Ebay Inc. at a Glance

Uppers

  • Anyone anywhere can buy or sell products online using a secure network and payment systems

Downers

  • Since customers are buying from individuals and not necessarily buying from reputable companies there are more opportunities for fraud and scams

The Bottom Line

  • eBay Inc. is the world's largest online marketplace with more than 97 million global users and includes eBay, PayPal, Bill Me Later, GSI Commerce and X.commerce.

About Ebay Inc.

eBay is a well-known e-commerce platform for online auctions. Trading goods every second of every day, eBay offers an online forum for buying and selling merchandise worldwide, from fine antiques to the latest video games. eBay generates revenue through listing and selling fees and through advertising, and boasts more than 170 million users and more than 1 billion listings globally. Its e-commerce platforms include StubHub and Half.com. eBay also has a mobile version of its service, and owns e-commerce services provider GSI Commerce , as well as a minority stake in online classifieds service Craigslist.

Operations

The company generates revenue through marketing services, including classifieds and advertising.

Marketplace platforms contribute about 80% of eBay's total revenue.

Geographic Reach

More than half of eBay's revenues are generated outside the US. eBay has a strong focus on Europe. Its top-earning non-US markets include Germany, the UK, Australia, Korea, China and Canada. The company's classified websites are available in more than 1,500 cities around the world. The US accounts for about 45% of the company's total revenue.

The company has offices, data centers, product development offices, fulfillment centers, and customer service offices in nearly 35 countries around the world.

Sales and Marketing

eBay spent $1.2 billion on advertising during fiscal 2016.

Financial Performance

eBay's revenue was $8.98 billion in fiscal 2016, up from $8.59 billion the prior fiscal period. Although revenue increased in fiscal 2016 compared to fiscal 2015, the company has yet to reach its pre-2015 revenue levels.

eBay's net income was $7.27 billion in fiscal 2016, up dramatically from the $1.73 billion the company reported for net income in fiscal 2015. The increased net income was driven by a decrease in the company's operating expenses.

However, despite the increased net income, eBay's cash flow from operations was down from more than $4 billion at the end of fiscal 2015 to $2.6 billion at the end of fiscal 2016.

Strategy

Whether online, through the mobile channel, or offline, eBay's monetization strategy remains the same. The company is primarily a transaction-based business model that generates revenue through its e-commerce platforms. The company also generates revenue through marketing services, classifieds, and advertising. eBay has struggled to grow in recent years amid competition from e-commerce rivals like Amazon.

The company is continuing to focus on customizing eBay's buying and selling experiences to make it easier for users to list, find, and buy items by offering formats dedicated to specific products or categories. On its Marketplace platforms, the company has built specialized experiences, such as Daily Deals, Fashion, Motors (vehicles; parts and accessories) and Electronics.

eBay's has moved away from a listings-based format toward a product-based format. As part of this strategy, eBay began collecting product data from sellers as they list their inventory, allowing the company to offer greatly improved user experiences, and to build machine-learning capabilities to process a global, accessible catalog of things.

In order to compete effectively, eBay will have to continue to use significant resources to innovate and enhance its technology and marketing.

Mergers and Acquisitions

In March 2016 eBay acquired Cargigi, a California based provider of online advertising and marketing services for the auto industry. The acquisition will leverage Cargigi’s technology to help onboard auto dealers’ inventory onto eBay.com.

In May 2016 eBay acquired Expertmaker, a Sweden-based specializes in providing intelligent solutions powered by artificial intelligence (AI), machine learning, and big data analytics. The acquisition will contribute to eBay's data processing and enrichment capabilities.

In July 2016 eBay acquired SalesPredict, an Israel-based company that leverages advanced analytics to predict customer buying behavior and sales conversion. The deal supported eBay's artificial intelligence, machine learning, and data science efforts.

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Company News and Press Releases

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Ebay Inc.

2025 Hamilton Ave
San Jose, CA 95125-5904
Phone: 1 (408) 376-7400
Fax: 1 (408) 558-7401

Stats

  • Employer Type: Public
  • President and CEO: Devin N. Wenig
  • Chairman: Thomas J. Tierney
  • President and CEO: Devin N. Wenig
  • 2016 Employees: 12,600

Major Office Locations

  • San Jose, CA

Other Locations

  • Pacoima, CA
  • Valencia, CA
  • Brunswick, GA
  • Shepherdsville, KY
  • Boston, MA
  • La Vista, NE
  • Point Pleasant Boro, NJ
  • Portland, OR
  • West Valley City, UT
  • Martinsville, VA
  • Eau Claire, WI
  • Brussel, Belgium
  • Paris, France
  • Amsterdam, The Netherlands
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