Category: Technology Author : Mike Stenger Posted: January 18, 2012
Tags : ebay, ebay auction, ebay inc
It seems the several months leading towards the end of 2011 were some good one’s for the World’s largest online auction marketplace, eBay. The company reported higher earnings and net income rose quite significantly while being out Wall Street expectations.
Being that the economy is still slowly rebounding, eBay is a great place for people to shop and get great deals on the products that they want or need. The Christmas and Holiday season is always a good one for e-commerce sites and the auction site is no exception.
“The company earned $1.98 billion, or $1.51 per share, in the October-December quarter. That’s up from $559 million, or 42 cents per share, in the same period a year earlier. Excluding special items such as the Skype gain, eBay Inc. says it earned 60 cents per share in the latest quarter, above the 57 cents that analysts were expecting. Revenue grew 35 percent to $3.38 billion from $2.5 billion.”
Paypal, one of the World’s largest online payment services which is owned by eBay, also did very well.
“The e-commerce and online payments company said its PayPal business continued to grow, ending the quarter with more than 106 million active accounts. That’s up 13 percent from a year earlier. Revenue jumped 28 percent to $1.24 billion and the business processed $33.4 billion worth of payments during the quarter. That’s up 24 percent from a year earlier.”
Sounds like 2011 was a great year for the company. Something interesting worth mentioning is that mobile purchases were up 500% which came out to $4 Billion. Quite the increase and goes to show that mobile usage continues to be on the rise.
Do you buy on eBay or do you prefer another site?
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Jan 20, 2012
Funny how analysts can come up with so many different interpretations of the eBay financials ….
“When Do We Start Calling eBay A Payments Company?”.
http://www.businessinsider.com/ebays-transformation-when-do-we-start-calling-ebay-a-payments-company-2012-1
This “Business Insider” article contains a revealing graph of eBay revenues since 2003. It shows quite starkly how eBay’s marketplace revenue has stagnated since 2007, about the time that the headless turkey, John Donahoe, got hold of the tiller and started his “destructive innovations”.
So, the eBay marketplace has been stagnant since 2007—even before the GFC. Conversely, Amazon’s marketplace has not stagnated, it is consistently moving ahead in leaps and bounds, ergo the eBay Marketplace has effectively been in decline since 2007.
eBay’s “take rate” improved simply because it is now charging a FVF on sellers’ freight costs. To what are they going to next time add FVF to again pull the wool over the analysts eyes?
The graph also shows the eBay-underpinning increases in revenue eBay has received from PreyPal during the same period, that is, from roughly when the “eBafia Don” effectively mandated PreyPal’s use on the eBay Marketplace, and Business Insider apparently thinks therefore that eBay’s future lays in PreyPal. Dream on BI ….
Unfortunately for eBay’s chief headless turkey, Visa’s “V.me”, when it is up and running later this year, will put paid to whatever success that the clunky PreyPal has had outside of its mandated use on the eBay Marketplace—and soon thereafter both these unscrupulous and clunky entities will commence their long-deserved journeys down the gurgler.
PayPal claims PayPal Is Not a Payments Processor!
http://forums.auctionbytes.com/vbulletin/showthread.php?t=24148
eBay / PayPal / Donahoe: Dead Men Walking.