Inside eBay’s Circular Economy Strategy
Platforms are increasingly recognized as powerful drivers of the circular economy. eBay stands out as a major force in leveraging its platform to facilitate resale markets. Over the years, eBay has evolved from a simple peer-to-peer marketplace into a key strategic player that actively promotes product reuse, refurbishment, and prolonging the life cycles of goods.
In 2024, eBay’s total gross merchandise volume (GMV) reached approximately $74.67 billion, with around 40% of it tied to circular commerce.1 This translates to roughly $30 billion annually in gross merchandise volume related to resale, refurbished, used, and overstock goods on the platform, making eBay one of the largest circular platforms in the world. This article explores eBay’s circular economy strategy, including related acquisitions and partnerships, and its impact on financial performance and future growth opportunities.
Shifting Strategies
eBay’s platform strategy has undergone significant changes since its inception in 1995. These changes reflecting shifts in market dynamics, technology, consumer behavior and leaders at the helm of the company. Initially launched as AuctionWeb in 1995, eBay focused primarily on used, unique, or collectible items sold through auctions, establishing itself as the premier consumer-to-consumer marketplace.2 Trust-building features like feedback systems, a user-friendly interface, and the acquisition of PayPal for simple payments contributed to early success and international expansion.
Between 2005 and 2015, eBay expanded its marketplace to include more business sellers offering new products alongside used goods. The introduction of the “Buy It Now” feature allowed instant purchases, shifting buyer preferences away from auctions. eBay also made strategic acquisitions, such as StubHub and Kijiji, to broaden its service offerings and improve logistics and search capabilities. However, facing fierce competition from Amazon, eBay worked to attract larger retailers and enhance fixed-price listings.3
From 2015 to 2020, eBay spun off PayPal to focus on its core commerce platform and invested heavily in AI, machine learning, and data initiatives to improve search, personalization, and product listings. While it expanded certified refurbished programs and pre-owned categories like electronics and fashion, new products remained a significant focus.4
Since 2020, the company has refocused on its roots, emphasizing circular economy principles due to increased consumer demand for sustainability and affordable options. eBay expanded certified refurbished programs and policies supporting used fashion, electronics, and auto parts.5 The company launched initiatives like the Circular Fashion Fund, partnered with startups in textile recycling and recommerce, and promoted AI-powered tools for improved grading, authentication, and dynamic pricing of used goods. Redesigned seller programs and buyer experiences now emphasize resale and waste reduction, positioning eBay as a leader in the circular economy and reinforcing its commitment to sustainable commerce.
The company’s leadership also played a role. The table below shows eBay’s leadership evolution and how this has influenced the company’s strategic focus between the linear economy and circular economy. eBay founder Pierre Omidyar, can be credited as a pioneer in resale by enabling peer-to-peer auctions of used and unique items through a digital platform. Over time, especially under Meg Whitman’s leadership from 1998 to 2008, eBay shifted its focus toward new products and linear economy sales by introducing fixed price “Buy It Now” options and expanding categories to attract business sellers. This emphasis on new product sales continued under John Donahoe and Devin Wenig, who enhanced operational scale and integrated AI and certified refurbished programs, but eBay maintained a significant focus on new product growth.
The company’s pivot back to the circular economy began with Jamie Iannone’s appointment as CEO in 2020. Iannone harnessed changing market dynamics, including rising consumer demand for sustainable and affordable products, and technological advances like AI-powered grading and authentication tools, to refocus eBay’s strategy on resale, sustainability, and circular commerce. Under his leadership, eBay has invested in circular acquisitions and partnerships and expanded initiatives like the Circular Fashion Fund and certified refurbished programs, reinforcing its commitment to the circular economy while leveraging technology to enhance trust and ease of resale.
In 2023, Iannone, was quoted saying:
“We know that our sellers and buyers are passionate about the sustainable and economic values of recommerce. At eBay, these values are core to who we are as a company — and we work every day to build a more robust circular economy.”6
Circular Economy Strategy Today
eBay has introduced various initiatives and innovations to attract and support sellers of used and refurbished goods, making circular commerce a central part of its seller strategy. The platform engages with both individual and business sellers through targeted programs, streamlined onboarding, financial incentives, and significant technology investments.
One key initiative is the eBay Refurbished Program, which enables top-rated business sellers to qualify for increased visibility, quality assurance through certifications like “Certified,” “Excellent,” “Very Good,” and “Good,” and warranties provided by Allstate (SquareTrade). This program builds trust, reduces return rates, and provides marketing support, reinforcing buyer and seller confidence in the circular ecosystem.7
eBay has expanded the range of product categories eligible for refurbished and used listings, imposing strict condition and service standards to maintain quality. Sellers who don’t qualify for refurbished status can sell items as “Used,” and the growing category support enables many sellers to upgrade and participate in circular economy programs.
To encourage participation, eBay offers financial incentives like discounted advertising campaigns, special promotional events, and enhanced search visibility for used and refurbished sellers. These incentives aim to boost listings and sales within the circular economy. Additionally, eBay promotes sustainable listings by rewarding sellers who use recyclable packaging and highlight their products as part of sustainability programs, directly supporting circular commerce growth.
Acquisitions and Partnerships
Over the past several years, eBay has made targeted acquisitions, strategic investments, and partnerships to support its circular platform offerings. Notably, eBay acquired Tise, Norway’s leading social resale marketplace app, in September 2025 to boost its C2C pre-loved fashion business and better engage Gen Z and Millennial consumers in Europe.8 Tise’s vibrant, community-driven platform with social features like following sellers and personalized recommendations aligns well with eBay’s circular commerce goals, expanding its reach as a circular brand.
In addition to the recent acquisition in fashion, eBay Ventures invested $300,000 in Refiberd, a U.S. startup using AI for sustainable textile recycling, showcasing eBay’s commitment to advancing textile-to-textile recycling solutions at scale.9 Complementing these moves, eBay has expanded its Circular Fashion Fund (CFF) initiative, pledging over $1.2 million globally by the end of 2025 to support startups focused on circular fashion, repair, rental, and material innovation, accelerating the growth of circular commerce.10
eBay has also made acquisitions to expand its role in autoparts and its division eBay Motors. The auto parts sector is a substantial business worldwide, with millions of parts bought and sold annually. As a critical area for circular commerce, automotive parts have long lifecycles, can often be remanufactured or refurbished, and represent significant opportunities to reduce waste and carbon emissions by extending product use and avoiding new manufacturing.
One acquisition was Caramel, an online platform that simplifies vehicle transactions. Caramel’s technology streamlines the vehicle sale process, including title transfers, financing, transportation, and other related tasks.11 The acquisition aimed to improve the vehicle buying and selling experience on eBay Motors. The technology streamlines and secures vehicle transactions by simplifying paperwork, ownership transfers, and financing, making it easier for sellers and buyers to complete deals quickly and transparently. This platform supports a more efficient reuse of vehicles and parts, contributing to a circular model where more components get a second life rather than being scrapped prematurely.
eBay’s acquisition of the myFitment Group in August 2022 was a move to enhance its automotive parts and accessories category, a pivotal area within its circular economy strategy.12 myFitment specializes in technology that optimizes “fitment” data — ensuring that buyers can easily find parts and accessories that are compatible with their specific vehicle models. By integrating myFitment’s tools into eBay’s platform, eBay improved seller listings and reduced costly returns, while increasing buyer confidence and satisfaction through better product accuracy.
Smart Phone Business
eBay is estimated to have captured significant share of the U.S. secondary smartphone resale market, which is valued at around $13.5 billion in 2025.13 First, eBay’s large and active global user base of buyers and sellers creates deep liquidity and variety, attracting consumers seeking pre-owned and refurbished smartphones. The platform supports certified refurbished phones with quality-assurance grading and warranties, increasing buyer confidence in used devices.
eBay offers competitive pricing options, including budget-friendly models alongside premium phones, appealing to a wide range of buyers. Advanced technology like AI-driven search and pricing optimization enhances the shopping experience. The company’s sustainability-driven positioning and emphasis on circular economy principles resonate with consumers who are looking for bargains along with reducing e-waste. Additionally, offering accessories and bundled deals complements phone sales and increases value for buyers.
eBay sources its supply of used phones from various sources, including wholesale suppliers, telecom carriers, insurance companies, trade-in companies, and individual sellers.14 Wholesale suppliers, such as Nobility Wireless, offer certified and tested phones in bulk for business use, ensuring quality control and consistent inventory for the marketplace. Telecom carriers like AT&T, Verizon, and T-Mobile provide large volumes of used phones through their trade-in and buyback programs, which are refurbished or resold. Insurance providers and consumer buyback companies also contribute to the supply chain by offloading returned or damaged inventory.
On eBay, both wholesale businesses selling in bulk and individual retail sellers offering single devices create a rich and diverse inventory, catering to a broad range of buyers. This diverse sourcing is a key reason why eBay has maintained such a significant share of the smartphone resale market.
eBay’s advanced AI tools provide a competitive advantage for wholesale suppliers using the platform to sell phones. These AI-driven features simplify, speed up, and enhance key aspects of the selling process, allowing suppliers to efficiently list large inventories with high accuracy.15 For example, eBay’s AI-powered bulk listing tool enables sellers to upload batches of phone images, generating draft listings with suggested categories, titles, and item specifics in seconds. This automation significantly reduces the time and effort required to list products, helping wholesale sellers scale their operations.
Additionally, AI assists sellers in responding to buyer questions by drafting accurate, context-aware replies based on product details, improving communication efficiency and buyer satisfaction. Other AI enhancements include photo background improvements and generative content creation for listings and social promotions. These intuitive tools require minimal training, making them accessible to sellers of all sizes.
By boosting listing quality, speed, and seller-buyer interactions, eBay’s AI tools help wholesale suppliers increase sales velocity and maintain competitive pricing, thereby attracting more buyers. This suite of AI-powered capabilities creates a “virtuous flywheel” effect: easier selling encourages more inventory, which attracts more buyers, fueling further marketplace growth. Compared to marketplaces with fewer AI-enabled features, eBay’s investment in AI provides it an edge in attracting and retaining high-volume wholesale sellers.
Financial Performance Payoff
Over the past two years, eBay’s stock performance has been strong, marked by a significant rebound and outperforming many of its industry peers. In 2025, the company’s stock gained around 47.4% year-to-date and delivered approximately 39.6% returns over the last twelve months. This positive trend reflects a continuation of strong long-term returns. The company’s price-to-earnings ratio stood at about 21.89 in August 2025, paired with an earnings per share of $4.6, indicating sustained profitability and earnings growth, though this valuation remains below its long-term historical average.
While eBay’s improved financial performance over recent years cannot be attributed solely to its circular economy strategy, it has played an important role. The company has reported strong revenue growth and solid earnings driven by a combination of factors, including sustained increases in gross merchandise volume (GMV), expansion into key growth categories, technological innovation, and operational execution. In Q2 2025, eBay reported $2.7 billion in revenue, a 6% increase year-over-year, alongside a 4% growth in GMV to $19.5 billion.
The favorable financial performance is reflected in the stock price. From October 2023 to October 2025, eBay’s stock price grew significantly from $43 per share to $90 per share, dropping somewhat from its August peak.16 This represents an average annual growth rate of around 51%, more than doubling in value over this period. These results exceeded market expectations and were supported by initiatives such as the launch of livestream shopping, AI-powered tools for personalized shopping, and expansion of the Authenticity Guarantee program. The company also benefits from international revenue streams and mobile commerce, which contributed significantly to its overall volume. CEO Jamie Iannone highlighted the strength of strategic execution and marketplace resilience as core drivers for long-term growth.
While around 40% of eBay’s GMV comes from circular commerce—used, overstock, refurbished, and spare parts, the company’s financial success also stems from its broader platform innovations, category expansion, global reach, and adoption of technologies like AI. Additionally, eBay’s payment innovations, and advertising revenue growth have reinforced its financial performance.
Future Growth Opportunities
eBay sees significant growth opportunities in supporting the circular economy for smartphones and other re-electronics by focusing on extending product lifecycles through reuse, refurbishment, and repair.17 The company’s sustainability strategy prioritizes circular commerce as a core element, promoting the resale of pre-owned and certified refurbished electronics to reduce electronic waste and environmental impact. This approach supports consumer demand for sustainable shopping options and aligns with broader environmental goals.
CEO Jamie Iannone has publicly addressed these opportunities, emphasizing eBay’s potential to further expand the circular economy.18 As noted above, eBay has expanded initiatives like the Certified Refurbished Program and invested in technology and partnerships to grow the market for pre-owned electronics under his leadership. Iannone has consistently highlighted how eBay’s marketplace, with its large and engaged community, infrastructure for trust (including authenticity guarantees), and focus serving a wide range of businesses, enables circularity at scale.
While there are opportunities for growth, there are also challenges. One example is the fight to win the race for social selling.19 eBay and the platform Whatnot are competing intensely to dominate the next frontier of social selling - wholesale. Both platforms are racing to sign up sellers like liquidators, overstock holders, and companies with access to high-quality returned, used, and refurbished inventory. Whatnot has gained traction with its live interactive selling community, while eBay hopes to leverage its massive buyer base to attract wholesale sellers.
This competition adds a new dimension to the circular economy, where sellers with large volumes of secondary-market goods seek real-time, social engagement to move inventory quickly. Sellers with access to overstock, returns, and refurbished goods see these platforms as the best way to reach value-conscious buyers directly and efficiently. The race is not just about attracting sellers but also about building buyer communities and technology-enabled selling experiences, making this a dynamic and high-stakes battle for control of the growing wholesale social selling market.
Conclusion
eBay’s circular economy strategy demonstrates how platforms can extend product lifecycles, reduce waste, and increase recommerce on a large scale. By tapping into its massive user base, strong roots in second-hand goods, and advanced AI tools, eBay makes it easy for people to resell, refurbish, and repair products across various sectors, including fashion, electronics, and automotive parts. eBay’s recent acquisitions, strategic investments, and cross-industry partnerships show its move towards a comprehensive growth strategy centered on circularity. Notably, with circular commerce activities now accounting for over 40% of its gross merchandise volume, eBay shows how platforms can drive the growth of the circular economy at scale.