Hot Topics:

PayPal Stars in eBay’s 1Q Performance

Strong growth in payments helps lift profits 20%.
paypal-star-door

E-commerce market watchers expected a strong first-quarter report from eBay, and the company delivered, posting a 20-percent rise in profits.

eBay Inc. reported net revenue was nearly $3.3 billion for the quarter, up 29 percent compared to the same quarter of 2011. GAAP net income was $570 million, up 20 percent.

PayPal, eBay’s payments processor subsidiary, led the performance. Its revenue grew 32 percent to $1.3 billion on total payment volume of $33.8 billion. Payments on eBay represented roughly a third of the total, and were up 17 percent in the quarter.

The Marketplaces unit, which includes eBay.com, continues to grow steadily. Net marketplace revenue grew 11 percent in the first quarter to $1.7 billion. Gross merchandise volume, excluding vehicles, grew 12 percent compared to the same quarter a year ago, while the number of items that sold increased 17 percent, the company reports.

eBay’s efforts to refashion the marketplace as a retail venue appear to be paying off, with fixed price merchandise representing 64 percent of first-quarter GMV, according to eBay.

eBay said it expects second-quarter revenue to be significantly higher than the same period of 2011.

About the author

Crista Souza
Crista Souza is founding editor of TheOnlineSeller.com. A journalism graduate of San Jose State University, she spent 13 years as a business and technology reporter in Silicon Valley. Crista has been writing about B2C and C2C ecommerce since 2008. Opinions expressed here may not be shared by The Online Seller and/or its principals.

  • Merf180

    …and my profits are down.  Thanks for double-dipping me, eBay/Paypal.
     

  • kris

    I’m all for a business making money, that is why people have them.  I wonder if their increase had anything to do with collecting fees on shipping now too?  I have noticed a significant increase in the fees I am paying now, so I would think they would notice a large increase in income also.  Just wondering how it all breaks down????

  • Creative Accounting

    Ha!   eBay/Paypal better keep all those plates spinning continuously because this shell game isn’t going to last over the long haul.