BIG Expectations by eBay Management

[pierrelebel]

(Reuters) - EBay Inc Chief Executive Officer John Donahoe said on Thursday that the company would enable $300 bi...

That forecast includes sales on eBay's online marketplace, payments processed by PayPal and other transactions touched by the company's various businesses, such as GSI Commerce.

"That's one of the ways we will measure our success," Donahoe said during eBay's investor day at its headquarters in Silicon Valley.

EBay's top executives on Thursday will give its latest three-year financial forecasts, from revenue projections to guidance on gross merchandise value (GMV), or the value of transactions it handles on its marketplace.

After bleeding market share to Amazon.com Inc for years, Donahoe began a turnaround effort in 2009 that set the Internet commerce c...

He took what was then a muddled auctions website and made it easier for shoppers to buy new items at fixed prices and get more free shipping and returns - essentially mimicking the Amazon experience. He also embraced mobile technology, creating shopping apps for smartphones and tablets that brought in new customers.

http://www.reuters.com/article/2013/03/28/ebay-ceo-idUSL2N0CK14H20130328?feedType=RSS&feedName=techn... 

[thebarterersdog]

" ...includes sales on eBay's online marketplace, payments processed by PayPal"

You're welcome Mr. Donahoe 😉

[inuk_the_polar_bear]

Actually, is a little different than that. Accepted economic theory is that a dollar rolls over seven times once spent. So, if $50K goes through my hands in a year, I will generate $350K worth of economic activity.

While we focus on Canada and the US, eBay is a global company that has assets in many countries.  Someone over on seller central down south posted a list a while back. It was sometime like a dozen e-commerce sites scattered around the globe that eBay owns.

In my world, there are exactly three sites for me to list on: eBay, Kijiji, and CL. Ebay owns the first two outright and 25% of CL.

December's on-line merchant sales were up 22% over the previous year in the USA. That growth, alone will send eBay over $300B.

eBay had a gross profit of $3.1B for 2012 while Amazon lost money.

Under Donahoe, sales and profit have increased significantly. For 2012 all the economic indicators, eBay, were around 18% increases. Amazon fluttered around zero and below.

2009: $8.5 B revenues

2012: $14. B revenues

64% increase over three years.

Don't like if you do not want to. eBay is a cash machine.

[recped]

I agree inuk, it's a bold prediction but it's entirely possible they will hit that target. Won't stop sellers from pinning for the good old days when eBay counted their profits in Millions rather than Billions.

Personally I'm not convinced that Amazon will ever make any real money but I'd bet Jeff Bezos has his exit strategy in place.

[inuk_the_polar_bear]

Amazon is very good at spending money. ALL CEO's have an exit strategy built into their contracts.

The boldness of the projection hinges on most people not being able to understand what it means.

eBay has nothing to do with sellers. It is about ROI.