eBay 2010 Annual Report Download - page 12

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iPhone, iPad and Android phones, as well as iPhone apps for our classifieds websites, StubHub, Half.com,
Fashion and Daily Deals. We also maintain a mobile version of our eBay.com website for use with internet-
enabled phones.
Marketplaces Growth Strategy
eBay strives to offer a wide variety of inventory ranging from new in-season through end-of-life products
from different types of sellers in a broad variety of categories with a favorable buyer experience and a choice
between fixed price and auction-style listing formats, all in one place.
Our growth strategy is focused on investing in our customers by improving the user experience and seller
economics by enhancing our products and services, improving trust and safety and customer support, extending
our product offerings into new formats, categories and geographies, and implementing innovative pricing and
buyer retention strategies. Over the course of 2010, we continued to make significant changes that were designed
to improve the user experience on our sites, including changes to pricing and shipping policies. In addition, we
continued to make progress on creating a faster and more streamlined search experience with a greater focus on
relevance when sorting search results. We have made pricing changes to reduce the upfront cost of listing fixed-
price items on eBay so that fees are now based more on the successful sale of items, for both smaller and larger
sellers. We encourage sellers to offer free or inexpensive shipping to our buyers by promoting their listings
through our “Best Match” search algorithm.
Another element of our growth strategy is to build our adjacent Marketplaces businesses, such as our
classified platforms and StubHub, which offer new formats and monetization models, as well as opportunities for
growth beyond our core eBay.com platform. We continually look for opportunities to integrate our adjacent
business listings into our core site to offer our buyers and sellers additional ways to get connected and conduct
ecommerce. For example, in the U.S., buyers now have the ability to initiate a StubHub ticket listing search from
our core eBay.com site, while in some of our European markets, users can search for Auction, Fixed Price and
off-platform Classifieds listings from within localized versions of our core eBay.com site.
We will continue to work toward our goal of creating the world’s leading ecommerce franchise by investing
in our core Marketplaces segment and continuing to build our adjacent Marketplaces businesses. We believe that,
if successful, we will increase the number of items sold on our sites.
Payments
Our payments segment is comprised of two online payment brands — PayPal (which enables individuals
and businesses to securely, easily and quickly send and receive payments online in approximately 190 markets
worldwide) and Bill Me Later (which we acquired in November 2008, and which enables U.S. merchants to
offer, and U.S. consumers to obtain, credit at the point of sale for ecommerce transactions through Bill Me
Later’s relationship with a chartered financial institution). Our payment networks build upon the existing global
financial infrastructure to create a global, real-time payment solution.
Payments Value Proposition
We believe our payment solutions make online commerce more efficient compared to traditional payment
alternatives such as checks, money orders and credit cards via merchant accounts. Some of these traditional
payment alternatives present various obstacles to the online commerce experience, including lengthy processing
time, online fraud concerns, inconvenience and higher costs. Providing a more efficient and effective payment
alternative for users is essential to creating a faster, easier and safer online commerce experience. Our online
payment solutions allow customers to send and receive funds securely, easily and quickly and facilitate online
credit for merchants and consumers.
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