George Mason University
INFS-640 (E-commerce)
Spring-2003
An Analysis of eBay
4.0 Sales/Marketplaces
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.