eBay Leadership Discusses AI Strategy, Growth Initiatives, and Financial Outlook at Goldman Sachs Communacopia + Technology Conference 2025

Key Takeaways

TL;DR: eBay mgmt voiced strong conviction in AI-driven innovation & category focus to unlock GMV, enhance seller/buyer UX, and drive profitable growth despite macro/competitive headwinds. Ads & C2C initiatives are key tailwinds for margin/take rate accretion. Cross-border logistics & “Live” features further differentiate eBay. Capital returns (buybacks, divs) remain intact.

Key Investment Topics & Insights

1. AI-Driven Transformation & Platform Enhancement

• Strategic centrality: “We’re really leaning into AI and how we leverage that to take all the friction out… and create game-changing experiences for our customers.”
  • AI at scale: 200mn+ listings via “Magical Listings”; AI powers prod. recognition, auto descriptions, pricing suggestions, image beautification.
  • End-to-end focus: AI for seller support (auto-responding to buyer Qs, incl. multi-language), buyer discovery (“Shop the Look,” endless feeds), and internal automation (code, finance, legal).
    • Quote: “It’s easier for me to talk about where we’re not using AI than where we are.”
  • Op. leverage: AI cuts manual work (eng, back-office); proprietary LLMs/supercomputers drive cost-efficient GenAI adoption (“within 4%–5% of CapEx”).
  • Employee adoption: “AI Week” events, cross-team excitement, rapid efficiency lift (e.g., coding down from 4d to 2h).

2. Focus Categories & Enthusiast Buyers

• Category focus: Now covers >1/3 of GMV, with runway to expand.
  • Enthusiast buyers: 16mn (~12% of buyers, ~70% of GMV), $3.2K/yr spend each; strong cross-category engagement & conversion to sellers.
    • Example: Handbag buyers >$500 avg. $1.5K on handbags, plus ~$7K outside handbags on platform.
• High-margin verticals/capabilities: Authenticity, guaranteed fit (motors), partnerships (e.g., Marks & Spencer pre-owned in UK, McLaren).

3. Cross-border Trade & Competitive Positioning

• Cross-border trade = 20% of GMV, core eBay edge.
  • “We opened up access to 190 mkts…our job is to make their lives easier.”
  • Logistics investments: “eBay International Shipping” expands to Canada (“ship domestic, eBay handles the rest”); SpeedPAK/other solutions boost China/Japan flows.
    • Designed to reduce friction & expand seller opp. globally.

4. Advertising Biz (1P)

• 1P ad rev. +17% YoY (last Q); “healthy way” w/ strong ROAS.
  • Promoted Listings (on/offsite), new seller dashboard w/ AI-powered recs.
  • Medium-term target: 3% of rev. (not a ceiling); “long runway of opp.”
  • Ads & fintech (Seller Capital) cited as take rate accretive.

5. Consumer & Macro Landscape