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ChannelAdvisor: Google/Amazon comps improve in May, eBay slows

  • ChannelAdvisor (ECOM -0.9%) clients saw a 28.1% Y/Y Amazon (AMZN -0.3%) same-store sales increase in May. That's up from April's 27%, and is the highest figure reported for Amazon since last June.
  • eBay (EBAY -0.1%), whose Marketplaces ops have been losing share to Amazon's 3rd-party services for some time, saw its same-store growth fall to 11.5% from April's 14% and March's 17.8% - auctions -11.1%, fixed-price +13%, Motors +15.6%. eBay's security breach and Google algorithm changes both appear to have taken a toll.
  • Same-store sales driven by search ads - mostly Google (GOOG +0.8%) AdWords - rose 11.7% Y/Y, much better than April's 4.3% - paid clicks +7%, cost per click +4%, conversion rates +7%.
  • Google Shopping/product listing ad sales grew 21.4%, up from 7.8% in April. Growing ad buys and a 29.3% increase in click rates offset an 18.7% drop in average order value.
Comments (2)
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    Remember AMZN is in the non-profit business = increased numbers may be good for smoke + mirror PR = investors singularly unimpressed+

     

    AMZN stock has swooned more than 20% YTD.

     

    Wait until the numbers come in after Alibaba has invaded AMZN's back yard.

     

    Welcome to the coming showdown at OK Corral.
    9 Jun, 04:11 PM Reply Like
  • James Sands
    , contributor
    Comments (1911) | Send Message
     
    Amazon is down 18% YTD as of December 31st 2013 close. Any swoon from this year's low is more like 13%.

     

    It is one thing to state that Amazon's profits are void, no one will argue this and if perturbed, will most likely deflect to price/sales or cash flow to justify a valuation (for simplicity I won't argue against the P/E inflation).

     

    But Alibaba is not going to threaten North American or European e-commerce anytime soon. The company is a leader in Asia, but the company will fall behind JD if JD executes its supply chain and logistics strategies better than Alibaba. Alibaba has a lot to consider in Asia first.

     

    Amazon is still the most dominant e-commerce company in the world aside from China and Asia. No Chinese company has made any significant in-roads to the developed country markets for technology services or e-commerce. Any assumptions that they will replicate their growth in Asia is severely premature.

     

    For these reasons among others, I am long Facebook and Baidu, and Amazon and JD. I think long-term pairing of Asian titans with other more globally relevant company peers is a good balance. There are two major markets in the world, China and the rest of the world. Chinese companies are good at growing in their markets because there is not comprehensive global competition. However, when they begin to attempt to compete outside of their safe-haven, it will not be so easy.

     

    I personally will not be buying an item from Alibaba anytime soon. They do not have the supply chain to ship it cost effectively to me and they are supposedly considering a $15 billion supply chain investment in Asia alone. It will be exponentially more costly to do this outside of Asia.

     

    Thanks,
    James
    9 Jun, 04:36 PM Reply Like
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