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eBay Shines as Q2 Revenue Jumps 23%

Marketplace has 'best performance of the year.'

eBay had a strong second quarter with revenue that increased by double digits compared to the same time last year.

eBay’s revenue reached $3.4 billion—a 23-percent increase compared last year’s $2.8 billion total. That was in line with projections from experts. Growth of eBay Marketplaces and PayPal helped the company reach the high numbers. In fact, eBay Marketplace had its best performance of the year, according to John Donahoe, eBay’s president and CEO.

Marketplaces, which includes eBay.com, had a gross merchandise volume, excluding vehicles, of $16 million—a 10-percent increase from the 2011 second quarter. PayPal’s revenue increased by 26 percent, year over year, helped by an “increased penetration on eBay” and more adoption of the service, eBay reports. PayPal’s total net payment volume increased by 20 percent, to $34.5 billion.

Marketplaces takes center stage

eBay adds that the number of items sold on eBay increased by 20 percent compared to 2011’s second quarter, and that GMV in the U.S., excluding vehicles, increased 14 percent during the second quarter. This was helped by an increase in the number of users and more people shopping via mobile devices.

Internationally, Marketplaces’ GMV increased by 8 percent. Fixed-price GMV grew around the world by 13 percent, year over year, and represented 65 percent of total GMV, eBay reports. The growth made Donahoe and other eBay officials very happy.

“Our entire company is strong, but we’re particularly pleased with eBay Marketplaces, which delivered the strongest organic growth in gross merchandise volume, excluding vehicles since 2006,” Donahoe adds.

Mobile a rising star

He notes that mobile continues “to be a game changer.” In fact, the company now expects eBay and PayPal mobile to each transact $10 billion in volume this year.

“That’s more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago,” he continues. “Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay.”

eBay expects to see gains again next quarter, when net revenue is projected in the range of $3.3 billion to $3.4 billion. Over the entire 2012, eBay expects net revenue of between $13.8 billion and $14.1 billion.

About the author

Olga Munoz
Olga Munoz is editor of TheOnlineSeller.com. In addition to writing news and feature articles about e-commerce, selling trends, online marketing and other topics of interest to online sellers, Olga manages the site's social media efforts. A journalism graduate of Chico State, Olga says her favorite part of being a journalist is learning interesting facts that help put stories into perspective, attending industry events and meeting interesting people "that leave you smiling, even in tough situations." Opinions expressed here may not be shared by The Online Seller and/or its principals.

  • BGAC

    How easy was it to predict higher revenueS when ebay started charging sellers a fee on the shipping cost….what a false way to enhance revenue our outlook…trick the stock holder’s into thinkging the site has improved when actually they just raised prices without improving the site…so at some point ebay fees will out way the profit and loss for a seller meaning ebay fees will be more than a product is worth ultimately meaning no sales since prices will be too expensive for buyers to purchase online…Its coming…

    • Taylor Wade Clothing

      your spot on there! for someone that has their goods produced in the UK, by the time i add on Ebays fees to my product, my margins are so low it hardly makes it worth it unless i can get products made abroad.

  • Jayne

    The previous poster is exactly right!! Ebays profit increased while everyone who sells on ebay to try and make a living… our profits decreased! Are we supposed to be proud of eBay??? They are becoming boderline crooks if they are not there already. They know they basically have a monopoly at this point and are bleeding it dry! Until something comparable to eBay comes along we have to choice but to just take it. I will jump for joy the day I can leave eBay for good!



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