(Reuters) -E-commerce firm eBay ( EBAY ) forecast third-quarter revenue above Wall Street estimates on Wednesday, signaling robust demand for products like collector's items and refurbished goods, sending its shares up 7% in extended trading.

EBay ( EBAY ) is likely to compete comparatively well in an environment of higher product prices due to tariffs and a macroeconomic downturn, analysts have said.

The company is expanding its focus categories to include U.S. pre-owned apparel, which could help accelerate volume in one of the larger e-commerce verticals.

It has also leveraged AI, including its magical listing tool and a shopping agent introduced in May, which delivers real-time, hyper-personalized product picks and expert guidance based on users' shopping preferences.

The company expects revenue in the range of $2.69 billion to $2.74 billion for the third quarter, compared to analysts' average estimate of $2.66 billion, according to data compiled by LSEG.

For the quarter ended June 30, eBay ( EBAY ) posted revenue of $2.73 billion, beating estimates of $2.64 billion.

Gross merchandise volume, a key industry metric that denotes the total value of goods and services sold on the marketplace, rose 6% to $19.5 billion.