop, which Iannone said strengthens eBay’s reach with Gen Z and millennial consumers. He called those groups eBay’s fastest-growing demographic and said Depop’s mobile, social-focused marketplace is aligned with younger shoppers’ interest in pre-owned goods and sustainability.
On advertising, Alford said eBay had reached 2.8% penetration toward a near-term target of 3%. She said the company does not view that target as a ceiling and sees further opportunity through greater seller adoption of Promoted Listings, new offsite advertising offerings and Promoted Stores.
Capital allocation and priorities
Alford said eBay plans to maintain a balanced capital-allocation approach, investing in growth areas while returning capital to shareholders. The company’s framework calls for returning 90% to 100% of organic free cash flow through dividends and share repurchases, she said.
Looking ahead, Iannone said the company is focused on sustaining growth in focus categories, scaling newer businesses such as vehicles and eBay Live, expanding AI applications, and continuing to invest in trust, authentication and shipping capabilities.
About eBay (NASDAQ:EBAY)
eBay Inc (NASDAQ: EBAY) operates a global commerce platform that connects millions of buyers and sellers. Its marketplace enables individuals, businesses and brands to buy and sell new, used and collectible merchandise across categories including electronics, fashion, automotive parts and accessories, home goods, collectibles and business equipment.
The company provides tools and services that support online commerce, including product listings, search and discovery features, payments, seller advertising, shipping solutions and authentication services for selected categories.
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The article “eBay Sees Collectibles, Live Commerce and AI Powering Its Next Growth Phase” was originally published by MarketBeat.