They’re exactly where we expect them to be and where I’ve been talking that they would be. And when you look at it, categories like what we’re doing in sneakers. This quarter, we just launched Authenticity Guarantee for streetwear, which is a great kind of Gen Z younger consumer category. We’re in the middle of sponsoring fashion island — sorry, Love Island in the U.K., which is kind of currently on air right now, sponsored by our eBay U.K. business, also bringing in a different type of cohort. So we feel really good that the strategy is working. We’re bringing in the enthusiast buyers that we want and that we’re seeing a great payoff out of the full funnel marketing approach.
Operator: Your next question is from the line of Ken Gawrelski with Wells Fargo.
Kenneth Gawrelski: A couple of more kind of macro and competitive questions, please. First, could you just speak to where we are in the evolution of the consumer preference for goods versus services? Have you seen a normalization of that trend? And has there been any benefit yet in results? And then the second one, could you just speak about the competitive environment, especially in the kind of the lower end of the market, maybe where we’ve seen in the market where there have been some aggressive moves by China drop shippers. Anything you could touch on there, any impact you may be seeing and what actions you might be taking to combat those efforts?
Jamie Iannone: Yes. So look, on the first one, clearly, inflation and rising are impacting discretionary demand. I think what makes our platform more resilient is that consumers can come here and find amazing values. So if you think about the refurbished category, which has been a focus category of ours, that grew double digits year-over-year and was the second largest contributor towards our focus category outperformance. In general, on the platform, we’re seeing used growing faster than new. And that’s what’s great about eBay on the buy side. On the sell side, it is also a place to make extra income. And so we’re really leaning into what we’re doing on a C2C standpoint, including the new Magical Listing rollout because tougher economic times are an opportunity for us to bring more sellers onto the marketplace.
When you think about the kind of a lower ASP market or the cross-border trade, as you mentioned, we noted that this quarter, we’re actually seeing some strength in the cross-border trade of our business. That has to do with supply chain easing up and there being an opportunity for those sellers to export items in. And so we’re actually seeing good health in what we’re doing from a cross-border trade business. We’ve been doing a lot to enable that and make it easier. I talked about eBay international shipping, but we’ve also been rolling out new capabilities and payments over the past couple of quarters. with buyer and seller FX to make the payments process of that easier. And we’ve been working on with some of our sellers to do forward deploying of our inventory which has just helped kind of ease some of that supply chain pressure.
So overall, we feel really good about the values that people are getting from this and the initiatives that we’re investing in to make it easier for our sellers to export items throughout the globe.
Operator: Your next question is from the line of Deepak Mathivanan with Wolf Research.
Deepak Mathivanan: Two quick ones from us. First, can you add additional color on the factors driving strong trends in the first-party ads business? Are sellers also seeing additional performance gains or is this primarily driven by expansion in ad load in some of the areas of the website? And then second, on M&A, Steve, you alluded to kind of being acquisitive, how should we think about the appetite over the next few quarters? Are there any specific areas where you think there are additional opportunities?
