July 10, 2014

June 2014 ChannelAdvisor Same Store Sales (SSS) for eBay, Amazon, Search, CSE and other e-commerce channels

Note: This is a monthly feature published by ChannelAdvisor highlighting the Same Store Sales (SSS) across our wide range of thousands of retailers and billions in GMV.  Details on the SSS including background, methodology, disclaimers and the 2014 schedule can be found in this post.  

Today we are releasing June 2014 SSS data for eBay, Amazon,Google Search and Google Shopping/PLA.  ComScore recently reported that US e-commerce grew at 11.8% y/y for the desktop which translates to 13.1% y/y with mobile included so that is the baseline for 2014 growth.  

We have had a lot of questions from customers about FBA recently so this month we are releasing recurring details on FBA in the new Amazon details section.

Here are the result for June 2014, the last month of Q2:

June 2014 SSS Results 

  • Amazon - Amazon's June SSS came in at 34.4%, an increase compared to May's 28.1% .  The Amazon Fire Phone was announced in June and could have caused some knock-on effects.  We have Amazon details further down in the report.  
  • eBay -  eBay's June came in at 12.3% up from May's 11.5% indicating that eBay started to recover from the double whammy of the data breach and Google Panda problems from May. We have eBay details further down in the report that show what is going on with this marketplace.
  • Other 3PM -3PM continued strong growth in June coming in at 51.5%.  While this is a decrease from 78.3% recorded in May, this channels are a bit more volatile in m/m performance than larger more established channels.  @~51%, they are growing 3X e-commerce which is quite impressive and they are our fastest growing channel.
  • CSE - Comparison Shopping Engines came in at 6.7% for June up from May's .4%.
  • Search - Search came in at 20.4% for June, an increase from May's 11.7% y/y growth.  Later in the report we have more search details.

June was a strong month for e-commerce with every channel, except 'other 3PM,' accelerating nicely.

 SSS Chart 

The following chart details the SSS data for June 2013 through June 2014: (click to enlarge)

 

   7_14_sss_overall


eBay Details

eBay's SSS for May was 12.3%.  To get a feel for what is driving the marketplace's performance, here are the interior data points for the month:

  • eBay auctions - Down 19% y/y. 
  • eBay fixed-price - Up 18.4% y/y - an increase from May's 13%, which puts this key part of eBay growing faster than e-commerce again after the May dip.
  • eBay Motors  (parts and accessories) - P+A  was down again in June coming in at  10.5% compared to May's 15.2%.  This brings P+A's growth rate below e-commerce and is the slowest SSS we have recorded since February 2013's 6.8%

 Here are the TTM (trailing twelve month) trends on these eBay internals.  (click to enlarge)

     7_14_sss_ebay_details

Amazon Details

As mentioned in the introduction, we have had many requests for any details we can provide on Amazon, specifically around Fulfillment By Amazon (FBA).  One common misperception about FBA is that sellers have all of their SKUs in FBA or none of them - effectively outsourcing their entire warehouse operation to Amazon (or not).  In reality, most sellers have 10-20% of their SKUs in FBA and use it as a way to accelerate their 3PM sales by making their products prime-eligible and also improving their chances at owning the buy-box.

The other unknown very popular feature of FBA is the ability to fulfill for any channel (not just Amazon) from FBA.  As a seller, you have to hard-commit inventory to FBA by physically sending the inventory there.  It can be very hard to predict demand and even harder to predict demand by channel.

For example, let's say I have 1000 widgets and sell on a variety of channels.  Maybe I send 500 to Amazon and have 500 in my warehouse.  Much to my surprise, I sell out of the 500 in my warehouse and have 100 left at Amazon.  I can continue to sell on all my non-Amazon channels and use the 100 items in Amazon FBA to fulfill on these channels with Amazon Multi-Channel FBA. This feature in ChannelAdvisor is ~18months old so we now have a good set of data to include.

Today we are releasing two new datapoints around FBA:

  • Percent FBA - This measures the % of Amazon GMV through the ChannelAdvisor system that was fulfilled through FBA and tracks it on a y/y basis.  For June 2014, 31.8% of Amazon GMV was FBA (therefore 68.2% was NOT shipped via FBA).  That was up from June 2013 where 28.7% of the GMV was FBA.  That's a 10.8% increase y/y in FBA as a % of GMV.
  • %FBA non Amazon - Here we look at the total bucket of FBA-driven GMV and look at the % that was not fulfilled for Amazon sales (website, other 3PMs, search, cse, etc.).  In June 2013, .9% was non-Amazon fulfilled.  Then in June 2014, we saw this grow 92% to 1.8%.

7_14_sss_amazon_fba_details

It will be interesting to track how these FBA related metrics change as we head into the ever-critical holiday period.

Supplemental data for Search

Here are the June Search internals: (click to enlarge)

7_14_sss_search_details

Note: these are all y/y SSS comparisons (June 2014 vs. June 2013).

Search SSS increased 20.4% for June which was the strongest showing since December.  The big driver, as you can see from the internals, is the AOV coming in at $137.02 which was a 7% y/y increase and the highest AOV we have measured for search.  Historically, AOV has been a good indicator of consumer sentiment.  As mentioned previously, we are definitely seeing traditional 'adwords' search appeal to higher AOV searches and Google Shopping/PLA  is picking off the more transactional < $100 items where detailed research isn't 'worth it.'

Supplemental data for Google Shopping

In September 2012, we introduced a new set of data around Google Shopping.  Here is the June Google Shopping/Product Listing Ad supplemental data:

   7_14_sss_goog_shopping

 

Overall, Google Shopping came in at 47.8% y/y increase, an increase from May's 21.4%.   The Conversion rate was up 10.5% and the AOV dipped 8.7% to $98.23 showing the other side of the AOV/ASP coin we mentioned in the Search section.

Conclusion

We hope you enjoyed our report this month and some of the new data points we provided.  June closed Q2 with strong results for most of the channels we track.  As usual we will have detailed reports from eBay and Amazon as they announce their Q2 results.

This blog post was written by Scot Wingo, CEO, ChannelAdvisor.

June 18, 2014

US Webinar: How to Go Global with eBay

Wednesday, June 25, 2014 at 2 p.m. EDT/11 a.m. PDT

 

Ah, the beauty of cross-border trade — the seller on one side of the world and the buyer on the other. Products journey through miles, languages and climates to reach the awaiting customer in a matter of days.

Cross-border trade (CBT) is actually zooming well over the speed limit. It’s forecasted that CBT will reach $307 billion by 2018 — and there’s no sign of pumping the brakes anytime soon.

So how can retailers, whether experienced or green, take advantage of this mammoth opportunity with the least risk possible? Ebay

Join us Wednesday, June 25 at 2 p.m. EDT for our joint webinar with eBay. EBay Global Shipping Team Member Aparna Lahiri and our very own Cross-Border Trading Manager Rynhardt Hanekom will share tips and tricks to help you maximize your global selling opportunities.

You’ll also find out:

  • Why savvy retailers are abandoning the traditional, expensive and risky approach to cross-border trade

  • How marketplaces can serve as an easy first step into the global arena

  • Key issues that retailers face when expanding to international markets, and how to avoid or overcome them

  • How eBay can help retailers grow with international selling and shipping solutions

CBT eBay Webinar
Sign up today
to accelerate your cross-border trade with eBay. You don’t want to get left in the dust.

 

 

Blog post by Jordan Nowlin, ChannelAdvisor social media & blog manager

June 09, 2014

PeSA Internet Conference 2014: Wrap-Up and Highlights

2014 marks the sixth year that ChannelAdvisor has participated in the Professional eBay & eCommerce Sellers Alliance (PeSA) Internet Conference. During that time, it’s been great to see the evolution of the Australian e-commerce landscape and the growing acuity of retailers in attendance. In the passage of a mere three to four years, we’ve seen conversations move from “I’m thinking of going online” to “I’m already online and selling through eBay — where to next?”

In a standout session, Jooman Park, country manager for eBay Australia and New Zealand, spoke candidly about eBay’s recent hacking, conceding imperfection and outlining the challenges the company faced. This conversation was decidedly well-received by the audience. Park went on to summarise new eBay initiatives for the year and into the future, including the much-anticipated Click & Collect service that will launch in Australia this October.

image from http://s3.amazonaws.com/hires.aviary.com/k/mr6i2hifk4wxt1dp/14061002/630e7396-756a-4d80-b96a-9252a1262dad.png

What I always enjoy the most at PeSA is talking with a cross-section of our customers, partners and new retailers, as well as delving into emerging and growing industry trends for the year ahead. Here are a few to watch: 

Growing Trends

  1. Cross-Border Trade: Given his eight years leading eBay Korea, Park brought a unique perspective to the opportunities in cross-border trade (CBT), encouraging retailers not to put it in the “too hard basket”.  While CBT may seem daunting, retailers should take comfort in knowing that better shipping infrastructures and increased customer comfort with online shopping have reduced many of the complexities involved with entering overseas markets.
  2. Mobile: According to Google, at 65%, Australia is one of the top countries in the world in smartphone penetration. And with m-commerce accounting for 40% of Australians’ online spend, there’s now a surge of retailers optimising their mobile sites and seeing real-time conversions as a result. 
  3. Social: Retailers are finding that social media is increasingly impactful and important, but not necessarily a conversion tool. Social is where the conversation starts and remains a useful avenue for brand awareness and promotion. But there’s a persistent difficulty in moulding it into a viable sales channel.   
  4. Millennials: Understanding the psychology and behaviours of this digitally native demographic is essential. Millennials are prepared to do the legwork to find the perfect product, with 72% researching online before making an in-store purchase. It’s therefore important for retailers to showcase their products across every touch point to ensure visibility and a better chance of conversion. Unlike the Gen X and Baby Boomer generations, Millennials don’t mind being tracked online: 60% are willing to provide personal information to marketers, and 29% even expect personalised messaging focused on previously browsed products.   

When crafting the presentation I gave at the conference — ‘Conversation to Conversion’ — I wanted to share my thoughts on the key strategy that ties these seemingly disparate threads together: multichannel.

Retailers are increasingly seeing the value of expanding beyond their webstore and adopting more dynamic approaches in their marketing efforts. At the same time, many still experience difficulty in mastering the basics of optimised product content and built-out data feeds, inhibiting seamless transfers to new channels. With consumers coming from different devices, different e-commerce channels, and even different regions, being visible across the web is crucial.

In my session, I also delved into:

  • The size of the market in Australia and globally
  • What today’s shoppers want
  • And how to create a streamlined e-commerce approach

For all the details, check out the full PDF of my presentation below. Already looking forward to next year!

Blog post Mark Gray, ChannelAdvisor managing director, APAC


AU-Blog-Website-ConversationtoConversion

 

Download the full presentation - Conversation to Conversion - from the 2014 PeSA Internet Conference

 

June 06, 2014

May 2014 ChannelAdvisor Same Store Sales (SSS) for eBay, Amazon, Search, CSE and other e-commerce channels

Note: This is a monthly feature published by ChannelAdvisor highlighting the Same Store Sales (SSS) across our wide range of thousands of retailers and billions in GMV.  Details on the SSS including background, methodology, disclaimers and the 2014 schedule can be found in this post.  

Today we are releasing May 2014 SSS data for eBay, Amazon,Google Search and Google Shopping/PLA.  ComScore recently reported that US e-commerce grew at 11.8% y/y for the desktop which translates to 13.1% y/y with mobile included so that is the baseline for 2014 growth.  

This month we have three new additions -two of them are one-time datapoints and one we will continue going forward.

  1. Other 3PM (Ongoing) - In the macro section we are now including 'Other 3PMs' - this stands for non eBay and Amazon third party marketplaces (3PM).  At ChannelAdvisor we support ~37 global marketplaces. While eBay and Amazon are the biggest domestic players, other marketplaces we we have announced include BestBuy, Sears, La Radoute, Newegg, OneStopPlus, Play.com (UK), Buy.com/Rakuten Shopping, Shop.com, Tesco (UK), Trade Me (NZ) and several others that are now generating enough y/y GMV now as a group that we are going to start including them going forward.  They are not in the chart because this is the first month, but the summary data is included.  We recently announced support for MercadoLibre and Alibaba's Tmall Global - those will have to annualize before we include them in our data.
  2. Golf (one time)- In late May, when Dick's Sporting Goods (DKS) announced their Q1 results, they talked about pressure in their golf business, with some lines of business down as much as 10%.  At ChannelAdvisor we have a lot of golf customers and we had many requests from them to do a bit of a deeper dive on this category.  Were we seeing the same headwinds that DKS mentioned?  This data is included in the May results section.
  3. eBay Breach/Panda (one time) - Finally, eBay had two unusual events happen in May.  First, on May 21 eBay announced they were dealing with a data breach from hackers.  Then on May 22 it was reported that Google's Panda 4.0 release caused anywhere from 40-80% of eBay's pages to be de-indexed.  (There are lots of theories on this, the prevailing theory is this was a 'manual action' from Google due to eBay's SEO strategies pushing the envelope). In any case, on May 21/22 we had two serious changes.   We have been flooded with questions and comments from customers about both topics.  How much did this impact eBay?  My traffic is down as much as 50%, what should I do, etc.

For ~13yrs now we have been strong advocates for online sellers/retailers of all sizes to have a diversified portfolio of e- commerce channels.  Events like these, though unfortunate, hopefully help folks realize that if they have all of their eggs in one basket, they have material risk to their business.  The good news is there have never been more e-commerce channel options than there are today and as you will see in the data, even if one channel comes under pressure, there are always areas of growth in our industry that is growing 15%.  It's never been more important to make sure you have balanced your risk AND put your business in the fastest growing channels so you don't miss opportunities.

Now that we have introduced these three new datapoints, let's dig into the results from May, the middle month of Q2:

May 2014 SSS Results 

  • Amazon - Amazon's May SSS came in at 28.1%, an increase compared to April's 27% .  Amazon plans to release a new device (smartphone is leading thought) in mid-June which we will be watching closely.
  • eBay -  eBay's May came in at 11.5% down from April's 14%. We have eBay details further down in the report that show what is going on with this marketplace.
  • Other 3PM - As mentioned in the intro, we are excited to expand our regular same-store-sales  reports  starting this month to include 'other 3PMs' - those marketplaces grew 78.3% y/y on a same-store-sales basis.  While these channels are not as big as the eBay and Amazon, our customers are seeing  strong growth in these channels.
  • CSE - Comparison Shopping Engines came in at .4% for May up from April's down 9% (driven by softness in the non PLA engines).
  • Search - Search came in at 11.7% for May, an increase from April's 4.3% y/y growth.  Later in the report we have more search details.

Based on the questions we received from customers in the golf category, we ran a special report this month to track that category across our marketplace channels.  What we did here is create a basket of ~100 golf sellers and compare their SSS sales for 2014.  Here is the data in table and chart format:

May_14_sss_golf_trends

May_14_sss_golf_chart

 

What we see here is a trend that reflects what DKS reported, but instead of in Q1, more Q2 deceleration.  Q1 was lumpy but came in around 10% y/y growth for both eBay and Amazon.  Here in Q2, we see that golf is at best flat (eBay) and at worst down single digits y/y in April/May for Amazon.   I'm not a golfer (unless you count Tiger Woods on Xbox), so I polled some of our customers and the general feedback I received was in three buckets:

  • There haven't been any big releases (e.g. new club technologies from Nike, Titleist, TaylorMade, etc.) to drive the industry
  • Tiger Woods not being active in the Masters was a negative for the industry
  • Weather in the midwest and NE has dampened Q1 results

Folks are optimistic that the US Open (here in NC this year FYI!) will help Q2 as that is in mid-June.  One negative, Tiger announced he will not be participating.

We'll report on Golf next month - let us know if you like this kind of category-specific spotlight and we will consider making it a regular feature.

SSS Chart 

The following chart details the SSS data for May 2013 through May 2014: (click to enlarge)

  May_14_sss_total_chart

  (note that 'other 3PMs' are not on the chart this month, but will begin next month when we have > 1 data point)

eBay Details

eBay's SSS for May was 11.5%.  To get a feel for what is driving the marketplace's performance, here are the interior data points for the month:

  • eBay auctions - Down 11.1% y/y. 
  • eBay fixed-price - Up 13% y/y - While a decrease from April's 18.1%, this is still a good showing considering e-commerce is growing at ~15%.
  • eBay Motors  (parts and accessories) - P+A  was down slightly in May coming in at  15.2% compared to March's 15.6%.  While this was a slight decrease, it is still relatively strong when you look at e-commerce growth.

 Here are the TTM (trailing twelve month) trends on these eBay internals.  (click to enlarge)

    May_14_sss_ebay_details

As mentioned in the intro, we also did an analysis to see if we could measure any impact on eBay's SSS growth around the time of the breach and Panda hitting (May 22).  This table splits May into before breach (May 1-21) and after breach (May 22-31). 

May_14_sss_breach_panda

To have a 'control' in the analysis, we did the same segmentation on Amazon.  What you see is Amazon grew 3.3% slower in the 'after breach' period.  When you start to look at these shorter periods of time, there are many reasons around these types of small movements  such as the days of the week included in the past/current period, weather trends and other externalities.   So if we think of Amazon difference as the 'norm' and then look at the eBay components:

  • eBay was down 5.4% or 2.1% more severe than the 'norm'
  • Inside of eBay you see that FP and P+A were down 6.2% and 7.1%, but about double of the control
  • Counter to the above, Auctions were up slightly.  Two thoughts here: 1. Auctions are very small and ChannelAdvisor is under-indexed compared to eBay. 2. Auctions have 7-day lives, so historically have taken 7-10 days to show trends that we see in FP/P+A, so there is a bit of lag effect here.

Our conclusion is that there does to seem to be an impact on the eBay business from Panda/breach.  It's impossible to know if it was Panda or breach related or how long it will last.  The good news is that even though there was a hit eBay still grew ~8%.  In June we'll have a complete month to see the impact and will obviously be following this closely.

Supplemental data for Search

Here are the May Search internals: (click to enlarge)

May_14_sss_search

  

Note: these are all y/y SSS comparisons (May 2014 vs. May 2013).

Search SSS increased 11.7% for May and you can see it was primarily driven by a bump in clicks and conversion rates which yielded more orders.  AOV was under a bit of pressure, but the tick up in CR more than made up for that, causing retailers to bid up CPC's 4%. 

Supplemental data for Google Shopping

In September 2012, we introduced a new set of data around Google Shopping.  Here is the May Google Shopping/Product Listing Ad supplemental data:

  May_14_google_shopping

 

Overall, Google Shopping came in at 21.4% y/y increase on a SSS.   This program continues to age and you can see that while the conversion rates continue to grow nicely (up 29% y/y) the AOV has come down ~20%.  This a headwind on the program and shows that more merchants are pouring into the program and increasing selection.

 

Conclusions 

We hope you enjoyed our report this month and some of the new data points we provided.  Hopefully they help you think about creative ways to grow your e-commerce business.  Our next SSS post will be in July when we look at the June 2014 data to see how the end of the second quarter performed for the top e-commerce channels.

This blog post was written by Scot Wingo, CEO, ChannelAdvisor.

May 27, 2014

How Much Was eBay Affected by Google’s Panda Update?

Google’s most recent Panda update, known as Panda 4.0, rolled out on May 20, causing many retailers to wonder how their listings would be affected by the SEO algorithm. Introduced in 2011 and updated periodically, the algorithm is meant to filter low-quality content from showing up on Google’s top organic search results pages.  

As intended, Panda 4.0 brought increased quality to search results. There has been some speculation that eBay may be affected by this update due to its use  of “doorway pages,” or pages designed to rank high but are perhaps thin in content.  

We decided to take a closer look to determine the real impact to eBay. To demonstrate how Panda affects eBay listings, we ran a test, focusing on consumer electronic goods.

How It Worked

Say you’re searching for buy cheap used iphones. Ninety days ago, eBay had positions four and five locked down with these two URLs:

These pages are great examples of doorway/category pages with thin content. Today, they and thousands of other pages like them are gone from the Google search results. But not to worry: These eBay pages were replaced with new pages, which lost an average rank of 3.88 places overall. Most “double” listings (pages from the same site that rank high for the same keywords) were lost as well, reducing page dominance.

EBay pages are still showing up for buy cheap used iphones — just now in position six. This ranked eBay page is a content-heavy buying guide. The new twist is that this content isn’t completely controlled by eBay staff, as doorway pages were. EBay buying guides can be authored by eBay or eBay registered users. From an SEO perspective, they function much like an About.com page — meaning that they have lots of educational content about the search query topic. Many of the pages created by sellers are quite useful, which is a bonus for both retailers and shoppers.

SEO_screenshot_PANDA1


Here are examples buying guides that show up now on the Google results page:

 

 

 

 

 

 

 

 

 

The disappearing act repeats itself for any doorway page within the /bhp/ directory:

/bhp/ directory

Sellers and Shoppers Are the Winners

The good news is that while we’re seeing the doorway pages disappear from rankings, they’re being replaced by higher quality pages that provide a better shopping experience and better highlight sellers’ listings.  

For example, pages like http://www.ebay.com/bhp/used-iphone-4 (which is “stuffed,” or smattered, with the keywords iphone and used) were replaced by new, higher quality shopping pages such as http://www.ebay.com/sch/cell-phones-smartphones-/9355/i.html.

Allow me to get a little technical for a moment. The primary difference between these two pages is that the page that is now preferred by the Panda 4.0 algorithm has the following characteristics:

1.  Adherence to eBay’s “natural” architecture, rather than a manual configuration of the page content and its navigation

2.  Freshness: Because this is a link to a dynamic search, the listings featured are constantly refreshing as some listings end and new ones appear

3. Scoring user intent via direct keywords (e.g., top rated cell phone) as well as inferred keywords (e.g., top rated — and cell phone is inferred)

4. No keyword stuffing

5.  Uses URL rewrite for dynamic search pages (URL rewrites are the manual renaming, or “translating” of URLs into simpler and more memorable names for an end user)

For eBay as an advertiser, a minor drop in ranking is less of a concern because the newly ranked pages provide a better experience for shoppers and sellers.  

How Popular Are You?

Category pages listed in http://popular.ebay.com/ created most of the new increases in eBay rankings.  Any new category added to this human-edited Yahoo-style directory did very well in the update. Many of the //popular.ebay.com/ rankings replaced user-generated eBay “Collections” pages:

popular.ebay rankings

In short, we see the Panda update as a positive one for retailers. Though it does change which eBay pages appear higher in search rankings, eBay listings are still showing up. What’s more, the pages that are showing up are listings that are more relevant to both retailers and shoppers.

Note: The keyword sample we used:

[used iphones, buy used android phones, buy used blackberry, buy used cell phones, buy used galaxy s ii, Buy used iphones, buy used smartphones, cheap used android phones, cheap used blackberry, cheap used cell phones, cheap used iphones, cheap used smartphones, refurbished att phones, refurbished verizon phones, review used android phones, review used galaxy s ii, review used iphones, review used verizon phones, Used Android Cell Phone, used android phone, used att phone, used blackberry, used cell phones, used galaxy s ii, used iphones, used mobile phones, used smartphones, used verizon cell phones, used verizon mobile phone, used verizon phone]

For more details about our test and how we set it up, please email us at info@channeladvisor.com.

 

Blog post by Tansy Obryant, ChannelAdvisor SEO strategist.

May 21, 2014

The eBay Seller Release (continued): An Important Update About Refunds

Much has been made over the new eBay Defect Rate. It was the centerpiece of the changes introduced in eBay’s Seller Release (SR14.1) back in March, because it realigned the metrics used to determine a seller’s status into one measurement.

EBaySo far, we’ve tried to keep you informed of the changes and their implications through blog posts, webinars, additional blog posts and updates. But we’re happy to inform you that we decided to take it one step further and do some of the critical work for you.

Because a refund for a returned item that is submitted without a dispute — or case — will now result in a defect, the ChannelAdvisor platform will begin automatically creating eBay disputes for certain refunds submitted to ChannelAdvisor for eBay transactions. The transactions must meet the following criteria:

1. The order has been marked as shipped by the seller.

2. The refund submitted is at least 100% of item value.

3. No previous disputes have been submitted for the transaction.

This change will go into effect on Wednesday, May 21, 2014 and will be retroactive for refunds submitted since May 1, 2014.

As we detailed previously, eBay’s defect calculation currently considers refunds for shipped items as "seller-cancelled" due to being out of stock if eBay is not otherwise notified of the refund. Therefore, to protect your seller status, it's important to notify eBay, via a dispute, that a refund is coming.  

With our platform update, we have automated this manual process on your behalf and will now initiate a dispute before you get into a situation that can ultimately hurt your reputation on eBay.

As partial refunds do not count as "seller-cancelled" transactions, disputes will not be created in these cases. We’ll keep you updated if this policy changes.   

ChannelAdvisor continues to be committed to providing best-in-class solutions to help sellers manage these types of changes. Please contact ChannelAdvisor Customer Support with any additional questions.  

May 12, 2014

April 2014 ChannelAdvisor Same Store Sales (SSS) for eBay, Amazon, Search and CSE

Note: This is a monthly feature published by ChannelAdvisor highlighting the Same Store Sales (SSS) across our wide range of thousands of retailers and billions in GMV.  Details on the SSS including background, methodology, disclaimers and the 2014 schedule can be found in this post.  

Today we are releasing April 2014 SSS data for eBay, Amazon,Google Search and Google Shopping/PLA.  ComScore recently reported that US e-commerce grew at 11.8% y/y for the desktop which translates to 13.1% y/y with mobile included so that is the baseline for 2014 growth.  To put that into perspective, eBay reported US GMV grew at 11% y/y and Amazon's EGM category grew 27% y/y.

With those data points in mind, let's dig into the results from April, the first month of Q2:

April 2014 SSS Results 

  • Amazon - Amazon's April SSS came in at 27%, an increase compared to March's 26.2%. Note that Amazon had a big PR win with the launch of Amazon Fire TV on April 2.  These launches usually 'spill over' into increased e-commerce sales, so that could be one of the drivers here in April.
  • eBay -  eBay's April came in at 14% down from March's 17.8%. We have eBay details further down in the report that show what is going on with this marketplace.
  • CSE - Comparison Shopping Engines came in at - 9% for April down from March's 3.1% (driven by softness in the non PLA engines).
  • Search - Search came in at 4.3% for April, a decrease from March's 11.2% y/y growth.  Later in the report we have more search details.

Reviewing these results, the marketplaces grew faster (Amazon) than e-commerce and in-line (eBay) while the digital marketing channels (Search and CSE) came in below the e-commerce growth rate on a SSS y/y basis. 

SSS Chart 

The following chart details the SSS data for April 2013 through April 2014: (click to enlarge)

April_14_sss_overall_chart

  

eBay Details

eBay's SSS for April was 14%.  To get a feel for what is driving the marketplace's performance, here are the interior data points for the month:

  • eBay auctions - Down 14.5% y/y. 
  • eBay fixed-price - Up 18.1% y/y - While down from March's 21.5%, this is still a good showing considering e-commerce is growing at ~15%.
  • eBay Motors  (parts and accessories) - P+A  was down slightly in April coming in at  15.6% compared to March's 19.7%.  While this was a slight decrease, it is still relatively strong when you look at e-commerce growth.

 Here are the TTM (trailing twelve month) trends on these eBay internals.  (click to enlarge)

   April_14_sss_ebay_details


Supplemental data for Search

Here are the April Search internals: (click to enlarge)


  April_14_sss_search_details

Note: these are all y/y SSS comparisons (April 2014 vs. April 2013).

Search SSS increased 4.3% for April and you can see it was primarily driven by pressure on conversion rates (march was 3.04%) and CPCs (down 1% y/y and down from $.47 in March).

 

Supplemental data for Google Shopping

In September 2012, we introduced a new set of data around Google Shopping.  Here is the April Google Shopping/Product Listing Ad supplemental data:

April_14_sss_google_shopping

 

Overall, Google Shopping came in at 7.8% y/y increase on a SSS.   This program continues to age and you can see  that while the conversion rates continue to grow nicely (up 8% y/y) the AOV has come down ~11%.  This a headwind on the program and shows that more merchants are pouring into the program and increasing selection.

 

Conclusions 

We hope you are able to use the data provided here to benchmark how your e-commerce channels performed to your peers.  

Our next SSS post will be in June when we look at the May 2014 data to see how the middle of the second quarter performed for the top e-commerce channels.

This blog post was written by Scot Wingo, CEO, ChannelAdvisor.

 

May 07, 2014

The eBay Seller Release (continued): Reduce Your Defects

Since the announcement of eBay’s Seller Release (SR14.1) in March, we have tried to keep you informed regarding each of the changes that the release brought and what effects they might have on your eBay seller rating.

After our initial blogs and webinar outlining the release and the new eBay Defect Rate (eDR), we published The eBay Seller Release (continued): Your Questions, Our Answers, based on your specific follow-up questions.    

EBayToday, we have several additional updates about the eBay Seller Release that we wanted to clarify — specifically, how to mitigate your risk of getting defects:

1. UPS Mail Innovations

In our webinar, we mentioned that there were tracking validation issues for some orders shipped via UPS Mail Innovations. This issue is now resolved. Sellers simply need to make sure that the shipping carrier "UPS Mail Innovations" is selected for all shipments using this service, rather than USPS, and the tracking will validate correctly. Further clarification: UPS Mail Innovations has been, and continues to be, a fully-supported shipping carrier for eBay.  

2. Managing refunds  

For orders that have been shipped and need a full refund issued, be sure to create a dispute prior to submitting a refund.  EBay does not currently exclude shipped items from being considered "seller-cancelled" due to being out of stock, so it's very important to notify eBay that a refund is coming via a dispute. Please be advised that partial refunds do not count as "seller-cancelled" transactions. 

Stay tuned for more information, as we will continue to look for ways to help our sellers maintain the best seller reputation possible on eBay. And as always, feel free to email any additional questions you might have to info@channeladvisor.com.

For more information on the eBay Seller Release (SR14.1), read the two-part blog series by Scot Wingo, ChannelAdvisor CEO, and Jenny Hock, product manager, in which they take an in-depth look at all the specific updates and implications for your business. Or if you haven’t already, download the webinar and listen to Scot and Jenny walk you through the changes.

Blog post by Jenny Hock, ChannelAdvisor product manager.

April 30, 2014

eBay's Q1 2014 Results - A Seller-Oriented Deep Dive

Yesterday, April 29 2014, eBay announced their Q1 2014 results.  The results were largely mixed at a corporate level:

  • Overall Revenue - Beat expectations coming in at $4.3b, above the range and wall St. expectations.
  • Payments - PayPal did very well and is growing much faster than e-commerce.  We don't cover payments here, but a couple of tidbits are toward the bottom of the post.
  • Tickets - Management talked about 'competitive dynamics' and pricing, specifically calling out marketplaces and tickets/StubHub.  Some analysts have mentioned a price war with venues with Ticketmaster that's outside of the scope of what we cover.
  • Marketplaces - We'll dig into this one, but largely the MP segment under-performed growing at 11% vs. e-commerce's 15% growth rate.
  • $6b to play with - In a surprise move, eBay is moving $9b from offshore, paying $3b in taxes for a net $6b.  This has caused massive speculation around what the company may/may-not use the cash for.  I throw my top three guesses into the ring at the end.

 

Marketplace segment key metrics and analysis

Here is our dashboard of highlights

Ebay_q1__14_dashboard

There's a lot going on, here are the key things we're keeping an eye on:

  • GMV Growth - It was a bit disappointing that overall GMV grew 11%  with the US slowing down from 14% in Q4 and under-performing e-commerce growth (15%), expectations and our Q1 eBay SSS data (15.2). International GMV accelerated a bit from Q4's 10% showing a 11% y/y increase in Q1.  In the next section we dive into this GMV slowdown.
  • Sold Item Growth - At eBay (compared to Amazon), this metric 'matters' more because it is more relevant and tends to track GMV unless AOVs increase/decrease materially (which is why we watch it).  Sold items came in at 11.4%, a bit of an increase from Q4.
  • Active users - This was the bright spot for the marketplace segment.  Active users grew to 145m - a 14% y/y growth rate which means 4.7m new buyers came to the platform in Q1.  This is the best signal of the future we have and it was great to see this metric coming in with good momentum.  eBay's management talked about 6.5m total users coming from mobile (across all business units) so I imagine a big chunk of those 4.7m are coming from eBay's strategic mobile push.  Note: eBay changed this metric this Q and did it retroactively to be focused on active buyers and include 'off platform' businesses such as Gmarket, internetauctioncompany (IAC), etc.

 

GMV Growth slowdown

For sellers, the biggest headline from Q1 is the slowdown in US GMV.  Donahoe called out a couple of interesting tidbits on the call related around this:

  • Top Rated Sellers (TRS) was 48% of GMV (conversely non-TRS was 52%)
  • 53% of transactions featured free shipping (47% did not)
  • Cross-Border-Trade was 24% - this is a new high watermark, but it wasn't exactly clear if this includes PayPal or was a specific marketplace metric.
  • Fixed-price grew 20%
  • Auctions were a pain point, down 6%
  • Top-Rated sellers grew at 19% on a SSS basis according to eBay (they are search advantaged, so this isn't a surprise).
  • Competition -management did say that they are facing a fair amount of competition and specifically pricing.  This was mentioned in the context of stubhub and marketplaces, so it wasn't clear if there was anything specific to marketplaces here.

We get asked a lot why our SSS doesn't track eBay's results and one big reason is that our customers have for the most part moved off the auction format, so our data has a higher FP/Auction mix vs. eBay overall.  Also, we believe our customers have a strategic advantage due to our technology platform which allows them to grow faster and more efficiently.

Category details - stay tuned

One of the most popular features of our quarterly review of eBay results is the category data.  Unfortunately eBay has decided they are not going to publish this data going forward.  Last quarter's presentation will be the last time we are able to provide this data.  You may want to bookmark it here.

eBay GMV vs. Amazon GMV - The battle for the largest MP in the US

Usually as part of our Amazon coverage, we show the relative GMV for both eBay (ex-autos) and Amazon (ex-1P), but given the change of the order, we are including it here:

Q1_14_ebay_vs_amazon_3p

For Q1, eBay pulled ahead of Amazon's seasonally strong Q4 with $20.5b in GMV vs. Amazon's $19.1b.  What's interesting is the gap is the smallest it has been since I've been following this if you exclued the Q4 spikes.  Given eBay's ~12% growth rate vs. Amazon's ~23% growth rate, the lines appear set to cross in the near future, which would mean Amazon would be the largest US marketplace (of course this assumes steady growth rates, which is rarely the case but it's an interesting thought experiment).

I built a model for this that takes those growth rates out the next 18 months and the 'lines cross' in Q3 2014, here it is in the same chart: 

Q1_14_projected_ebay_vs_amazon

Alibaba's Tmall/Taobao had > $160b in GMV last year so it is at a run-rate that is about the size of eBay+Amazon, which gives it the title of the "Worlds largest marketplace".

You know what's cool? Six Billion

eBay's move of $6b lit up our phone with Wall St. folks asking who eBay could/should buy.  PayPal has a ton of momentum and management focus, so I'm going to go with a big payments move as my top two choices.  Here are the top three guesses:

  • Square - There have been reports that Square is for sale and I believe this would be a great addition to the PayPal platform.  Anecdotally, I never see the PayPal 'triangle' at merchants whereas Square is becoming ubiquitous. 
  • Stripe - eBay acquired Braintree, but many developers for mobile prefer Stripe.  If PayPal wants to totally dominate mobile payments, I believe they need to pick up Stripe before an Apple, Google, FB, Twitter pick it up.
  • Mercado Libre - If eBay wants to get serious about LATAM, they could buy the ~80% of MELI that they don't own already.  I think this is a long shot given the priority and opportunities in payments.  Another long-shot on this theme would be SnapDeal in India where eBay is also an investor.

Conclusion

The eBay marketplace is facing some headwinds due to increased competition and consumers continue to be voting with their wallets and choosing fixed-price vs. auctions.

If you are a seller, your action items from the Q are pretty clear:

  • A diversified strategy with many marketplaces and e-commerce channels is the best protection against any one channel having headwinds.
  • The 'quadrant' of fixed-price and TRS is where the growth is at eBay - the playing field is tilted heavily this way, so for most sellers it is worth the economic cost hit to be here.
  • Remember that eBay's new Defect Rate (one measure to rule them all) effectively goes into effect May 1.  In light of this Q's results, it is even more important to make sure your seller reputation is very solid and you maintain TRS status going into the rest of the year.  ChannelAdvisor customers -your account manager can work with  you  through this to help  make sure you are in great shape and ahead of the pack going into Q2.

Scot Wingo wrote this blog post. I am CEO of ChannelAdvisor.

 

April 29, 2014

eBay Q1 2014 results preview (seller oriented metrics)

Today (Tuesday 4/29/14), eBay announces Q1 2014 results after the market closes (~4:30pm ET).   In this post we preview the Q1 report and provide an overview of what we will be watching for from a seller's perspective.

This quarter, Amazon reported before eBay, so check Amazon Strategies here to see their key performance measures.

ComScore has Q1 e-commerce growth at 15%, so that's the bar eBay has to meet/beat to grow faster than e-commerce.  Also:

  • Amazon's revenue grew 23%
  • Amazon's GMV for Q1 was $19.75b and the eBay projection is $20.5b, so looking to beat Amazon.
  • Active users for Amazon grew 17% to 244m
  • Amazon paid items grew 23%

Our average Q1 SSS increase for eBay's GMV was 15.2% which is in-line with the comScore e-commerce number. 

eBay Q1 2014 Dashboard

As usual, before the results, we are publishing our dashboard so sellers/retailers can track the relevant pieces of the results:

  Ebay_q1_preview_dashboard


Shortly after eBay announces, we will update the dashboard with the actuals to see how they did vs. their guidance, Wall St. expectations and the e-commerce baseline 15% growth rate.

What else are we looking for?

In addition to the "usual suspects", we'll be watching for these trends:

  • eBay continues to focus on CBT with their Global Shipping Program.  We'll be watching to see if eBay has any new data points here.
  • Mobile mobile mobile - eBay likes to reveal some interesting mobile stats which we watch with interest. 
  • Any insights into user growth are always of interest
  • Growth rate of top-rated sellers vs. above-standard sellers.
  • Weather - in our SSS data, January was slow for eBay and Amazon, it will be interesting to see if eBay discusses this as a weather-related phenomena on the call.
Scot Wingo wrote this blog. He is CEO of ChannelAdvisor.