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Silicon Valley Roundtable

December 8, 1999

Colleen Lindow

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eBay’s Business

The world’s largest online person-to-person trading

community

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eBay’s Mission

To help people trade

practically anything on earth in an auction format

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Vital Statistics

• > 7.7 Million Registered Users

• > 3.5 Million Items Listed for Sale

• > 400,000 Items are Added Daily

• > 2,500 Categories– dolls, cars, collectibles, books, movies, music,

coins, stamps, computers, jewelry, photography, electronics, glass, sports, toys

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A Part of People’s Lives

Yahoo!

eBay

Hotmail

MSN.com

Go.com

Netscape

Excite

AOL.com

Geocities

Microsoft

Total Usage Minutes* (000)

293,367

304,418

396,574

474,727

500,499

522,606

677,375

909,710

940,346

1,991,520

*Source: MediaMetrix, May 1999; includes home and work usage

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Welcome to the Community

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How Does eBay Work?

• Buyers and sellers from all over the world go to the Internet and register on eBay

• Sellers place an item for sale by filling out a short form describing the item, setting initial price and length of auction, and often adding a photo

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• Item is displayed on eBay for a set period of time (3-10 days). During this time, any user can bid on the item over the Internet. Current high bid and bid history are constantly updated and displayed

• Bidding often is intense (pager notification, sniping)

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• At designated moment, auction ends, eBay system sends auto email to seller/high bidder

• High bidder and seller contact each other, arrange details; eBay not involved

• Often, buyer sends check or money order to seller. Upon receiving money, seller sends goods by mail

• Buyer and seller “grade” each other on the transaction: feedback forum

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How Does eBay Get Paid?

• Only the seller pays

• Billed to credit card or accept checks

• Insertion Fee of .25 to $2 an item

• Final Value Fee if Item Sells of 5% of first $25, 2.5% of remainder to $1000, 1% over $1,000

• For an item that sells for $100, eBay collects about $4

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What Can you List on eBay?

Just about anything

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Practicals

Item #91917180$23,1008 bids

Item #91113460$15,00110 bids

Item #91917180$1,828.779 bids

Item #92218233$2,12517 bids

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Premiums

Rolls Royce#92042974$36,00034 bids

Emerald Bracelet #91944271$5,999/18 bids

Tiffany Vase#90800888$2,295/12 bids

Andrew Loomis Painting#91849049$1,625/10 bids

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International items

Item #84282594$15/3 bidsMexico

Item #83393349$49/4 bidsRussia

Item #82862377$409/26 bidsUnited Kingdom

Item #84497690$19/2 bidsJapan

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Easy to use, dependable trading environment

Efficient person-to-person marketplace

Features & benefits

massive selection

more convenient

saves time and money

more value

broadens market

lowers distribution costs

maximizes selling price

more money

Buyer Seller

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Community safety

24/7 SafeHarbor

Elimination of firearms

Tougher policies

Illegal item screening

Legal Buddy program

Relationships with law enforcement

Integrated escrow and insurance

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International

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Regional - eBay LA

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Regionals

• 53 Local Sites Available Nationwide

• Covering All Major Metro Areas

• Easier Way to Trade Difficult to Ship Items

• Creating an On-Line Marketplace for Items of Regional Interest

• Great for Last Minute Holiday Gifts

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