The RealReal, eBay and Pinterest Drive Discovery Shopping to Test Profitability
As interactive shopping experiences reshape online retail, major platforms like The RealReal, eBay, and Pinterest are competing for consumer attention before shoppers even know what they want to buy.
Online retail used to be entirely about convenience. Customers searched for specific items, compared prices, and checked out. Now, retailers are pouring resources into artificial intelligence, live shopping streams, and interactive interfaces designed to make product discovery a core part of the attraction. The question for investors is whether these interactive features can successfully turn casual browsers into repeat customers while boosting the bottom line.
The RealReal Reports Revenue Growth Amid Profitability Questions
The luxury resale platform reported third-quarter revenue of $206 million, up 19% from a year earlier, according to an Oct. 29 earnings release. Gross merchandise value, or GMV, increased 23% to $642 million, while orders climbed 15%. Active buyers rose 13% to approximately 1.15 million over the trailing 12 months.
Profitability metrics also improved. The company posted $17 million in adjusted EBITDA, up from $9.3 million a year prior, alongside a gross margin of 74.9%. Yet, underlying components of the bottom line require closer examination. The RealReal reported $16 million in net income, which included a $21.2 million noncash gain related to warrant valuation. That accounting benefit is distinct from recurring operating earnings. Management raised its full-year revenue outlook to a range between $806 million and $810 million. The next challenge is maintaining buyer growth in a labor-intensive business model that depends heavily on physical authentication, inventory handling, and fulfillment.
eBay Expands Interactive Commerce Through Live Shopping
Recommerce giant eBay reported third-quarter revenue of $3.2 billion, a 14% increase, and GMV of $23.2 billion, up 15%, according to its Oct. 28 earnings announcement. One specific area driving engagement is eBay Live, an interactive shopping platform that delivered another record quarter with GMV reaching a multibillion-dollar annualized run rate and year-over-year growth remaining in the triple digits.
Instead of relying strictly on traditional search queries, consumers can watch live sellers demonstrate merchandise and participate in real-time events. This format proves particularly effective for collectibles, where discovering unexpected items adds to the consumer appeal. At the same time, financial disclosures highlight underlying pressures. GAAP net income from continuing operations declined 16% to $501 million despite top-line growth. Investors are watching closely to see if interactive commerce drives sustainable transactions and customer retention without outpacing revenue growth in operational expenses.
Pinterest Monetizes Its Massive Audience With AI Tools
Pinterest approaches product discovery from an advertising model rather than direct merchandise transactions. The platform reported third-quarter revenue of $1.17 billion, up 12%, while monthly active users rose 10% to a record 661 million, according to its earnings announcement.
Translating that massive audience into advertising revenue remains an ongoing test. Pinterest reported net income of approximately $22 million, down from $92 million a year earlier. The company continues its capital deployment into AI-powered visual search and shopping tools designed to bridge the gap between consumers planning purchases—such as kitchen designs or wardrobe updates—and advertisers looking to capture high-intent traffic.
Retailers Shift Toward Engaging Shopping Journeys
Attracting initial attention through entertaining digital experiences is only the first step. Andrea Miele, co-founder and CEO of Beezie, a privately held discovery-shopping platform, noted that retailers are increasingly shifting toward engaging shopping journeys.
When interviewed about changes in retail, Miele explained that consumers today expect more emotional resonance from their shopping experience. They’re edging towards a more engaging and fun process for shopping,
Miele said. The consumers they’re targeting today want a bit more and they want to feel something on their shopping journey.
Turning that initial engagement into repeat business requires rigorous execution on customer experience. It’s all about customer experience. Is it simple to use?
Miele said, pointing to structured loyalty programs like Sephora’s rewards system as blueprints for encouraging customer returns.
For market participants, tracking repeat customer activity, transaction-driven revenue, and the true cost of acquiring and retaining buyers will separate platforms building lasting consumer habits from those simply burning capital to chase attention.
