(Reuters) -Ecommerce agency eBay (NASDAQ:) forecast fourth-quarter income beneath Wall Road estimates on Wednesday as cautious customers shun collector’s gadgets and refurbished items, sending its shares down greater than 7% in prolonged buying and selling.

The broader economic system remains to be fluctuating and clients are cautious about discretionary spending.

A number of discretionary marketplaces have been struggling to maintain progress, analysts at Bernstein have mentioned, highlighting the difficult macro backdrop eBay is working towards.

EBay has been below stress as inflation-hit buyers turn out to be more and more picky about their on-line purchases.

“Our outlook also contemplates a challenging operating environment due to persistent economic headwinds and several one-off dynamics in Q4 – specifically, greater consumer attention on U.S. election, the shorter holiday shopping period this year and Hurricane Milton in early October,” mentioned CFO Steve Priest in a post-earnings convention name.

U.S. vacation gross sales are anticipated to develop as a lot as 3.5% from November to December, the slowest tempo in six years, the Nationwide Retail Federation forecast in October, as buyers flip extra frugal and get choosy with spending on non-essentials.

EBay expects income within the vary of $2.53 billion to $2.59 billion for the fourth quarter ending Dec. 31. Analysts on common had been anticipating $2.65 billion, in line with information compiled by LSEG.

The corporate forecast fiscal 12 months 2024 income to be between $10.23 billion and $10.29 billion, beneath estimates of $10.32 billion.

For the third quarter ended Sept. 30, eBay posted income of $2.58 billion, above analysts’ estimate of $2.55 billion.

Gross merchandise quantity, a key trade gauge that denotes the entire worth of products and providers offered on {the marketplace}, rose 2% to $18.3 billion within the quarter.