EBay Shares Soar After Meta Lets Sellers List on Facebook Marketplace

(VOR News) – On Wednesday, the stock price of eBay jumped by 8% as a result of the company’s announcement that it will allow certain items to be sold on Facebook Marketplace.

Customers can interact with one another through Facebook Marketplace, which is a popular network that facilitates local item pickups and other activities.

In November 2021, eBay stock reached a record high.

According to a press statement that was made by Meta, the rollout will begin with a test in the United States of America, Germany, and France together. In the course of this test, purchasers will have the ability to view listings on Marketplace immediately, and they will be able to finish the remaining transactions on eBay.

eBay’s marketplace business has been trying to compete with other e-commerce competitors such as Amazon, Walmart, Temu, and even Facebook’s own marketplace platform, which allows users to buy and sell products.

The arrangement has the potential to provide a boost to eBay’s marketplace business, which has been struggling to compete with some of these other competitors.

In an effort to entice users and sellers to continue using its platform, eBay has recently expanded its focus to include specialised categories such as collectibles and luxury products.

This increase was made in an effort to diversify its focus. An interview with CNBC that took place in October revealed that customers were visiting the website, which is well-known for its used and refurbished products, in order to hunt for discounts in the middle of a difficult macroeconomic climate.

Jamie Iannone, the CEO of the company, indicated that customers were visiting the website in order to look for bargains.

With the intention of gaining the approval of the European Commission, which is the executive body of the European Union, Meta has decided to implement this reform.

Due to the fact that the company had linked its Marketplace product to the principal Facebook app, the European Commission imposed a fine of 797 million euros ($821 million) on the company in the month of November.

At the time, the Commission claimed that the fact that Meta was integrating Marketplace with Facebook could mean that competitors are effectively “foreclosed” due to the distribution reach of the platform. This was expressed in reference to the relationship between the two platforms.

Facebook has almost three billion users worldwide, according to eBay.

The Commission also alleged that Meta imposed “unfair trading conditions” on other online classified ads service providers who wish to advertise on its platforms, specifically Facebook and Instagram.

These providers are interested in advertising on Meta’s platforms. Furthermore, it was said that these guidelines make it possible for Meta to make use of the data that is provided by other advertisers for the purpose of the Marketplace.

In its appeal against the ruling, which was submitted at the time, Meta stated that it “ignores the realities of the thriving European market for online classified listing services.”

“While we continue to appeal the decision that the European Commission made regarding Facebook Marketplace, we are working quickly and constructively to build a solution that addresses the points that have been raised,” the company announced in a statement that was posted on Wednesday.

In order to “increase exposure to our sellers’ listings, both on and off eBay, as part of our strategy to engage buyers and deepen customer loyalty,” eBay boasted about its integration with Facebook Marketplace.

This was done in order to meet the aforementioned objectives. This action was taken in order to improve the accessibility of the e-commerce website for buyers and sellers.

In the year 2023, Facebook made an announcement regarding a relationship with Amazon that would allow customers to browse and purchase items without having to leave the app. This partnership would make using Facebook more convenient for customers.

SOURCE: CNBC

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