Aug. 15, 2013, 5:45 PM
- Down as much as 4.7% earlier today, eBay (EBAY -2%) finished with losses only a little worse than the Nasdaq's after TechCrunch provided its own report about Facebook's (FB -0.3%) mobile payments product.
- Like AllThingsD, TechCrunch reports Facebook's product won't offer payment-processing for now, but will rather focus on auto-filling billing info using data already provided to Facebook (the new Google Wallet functions in a similar manner).
- But while AllThingsD argued Facebook's service amounts to a PayPal rival, TechCrunch argues this isn't the case, and that Facebook's primary goal is to collect data about user buying activity that could be used to improve ad sales/targeting. Facebook has already made some moves in this direction.
- The truth may be in between. Though a lack of payment-processing (for now) prevents Facebook's offering from being a soup-to-nuts PayPal alternative, a product that allows billing info to be quickly auto-filled could still lead to more mobile transactions being processed by PayPal rivals. That is, provided Facebook is more successful here than Google Checkout/Wallet.
Aug. 15, 2013, 9:45 AM
- Facebook (FB +0.4%) confirms to AllThingsD it's testing an online payments product. A launch is expected in the next month or so.
- Sources state the product, set to compete against 800-lb. gorilla PayPal (EBAY -2.4%), will "allow online shoppers to make purchases on mobile apps using their Facebook login information," and (like PayPal) will allow them to avoid having to constantly re-enter their billing info.
- However, for now, the test is focused on simply "creating a better mobile checkout experience," and doesn't tie in payment-processing (as PayPal does).
- Facebook already handles payments for in-app game purchases and its Gifts product (among other things), and the enormous reach of its social sharing tools could allow it to quickly reel in many 3rd-party apps and (if it chooses to expand further) Web sites.
- But PayPal has stared down competition from Internet giants before, and the network effects stemming from its 132M active users and many thousands of merchant partners make it a tough company to seriously disrupt. PayPal expects to handle $20B in mobile transactions this year, up from $14B last year.
Aug. 13, 2013, 6:54 PM
- ChannelAdvisor (ECOM) clients saw a 24.9% Y/Y increase in Amazon (AMZN) same-store sales, down from 30.6% in June and representing the lowest growth rate recorded over the last 12 months (though still above total e-commerce growth). Merchants have been upset over recent fee hikes.
- On the other hand, EBAY same-store sales growth rose to 20.4% from 17.7% in June and 16% in May. Auctions -23.3% vs. June's -17.2%, but fixed-price (now a majority of sales) +20.3% vs. +18.9% and Motors +26.6% vs. +27.8%. ChannelAdvisor thinks eBay's new search engine (Cassini) is helping out. Are recent fee changes also helping?
- Google's (GOOG) numbers were a mixed bag. Same-store sales tied to search ads grew only 0.6% Y/Y, down from June's 5.1%. But comparison shopping (inc. Google Shopping) rose 12.9% vs. June's 10%.
- Also, ChannelAdvisor predicts search ad prices (CPCs) will rise thanks to the launch of Enhanced Campaigns, as "advertisers are no longer able to bid lower for the lower converting mobile ads."
- ChannelAdvisor shares rose another 7.5% today, and are now up 52% since the company posted a Q2 beat last Wednesday (previous).
Aug. 11, 2013, 6:15 PM
- In a cover story on Jeff Bezos and Amazon (AMZN), FastCompany's J.J. McCorvey observes the company's new AmazonFresh grocery service (offered via its $299/year Prime Fresh free shipping plan) is a "Trojan horse" meant to give Amazon's broader same-day delivery efforts needed scale.
- Amazon is also hoping its same-day infrastructure (replete with Amazon trucks) will increase its appeal to 3rd-party sellers (now responsible for 40% of unit sales) by lowering delivery times. Merchants already cite access to Prime as a reason for outsourcing fulfillment to Amazon (and giving a ~20% cut).
- EBAY could prove a formidable same-day rival. Instead of building its own soup-to-nuts infrastructure, eBay is relying on dozens of offline retailers (inc. major national chains) to help handle fulfillment. Google is also dipping its toes into same-day.
- Currently available in L.A. and Seattle, AmazonFresh is expected to expand to 20 more markets, including some international ones. SunTrust recently predicted an NYC launch will happen in 2014.
- Also mentioned by McCorvey: Amazon is now able to ship items less than 2.5 hours after an order is placed; and wants to further lower than number; Prime now covers 15M+ items (up from 1M in '05); and Amazon is still "evaluating" how to use Kiva's robots.
Aug. 6, 2013, 8:01 AM| Comment!
Jul. 24, 2013, 2:15 PMAngie's List (ANGI -2.6%) falls ahead of today's Q2 report after TechCrunch observes eBay (EBAY +0.8%) is testing a local services marketplace in the U.K. Like Angie's List, eBay's marketplace, known as eBayHire, gives consumers the chance to contact individuals advertising their services on the site. It remains to be seen whether eBay will do a full commercial U.S. launch, and whether it can build the critical mass of users and service providers needed to become a serious threat to Angie's List. Yelp (YELP -1.4%), whose local listings/reviews serve as indirect competition to marketplaces, is off moderately. | Comment!
Jul. 22, 2013, 12:46 PMeBay's (EBAY -0.1%) Now same-day delivery service has arrived on PCs (it launched as mobile-only), and is set to expand to Brooklyn, Queens, Chicago, Dallas, and the Bay Area peninsula (Manhattan and SF have been its first two markets). eBay has lofty ambitions for Now, foreseeing it as a same-day infrastructure for local retailers that can leverage existing retailer stores and warehouses. This is something Amazon (AMZN -0.7%), which just launched its $299/year Prime Fresh same-day service in L.A., could be hard-pressed to replicate, since it competes with many of those retailers. Initial partners for Now include Target, Home Depot, Best Buy, Macy's, and Walgreen. | 2 Comments
Jul. 18, 2013, 11:12 AMNeedham downgrades eBay (EBAY -6.4%) to Hold following its Q2 revenue miss and light Q3 guidance, citing international softness and "slowing Marketplace fundamentals." Though granting eBay is taking steps to revamp Marketplaces, the firm doesn't "expect any single investment to serve as a momentum-changing catalyst in the near term." Top-rated sellers (22% Q2 same-store sales growth) and mobile (2M new users, 5.6M listings/week, $20B+ in 2013 transactions expected) remain areas of strength for Marketplaces. Amazon (AMZN -1.2%) continues to follow eBay lower, but Overstock (OSTK +15.7%) is soaring after trouncing Q2 estimates and reporting a 170 bps Y/Y increase in gross margin to 19.7%. (eBay transcript) | Comment!
Jul. 18, 2013, 9:10 AM
Jul. 17, 2013, 7:06 PMeBay's (EBAY) growth slowdown is purely the result of macro and has nothing to do with competition, management insisted on the Q2 call. It also insisted the issues are focused on Europe/Korea, and that the U.S. is trending as expected. Analysts questioned eBay on the gap that has opened up between Marketplaces active user growth (+14% Y/Y to 120M) and sales growth (+10%). The company chalks this up to new user demographics (they tend to be younger, and more likely to be in emerging markets). PayPal active accounts +4.7M Q/Q to 132M; they rose by 5M in Q1. PayPal payment volume +24% Y/Y, up from Q1's +21%. Marketplaces GMV (exc. vehicles) +13%, even with Q1 - U.S. +16%, international +11%. Total "enabled commerce" volume +21% to $50.6B. Shares -6.2% AH. (Q2: I, II) (slides) | Comment!
Jul. 17, 2013, 5:46 PM
Jul. 17, 2013, 4:36 PMeBay (EBAY) is guiding for Q3 revenue of $3.85B-$3.95B and EPS of $0.61-$0.63, below a consensus of $3.97B and $0.65. 2013 guidance is for revenue of $16B-$16.5B and EPS of $2.70-$2.75 vs. a consensus of $16.3B and $2.75. The company says "macroeconomic headwinds in Europe and Korea will continue to be a challenge" in 2H. PayPal revenue +20% Y/Y in Q2, up from Q1's 18%. But Marketplaces revenue (exc. a tax gain) only +10%, down from Q1's +13%. Shares -5.5% AH. Amazon (AMZN) -0.7% in sympathy. CC at 5PM ET (webcast). (Q2 results) (slides) (PR) | Comment!
Jul. 17, 2013, 4:16 PM
Jul. 17, 2013, 12:10 AM
Jul. 16, 2013, 5:35 PM
Jul. 12, 2013, 1:58 PMeBay (EBAY) tries to profit from the 3D printing boom by launching Exact, an iOS app that allows users to browse and buy custom, 3D-printed merchandise. The app initially supports 20 categories and three 3D printing service providers, one of which is Stratasys (SSYS) acquisition target MakerBot. Leading service provider/marketplace Shapeways isn't on board yet. The app launch comes shortly after Amazon unveiled a 3D printer/accessory section for its site. | 2 Comments
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