eBay 2003 Annual Report Download - page 8

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Our goal for PayPal is to become the world's most convenient, secure, and cost-eÅective online
payments solution. PayPal currently oÅers its services in English to users in 38 countries, including the
United States. During 2003, over $12.2 billion in total payment volume, or TPV, was transacted on the
PayPal platform, consisting primarily of payment to individuals and small businesses trading on eBay and
various other online shopping sites. As of December 31, 2003, PayPal had 40 million accounts, compared
to 23 million accounts at December 31, 2002.
PayPal has achieved its rapid growth by delivering a combination of user convenience, competitive
pricing and customer safeguards. During the year ended December 31, 2003, PayPal's total number of
accounts grew by 17 million, an average of 46,000 per day. During this same period, PayPal processed an
average of 629,000 payments per day, averaging $33.5 million in daily payment volume, with an average
payment of $53 sent during this period.
The eBay Online Trading Experience
We describe below the typical buying and selling experience on the eBay websites, subject to some
variation on a country-by-country basis.
Registration
Any visitor to eBay.com and our international websites can browse through the eBay service and view
the items listed for sale. To bid on, list or purchase an item, buyers and sellers must Ñrst register with
eBay by completing a short online form and conÑrmation process.
Buying on eBay
Users can search for speciÑc items by browsing through a list of items within a category or
subcategory and then ""click through'' to a detailed description for a particular item. Users can also search
speciÑc categories, interest pages or the entire database of listings using keywords to describe their areas of
interest. Our search engine generates lists of relevant items with links to detailed descriptions. Each item is
assigned a unique identiÑer so that users can easily search for and track speciÑc items. Users also can
search for a particular bidder or seller by name to review his or her listings and feedback history and
search for products by speciÑc region or other attributes. Once a user has found an item and registered,
the user may enter a bid for the maximum amount he or she is willing to pay at that time, or for those
listings that oÅer the Buy-It-Now feature, purchase the item by paying the Buy-It-Now price established
by the seller. In the event of competitive bids, the eBay service automatically increases bidding in
increments based upon the current high bid, up to the bidder's maximum price.
We encourage direct interaction between buyers and sellers. Potential buyers wishing additional
information about a listed item can contact the seller through email. We believe that this interaction
between potential buyers and sellers enhances the trading experience on eBay and is an important element
of our service. Once each bid is made, we send an email conÑrmation to the bidder and an outbid notice
to the next highest bidder and automatically update the item's auction status. During the course of the
transaction, we notify bidders immediately through email if they are outbid. Buyers are not charged for
making bids or purchases through eBay. In addition, buyers can specify items of interest on a service
called ""Favorite Searches'' (previously named ""Personal Shopper'') and receive automated email messages
when these particular items are available for sale on eBay.
Selling on eBay
Users can sell items on eBay by registering and selling items on their own, or with the help of an
eBay ""Trading Assistant,'' described below under ""Trading Assistants.''
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