eBay Inc. (NASDAQ:EBAY) Goldman Sachs Annual Global Retailing Conference September 10, 2020 4:10 PM ET
Jamie Iannone – Chief Executive Officer
Conference Call Participants
Heath Terry – Goldman Sachs
Great. Thank you all for joining us. My name is Heath Terry. I cover the Internet sector for Goldman Sachs. Really excited to have with us today the team from eBay, Jamie Iannone the CEO of eBay; and Joe Billante, Head of Investor Relations.
Jamie thanks so much for taking the time to be with us. I know this is an incredibly time for — incredibly busy time for eBay. So thank you. Jamie I think you’re on mute.
There we go. Thanks for having me and I’m excited to be here.
Q – Heath Terry
Yeah. No, thank you. So Jamie, obviously, everyone knows eBay everybody here that’s watching. But maybe just to set the stage what drew you to the opportunity to lead the company?
Yeah. I spent eight years at eBay earlier in my career. And all my favorite e-commerce purchases were on eBay. The company has such a special purpose and mission and values. And the opportunity to be away from eBay and spend 20 years with different leading omni-channel retailers, really thought that I could come back and help put eBay in the right direction. I was excited by the progress that have been made in a lot of areas. But I also thought there were areas that I thought eBay wasn’t headed in the right direction and I thought I could come back and really get us back to the core of what’s special. But since I’ve been back it’s been really true. The passion of the employees, the purpose and the mission and the values, what we’re able to do for customers during this COVID time period and the fact that we create economic opportunity for all. It was just a dream job to come lead eBay.
Yeah. What would you say is the most meaningful thing that you have learned in the time that you have been back that an outsider wouldn’t necessarily know about the company?
Yeah, a couple. One I’d say is I’ve been really pleased with how passionate the community is. eBay has been really unique and that it has amazing organic traffic, longstanding customer relationships especially with its sellers. There’s amazing cross-border trade business. And to watch and see how that’s evolved since I’ve been gone has been great to see and how the purpose and the mission and the values of the company still ring true has been great.
I’d say the really pleasant thing for me is to see the progress that we have on managed payments and to see where that stands. I think that’s going to be a real game changer for the business. So really excited to come back in and see the progress and how sellers and buyers feel about it.
Yeah. So a lot to kind of dig into there, but just to go back to the beginning of that. When you were considering the opportunity before joining what was your vision for eBay? And to the extent that no plan survives first contact how has that evolved since you’ve gotten into the company?
Well, when I first started thinking about joining, it was pre-COVID. So, obviously, a lot has changed since that time period but the long-term thesis that I thought coming in is still true. And that’s that I think there’s an opportunity for a tech-led reimagination of eBay and specifically focused on three areas. One is defending the core and being the best absolute marketplace for buyers and sellers. And that boils down to two areas. One is really focusing on our vertical experiences and looking end-to-end at every single vertical that we have on the site and saying what creates the best experience for buyers and sellers. And I can talk later about one of the things we just launched in that area. And the second key component is our consumer selling and really going after consumer selling. So those are big opportunities to defend our core.
The second big bucket for us is really being the seller platform of choice. Really making sure that sellers want to grow their business with us leaning into things like our storage business and being the — that absolute platform and best partner for our sellers.
And then third is on buyers, not just focusing on acquiring buyers, but how do we turn buyers into longstanding enthusiasts, building trusted relationships with them and really helping them grow and develop on the platform. So we think with those three key tenets of this tech-led reimagination, lots of opportunity. Obviously there’s a big TAM in going after our core business.
Sure. I think that TAM is obviously one of the things that everybody focuses on. And, obviously, the last few months have changed a lot. But prior to March eBay was a company that was struggling to grow in a sector that was growing. That TAM that you talked about what — how important is growth to you and growing with e-commerce to your vision for eBay? And what’s your strategy for growth if that’s a big part of it?
Yeah. So a couple of things. One is we’re going to be pivoting from a real strong focus on new in season to a focus on non-new in season. We think that’s a $500 billion market with significant growth. And if you look at the categories on eBay, we’re low single-digits, high double-digits penetration. And so there’s lots of opportunity and lots of growth. It’s where eBay has a right to play and a right to win. We have great longstanding seller relationships. We have buyer enthusiasts on the platform and a really compelling value proposition with a lot of growth. So that refocusing back to the core I think is part of driving that growth.
The second key piece of that is really going after the consumer seller and bringing unique inventory on the platform. That obviously helps attract buyers. But when a seller — sorry, when a buyer sells on the platform Heath, they become twice as valuable as a buyer on the platform. So it has a certain flywheel effect on the business.
We’ll still offer new non in-season products. You’ll still be able to buy them on the site. But our focus will be, how do we go after used, vintage and minus one that bucket of opportunity that’s really unique to eBay where we see a significant TAM and growth potential.
No that certainly makes sense. When you look, sort of, at this COVID environment that we’re in how does it and the eventual return to whatever normal is going to look like impact that growth strategy?
Yes. I would say a couple of things. One is that, we acquired 8 million new buyers in Q2 and that’s more than the last six quarters combined. And so that’s an opportunity for us to really go after and lean into those buyers. So we’ve been doing things with our marketing like leaning into app downloads. The majority of our buying actually happens via the app. We’ve made significant progress in our app. We launched a new dark mode which people have thought was fantastic and really driving things like how do we recover from a bad buyer experience, how do we get buyers to buy in the second category. So leaning into those.
What we saw over the course of the quarter was buyer started buying the things they needed for this pandemic. So the — face masks, hand sanitizer and that type of thing. Then they started buying things that they need to shelter in place at home. So home fitness equipment, office equipment those types of purchases. But then we saw it really across the board — really buying in just about every category.
And an example was I was at the dentist two weeks ago and he said I’ve been using eBay because this time has given me a chance to restore my 1988 truck and I bought a new mud flap for the truck. And now eBay is sending me all these other parts that are interesting to restore my truck. And I’ve just found this newfound passion. And so we’ve seen really an explosion across the board and we’ve been leaning in with our marketing, with various consumer-selling promotions things like the app downloads to really help drive that retention across the business.
Yes. So that touches on something else that I wanted to ask about. I think it’s something investors always kind of come to us with — is this question of like what the profile of an eBay buyer is, and obviously now you’ve got 8 million new ones to be able to look at. But what verticals do they buy? What does the frequency look like, the price point — how do they differ from maybe the average e-commerce buyer that most people might have in mind?
Yeah, well with 182 million buyers, I would say, it’s no one-size-fits-all.
We have every type of buyer from someone who’s an infrequent buyer to a real enthusiast to people who send me e-mails because they wake-up every morning with a cup of coffee and eBay and that’s how they start their day. So I’d say a couple of things. One is that, eBay has amazing organic traffic. So 80% of the buyers that we get on the site come to us directly just typing on ebay.com. And the others come via either free or paid channels pretty evenly. So a huge amount of our business is actually just people that are in love with the brand that are visiting us.
And in terms of buyers what we see and what we focus on is what are the things that we know drive incremental retention and then to ultimately become real enthusiasts on the platforms. And there’s a couple of things that really stand out. One is getting them to buy in multiple categories across the site really helps. And so we know if we acquire a buyer in this category here’s the best next category to get them to purchase in.
And what you’re going to see from us is using new technologies and AI to get even better at that level of personalization. We also see that buyers who sell become twice as valuable as buyers. So you’ll see a lot of times us promoting the opportunity to sell not only for the inventory, but also just because having played both sides of the marketplace they become a more valuable buyer to us.
And what we did in the quarter is really lean in to performance marketing in the channels we have available to us. It was a really great time during the COVID time period because our unique distribution model meant that we had inventory all over the globe and no single point of failure. And so we were able to really be there for our buyers. Our sellers really stepped up to make sure that buyers could get what they needed over the course of the quarter.
And then finally I’d just say that buyers who get the app who are getting involved in watch or safe searches and engage more end up being higher lifetime value buyers. So a lot of the marketing that we’re focused on is how do we move people up those cohort curves and really drive their retention. But some of those are the key factors that drive buyers on the platform.
Yes. No, that all makes sense. To look at the other side of it, when you look at the sellers on the platform obviously, I would imagine the answer is similar. You’ve got such a broad base from individual sellers to really higher profile large volume sellers. But curious sort of how you think about that mix and how that has evolved over the course of the pandemic and who you’re really kind of targeting as you look to grow the business?
Yes. So look one of the reasons I came back to eBay Heath was our sellers, listening to their stories of how they got started on the platform and business. I was talking to a seller out of the U.K. who said, during the last financial crisis his family would take plants to garden shows. And they — garden shows all kind of folded up. And so they’re like what are we going to do? And he started selling plants on eBay. Now he has a huge business in the U.K. selling plants through eBay and that’s the family business.
And so on the B2C side, it’s stories all over the board of stories like that of people that have built a business on eBay or have taken a business that was off-line and moved it online with eBay. And one of the great things for our sellers is, we give them access to 182 million buyers, so you can come on and immediately have a velocity.
With the new Promoted Listings product that we launched it’s even easier now to get exposure because you can use that to get an immediate exposure. But for sellers, we’ve always been about economic opportunity for all. So a small seller could sell right alongside a large seller.
The other thing I’d say though that’s been a big shift for us since I’ve been back is really getting us focused on our acquisition efforts for sellers on that consumer seller or that C2C business. I think over the years hasn’t been as an important of a priority and we’re really making that a key priority.
One is, making the selling and listing flow a whole lot easier. So as you register and as you sell how do we make that as simple as possible? And now with the integration of managed payments you don’t actually have to go set up a separate account to get paid. So that’s a real benefit for our sellers as well is that, just one simple process.
But a C2C seller because they’re not trying to manage a P&L they generally are just going for price realization, we had the opportunity to get really interesting inventory that we otherwise wouldn’t have on the platform especially as we focus on non-new in-season.
And then second as I talked about a couple of times they just become much more valuable in the ecosystem overall. You think about an opportunity like managed payments and when I sell on the platform now I can immediately reinvest those proceeds back into buying. It’s all really seamless. And that’s really one of the benefits of kind of making this whole process easier and eliminating some of the friction.
Yes. And so for those sellers besides obviously the typical seller these days has a lot of options in front of them a growing list of options even. Besides giving them access to hundreds of billions of dollars of buyer demand how does eBay differentiate itself with sellers? What’s important to them that you fulfill?
Yes. So I’d say a couple of things. One is you saw us launch campaigns over this time of the global pandemic in all of our major markets. We ran like an up and running campaign in the U.S. that was really focused on these people — these sellers that are challenged off-line, how to bring them online and get them up and running?
So we had learning. We had helped to bring them on to the platform. We gave them a basic store for free as part of the program and we invested over $100 million globally in creating this opportunity for sellers to come on to eBay.
But the second thing we’re really focused on is, how do we help them with their economics and driving velocity? So we have a pretty simple economic model. We have obviously our base take rate. We have Promoted Listings now. It’s an optional opportunity to drive more velocity and to get more exposure.
And then third is now with managed payments, it’s kind of one integrated take rate fee. And we manage all that together. And for the most part our sellers are actually going to see, lower fees on the platform by bringing this all together. So it not only gives us a huge financial benefit to do payments, but it’s great for our sellers as well.
And then over time, we’re going to — continuing to build new tools and capabilities to drive more velocity. So as an example, we just launched eBay stores into mobile and so an opportunity to give them more exposure onto their store platform and drive growth there. We do a lot of things to take their listings and put them out there on the worldwide web, to drive traffic in, all part of, kind of the take rate and the things that we do.
So really being that I talked upfront about being the seller partner of choice, it’s really about all the tools and capabilities we’re putting in place to drive a lot of traffic, to give them the tools on the platform to be really successful. And grow their business just like that plant seller did on eBay.
Sure. Sure. So obviously, you’ve touched on payments a couple of times here. And it’s clearly a huge priority for the company. One, that’s probably gotten bigger, is GMV growth has accelerated. You inherited the company’s guidance for $2 billion in revenue and $500 million in EBITDA, from bringing payments in-house. I guess, how do you feel about the payments opportunity generally and those financial goals more specifically?
Really excited. So I inherited that goal, but I’m really excited by it, because I think it’s such a big opportunity for us. So, first off we’re on track for the goal that we talked about, of $2 billion in revenue, and $500 million in operating income in 2022. So it’s great kind of financially for the business. But I think even more importantly is the, friction that it takes out of the experience on the site. And what that means for us for the long-term.
So thinking about as a buyer, I had to go up and set up a separate account. And manage kind of two different areas to see what was going on with my eBay transactions. Now that’s all going to be in one area, plus a buyer is going to have more choice of payment types. They’ll of course continue to have PayPal. PayPal is going to continue to be a key partner of ours. But they’ll have Google Pay, Apple Pa, obviously tons of other instruments with credit card debit et cetera.
And then from the selling side, the ability to manage their whole business in one place is a game changer. In fact as you know, we’ve had sellers on the platform for a while and the sellers that have been on payments, have given us really great feedback. And for sellers on eBay change is not always a good thing.
And so to hear the positive feedback coming in has been really, really great for us. And what they’re saying is it’s easier to manage their overall business. And they like the seamlessness of a single take rate. And so, — and frankly a lot of them — the majority of them are actually saving fees overall. So that’s been fantastic.
But the last thing I’d say Heath is that, it gives us the opportunity to do more. When you think about now having an integrated wallet and an integrated payments experience, there’s more seller services that we can offer to open up more capabilities, for our sellers by managing those payments.
And a small example of that is, using proceeds that you sell to buy or doing fee netting on the platform or other services that we make available to help them grow their business and run their business, because that’s now managed in a single place. So really excited by the traction, really excited by the early feedback from buyers and the sellers and excited for what it means for our future as well.
Understandable. Promoted Listings similarly has been sized as a $1 billion opportunity, I think at least for you. One that other, marketplaces have obviously built into multibillion-dollar businesses. How do you view asking sellers to pay more to promote their listings? And how big of an opportunity is that for eBay, as you think more broadly about advertising on the platform?
Yeah. So we think of it as sellers have the option to do it. And they can use it to drive velocity. So we see it as another tool and capability to provide to them, to really manage their business how they want to. And I think what’s been great to see the launch with Promoted Listings and where it stands is that, I think we do all of that with really enhancing and not degrading the buyer experience.
And I think we found the right balance of how to do that. So we’ve committed to $800 million for the year in that business. It obviously moves and grows with volume. In Q2, it was over $200 million. So a significant opportunity for us, but we also believe that there is more potential. So that we believe we can drive more adoption, more conversion and each quarter we’re launching new tools and capabilities that make it easier for our sellers to use things like Promoted Listings. In fact, we’re trying to give them more data in general. So we launched some new capabilities this past quarter in Terapeak that gives them real-time pricing information. So they’re able to use things like Promoted Listings, combined with these new tools that we’re giving in Seller Hub to just manage their business more effectively, drive velocity where they want to drive to. And we think there’s still a lot of opportunity left in the Promoted Listings business.
Yeah. Understandable. You’ve talked a couple of times about some of the technology priorities that you’ve got. You mentioned, AI is one of them. Obviously, technology investment has been a priority at varying levels for eBay for a long time. How do you size the right level of investment in technology for eBay? Is there a level that you should be pushing to where that technology investment can really drive growth for you and become profitable in the near term?
We’re looking at it in three different ways. One is our – just enabling our core technology to allow us to innovate faster. So that’s getting off of legacy technology. That’s been well underway since before I arrived. But we actually use some of the tailwinds that we’ve had from this year to actually accelerate that and move faster of getting off of some of the legacy technology to just allow us to innovate faster, and I’m really happy with the progress there.
The second big level of investment or area is the opportunity to extend the things that are working. So payments is a great example. It’s been a two-year journey of investing in this technology, but it’s right on track with what we expect it to be. And it’s all next-gen really amazing technology as is our Promoted Listings technology. So investing in these areas that create kind of new business opportunities for us is the second.
And then the third one is really one of those next-gen capabilities that can really change the game. And sometimes, they’re small things, like dark mode was a small investment, but the Gen Z community actually loves it. And the percentage of people that are using it has been pretty significant. Another one has been QR codes, a very small technology investment, but it makes the local pickup experience on eBay much easier, because the buyer and seller can transact in the background pretty seamlessly.
Using computer vision for things like image cleanup, but now in a flash you can actually have a much better picture on the site. So you’re going to see us investing more in next-gen capabilities, and those are just tiny examples, but more in next-gen capabilities to really delight the customer.
Another big technology area of investment for us Heath is going to be on the marketing tech stack. So I think that, we have the opportunity to really use these next-gen technologies to build a much more customized experience with our customers. The majority of our shopping actually happens on the app, and so our ability to do really unique experiences really tailored experiences, I think is another key opportunity for us. But look, we see this as a multi-year journey, but one where we’re going to have wins along the way to really help drive the experience in a different way.
Yeah. Jamie you mentioned that marketing tech stack. I mean, obviously you come from a background where you spend a lot of time with membership organizations and driving incremental revenue streams for really big businesses already. When you look at the economics of selling on eBay, how do you feel about the take rate that eBay earns for its role? What do you think about the opportunities to sort of create incremental revenue streams on top of the platform?
Yeah. So I think Promoted Listings is a good example of an opportunity to create a new revenue stream. Obviously, payments is a new opportunity for us. And off of that, I think we can build additional services. But I think look our goal is to have the best economics for a – for our seller overall. And we think we do that by driving a lot of demand and driving a lot of growth. And then these other tools and third-party services, allow us to modify the take rate as appropriate.
Let me just give you an example of where we’re really enhancing the experience in a different way. It was something that we announced this week, which is how we’re changing the experience in our watches category. So if you look at watches, obviously, really important for a high selling price item to have more trust and more authentication built into the platform.
So what we launched is that for every watch over $2,000 we’re going to be authenticating that through a third-party intermediary, before it goes to the buyer. And then for everything over $10,000 we’re actually be doing that via an escrow service in partnership with Escrow.com.
In addition, we’re launching a new product in discovery and browse experience in watches to really help that enthusiast. And when I talk about turning buyers into enthusiasts, watches is an example category of where that happens in a big way on the platform. And so, when you look at it there, it’s a big win for buyers, because they know that they’re getting the product that was in the description. It’s been authenticated and that allows a higher selling price on the platform and more trust and more value that eBay is providing as part of that process.
At the same time, it actually protects the seller, because we actually intermediate the return as well, to make sure that the product is not coming back as an empty box or something, where there’s going to be a dispute or claim. And then, with the new product experience, really driven for watches, it’s just creating a much better experience of shopping.
And so, when I talked about that first priority for us of defending our core and going after real verticals where there’s an opportunity, think of that as an example of what you’re going to see from eBay over the coming years, which is really looking and being customer-obsessed with the end-to-end experience and saying, what do we build to make sure that we’re creating the best experience.
And these are — don’t think of these as like different experiences, like, we’re not going to build 30 different eBay Motors. These are horizontal capabilities that we’re building across the platform that allow us to compete better in verticals, especially as we focus on that non-new in-season and that big TAM that we’re going after. But I think, it’s a good example of the changes we’re seeing and the customer obsession that we’re focusing the team on.
Yes. No, that makes sense. You struck a very big deal in Classifieds right after joining — maybe not the one everybody was expecting with eBay still maintaining a very large equity stake in the business in the Classifieds business. Why was that the right move for eBay? And what are your future plans in Classifieds with that stake look like?
Yes. So, look, first with the creation of this new business Adevinta, we’re really excited, because it creates the number one online classifieds business in the world. When you look at the assets that eBay had in its Classifieds business, plus Adevinta, they’re really complementary when you think about geographies, when you think about the power of real estate and motors and key verticals in the Classifieds business, we see that bringing them together, creates a lot of opportunity. Not only the synergies that Adevinta has talked about on the cost side, but also just on the revenue side and potential of the new combined entity.
We think it’s great for shareholders, because it created some short-term cash for the business, as well as gives us option value in the long-term for that business. When you look at the change in price of the Adevinta stock price, I think, you’ll see that it represents the industrial logic in the deal and why we think it makes sense.
The other key piece for the organization at eBay is it allows us to focus our day-to-day in our core marketplace business. So, now, with StubHub sold off and the Adevinta deal, it really allows us to focus on this core vision and this core strategy. When you think about all of our technology resources and all of the management time being focused on marketplaces where we see there’s a lot of enormous untapped potential.
Yes. Now, it’s going to be fascinating to watch. I mean, obviously, most of the last few years for eBay have been focused on divestitures, is your path to creating a better eBay, what role will M&A have?
Yes. As we look forward to the business, we plan to be disciplined capital allocators, just like we have been. So, balancing growth and balancing margin with the commitments that we’ve made there. As we think about M&A, we’ll look in — we’re open to opportunistically looking at M&A that makes sense with this strategy.
Obviously, it would have to be asset-light and consistent with our model. But we’ll continue to look at that. But we’re committed to being disciplined capital allocators. We’re committed to our dividend. We believe in the share buybacks. We still think the stock is undervalued. And we’ll be opportunistic to look at opportunities in M&A.
Yes. One of the parts of e-commerce, obviously, that’s been under kind of a microscope, especially over the last few weeks or few months now, has been fulfillment, as we’ve seen, particularly, the third-party networks stretched beyond their limit. What role do you see fulfillment playing in eBay’s future, especially as platforms like FedEx and UPS talk about surcharges during the holiday season? What do you need to do to be able to support your buyers and sellers in that kind of environment?
Yes. So, look, we spend a lot of time with our sellers. And some of my favorite time is getting out there and meeting with them. And in this COVID world, we’ve been doing it all virtually, but just as impactful. And what they’re telling us is that, they don’t really need us to run their warehouses, and for eBay to build up a huge warehouse network. What they’re really focused on is, how do we help them with their overall logistics and transportation. How do we integrate it better into the platform, give more confirmation to buyers about the arrival of the items, and just make it overall easier for them.
So, this past week or two, we announced a deal with UPS, where we’re giving them sellers. We’re passing on incredible savings to our sellers of being able to work with UPS on the platform, where we’ve integrated the whole process, integrated shipping labels, integrated tracking. And so, now our sellers in the U.S. have multiple choices between USPS and FedEx and UPS, all at very attractive rates. And that’s the type of innovation that they want to see from us is how to help that overall process better, how to give them tools and capabilities to make logistics easier.
Now, there are certain cases where we do invest in a partnership or a relationship to help drive fulfillment for our sellers. A lot of that has to do with cross-border trade business where forward deploying the inventory just makes the whole process much more seamless, provides a lot more certainty and confirmation and tracking. And so, those are cases where we have invested in our partnerships with WINIT and SpeedPAK and other ones that we’re doing to help drive that business where it is really critical. But on a purely domestic basis, that’s been less of a need for our sellers.
Great. No, really, really appreciate that. Obviously, one area that I think is worth just touching on is how you view the competitive landscape for eBay. I mean, in an e-commerce environment that’s increasingly getting as crowded as we see globally, where does eBay fit?
Yeah. So, there’s a couple of things, I’d say is. One is I think over the past few years we’ve seen the growth of niche competitors in specific verticals. And I think what that’s showing us is just how much TAM and opportunity is out there for us to go grab and be part of eBay. And so, a big part of why I talked about our vertical strategy and really building these great end-to-end experiences is really making sure that eBay is the number one destination for all of those categories across the web.
The second thing I’d say is that part of our focus for our non-new in-season is because we really feel like there’s a unique right to win in that category. And it’s just such a big TAM where there’s enormous potential, and we’re still such small market share that we see a lot of growth left in that opportunity. And it’s unique to eBay because of the unique C2C selling components that we have on the platform, because of the enthusiast nature of the platform, frankly because of the flexibility of the formats as an example.
When I was — when I left the company, obviously fixed price have grown a lot. But now, we have — best offer is a very heavily used feature across the site. We’ve introduced seller-initiated offers, so sellers are actually going out to buyers and making offers and we continue to build new capabilities into that type of format. That’s doing $1 billion already of GMV just in this format. So, we see this really unique opportunity in the core categories and these verticals that are really at the core of eBay with this big TAM, and that’s where we’re focused.
I think the competition makes us stronger. We’ve been really obsessed with the customer, and all the key pieces of the journey along the way taking friction out of the business. And that’s why we’re launching the things like managed payments and the investment in the tech-led reimagination is really to make sure that they have the absolute best experience on eBay.
Yes. One market in particular, where eBay has invested heavily over the years is Korea, where competition continues to intensify with just so much venture capital going into the companies there. How would you describe the state of things in Korea? And what’s your strategy for eBay there?
Yes. Korea is obviously a competitive market and it’s slightly different where they have a strong 1P business there in Korea. And what I would say is that it has been competitive. You see, competitors investing a lot to drive growth with what we believe is probably not a profitable thing for them to do. And we run two profitable businesses in Korea with Gmarket and IAC.
So we’re really focused on the things that we do really well there, driving the platform both the 1P and the 3P business in Korea. Also we have some different techniques for loyalty there. We have a Smile Club, which drives loyalty. We get free shipping. They get dedicated customer service. And so we’re really leaning into our playbook in that market and doing the right things to drive growth there.
Yes. So we have gotten a few questions from investors in over the webcast. I think you’ve answered many of them. But one that I thought was worth asking, what lessons and successes from running SamsClub.com can you apply to eBay? And in particular, is there anything from the physical world innovations like self-checkout or in-store pickup that might be applicable to your vision for eBay?
Yes. When I look at the experiences there, the first thing I’ll touch on is I feel like I’ve led a tech-led reimagination a couple of times in my career and it’s been really successful. So the first thing I’d say is that, if we look at the things that we did there, where the membership process took 20 minutes to sign up and we said, how do we think about this in a completely different way and get it to under two minutes to do. We’re going to make a significant transformation and obviously the metrics kind of followed from a membership standpoint.
When I look at eBay, I feel like we have the same type of opportunity here. So if I look at the existing selling process today Heath, I think it’s just too cumbersome. And we have the opportunity to not try to make it incrementally better but how do we use computer vision and next-gen technologies and AI to really simplify that down to a 30-second selling experience on the site.
And you see the steps we’re making, like managed payments is a key part of trying to get that to be a 30-second or two-minute listing flow, because we can really shrink down the information that we need and use technology to get there. And with managed payments, I don’t have to go set up a separate account to do that.
I think as you look at apps like Scan & Go and we say, how do we put more capabilities in the hands of our – in that case in the hands of customers. That’s how I think about being the seller platform of choice. How do we take our tools and capabilities, give more data to our sellers.
You and I talked at the beginning of this conversation about marketing and the opportunity that we have there. I think we have the opportunity to involve our sellers in creating next-gen marketing capabilities for us on the platform. And that’s why I’m excited by investing our dollars in technology there is that those can be really game changing. And that’s what I’ve seen in the physical and the retail world and I think the same thing we can bring over to us at eBay.
The last thing I’d say is just I’m trying to bring a real customer obsession to the organization. Every interaction that we have with sellers, every interaction that we have with buyers, how do we make sure that we’re really fulfilling their ultimate needs in the platform, how do we give them the best and simplest and most seamless experience, that’s our focus.
Great, Jamie. Thanks so much for taking the time to join us. Really can’t wait to see how all of this works out for you and the team at eBay. Joe, as well, thanks for joining us and we certainly look forward to staying in touch with you on all this.
Thanks, Heath. Thanks for having us.