eBay 2003 Annual Report Download - page 6
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‚ Our marketplace provides for eÇcient information exchange.
In particular, large markets with broad buyer and seller bases, wide product ranges, and moderate
shipping costs have been successful on eBay. Our marketplace is most eÅective, relative to available
alternatives, at addressing markets of new and scarce goods, end-of-life products and used and vintage
items.
Our global payments platform also makes online trading more eÇcient compared to traditional
payment methods such as checks, money orders, and credit cards via merchant accounts. These traditional
payment methods present various obstacles to the online trading experience, including lengthy processing
time, inconvenience, and high costs. PayPal delivers a product well suited for small businesses, online
merchants and individuals by allowing them to send and receive online payment securely, conveniently and
cost-eÅectively.
Our Strategy
We intend to achieve our mission of becoming the world's most eÇcient and abundant marketplace
by creating marketplace conditions that enable our users' success. By continuing to foster the vibrancy of
the world's largest network of buyers and sellers, and by making the online trading experience faster, easier
and safer, we better enable the success of our user community.
Growing our User Community
Delivering Value to Buyers and Sellers
Our success has been largely dependent upon the success of our community of conÑrmed registered
users, which has grown from approximately two million at the end of 1998 to 95 million at December 31,
2003. In addition, at December 31, 2003, we had over 41 million active users, compared to approximately
28 million at the end of 2002. We deÑne an active user as any user who bid on, purchased, or listed an
item during the prior 12 months.
We attract buyers and sellers to our community by oÅering:
Buyers Sellers
‚ Selection ‚ Access to broad markets
‚ Value ‚ EÇcient marketing and distribution costs
‚ Convenience ‚ Ability to maximize prices
‚ Entertainment ‚ Opportunity to increase sales
We focus on three fundamental building blocks Ì acquisition, activation and activity Ì to grow the
gross merchandise sales and net revenues derived from the eBay platform. The speciÑc areas of focus in
each of our online trading marketplaces, both inside and outside of the United States, depends on the
stage of local market development and other considerations.
Creating a Global Marketplace
A key element of our growth strategy is to continually expand the eBay marketplace to new
communities around the world. Providing access to broad markets and reducing the barriers of global trade
creates value for both buyers and sellers and greatly increases the vibrancy of our marketplace. As of
4