eBay 1998 Annual Report Download - page 7

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7
Enhance Features and Functionality. The Company intends to update and enhance the features and
functionality of eBay frequently in order to continue to improve the user trading experience through eBay. The
Company recently introduced personalization features such as About Me, which offers users the opportunity to
create their own personal home page free of charge on eBay. In January 1999, the Company initiated a proprietary
presentation format in the “Antiques” category, the Gallery, which showcases auction items in a catalog of pictures
rather than text. The Company plans to introduce the Gallery to other eBay categories in 1999. The Company
intends to introduce other features, such as new auction formats, category-specific content, the ability to search for
auction items being sold within driving distance of an identified region and other features designed to enhance the
eBay experience. The Company will continue to provide rapid system response and transaction processing time by
investing in its infrastructure in order to accommodate additional users, content and auctions.
Expand Value-Added Services. In order to offer an “end-to-end” person-to-person trading service, the
Company intends to provide a variety of pre- and post-trade services to enhance the user experience. The Company
intends to introduce new services and expand current ones, such as its SafeHarbor program, to facilitate the
exchange of goods so that buyers and sellers will feel more comfortable sending money or goods to an unknown
trading partner. The Company recently improved its Feedback Forum to distinguish between transaction-specific
feedback and general feedback, provided integrated third-party escrow services and has announced that it intends to
establish a Verified eBay User program to encourage users to provide eBay with additional identity verification.
eBay recently implemented a free insurance program that generally insures items up to a value of $200, with a $25
deductible, for users with a non-negative feedback rating. The Company anticipates that future services may include
pre-trade services, such as services to facilitate scanning and uploading of photographs of listed items and
authentication and appraisal services, and post-trade services, such as third-party escrow services, arrangements to
facilitate shipment of products and methods to facilitate buyers’ payments to sellers, such as credit card services.
The Company may pursue strategic relationships with third parties to provide many of these value-added services.
Develop International Markets. The Company believes that the Internet provides a significant opportunity for
the creation of a global person-to-person trading market. The Company intends to take advantage of this opportunity
by leveraging the eBay service and brand name internationally by developing eBay for selected international
markets and marketing and promoting these services actively. The Company has introduced country-specific home
pages for Canada and the United Kingdom and has entered into a joint venture with a subsidiary of one of the largest
media companies in Australia and New Zealand. The Company believes that its user base already includes users
located in over 50 countries.