eBay's Q1 2025: Unpacking Contradictions on Tariffs, Partnerships, and Consumer Demand

Impact of tariffs on China-based sellers, Facebook Marketplace partnership expectations, consumer demand and health, impact of tariffs on GMV and revenue, and impact of marketing on traffic and ROI are the key contradictions discussed in eBay's latest 2025Q1 earnings call.



Strong Financial Performance Amidst Uncertainty:
- eBay's Q1 results included nearly 2% growth in gross merchandise volume to approximately $18.8 billion, marking the fourth consecutive quarter of positive GMV growth.
- Revenue increased over 1% to $2.58 billion, and non-GAAP earnings per share grew by 10% to $1.38.
- This performance was driven by focus category growth, geo-specific initiatives, and operational efficiencies.

Focus Category Strength:
- Focus categories grew by over 6% in Q1, now representing more than 1/3 of eBay's total volume globally.
- Collectibles was the largest contributor to growth, with year-over-year GMV growth in trading cards accelerating for the ninth straight quarter.
- This growth was supported by strategic partnerships, product innovations, and loyalty from enthusiasts.

Advertising Revenue and Strategy:
- First-party advertising revenue grew 14%, with over 3.7 million sellers adopting a single Promoted Listing product during Q1.
- Promoted Listings general ads and priority adds contributed to growth, indicating increased engagement and optimization strategies.
- This revenue growth is supported by strong demand across various ad products and geographical diversity.

Geographic Performance and Initiatives:
- U.S. GMV grew nearly 0.5%, driven by focus categories like trading cards, while international GMV grew nearly 3% on an FX-neutral basis.
- eBay's C2C initiative in the U.K. significantly improved C2C GMV trends, outperforming prelaunch baselines.
- Investments in managed shipping, buyer protection fees, and AI-driven listing tools have driven growth in these regions.