E-commerce firm eBay EBAY-Q beat Wall Street estimates for second-quarter revenue and profit on Wednesday, on steady demand for refurbished goods and affordable auto parts.
High interest rates have forced consumers to consider cheaper used goods, auto parts and accessories widely available on eBay, helping the e-commerce platform amid stiff competition in the online retail sector.
In recent years, eBay has repositioned itself as the go-to marketplace for collectible items, used electronics and auto parts, as Amazon.com and China’s Alibaba Group Holding take a larger share of the e-commerce market.
EBay’s shares rose 1.4% in trading after the bell, after having risen 27.5% so far this year.
To combat a challenging economy and stiff competition, eBay has turned to its so-called “focus categories” like auto parts, trading cards, handbags and watches, catering to enthusiast buyers.
The revenue for the April-June period stood at US$2.57 billion compared with estimates of US$2.53 billion.
An improving economic outlook for the year, including at least one interest rate cut and stronger consumer confidence, is expected to boost total value of goods sold on the platform.
The e-commerce platform expects revenue for the quarter between US$2.5 billion and US$2.56 billion, compared to analysts’ estimate of US$2.54 billion, according to LSEG data.
EBay posted a profit of US$224 million in the second quarter, compared with US$171 million, a year earlier.