I run an eBay store for a living. I've been hearing “eBay is dying” for the entire time I've been on the platform. And every time I open the books, the platform's books, or the macro data, the story doesn't match what the YouTube guys are selling.
Here's what I actually see when I look at the data: eBay just had its strongest year in years, the secondhand market is in a structural boom, and even after the Supreme Court torched half of Trump's tariff regime in February, the trade environment is still pushing buyers toward used goods — through other legal authorities the Court left untouched.
This is the case, with receipts.
1. The Financials Are Not What a Dying Company Looks Like
A dying company doesn't post accelerating growth, raise its dividend, and hand $3 billion back to shareholders in a single year. eBay did all three.
Straight from the FY2025 earnings release, reported in February 2026:
- Revenue: $11.1 billion, up 8% year over year
- GMV: $79.6 billion, up 7%
- Q4 alone: revenue $2.965 billion, up 15% YoY; GMV $21.2 billion, up 10%
- Free cash flow: $1.5 billion
- Cash and investments: $4.8 billion
- Capital returned to shareholders in 2025: $3.0 billion ($2.5B in buybacks + $531M in dividends)
- Q1 2026: dividend raised 7% to $0.31/share, board added another $2 billion to the buyback authorization
Source: eBay Q4/FY2025 results press release
“eBay is in the strongest position it has been in years.” — Jamie Iannone, CEO, on the Q4 2025 earnings call
The thing nobody talks about: growth is accelerating into 2026, not decaying. Q4 revenue growth (+15%) was nearly double the full-year rate (+8%). That's the opposite of a melting ice cube. That's a flywheel that just got pushed.
FY2025 At A Glance
+8% YoY
+7% YoY
shareholders
2. The Tariff Picture Got Messier — But Still Helps Used Goods
This is the part most blog posts get wrong, including, until I caught it, an earlier draft of this one. Here's what actually happened in 2026:
On February 20, 2026, the Supreme Court ruled 6-3 in Learning Resources v. Trump that the IEEPA does not give the president authority to impose tariffs. All the “reciprocal” tariffs, the fentanyl-trafficking tariffs on China, Canada, and Mexico — gone. CBP stopped collecting them on February 24. Source: Skadden Source: White & Case
That sounds like the bear case for this whole article. It isn't. Because the Trump administration immediately pivoted to three other tariff authorities the Court did NOT touch:
- Section 122 of the Trade Act of 1974 — a 10% (raised to 15%) global tariff on virtually all imports, effective February 24, 2026. Capped at 150 days unless Congress extends. Source: White & Case
- Section 232 — sectoral tariffs on steel, aluminum, copper (raised to 50% effective April 6, 2026), and a 25% tariff on advanced semiconductors that took effect January 15, 2026. These are untouched by the Supreme Court ruling. Source: C.H. Robinson Source: ST&R Trade
- Section 301 — USTR is launching new investigations to replace country-specific tariffs through this slower-but-more-durable pathway. Source: White & Case
Net effect: the average effective US tariff rate is currently ~11.8% as of April 6, 2026 — the highest since the early 1940s, even after the Supreme Court ruling. Source: Yale Budget Lab
And the de minimis $800 exemption is still suspended. After the Supreme Court ruling, Trump issued a new executive order on February 20, 2026, keeping it suspended under different legal authority. Marketplace, Supply Chain Dive, and Ordoro all confirm: as of right now, you still pay tariffs on imports under $800. Source: Marketplace Source: Supply Chain Dive Source: Ordoro
That last one matters most for eBay. The de minimis loophole was the value-tier playbook for Temu and Shein. As long as it stays closed, their landed-cost advantage stays gone, and the value-hunter US shopper has every reason to look at used goods on eBay instead.
The Honest Caveat
The tariff picture is genuinely uncertain. Section 122 expires July 24, 2026 unless Congress extends it. The de minimis suspension is being legally challenged. New Section 301 actions take time to enact and could face their own court fights. Don't bet your store on any single tariff staying in place. The bull case for eBay doesn't depend on tariffs alone — the secondhand boom (next section) was already happening before any of this.
3. The Secondhand Boom Is Already Here
This isn't a forecast either. It's already happening, and the data is unambiguous.
Behavioral shift, in real time:
- 34% of secondhand shoppers are buying resale MORE specifically because of tariffs. Source: Morning Consult Pro
- OfferUp searches for AirPods, washing machines, and sofas surged 10x as tariff news hit. Source: Investopedia
- Resale app downloads up 20% from April to July 2025. Source: Modern Retail
- 59% of US consumers shopped secondhand in 2025, up 7 percentage points in 3 years. 62% of Gen Z. Source: Retail Dive (ThredUp 2026 Resale Report)
- 41% now look secondhand FIRST when seeking value. 46% browse resale before buying new. Source: Retail Dive
- 57% resold items for income in 2025 — double the prior year. Source: Retail Dive
Market size is exploding. US secondhand grew 13% in 2025 vs. 3.6% for retail clothing — nearly 4x faster. Source: Retail Dive
Global secondhand apparel: $257B in 2025, projected to hit $393B by 2030. US specifically: $78.8B by 2030. Source: ThredUp Resale Report 2026 (via Get Circular)
And the resale platforms are confirming it in their own numbers:
- ThredUp revenue +20% to $310M
- The RealReal +15% to $693M annual; Q4 +14% to $165M Source: Fortune
- Burberry sales on Poshmark +30% as shoppers chase tariff-proof luxury Source: Modern Retail
When new prices spike, used wins. eBay is the largest, oldest, deepest used-goods marketplace in the United States. It's holding the bag of money everyone else is scrambling for.
4. eBay's Moat Has Quietly Gotten Wider
While people were writing the obituary, eBay was quietly rebuilding the engine. The 2025 numbers tell that story too:
- Recommerce is over 40% of GMV in 2025 — per management on the Q4 2025 earnings call. The platform leaned into used and used delivered. Source: Q4 2025 earnings call
- Q4 2025 focus category GMV grew over 16%, driven by collectibles, luxury, and refurbished apparel. Strategic focus areas now make up two-thirds of GMV. Source: Q4 2025 earnings call
- Pokémon GMV grew triple-digits year over year in Q3 2025 — the third consecutive quarter of triple-digit growth. Source: cllct
- eBay Live ran at a 7x year-over-year run rate per management, with a single Black Friday event clearing $2 million in sales. Source: Q4 2025 earnings call
- Agreed to acquire Depop from Etsy for $1.2B in cash (announced Feb 18, 2026; expected to close Q2 2026), locking in Gen Z resale share alongside the core platform. Source: Retail Dive
eBay isn't fighting Amazon on commodity new goods anymore. It moved upmarket into categories where authentication, scarcity, and community matter — and where Amazon literally cannot compete because they don't have the seller base or the trust infrastructure for graded cards, certified watches, vintage motors, or one-of-one luxury.
The Depop deal is the tell. Gen Z is 62% secondhand shoppers, and eBay just bought their second-favorite app to pair with their first.
5. The Competitors Everyone Compares eBay To Are Actually Dying
The “eBay is dying” narrative usually points at “scrappy upstarts” eating its lunch. Let's actually look at those upstarts.
- Mercari: repositioned around cross-border to Japan-themed collectibles (anime, manga, Pokémon, Funko). Their cross-border GMV grew 15x from FY2022 to FY2025 — impressive, but it's a niche, not a frontal eBay competitor. They also exited their spot-work business after a ¥5.9B loss. Source: Japan Times Source: Investing.com
- Poshmark: sold to Naver for $1.2B in 2022 — that was a distress sale at declining revenue, not a victory lap.
- Whatnot: real and growing in collectibles via live, but a tiny audience compared to eBay and competing primarily on lower fees. eBay Live's 7x YoY growth is the direct response, and eBay can play that margin game if it has to. Source: Nifty.ai
- Temu / Shein: de minimis is still suspended despite the Supreme Court ruling. As long as that holds, their value-tier landed cost stays elevated and their core US shopper has reason to consider used.
- Amazon Renewed / Warehouse: never broke into collectibles, luxury, or motors — the categories where eBay actually makes money.
In the marketplace where eBay competes most directly — secondhand at scale — eBay is the largest, most profitable, most cash-generative player. The closest US pure-play resale competitor (ThredUp) does $310M a year. eBay does $11.1 billion. That's a 35x revenue gap.
6. The Real Timeline
Here's the actual 2025–2026 timeline, with the dates that matter:
| When | Event | Effect |
|---|---|---|
| Aug 29, 2025 | De minimis $800 exemption suspended | Sub-$800 imports lose their duty-free advantage |
| Jan 15, 2026 | 25% Section 232 tariff on advanced semiconductors | Cost floor rises on chip-heavy electronics |
| Feb 18, 2026 | eBay reports record FY2025 + agrees to buy Depop | Recommerce now 40%+ of GMV; Gen Z lock-in |
| Feb 20, 2026 | Supreme Court strikes down IEEPA tariffs 6-3 | Reciprocal & fentanyl tariffs gone; admin pivots |
| Feb 24, 2026 | 10% Section 122 global tariff replaces IEEPA tariffs | Effective rate stays elevated (~11.8% by April) |
| Apr 6, 2026 | Section 232 steel/aluminum/copper raised to 50% | New-goods prices keep climbing in metal-heavy categories |
| Jul 24, 2026 | Section 122 expires unless Congress extends | Key uncertainty point — Section 301 may take its place |
| 2026–2030 | US secondhand path to $78.8B by 2030 | eBay is the dominant incumbent |
The bull case for eBay doesn't require any single tariff to survive. It requires two of these three things to stay true:
- Some form of elevated effective tariff persists — through Section 122, Section 232, Section 301, or successor authorities
- The de minimis suspension holds (or is replaced with something equivalent) — structurally limiting Temu/Shein
- Consumer behavior toward secondhand stays sticky once formed (the data says it does — that's why ThredUp is forecasting $78.8B US by 2030)
Every one of those three is currently true. Even if one of them breaks, the other two carry the thesis. That's what makes it a real bull case instead of a single-policy bet.
The Bottom Line
eBay is profitable. eBay is growing. eBay is returning capital. The numbers in the FY2025 release don't have an asterisk — they're audited and they're good.
The tariff picture is messier than it was three months ago, and anyone who tells you it's a one-way bet is selling you something. The Supreme Court took out the biggest piece. But the pieces that remain — Section 232 on metals and chips, Section 122 as a bridge, Section 301 in the pipeline, and a still-suspended de minimis exemption — still tilt the playing field toward used goods.
The “eBay is dying” thesis required a world where new goods stayed cheap forever and Gen Z never bought used. Both halves of that thesis are wrong, and have been wrong for a while now — tariffs or no tariffs.
The bull case isn't “tariffs save eBay.” The bull case is: eBay is winning the secondhand category at the exact moment secondhand becomes the default for an entire generation.
If you sell on eBay, the smart move right now isn't to look for the exit. It's to source heavier, list smarter, and sit in the middle of the biggest structural tailwind this platform has had in over a decade.
Want Help Riding This Wave?
If you want a second set of eyes on your store — sourcing strategy, listing optimization, category positioning — this is exactly the kind of work we do for sellers every day. Get your shop ready to ride this tailwind instead of watching it play out on someone else's P&L.
See Our Services →The Noble Cache is a Top Rated Plus eBay seller based in Pensacola, FL with 3,200+ sales. The Reseller's Edge is our blog covering the operational and strategic side of running a high-volume reselling business.