eBay fights back with AI upgrades and a bold Depop acquisition

eBay has faced growing competition in consumer-to-consumer (C2C) trading over the past five years. While its global market share fell from around 25% to 18%, the company still reported strong financial results. Recent moves, including a planned acquisition and AI-driven improvements, suggest a push to regain momentum.

From 2021 to 2026, eBay's position weakened as rivals like Facebook Marketplace and Poshmark expanded rapidly. Facebook Marketplace, with zero fees and over 1 billion monthly users, captured 35% of the U.S. market by 2025. Meanwhile, Poshmark—acquired by Naver in 2023—grew its fashion-focused C2C segment by 40% annually, reaching a 5% U.S. share.

Despite these challenges, eBay delivered double-digit organic growth in both revenue and gross merchandise volume (GMV). Focus categories, particularly collectibles, saw a 16% GMV increase, helped by AI-powered product innovations. The recommerce segment, which avoids waste and carbon emissions, accounted for over 40% of GMV, preventing 8.2 million metric tons of CO₂ and diverting 360,000 metric tons from landfills.

Operational improvements also played a key role. AI upgrades cut listing times by more than 25% and boosted new listings by over 50%. Customer satisfaction rose above 95%. Financially, the company's take rate climbed to 14% in Q4, driven by buyer protection fees and advertising revenue. eBay returned $756 million to shareholders through buybacks and dividends, while the board approved an additional $2 billion repurchase plan and raised the quarterly dividend to $0.31 per share.

Looking ahead, eBay agreed to acquire Depop, aiming to strengthen its C2C leadership, attract younger buyers, and expand in circular fashion. The company also highlighted eBay Live and Vehicles as emerging growth areas for 2026.

eBay's latest results show resilience despite market share losses to competitors. The acquisition of Depop, AI-driven efficiency gains, and strong recommerce growth signal a strategic shift. With continued shareholder returns and new growth initiatives, the company aims to balance profitability with expansion in key segments.