eBay 2001 Annual Report Download - page 10

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Please find page 10 of the 2001 eBay annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Selling on eBay
Registered sellers can list a product for sale by completing a short online form or using ""Mister
Lister,'' ""Seller's Assistant'' or third-party tools that facilitate the listing of multiple items. The seller
selects a minimum price for opening bids for the item and chooses whether the sale will last three, Ñve,
seven or ten days. Additionally, a seller may select a reserve price for an item, which is the minimum
price at which the seller is willing to sell the item and is typically higher than the minimum price set for
the opening bid. The reserve price is not disclosed to bidders. Sellers with appropriate feedback ratings
may also choose to use the Buy-It-Now feature at the time of listing, which allows sellers to name a price
at which they would be willing to sell the item to any buyer. Listings that oÅer the Buy-It-Now feature
are run in the normal auction-style format, but will also feature a Buy-It-Now icon and price. Until the
Ñrst bid is placed, or in the case of a reserve auction, until the reserve price is met, buyers have the option
to buy the item instantly at the speciÑed price without waiting for the auction to end. A seller can elect to
sell items in individual item listings or, if he or she has multiple identical items, can elect to hold a
""Dutch Auction.'' For example, an individual wishing to sell 10 identical watches could hold 10 individual
auctions or hold a Dutch Auction in which the 10 highest bidders would each receive a watch at the same
price and all lower bids would be rejected. To be eligible to hold a Dutch auction, a seller must have a
suÇciently high feedback rating and must have been a registered seller for at least 60 days. A seller may
also specify that an auction will be a private auction. With this format, bidders' email addresses are not
disclosed on the item screen or bidding history screen.
Sellers generally pay a nominal listing fee to list items for sale. By paying incremental placement fees,
sellers can have items featured in various ways. For example, a seller can highlight his or her item for sale
by utilizing a bold font for the item heading, have his or her auction displayed as a ""Featured Auction,''
which allows the seller's item to be rotated on the eBay home page, or utilize the Buy-It-Now feature,
which enables a seller to close an auction instantly once a speciÑed price is reached.
When an auction ends, the eBay system validates whether a bid has exceeded the minimum price,
and the reserve price if one has been set. If the auction was successful or if the buyer elected the Buy-It-
Now feature, we automatically notify the buyer and seller via email, and the buyer and seller can then
complete the transaction independently of us. At the time of the email notiÑcation, we generally charge
the seller a Ñnal value fee. eBay does not take possession of either the item being sold or the buyer's
payment for the item. Rather, the buyer and seller must independently arrange for the shipment of and
payment for the item, with the buyer typically paying for shipping.
Under the terms of our user agreement, if a seller receives one or more bids above the stated
minimum or reserve price, whichever is higher, the seller is obligated to complete a transaction. We have
no power to force the seller or buyer to complete the transaction, other than to suspend them from using
the eBay service in the future. In the event the buyer and seller are unable to complete the transaction
and the seller notiÑes us, we have the right to credit the seller the amount of the Ñnal value fee.
Invoices for listing, feature and Ñnal value fees are sent via email to sellers on a regular (at least
monthly) basis. We require all new sellers to have a credit card account on Ñle. Sellers who pay us by
credit card are charged shortly after the invoice is sent. A summary of our fee structure as of March 1,
2002 is provided below. All pricing is subject to change.
Listing Fees
Minimum Bid, Opening
Value or Reserve Price Listing Fee Special Categories Listing Fee
$0.01 - $9.99 $0.30 Passenger Vehicles or
Other Vehicles $40.00
$10.00 - $24.99 $0.55
$25.00 - $49.99 $1.10 Motorcycles $25.00
$50.00 - $199.99 $2.20 Real Estate $50.00
$200.00 and up $3.30
6