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Tuesday, 19 July 2011 - EBay's marketplace turnaround gains momentum |
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    Edition: U.S. Article Comments (1) Follow Reuters Facebook Twitter RSS YouTube Read Universal pulls plug on Stephen King's "The Dark Tower" 18 Jul 2011 News of the World Whisteblower Found Dead 18 Jul 2011 Minnesota grinds budget details to end shutdown 18 Jul 2011 Special report: Banks continue robo-signing 18 Jul 2011 Perry signs bill allowing Texas healthcare "compact" 18 Jul 2011 Discussed 101 Obama asks lawmakers to gauge support for debt deal 60 Fallback plan gains momentum in debt talks 60 Obama eyes more deficit talks with no deal in sight Watched Flying sphere goes where man fears to tread Thu, Jul 14 2011 Pakistan Taliban releases video of mass execution Mon, Jul 18 2011 Japan's winning team returns home Mon, Jul 18 2011 EBay's marketplace turnaround gains momentum Tweet Share this Email Print Related News Citi profit beats forecasts, challenges remain Fri, Jul 15 2011 Google smashes Street expectations, shares surge Thu, Jul 14 2011 JPMorgan profit rises, loan book grows Thu, Jul 14 2011 EU court says eBay should protect trademarks better Tue, Jul 12 2011 Alcoa Q2 profit jumps on metal, alumina prices Mon, Jul 11 2011 Analysis & Opinion Tech wrap: Google impresses investors Fractional ownership is on the rise, so power up that corporate jet Related Topics Technology » Small Business » Media » Visitors pass the Ebay logo at the CeBIT computer fair in Hanover March 2, 2011. Credit: Reuters/Tobias Schwarz By Alistair Barr SAN FRANCISCO | Mon Jul 18, 2011 3:29pm EDT SAN FRANCISCO (Reuters) - EBay Inc has been trying to revive its main marketplace business for at least a year and quarterly results from the e-commerce company this week may show those efforts are paying off. "After several quarters of share losses in the U.S., eBay's marketplace business has been showing signs of a turnaround," Doug Anmuth, an analyst at J.P. Morgan, wrote in a recent note to investors. "EBay has made numerous marketplace improvements." EBay shares are up more than 17 percent so far this year as investors bet the company will benefit from rapid growth in online commerce. EBay's Internet marketplace, the biggest of its kind, brings together buyers and sellers and the company makes money by charging fees on transactions and other activity. Meanwhile, its fast-growing PayPal unit takes a cut of online payments. In the first quarter of 2011, eBay's revenue climbed 16 percent to $2.5 billion, while net income rose 12 percent to $475.9 million, or 36 cents per share. Excluding stock-based compensation expenses and other items, profit rose 12 percent to $619 million, or 47 cents per share. Second-quarter earnings, due July 20 after hours, are forecast to be 46 cents per share, according to a survey of analysts by Thomson Reuters I/B/E/S. Those estimates exclude stock-based compensation expenses and other items. Second-quarter revenue is expected to be $2.607 billion, according to Thomson Reuters I/B/E/S. Gross merchandise value, or GMV, excluding vehicle sales, a closely watched measure of activity on eBay's marketplace, will likely increase 10 percent in the second quarter, versus a year earlier, according to Cowen & Co analyst Jim Friedland. Friedland and J.P. Morgan's Anmuth both said growth could be stronger than that. Sales through eBay's marketplace were up 14.6 percent in June, compared with the same month a year ago. That compares with year-over-year sales growth of 12.6 percent in May, according to ChannelAdvisor, a software provider that helps retailers sell more online. "This data -- which has been directionally accurate -- suggests continued positive momentum for eBay's U.S. marketplace business," Anmuth wrote. EBay has tried to increase activity on its marketplace by improving the buying experience for shoppers while providing incentives for sellers to list more items and offer free shipping. In 2010, eBay ran test promotions, offering lower-volume sellers free auction listings and a free "Buy it Now" button on each of those listings. Previously, these consumer, or non-store sellers, had to pay upfront listing fees. Those types of promotions drove "significant" increases in both new listers and listings, eBay said earlier this year. In April, eBay put similar pricing changes in place permanently. EBay sellers also pay so-called final-value fees, which are based on the price of goods sold and are levied after transactions are completed. EBay recently cut final-value fee rates for high-volume sellers on its marketplace. The company also applied this fee to the total amount of a sale including shipping costs, hoping to encourage more sellers to offer free shipping. J.P. Morgan's Anmuth said eBay has invested in more buyer protections and improved searches on its website to enhance the shopping experience. (Reporting by Alistair Barr, editing by Maureen Bavdek) Technology Small Business Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) whenmommyknows wrote: Ebay CEO John Donahoe has repeatedly stepped on and steamrolled successful sellers until over 100 million American sellers went away. The Ebay “Turn Around” is a scam and a fraud perpetrated against the public and Wall Street. Donahoe has orchestrated THE Single Most Destructive plan in corporate history rivaling only that of the infamous Enron scandle. Donahoe’s 3 year plan expired on June 1, 2011. Paid Ebay trolls and henchmen follow us all over the web looking to erase the truth that we write on a daily basis. So, catch a glimpse of the Truth About Ebay right here and now, before is gets erased. PayPal is forever “Now Up to 100 million users”. PayPal has been touting this phoney number for over 3 years. Obviously they are NOT growing. This is why they ventured into the Chinese market. Suckers abound overseas. Americans are wise to the scam that is PayPal. PayPal will hold your money INDEFINITELY for no reason at all. You cannot get it back. Ever. Jul 18, 2011 5:47pm EDT  --  Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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