There has been an article titled "A Growth Plan for eBay: Buy Etsy" circulating, which is quoting an analyst from Monness, Crespi, Hardt & Co. to have said that eBay should consider acquiring Etsy as a strategy for growth. The combined could company would have a larger product offering, and thus improve Ebay's chances in competition with Amazon. We think this is flawed idea.
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We think Walmart marketplace is one of the most hyped opportunities in retail. However we noticed that customers are not always pleased. Average rating for top 100 sellers on the Walmart marketplace is 3.9 out of 5. In comparison, top sellers on both Amazon and eBay have an average rating of 4.9 out of 5. Most of them are nearly perfect at 5 out of 5 if not for a few slip-ups.
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Yesterday we announced that Amazon fastest growing sellers report is now available for all marketplaces in real-time, today we are also releasing eBay trending reports for all countries. We'll have to wait for the earnings report for Q4 2016, but unfortunately judging by seller growth alone it doesn't appear that eBay was one of the major Christmas buying destinations.
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With only a few days left before Christmas we decided to look at which shops were trending on Etsy. Made With A Twist from Colorado Springs, Colorado makes winter hats, gloves and scarfs. After shooting a quick viral video about her product Messy Bun Hat which reached over 53 million people, she received over 11,000 orders in just 5 days. These are the sort of shops we are excited to uncover and share.
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Since October when we last looked at the sellers count on the Walmart Marketplace it has continued to grow by at least 1,000 new sellers each month. However while in October there were 1,000 active sellers (sellers who have received at least one feedback rating), this has been accelerating and just crossed 2,000 active sellers.
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eBay was founded on September 3, 1995, 21 years ago, and since then ecommerce as a whole has changed drastically. Yet as we found in our research many of the retailers from 90's are still around today. 19,000 stores were launched this year. Yet there are stores still operating since eBay launch.
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English-speaking countries make up most of the list, with US shops at 75% of total shops, followed by United Kingdom, Canada, and Australia. Since launch in 2005, 11 years ago, Etsy has been most visible there, however as it grew bigger and as international shipping got easier and more affordable many more sellers joined the platform. 10% of Etsy shops are from all over the world.
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November had Black Friday and Cyber Monday, both of which eBay was betting big on too. eBay reported that 7:00pm PST was the peak shopping time on mobile and overall. eBay also reported that mobile GMV (gross merchandise volume) share vs. desktop increased 15% year-over-year.
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The US ecommerce market continues to grow, largely driven by leading marketplaces like Amazon, eBay and Walmart. According to the Q3 2016 report from the US Department of Commerce, online orders accounted for 8.4% of total retail sales, up from 7.4% a year ago. Ecommerce sales grew by 15.7% compared to Q3 2015, reaching over $101 billion. Ecommerce sales have been growing by 15% for over a year. A big part of this is Amazon which reported 26% growth the same quarter.
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Similar to fastest growing Amazon.com sellers, October on eBay was all about Halloween costumes. Many of the top sellers were able to take advantage of the Halloween rush. It is hard to pick out one seller to highlight. There are many niche stores, like mayfair99 selling stamps, and the many costume sellers.
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