EBay Inc.'s move to hire Walmart Inc. executive Jamie Iannone as its new CEO suggests the company wants to drive growth and become more competitive with major e-commerce players like Amazon.com Inc., experts say.

The California-based online marketplace said April 13 that it named Iannone to be CEO and board director, effective April 27.

Iannone, who most recently served as COO of Walmart's e-commerce arm, will take over the top spot from former CEO Devin Wenig, who stepped down in late 2019 after clashing with activist investors Starboard Value LP and Elliott Management Corp. Both companies placed eBay under a strategic review in 2019, calling for a major restructuring of the firm.

CFO Scott Schenkel served as eBay's interim CEO after the resignation of Wenig.

Iannone's appointment to eBay's top spot was met with optimism by analysts, who said his extensive e-commerce experience, which includes serving as CEO at SamsClub.com and previous stints with eBay, make him a particularly a good fit. Iannone worked as an eBay vice president and held other leadership roles with the company from 2001 to 2009.

"When you hire someone who comes from Walmart, the expectation is that this person excels in execution," said Tom Forte, an analyst with D.A. Davidson, in an interview.

Hiring Iannone suggests that eBay may work to significantly improve the ability of sellers on its platform to get products to consumers faster, grow through "larger-scale acquisitions" and execute initiatives to become more competitive with Amazon, Forte said.

"Generally speaking, I don't think Amazon should be overly concerned with eBay but relative to maintaining the status quo, it suggests the potential for slightly more incremental competitive pressure from eBay in the future," he said.

EBay declined to comment beyond its press release, which included a prepared statement by Iannone, who said he believes eBay "has tremendous opportunities" to capitalize on the foundation of its platform, innovate for the future and grow its ecosystem.

"I look forward to working with our global teams to enhance buyer experiences and provide more capabilities that will help small businesses sustain and grow," Iannone stated. "I will focus on continuing to evolve the company’s strategy while delivering on eBay's commitment to maximize long-term shareholder value."

Falling behind

Iannone is taking over as CEO at a time when eBay has struggled to keep pace with other e-commerce players like Amazon, which held a 37.6% share of total U.S. retail e-commerce sales in 2019, up from 31.5% in 2016, according to eMarketer. EBay was a distant second-place finisher, with a share of 5.7% in 2019, down from 8.2% in 2016. Smaller players like Brooklyn, N.Y.-based Etsy Inc. have created another venue for the custom, unique items that eBay built its brand on.

The company has made progress restructuring itself, with the February sale of its ticket sales unit StubHub to Viagogo Entertainment for $4.05 billion. EBay also said in February that it intends to sell its Classifieds group.

Fresh eyes

Iannone's appointment may provide the fresh eyes that eBay needs to move forward, analysts say.

Edward Yruma, managing director at KeyBanc Capital Markets, said in an April 13 note that Iannone was "instrumental in driving innovation at SamsClub.com and should bring a growth focus to eBay." Iannone was responsible for Sam's Club's digital transformation, including developing and executing initiatives in membership, marketing and technology.

"Sams built a robust integration between the online and stores businesses, which was a key competitive differentiator between it and its club peers," Yruma said.

Ygal Arounian, an analyst with Wedbush Securities, said in an interview that hiring Iannone was a "really smart move," given his experience with some of the largest retailers in the country.

"I think he's exactly the kind of CEO that they need to bring in and lead them through their evolution and compete with Amazon and other big retailers," he said.