eBay 2017 Q3 financial results were released last night. eBay marketplaces delivered $20.5 billion of GMV, up 8.5%, the fastest it's been in over three years. But the financial results are not as interesting as the long-term changes eBay is making to stay relevant.
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After launching the electronics category which offers televisions, cell phones and laptops, the Amazon Brazil marketplace overnight added 300 new sellers. Launched in 2012 as a Kindle store, Amazon Brazil opened a marketplace for third-party sellers in April. Since then the marketplace grew to just over 1,400 sellers.
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Last week Walmart held the annual Investment Community Meeting. The most interesting was Marc Lore's presentation as he shared new insight into their e-commerce operations.
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"There are currently more than 2 million sellers on Amazon worldwide" is the most common description of the Amazon Marketplace. However not only is it not true this figure is also irrelevant. We estimate that 25% of Gross Merchandise Volume (GMV) on Amazon.com marketplace is through just top 1,000 sellers.
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Last week Walmart passed the milestone of 15,000 Walmart marketplace sellers. On average a seller has 2,550 products listed for sale. And yet it is hard to know what any of these mean in terms of the potential of the marketplace since none of these figures are performance related.
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Marketplace Pulse founder Juozas "Joe" Kaziukėnas presented a keynote at Retail Global Las Vegas 2017 conference on September 12th. Joe's keynote, titled "The Future of Marketplaces", looked at what makes a successful marketplace, and how the marketplace model built by Amazon 17 years ago - despite them leading the market - might not be the only way to do it.
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Sandy Douglas of Coca-Cola said "Don't think of e-commerce as a channel. It's a way for consumers to research, to buy, to experience brands and then, ultimately, to have them have fulfilled." It's rare to see traditional retailers, or manufacturers get it.
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39% percent of sellers received half or more of their feedback in a single marketplace out of those with feedback in all European marketplaces. So while it is true that most European sellers sell in more than one marketplace, not all of them do as successfully internationally as in their home marketplace.
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In the end there are very few winners. And the biggest loser might just be Amazon.
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Historically Amazon and eBay sellers were born out of bootstrapping. Same happened in the supporting market. But increasingly so we started to notice venture-backed businesses make moves in the market. Both as sellers, and as solution providers to other sellers.
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