In Q4 2024, eBay saw its Gross Merchandise Volume (GMV) grow faster than revenue for the first time in years, driven by strategic investments in the UK market and expanded AI tools, alongside strong advertising revenue growth.
In the fourth quarter of 2024, eBay reported notable financial results revealing a shift in the relationship between its revenue growth and Gross Merchandise Volume (GMV) growth. For many years, eBay’s revenue had been increasing at a faster pace than its GMV, largely driven by income from advertising and payment-processing fees. However, in Q4 2024, GMV growth outpaced revenue growth on a year-over-year basis.
eBay’s revenue for the quarter reached $2.6 billion, marking a 1% year-over-year increase on both an as-reported and a foreign exchange (FX)-neutral basis. Meanwhile, GMV climbed to $19.3 billion, up 4% as reported and 3% on an FX-neutral basis. For the entire year, eBay posted revenue of $10.3 billion, a 2% increase compared to 2023, while GMV rose to $74.7 billion, representing 2% growth as reported and 1% on an FX-neutral basis.
Jamie Iannone, eBay’s CEO, commented on the results in the company’s press release, stating, “eBay achieved three consecutive quarters of GMV growth to end 2024, and we took significant steps toward our vision of reinventing the future of ecommerce for enthusiasts. I’m proud of how the team has innovated for our buyers and sellers, which has driven significant value for shareholders.”
eBay’s Chief Financial Officer, Steve Priest, added, “eBay delivered strong results in the fourth quarter, as we met or exceeded expectations across our key financial metrics. We created a solid foundation to build upon in 2025, and our outlook reflects our confidence in eBay’s ability to drive sustainable, long-term growth.”
In addition to its financial performance, eBay highlighted several business developments that are particularly relevant to sellers on its platform. The company made significant investments in its U.K. market to enhance the customer experience for consumer-to-consumer (C2C) sellers. Improvements include a simplified listing flow on the mobile app, the introduction of eBay Balance and Managed Shipping, and upgraded local pickup and discovery features. Notably, eBay eliminated final value fees and regulatory operating fees for U.K. C2C sellers across all categories except motor vehicles.
eBay has also expanded its use of artificial intelligence (AI) with the rollout of an AI-powered magical bulk listing tool. Initially launched for Sports Trading Cards, this tool is now available for all categories in the U.S., helping sellers create detailed and visually appealing listings more quickly.
On the advertising front, eBay’s total advertising revenue in the fourth quarter was $445 million, which accounted for 2.3% of the company’s GMV. First-party advertising products contributed $434 million of this revenue, showing strong growth of 18% on an as-reported basis and 16% on an FX-neutral basis.
The full details of eBay’s Q4 2024 performance and business initiatives can be found in the press release published on the eBay Inc. website.
Source: Noah Wire Services
