eBay's European operations struggles are partially driven by the strength of Amazon Prime, as our Alphawise data suggest that
Amazon?s UK/Germany Prime members grew 47%/40% over the past year reaching 3mn/8mn, respectively. Even Amazon has said that
their overall international Prime members have grown over 50% y/y in each of the past two years, which given the size of UK and Germany acts as further validation of our data and Prime's growing traction. Given Prime members spend materially more on Amazon than non-Prime shoppers (52% of Prime members spend more than $500/year vs. 34% of average AMZN shoppers.
It stands to reason that the growing presence of Prime is helping Amazon win a bigger share of consumers' wallets. Third party sellers are following buyers' wallets too, as we note a rising percentage of eBay sellers in the UK and Germany who are also selling on AMZN. These data, to us, speak to a growing eBay risk that its products and SKUs lack differentiation vs. Amazon and its Prime Machine which will only make direct competition between the two marketplaces increase.
