eBay debuts digital wallet; eyes revenue growth, secure storage
eBay is launching its first-ever digital wallet as it forecasts financial growth in the next two years and reveals plans for a massive storage facility.
As part of its Investor Day presentation, the e-commerce platform outlined several growth initiatives. Highlights follow
Digital wallet
eBay is launching its first digital wallet. The payment solution enables customers can use proceeds from their sales to purchase their next item or pay their selling expenses. This follows the implementation of a new payment platform.
Fiscal growth
eBay is predicting revenue growth of flat to 3% for fiscal year 2022 (unchanged from previous forecasts), as well as 3%-4% for fiscal year 2023 and approximately 5% for fiscal year 2024.
The company is also confirming a diluted non-GAAP EPS forecast of $4.20 - $4.40 for fiscal year 2022, with roughly 10% growth for fiscal year 2023 and roughly 15% for fiscal year 2024. eBay is also maintaining a forecast of a -5 to -8% gross merchandise value (GMV) decline for fiscal year 2022, but expects GMV to climb roughly 10% in fiscal year 2023 and 15% in fiscal year 2024.
Secure collectible storage
In the second quarter of 2022, eBay will open the eBay Vault, a 31,000-sq.-ft., secure storage facility and digital marketplace for trading cards and collectibles, with plans to expand into luxury goods. Ownership can transfer from seller to buyer in a matter of seconds – without the need to re-authenticate, re-package, or ship the item anywhere.
According to eBay, keeping high-value inventory within its ecosystem is significant for both buyers and sellers. In addition, the company says the Vault will make other planned features, like fractionalization and live commerce, possible for a wider audience. Within a few years, eBay expects the Vault will hold up to $3 billion in assets, making it one of the largest stores of non-governmental assets in the world.
Collectibles represent an increasingly important product category for eBay. The company most recently launched a new authenticity guarantee service for trading cards in January 2022. With the addition of trading cards to its authenticity guarantee service, eBay now offers authentication in four key enthusiast collector categories, including sneakers, luxury watches, luxury handbags, and sports memorabilia.
"Over the past two years, we have fundamentally changed the trajectory of our marketplace. We have demonstrated we can improve customer satisfaction, accelerate our growth, help sellers thrive and attract and retain enthusiast buyers," said Jamie Iannone, CEO at eBay. "We are building an eBay for the future by doubling down on what we do best – connecting sellers and buyers of non-new in-season products. We see incredibly compelling growth potential in this market and believe it is our opportunity to win by sharpening our focus and continuing to create value through a tech-led reimagination of eBay. We have the right team and vision to deliver on our goals and continue returning value to our shareholders."