eBay marketplace case study: book a demo to start yours
eBay is an internet-based marketplace and e-commerce site that enables individuals and businesses to engage in buying and selling various new and used items, spanning electronics, collectibles, apparel, and more, using either auction-style or fixed-price listings. If you’d like to start your own marketplace like eBay, you’re facing a buy vs build decision. So before you decide to build it in-house on top of Spree open-source, consider using Vendo, which is the feature-rich Enterprise Edition cutting your time-to-market to a few weeks.
Build vs Buy a marketplace?
There are several positives to using open-source, like having total control and flexibility in development. But, it’s important to remember that these advantages are not without their costs. Building a complete marketplace solution from scratch is a time-consuming and expensive endeavor, often taking many months or years. This insight comes from our experience with multiple marketplace ventures.
If you haven’t received substantial funding, you are likely to benefit more from an integrated marketplace solution such as Vendo, a recommendation from someone who has spent years charging for marketplace development services.
Back to the eBay marketplace case study
eBay, once a dominant force in the e-commerce landscape, has experienced a mix of challenges and innovations in recent years. In 2022, eBay’s revenue declined by 9.3% from the previous year, totaling $9.7 billion, with a notable 15% drop in gross merchandise volume (GMV) to $73.9 billion. This downturn reflects a shifting competitive environment and evolving consumer behavior.
Despite these challenges, eBay continues to be a substantial marketplace, particularly for unique and niche items. It remains a preferred destination for one-of-a-kind, vintage, or rare items, and is a hotspot for refurbished electronics and gadgets.
Additionally, eBay serves as a vital platform for businesses dealing in spare parts and components, ranging from automotive to home appliances. Discount retailers also find success on eBay, benefiting from its appeal among bargain hunters.
With over 185 million active users globally and operations in more than 190 countries, eBay’s extensive reach is undeniable. Its platform features over 1.7 billion live listings, showcasing a diverse array of products and services. The platform’s user-friendly interface, robust buyer and seller protections, and wide product selection contribute to its enduring popularity.
To capitalize on current trends, eBay has made strategic moves, such as acquiring companies like KnownOrigin, myFitment, and TCGplayer, aiming to revamp its business model and address its declining financial performance. Despite a net loss of $1.2 billion in 2022, eBay’s international markets contribute significantly to its revenue, accounting for about 60% of the total. This global appeal is reflected in eBay’s GMV, which included a significant increase from international buyers.
A key factor in eBay’s marketplace dynamics is the role of mobile commerce. Approximately 61% of eBay’s sales are made via mobile devices, and the eBay app is among the most popular shopping apps in the U.S. This shift towards mobile shopping is critical for sellers on eBay, who are encouraged to optimize their product listings for mobile users to maximize sales opportunities.
How to emulate eBay marketplace success?
Aiming for eBay-like success, consider starting your marketplace soon, ideally within weeks, not months. Explore how your product range fits with what your customers need and keep tweaking your customer acquisition techniques based on real findings.
It’s smart to test the market before fully investing in its creation.
Here’s what you’d be getting with a Vendo free trial:
- Book a marketplace demo call: We’ll set up your demo marketplace and populate it with products, so you could give it a try and start selling in 14 days
- Customize your Storefront: Use the drag & drop page builder or custom CSS
- Onboard Brands: Invite your brands or choose brands from our catalog
- Select Products: Curate products and collections manually or automate it
- Embed products: Make your content, newsletters, social media shoppable
- Get Paid: Get paid as soon as products are shipped by the brands
- End-to-end automation: Brands sync, fulfillment, payouts, invoicing, taxes
When you’ve tried all that and it works, start thinking about building your own, custom-made marketplace project based on Spree Commerce. First, by decoupling the storefront and going headless with Vendo marketplace API, and later with your own backend, if you decide you really need it. Just lift and shift the storefront.
Nobody has to know what’s under the hood, right?
