We’ve updated the Trefis price from $31.84 to $35.14 based on eBay’s earnings. eBay’s two primary business, eBay Marketplaces and PayPal performed better than we had expected. We were expecting larger declines than the two businesses have actually posted to date. As a result we’ve made seven forecast updates to our eBay analysis.
1. Increased Transaction Take Rate for eBay Marketplaces to 7.9% in-line with earnings and recent years. We had expected a more significant decline before (Positive Impact)
eBay’s Take Rate represents the amount that eBay earns as a percentage of the sale price for each item sold on eBay’s marketplaces like eBay.com and Half.com.
2. Decreased Listings-to-Sales Conversion Rate for eBay Marketplaces from 38% to 37% (Negative Impact)
Although eBay’s marketplaces list billions of items for sale, not all of them sell. The Listings-to-Sales Conversion Rate represents the percentage of listings that are sold.
Click here to the see a the rest of our update summary including the important updates to PayPal (scroll down to the comments section).
