The first thing ever sold on eBay was a broken laser pointer. In 1995, founder Pierre Omidyar listed the item to test the idea of an online auction. A bidding war ensued, and the pointer sold for $14.83. From that humble start, eBay grew into a vast online bazaar. By 2005 it was worth almost $80 billion — about four times the value of a then-smaller rival called Amazon.
That shine slowly faded as customers migrated to bigger platforms and niche marketplaces. But over the past few years, eBay has mounted a surprising comeback.
Its first-quarter results tell the story: sales grew 17% year on year, and the number of active buyers — which had been falling — has stabilised at around 135 million annually. Investors have noticed. eBay's share price has jumped roughly 150% since the start of 2024. So appealing has the company become that GameStop, the video-game retailer beloved of retail investors that has been expanding into collectibles, has reportedly offered to acquire it for $56 billion.
A New Direction
The turnaround began with a new leader. Six years ago, Jamie Iannone — a former eBay manager who had gone on to work at Walmart — returned to take charge. He found a platform losing ground on multiple fronts: to giants like Amazon and Walmart, which offered vast product ranges and fast logistics, and to specialist second-hand platforms like the RealReal (fashion resale) and StockX (sneakers).
Iannone's response was to lean into what he calls the "heritage of eBay": used, refurbished, and out-of-season goods. Rather than competing across everything, he narrowed the focus to a handful of priority categories — collectibles, fashion, and car parts — which together account for a third of the total value of goods sold on the platform.
In these areas, eBay worked to rebuild customer trust. Taking a cue from rivals like the RealReal, it introduced authentication services for high-value items. A set of Pokémon cards or a Gucci handbag can now be shipped to one of eBay's experts for verification before a sale is completed. Some refurbished goods come with warranties.
Acquisitions and Tools
eBay has backed its focus categories with strategic purchases. It acquired Goldin, a collectibles marketplace, in 2024. The following year it bought Caramel, a car-selling platform. In February, it acquired Depop — the popular second-hand fashion app — from Etsy.
The platform has also invested in making buying and selling easier. Sellers praise its international shipping service, which lets them hand off foreign-bound packages to eBay, which handles customs forms and tariffs from there. AI-powered tools now help sellers create listings with less effort. High-value trading cards can even be stored in an eBay-run, climate-controlled vault in Delaware, allowing ownership to change hands without physical delivery.
To fund these improvements, Iannone has been cutting costs elsewhere. In February, eBay announced it would lay off 800 staff — about 6% of its workforce.
Tailwinds and What Comes Next
The turnaround has also been helped by broader trends. The trading-card market has remained strong, buoyed by a surge in disposable spending during recent years. Demand for second-hand clothing is growing fast, particularly among Gen Z. And rising gold and silver prices have boosted sales of bullion and collectible coins.
Even with these tailwinds, the revival is notable. As one analyst at research firm MoffettNathanson observed, online marketplaces are especially difficult to turn around: once buyers start leaving, sellers follow them out the door.
GameStop's situation offers a useful contrast. Its revenue fell 14% in its most recent quarter as e-commerce has continued to erode its physical retail business. A tie-up with eBay might give GameStop a fast route to online scale, while offering eBay a bricks-and-mortar presence as a distribution network. But the proposed deal would be a stretch — the offer price is nearly five times GameStop's current market value. If its boss is looking for a bargain, he may need to look elsewhere.