Mercari Aims To Grow GMV, Increase Security As US Marketplace Still Struggles

Mercari has reported financial results for the most recent quarter ending December 2024 with gross merchandise value (GMV) below expectations for both Japan and US Marketplaces as security issues and fee missteps stymie growth.

While the Japan marketplace did see GMV growth, it was not as much as had been expected, with Mercari blaming warm weather in October for a slow start to holiday spending and issues with increased fraud early in the quarter which were mitigated and reportedly returned to normal levels after implementing new security measures in November.

The US marketplace continues to struggle after last year's fee shake up debacle, with GMV down 27% year over year and hit particularly hard by Mercari's decision to try a flat 10% buyer fee in September.

Under new leadership with Shintaro Yamada taking over after John Lagerling resigned in December, the US market is recalibrating under another new fee structure, this time split between buyers and sellers - a move Mercari says is showing initial signs of improving GMV.

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Value Added ResourceLiz Morton

Mercari says they are focusing on improving the product experience for both buyers and sellers in the US and also focusing on trust and security to address fraudulent use of the platform.

Hopefully Mercari includes member to member messaging in those security initiatives as users have been bombarded with an ongoing fake verification phishing attack seeking to compromise account credentials and identity information.

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Value Added ResourceLiz Morton

The call concluded with Mercari saying their goals for the US marketplace remain breaking even and getting back on track for GMV growth with the new fee model but if they do not see positive results, they will consider "various options".

While no hints were provided about what those options might be, Mercari told investors in September that entering into a partnership of some kind with another company is a possibility they may be willing to consider.

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Value Added ResourceLiz Morton

Have your Mercari sales picked up with the most recent fee structure update? Let us know in the comments below!