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  1. – our role in Irish eCommerce Suzanne Daly February 2007

  2. About eBay

  3. eBay is the 21st century marketplace

  4. eBay Marketplace Business Marketplace mission: create the world’s online marketplace • Provide a global online trading platform where practically anyone can trade practically anything • Sellers create listings of products for sale • Listing fee as low as €0.20, small commission if item sells • Items listed by individuals, SMEs, large businesses or charities on same terms (“level playing field”) • Buyers can search, purchase and make payment • Thousands of categories of items • Auction-style format or fixed price (“Buy It Now”) • eBay acts to facilitate safe transactions and create transparency

  5. Welcome to the Community

  6. Find What You’re Looking for

  7. Get the Details

  8. Buyer Seller Transact

  9. Fast Facts • Presence in 33 markets • 222 million registered users worldwide • At time of launch in June 2005 there were over 200,000 in Ireland • passed 15 million users in April 2006 • At any time, there are 100 million listings worldwide • More than 50,000 categories on eBay • Approximately 6.6 million items added per day • If eBay were a country ,it would be the 5th most populous country in the world behind China, India, the U.S. and Indonesia. • Approximately 1.3 million sellers use eBay as a primary or secondary source of income • More than 724,000 professional sellers in the U.S. • More than 170,000 professional sellers in Europe Source for number of professional sellers: AC Nielsen. All other metrics based on eBay data.

  10. Fast Facts (continued) • In Q4 2006, the value of all goods traded was US $14.4 billion • eBay users worldwide trade more than US$1,812 worth of goods on the site every second. • Based on Q4 2006 GMV, the following categories delivered US $1 billion or more in worldwide annualized GMV: • eBay Motors at $15.7 B • Clothing & Accessories at $4.7 B • Consumer Electronics at $5.8 B • Computers at $3.9 B • Home & Garden at $3.4 B • Books / Music / Movies at $3.0 B • Sports at $2.6 B • Fixed-price formats accounted for 38% of total GMV during Q4 2006 • Collectables at $2.3 B • Business & Industrial at $1.9 B • Toys at $1.7 B • Jewellery & Watches at $1.7 B • Cameras & Photo at $1.4 B • Antiques & Art at $1.1 B • Coins & Stamps at $1.0 B

  11. eBay GMV (US $) 81% CAGR

  12. Depth Category Expansion, new and used items Breadth Categories

  13. eBay in Ireland

  14. Business History • May 2004: Tánaiste and Minister for Enterprise, Trade and Employment Mary Harney TD officially opens eBay’s Irish offices • European CS centre and PayPal’s international headquarters • June 2005: Launch of to give Irish eBayers their own marketplace • July 2005: Wanderly Wagon’s Judge appointed eBay Security Watchdog • September 2005: First eBay University in Ireland • November 2005: Launch of eBay Motors Ireland to facilitate trade of vehicles, parts and accessories • March 2006: eBay announces expansion of Irish operations • >900 employees in Ireland, plans to create >300 additional jobs • July 2006: eBay and O2 partner to launch eBay Mobile

  15. Charity Fundraising works directly with Irish charities to help promote fundraising and awareness, offering unique items and experiences

  16. Select Irish Charities Featured To Date Action Aid International Ireland Fermoy Lions Club Irish Wheelchair Association Bóthar GOAL Ireland Kildare Town C.Y.M.S. Brothers of Charity Svcs. Galway Irish Autism Action Leprosy Mission Ireland Cystic Fibrosis Assn. of Ireland Irish Cancer Society To Russia With Love DEBRA Ireland Irish Heart Foundation

  17. Use a number of channels to market to current and new users Internet marketing Onsite marketing Direct emails Promotions Offline Marketing

  18. Velocity of Trading – Irish Buyers On an average day… An Irish buyer purchases an auto part every 5 minutes

  19. Velocity of Trading – Irish Buyers An Irish buyer purchases a DVD every 4 minutes

  20. Velocity of Trading – Irish Buyers An Irish buyer purchases a collectible every 2 minutes

  21. Velocity of Trading – Irish Buyers An Irish buyer purchases an item of clothing every 2 minutes

  22. Velocity of Trading – Irish Sellers In Q3 2006, an Irish buyer buys 3 items across all categories every minute of every day

  23. Velocity of Trading – Irish Sellers An Irish seller lists a collectible for sale every 5 minutes

  24. Velocity of Trading – Irish Sellers An Irish seller sells an item in music every 4 minutes

  25. Velocity of Trading – Irish Sellers An Irish seller sells an item in computing every 4 minutes

  26. Velocity of Trading – Irish Sellers An Irish seller sells an item across all categories every minute

  27. Why Run a Business on eBay?

  28. Irish Seller: irish-celt (4819 ) • Registered on eBay since: 1998 • Location: Milltown Malbay, Co. Clare • Selling: postable antiques • Seller vignette

  29. eBay’s Addressable Market is Large Inefficient markets Highly efficient markets Less efficient markets in-season retail end-of-life used/vintage new/scarce

  30. Benefits as a Business Channel • Reach • Can reach a market of 222 million eBay users • Over 200,000 eBay users in Ireland; over 15 million users in UK • Business profitability • Low transactional costs • Can reduce or replace many of the traditional costs of doing business (e.g. premises, advertising) • Safety and reputation • Can build a reputation using feedback and comments • Safe, easy payments via PayPal • Ease of use • Listing and promoting items is easy • Several tools to facilitate selling (e.g. Turbo Lister) • Can use eBay as an alternative, or occasional channel • Support • Prioritised support for businesses and leading sellers • On-line help resources

  31. Access to Large Global Buyer Base Populations Wexford 43,650 (1) Wexford county 131,615 (1) Registered Users at launch 200,000 (2) Registered Users 15m (3) eBay Europe Registered Users 50m(4) eBay Global Registered Users 222m(5) (1) Source: Census 2006, refers to “Wexford Electoral Area” (2) Registered Users as of June 2005. (3) Registered Users as of April 2006. (4) eBay Europe registered users as of April 2006. (5) eBay global registered users as of Dec 2006.

  32. Low Transaction Costs

  33. For an item that starts at €0.01 and sells for €30.00 Listing Fee (€0.01 - €1.49) €0.20 Final Value Fee (5.25% of total) €1.58 Total €1.78 eBay Fees as % of Total 5.9% For an item that starts at €0.01, has reserve of €500 and sells for €900 Listing Fee (fee based on Reserve Value of €500) €3.00 Final Value Fee €29.40 Reserve Fee (2% of reserve price) €10.00 Total €42.40 eBay Fees as % of Total 4.7% Margins can increase by using multiple item fixed price or Shop Inventory Format to promote your items Example Fee Totals

  34. What Can You Sell? • You can sell practically anything on, as long as it is legal • Specific listing policies provide users with guidance • • All eBay users are bound by these policies, which are updated as appropriate • There are some variations in listing policies between eBay sites due to local laws and obligations

  35. Getting started – Feedback • Feedback is an essential enabler of trade on the eBay platform • It is the primary method for our members to protect themselves and make informed decisions before bidding or buying • What is it? • Every member has a reputation based on feedback • Personal opinion comments from other members for transactions with positive, neutral, or negative rating • Feedback score is a count of positive ratings minus negative ratings from unique members • Each member can affect another’s score by a net of +1, 0 or –1 • Coloured feedback stars attained at various levels

  36. Feedback System – Generating Trust • Goal to create open, transparent marketplace • Seller Information Box includes details about the seller, including feedback score • Feedback page shows detail of comments

  37. PayPal – Safe, Fast, Convenient Online Payments How PayPal works – 4 steps Sender 1. Customer clicks on PayPal link. Benefits of using PayPal • Safe and secure • Fast • Easy • International • Buyer protection • Cost effective 2. Customer logs in and enters payment amount. Receiver 3. Seller gets electronic notification of funds received and delivers goods. Seller can withdraw funds or send payment to another customer. 4.

  38. Quick Facts • Global leader in online payment solutions • PayPal has 114 million total accounts, is available in 55 markets and in seven currencies • PayPal has over 10 million accounts in the UK • PayPal transacted about $1,126 in total payment volume every second in Q2 2006. • PayPal established its international headquarters in Dublin in 2003 • PayPal is a safe way to pay online and maintains a very low loss rate due to fraud – 0.29%, or less than one third of one percent.

  39. Return Policy • Many sellers allow the return of items sold • Business sellers must provide customers with a period of seven working days after receipt • Many individual sellers honour similar terms as good business practice • eBay facilitates communication of a seller’s policy through: • Seller tools • Standard placement on item listings • Stating a clear return policy creates transparency and reinforces buyer trust

  40. Skype lets you talk through the Internet … for free. You can also make very low cost calls to phones around the world Download Skype at Contact eBay buyers and sellers using Skype – testing in select categories Free Calling and “Skype Me” Why is it so great? • Free unlimited worldwide calling to other Skype users • Low cost calls to international landlines and mobiles (e.g. $0.02/ min to New Zealand) • Superior sound quality • Videoconferencing • Easy to use

  41. Tools to Support Efficient Selling

  42. Automation with Selling Manager Pro • Many selling processes can be automated with Selling Manager Pro: • Listing creation • Contacting buyers • Invoicing • Sellers can tailor their own selling strategies by month, quarter or seasonally • Good value for business sellers • Free with Featured or Anchor Shops subscription • €6.99 per month otherwise Third party tools (e.g. ChannelAdvisor) also available to serve large sellers

  43. Maximise Visibility – eBay Shops • Unique look and presence • Customise colours and branding • Extra promotion and recognition • Control what you cross-sell • Data on visitors to your Shop • Shop-only format with lower insertion fee, longer listing duration

  44. Sales Reports and Sales Reports Plus • Can be used to tailor market approach • Provides sales information by category, day, format, ending times • Also compares ASP • Sales Reports are Free • Sales Reports Plus offers more detail • Free with Shops subscription • €4.99 per month without Shops

  45. Select the Right Delivery Services • Postage, courier and delivery market is de-regulating; new options are continually available • Providers can offer differentiated services, such as tracking, guaranteed delivery and volume discounts • GLS are building out a network of “Parcel Shops” around Europe ~ 30 in Republic of Ireland to date • Optimum solution may involve different providers for posting to different regions

  46. Become an Effective Business Seller – Top Tips • Include search keywords in your title and write a complete, accurate description • Sell internationally and specify postage costs for multiple jurisdictions • Include a clear and buyer-friendly return policy • Become more efficient and organised with the right seller tool for you • Offer PayPal as a payment option for ease, speed, buyer peace of mind • Take your feedback rating seriously – it’s your brand! • Consult the Business Centre

  47. Education Resources • eBay Explained • eBay Tour, how to buy, sell, use My eBay, etc. • • Community & chat boards • Member to member help, discussion boards, interest groups • • Business Centre • Advice for business sellers • • Safety Centre • Safety tips & problem reporting • • eBay Events • eBay University, IIA/CEB & other events • • Site help and contact Customer Support •

  48. Free Business OnRamp Support • Service to assist businesses with becoming sellers on • Expert consultation with a member of our specialist Business team • Support through the process of getting started • Advice on how to make the most of your eBay selling • How to take advantage • Register as a seller on the site • Once you have registered, send email to with the following: • Your eBay user ID • Best contact telephone number, with voicemail if possible • We will arrange a time for the Business Onramp consultation, generally can schedule within two weeks

  49. Case Studies

  50. Irish Seller: emerald-isle-stamps-shop (1682 ) • Former computer programmer, decided to set up his own business on eBay after returning from travel • Dedicated eBay store covers all aspects of Irish philately & coinage as well as stamps from around the world • Also acting as an agent for other businesses to sell on eBay – means he can keep stock to low levels • Close to selling the amount needed to make a full-time living