eBay is going back to its roots after years of losing its battle with Amazon.
In an interview with the Financial Times on Friday, Oct. 21, CEO Jamie Iannone said that the company is confident that a rise in demand for used luxury goods and a move back to its roots as a place for used items will help eBay turn things around.
Iannone said, “We’re putting our money where Gen Z and millennials are.” “Sustainability and “re-commerce” are getting a lot more attention. eBay is really the first of its kind, and that gives us a chance.”
The Financial Times report said that this change is happening at the end of a year in which eBay’s market value has dropped from its peak of $53 billion in October to about $21 billion this week. During the pandemic, eBay had a short-lived boom, which caused its market value to rise.
But in the past few weeks, companies like LVMH, Hermes, and Kering have reported earnings that show that wealthy people still want and can pay for luxury items.
“For the time being, we don’t see any signs of a slowdown in any of our markets,” Eric du Halgouet, Hermes’ Executive Vice President of Finance, said recently. He also said that the company plans to raise prices by 5% to 10% at a time when most retailers are cutting prices to get rid of their overstocked goods.