eBay's Marketplaces business, is expected to contribute $9.2 billion to eBay's 2019 revenues, making up 79% of eBay's $11.6 billion in expected revenues for 2019. The Marketplaces segment contribution to revenue is nearly 4x that of the Marketing and Advertising business.eBay is expected to add $2.6 billion in revenue between 2016 to 2019, out of which the Marketplaces segment is expected to provide $2.1 billion, that is 80.8% of the total expected increase.This Marketplaces segment revenue growth has been key to eBay's 38.4% price appreciation since 2016. We discuss eBay’s valuation analysis in full, separately.Below we discuss eBay's business model, followed by sections that review past performance and 2019 and 2020 expectations for eBay's revenue drivers and competitive comparisons of its Retail revenue with Amazon.
eBay Business Model
What does eBay offer:
eBay, Inc. was formed in September 1995. The company has 3 platforms Marketplace, StubHub, and Classifieds. These help buyers and sellers across the world connect with each other.The Marketplace platforms include online marketplace located at www.ebay.com, its localized counterparts, and the eBay suite of mobile apps. The StubHub platforms include online ticket platform located at www.stubhub.com, its localized counterparts, and the StubHub mobile apps.The Classifieds platforms include a collection of brands such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others.
Has 2 major Operating Segments:Net transaction revenues
: They are derived principally from final value fees (which are fees payable on transactions closed on Marketplace and StubHub platforms), listing fees, and other service fees. Marketing Services & Others revenues
: This consists of Marketplace, StubHub and Classifieds revenue principally from the sale of advertisements, vehicles classifieds listing on Marketplace platforms, revenue sharing arrangements, classifieds fees, and marketing service fees.
What Are The Alternatives?
Major competitors are Amazon, Alibaba, Walmart, and traditional marketplaces.
What Is The Basis of Competition?
The competitive factors for the company would be the ability to attract, retain, and engage buyers and sellers, volume of transactions and price and selection of goods, trust in the seller and the transaction, customer service, brand recognition, website, mobile platform and application ease-of-use and accessibility, system reliability and security, reliability of delivery and payment, including customer preference for fast delivery and free shipping and returns, level of service fees among other things.
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1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.