E-commerce player eBay has forecasted that its fourth-quarter revenue and profit would stand below the US financial market’s estimation, according to a media report on Tuesday.
The lacklustre prediction is likely due to the weaker-than-expected consumer spending. eBay’s shares were also down by about 6.8 per cent in trading after the bell, the report added.
Furthermore, the company’s woes are amplified by its rival Amazon which is giving it tough competition by selling the majority of consumer staples. On the other side, higher interest rates and stubborn inflation across major economies in Europe as well as in the United States have also impacted consumers’ discretionary budgets which have in turn made the Californio-based company suffer.
The report said while US online sales are expected to rise by 4.8 per cent in the holiday season between 1 November to 31 December, eBay is expected to face stiff competition to attract traffic.
It added the e-commerce platform’s web traffic continued to decline earlier this month, showing a worsening trend from July to October.
However, eBay’s third-quarter revenue rose by 5 per cent to USD 2.50 billion, in line with the US financial market prediction, an uptick in demand due to refurbished goods.
