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eBay SWOT Analysis – 2021 | SWOT analysis of eBay

 

eBay is a famous online retailer in the world. It provides a wonderful opportunity for sellers and buyers to sell and buy products on mobile devices. It was established in 1995 and the founder of this company is Pierre Omidyar. With more than 13,300 employees, it is a leading e-commerce platform and headquartered in San Jose, California. If you want to know the strengths, weaknesses, opportunities, and threats of eBay, then SWOT is the perfect tool. Today, we are going to discuss the SWOT analysis of eBay and find out its current standing in the competitive market and overall performance.

 

eBay’s Current Standing:

In December 2020, the company’s revenue increased 19 percent. In 2019, the company’s income was 1.52 billion dollars but in 2020 it reached 2.54 billion dollars. It ranked is 295 in Fortune’s 500 rankings. They earned major revenue in 2020 from international marketplaces. In short, eBay is doing really well even in the current pandemic.

eBay SWOT Analysis – 2021 | SWOT analysis of eBay

Strengths of eBay:

  • Active Buyers:

At the end of 2020, the company added more than 11 million new shoppers. It has more than 185 million active shoppers. They are responsible for the annual sales and revenues of eBay. These active buyers are the real strength of eBay.

  • Gross Merchandise:

In the US, the company experiences immense growth of nearly 23 percent. This percentage has contributed positively to the overall growth of the company. Moreover, the company has 17 percent global GMV. This shows that the company is going strong in the US and globally.

  • Pandemic-generated Shopping:

When other companies were struggling due to COVID-19, eBay was going up and up. This is due to pandemic-related shopping. Plus, they added more than 8 million new customers to their system during this period. They acquired more than 3 million users at the end of 2020. This shows the immense growth of eBay during the lockdown period.

  • Increase in International Transactions:

In terms of international transaction volumes, the company’s sale increases. They earn major profits from international markets like the US, UK, and Germany. Many people prefer to shop their most wanted products from this famous retailer. It is another major strength of eBay.

eBay SWOT Analysis – 2021 | SWOT analysis of eBay

Weaknesses of eBay:

  • Stiff Competition:

If we talk about cross-border purchases, eBay is at 3rd number among other retailers. AliExpress and Alibaba are the leading retailers on that list. They cover the entire Chinese region and Amazon is at first number in that list. Due to the presence of these heavyweights, it is really difficult to manage a strong market position because these heavyweights can disrupt eBay’s ranking.

  • Online Scamming:

As the online market is crowded with various scammers, they can also damage the company’s image and reputation. In addition, the company has experienced multiple mishaps due to these scammers. They can leak the company’s database that contains customer’s credit card information, emails, and addresses. These things can damage the overall functioning and trust of buyers. Moreover, it is really challenging to find these culprits but eBay should invest in this sector to improve its security.

eBay SWOT Analysis – 2021 | SWOT analysis of eBay

Opportunities of eBay:

  • Strong Marketplace Strategy:

eBay is trying to make its offerings different from other retailers like Amazon and Walmart. Both are bigger merchandise and strong competitors of eBay. They are focusing on used or refurbished products and consumer-to-consumer business.

  • Online Presence:

In 2020, eBay earned maximum revenue from its online mobile application. Nearly 50 million users downloaded the app. They experienced the highest GMV in the lockdown period. They also witnessed the maximum number of visitors on its website during the pandemic.

  • Promising Shoppers:

According to market experts, eBay has a wonderful opportunity to strengthen its online presence so that it can earn maximum profit. Their business increased during the COVID-19 period and it goes beyond after the COVID condition. They witnessed millions of new customers. Some online retailers like eBay have survived successfully in this period.

eBay SWOT Analysis – 2021 | SWOT analysis of eBay

Threats of eBay:

  • Portfolio Trim:

Recently, the company has sold StubHub for 4.05 billion due to activist investors. They are trimming their portfolio which can be a big threat to the revenue and sale of the company. On the other hand, the company is discovering the auction of their online market in Korea which produces 10 percent of its total revenue.

  • Price Gouging Lawsuits:

The company experienced various allegations because of the price gouging. They increased the price of their popular and most-purchased products during the lockdown. They faced huge backlash over this issue and this kind of issue can create several problems for the company and can reduce its customer base.

 

Conclusion:

There is no doubt that 2020 was a successful year for eBay. The Year 2021 is going to be a promising year for the company. Its strong cash flow, increasing profitability, and robust sales growth show the company’s performance. If they improve their online presence and remove flaws from their system then they can touch the peak. According to eBay SWOT Analysis, this is the perfect time for eBay to gain momentum. The company can take a competitive advantage over its competitors and improve its ranking in the marketplace.

 

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