The $367B resale boom Gen Z is driving | ClickZ eBay Insights Newsletter

PLUS: How much should you be spending on PMAX

Author

Zihan Lyu
April 09, 2025 • Estimated Reading Time: 31 minutes

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Welcome to eBay Merchant Insights, your trusted source for updates and analysis on eBay’s latest developments.

Editor’s Pick 🌟

Curious to know the optimal way to allocate your Google Ads budget? Fospha’s latest analysis of top performers reveals key insights into balancing Performance Max (PMAX) and Paid Search:

🥇 How Top-Performers Do It: For the highest-performing 25% of brands, a strategic allocation of around 55% of total Google budget to Performance Max and 12% to Paid Search appears to be the sweet spot for driving results.

🏢 Size Matters: Note, this optimal allocation does vary slightly between different brand sizes. Top-performing small brands were found to have a 52% PMAX / 15% Paid Search split, while top-performing large brands allocated more to PMAX, with a 59% PMAX / 9% Paid Search split.

Why? With extensive product catalogs and diverse customer segments, large brands can leverage PMAX's AI-driven optimization, while smaller brands benefit from the precision targeting of Paid Search to capture high-intent traffic while still leveraging PMAX for efficiency

Unlock the full potential of your Google Ads budget! Fospha’s new Performance Max and Paid Search Playbook is your guide to cultivating cross-channel synergies, reducing wasted ad spend, and maximizing blended performance.

Sector Spotlight 🎥

SUSTAINABLE FASHION INSIGHTS

The secondhand apparel market is forecasted to surge from $197 billion to $367 billion by 2029, driven by Gen Z's preference for eco-friendly fashion and the adoption of AI in resale platforms.

Major retailers, including Nordstrom and Macy’s, are embracing resale programs, signifying a mainstream trend that offers a 90% lower carbon footprint.

For marketers, this signifies a golden opportunity to engage with eco-conscious consumers and leverage technological advancements in retail strategies.

CONSUMER SAFETY CONCERNS

Authorities have seized over $600,000 from a Michigan man who sold counterfeit airbags on eCommerce platform eBay, spotlighting the dangerous prevalence of counterfeit car parts. The Michigan Auto Fraud Task Force, aiming to protect consumers, is stepping up efforts against such fraudulent acts, given that these counterfeit items could be more profitable than even illicit drugs.

For marketers, this case underscores the vital need for transparency and authenticity in online sales, reminding eCommerce businesses to diligently verify product integrity to ensure consumer safety and trust.

ECOMMERCE COMMUNICATION EVOLUTION

eBay has transitioned to monthly Seller News updates, providing sellers with more timely information, enhancing visibility through collaborations like Facebook Marketplace integration, and ensuring compliance with new regulations.

This regular communication is pivotal for eCommerce professionals to keep abreast of industry changes, optimize listing visibility without added costs, and maintain international sales continuity.

AFFILIATE MARKETING INITIATIVE

eBay's Ambassador Program in the US empowers all users, regardless of follower count, to earn up to 7.5% commission by promoting preferred listings through various social media platforms and email. This initiative is distinct from eBay's Partner Network, aimed at a broader audience with a simple, community-focused approach, and provides tools and resources to optimize user engagement.

It offers marketing professionals practical insights into new, accessible affiliate marketing avenues, fostering community-driven eCommerce growth with minimal barriers to entry.

ANALYST RATINGS

Seventeen analysts have provided mixed evaluations on eBay, reflecting both optimistic and cautious outlooks. The average 12-month price target for eBay now stands at $68.00, showing a slight positive uptick from previous estimates. As a leading eCommerce marketplace, eBay is noted for its remarkable profitability and efficient asset utilization, though it contends with substantial debt levels.

Influencer Corner 📢'

We chatted with Amy J. Oelkers, TikTok’s GM, US Head of Commerce, about how the power of discovery on TikTok is driving commerce everywhere | TikTok for Business

📌 4 in 5 users are discovering brands through creators' recommendations.

📌 After discovering something on TikTok (via a creator), 45% of users continued searching for more information on the platform.

📌 1 in 4 users search within the first 30 seconds of opening the app (internal user data).

In our Shoptalk 2025 wrap up with ClickZ.com, one thing was clear | Lee Arthur

This industry is operating in a new reality. From full-funnel AI to omnichannel orchestration, the conversations weren’t speculative,they were tactical.

Here are the biggest shifts we heard on the ground:

🔹 AI is everywhere
“AI isn’t a concept -it’s a capability,” summed up by voices across the floor. From text-to-buy to media measurement, brands are moving from testing to scaling.

🔹 Omnichannel is baseline
“Omnichannel isn’t a trend - it’s the new baseline,” said Sam Carter, CEO at Fospha. The new standard is unified journeys online and off.

Optimization Hub ⚙️

BUSINESS MEASUREMENT FRAMEWORK

Breaking organizational silos is essential for building effective measurement frameworks, ensuring data-driven insights drive marketing success. By involving all stakeholders and focusing on real-world applications, businesses can align metrics with strategic objectives. Tailored frameworks improve communication and performance across departments, essential for today's competitive landscape.

SOCIAL MEDIA MARKETING

Instagram's new monthly recap feature provides creators with valuable insights into their content performance, including total views, follower engagement, and specific audience activity times. This feature aids marketers by offering actionable tips to enhance content strategy based on the unique behaviors of their audiences, fostering a more tailored approach to growth and engagement.

ECOMMERCE OPTIMIZATION

Adjusting the Google Ads bid strategy, specifically the Target ROAS, can enhance Shopping Ads revenue without reducing profitability for eCommerce businesses. Use Impression Share and Search Lost IS metrics to identify and rectify revenue loss. Gradual budget and ROAS adjustments ensure consistent performance improvement.

📲 Like what you’re seeing?

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