Strong Q1 Performance: eBay's Q1 2025 results exceeded expectations, with gross merchandise volume (GMV) growing nearly 2% to $18.8 billion, revenue increasing over 1% to $2.58 billion, and non-GAAP earnings per share growing 10% to $1.38. This marks the fourth consecutive quarter of positive GMV growth, signaling resilience against a challenging macroeconomic backdrop.
Challenges from Tariffs and Trade Policies: Ongoing tariff changes and heightened consumer costs create considerable uncertainty for small businesses. Despite this, eBay has implemented solutions like the SpeedPAK shipping program to help sellers navigate cross-border trade complexities. Approximately 5% of total GMV is from the Greater China to U.S. corridor, with efforts focused on adapting to new trade requirements and maintaining buyer transparency.
Growth Amid Economic Uncertainty: Focus category GMV, including collectibles and fashion, has shown strong performance, with specific segments like trading cards experiencing nine consecutive quarters of growth. eBay's diverse inventory of pre-owned goods is expected to attract cost-conscious consumers during times of increasing prices, offering an opportunity for continued market penetration.