eBay 2013 Annual Report Download - page 66

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We define GMV as the total value of all successfully closed items between users on our Marketplaces trading platforms (excluding eBay's
classifieds websites, brands4friends and Shopping.com) during the applicable period, regardless of whether the buyer and seller actually
consummated the transaction. We define net TPV as the total dollar volume of payments, net of payment reversals, successfully completed
through our Payments networks, including Bill Me Later, during the period, excluding PayPal's payment gateway business. We define Merchant
Services net TPV as the total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks,
including Bill Me Later, during the period, excluding PayPal’s payment gateway business and payments for transactions on our Marketplaces
platform. We define on eBay net TPV as the total dollar volume of payments, net of payment reversals, successfully completed through our
Payments networks, including Bill Me Later, during the period for transactions on our Marketplaces platform. We define Merchandise Sales as
the retail value of all sales transactions, inclusive of freight charges and net of allowance for returns and discounts, which flow through our
Enterprise Commerce Technologies whether we record the full amount of such transaction as a product sale or a percentage of such transaction
as a service fee. We define ECV as the total commerce and payment volume across all three segments consisting of GMV, PayPal Merchant
Services TPV and Merchandise Sales not earned on eBay or paid for via PayPal or Bill Me later during the period. ECV excludes volume
transacted through the Magento platform.
Results of Operations
Summary of Net Revenues
We generate two types of net revenues: net transaction revenues and marketing services and other revenues. Our net transaction revenues
are derived principally from listing fees and final value fees (which are fees payable on transactions closed on our Marketplaces trading
platforms), fees paid by merchants for payment processing services and ecommerce service fees. Our marketing services revenues are derived
principally from the sale of advertisements, revenue sharing arrangements, classifieds fees, marketing service fees and lead referral fees. Other
revenues are derived principally from interest and fees earned on the Bill Me Later portfolio of receivables from loans, interest earned on certain
PayPal customer account balances and fees from contractual arrangements with third parties that provide services to our users.
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