George Mason University
An Analysis of eBay
The combination of the 62+ million users and 195+ million listing has yielded the gross merchandise sales of goods that surpass $4.6 billion in quarter 4 of 2002. That means that annualized sales for the year of 2002 has exceeded $18.4 billion. If this were broken down, that’s $50 million per day or $579 per second.
4.1 Success in U.S. Marketplaces
eBay has had most of its success right here in the United States. About $225 million in U.S. transactional revenues were performed in the 4th quarter, 2002 or about $1 billion for the year 2002. This too, has a steady increase. eBay has a 55% year-to-year growth on the year-to-year growth of U.S. transactional revenue.
4.2 International Marketplaces
eBay has had much success in the International marketplace as well. It is estimated that in the 4th quarter, 2002, International revenues had easily surpassed $100 million. A more shocking statistic is that the year-to-year growth in the International marketplaces has increased 173%. This is the largest increase that this marketplace has had and it rapidly increasing.
4.2.1 Country Growth Trajectories
eBay has taken four countries, Germany, United Kingdom, Korea and the United States, and drew up a chart for gross merchandise sales per population and their trajectories. It appears that Germany has the most growth out of the four countries since its inception. Germany is the country that seems to be growing the fastest as far as revenue generation.
4.2.2 New Emerging International Markets
Countries such as France, Belgium/Netherlands, Italy and Spain have become new emerging markets. They have been gradually making an impact on gross merchandise sales, and in turn, increasing eBay’s profits.
4.3 Category Growth
The largest annualized global gross merchandise sale (GMS) is EBay Motors. The total for the Motors category is $4.3 billion for the 4th quarter, 2002. The year-to-year growth has increased 102%. The eBay motors site would seem to have the largest GMS because automobiles seem to be the items with the highest price. The category with the largest year-to-year growth is the Home & Garden section; it has a year-to-year growth of 132%. The lowest category with lowest revenue is the coins and stamps which has a GMS of $460 million. The category with the lowest percentage of year-to-year is the collectables section.
4.3.1 Emerging Growth Categories
Some emerging growth categories that eBay are: Home Furnishings, Health & Beauty, Test & Measurement Equipment, Restaurant/Food Service, Construction and Agriculture. Home Furnishings, as of the 4th quarter, 2002, has a GMS of $314 million. Conversely, the smallest emerging growth category is agriculture and has GMS of $13 million.
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