EBay`s PayPal Holds Off Google`s Checkout - Specialist eBay Stays on Top
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The very first thing we should note is that eBay is not simply an online auction site; it is THE online auction site. It is the best brand for bidding for products online, it is trusted, and it has advertisements on close to 250 million items on AdWords (do a search on anything, and eBay shows up). It is a highly specialized company which does only one thing, sell. As a way of offering value to its users, it bought PayPal and currently PayPal is the recommended payment system for eBay users. PayPal, however, is also big off eBay since it serves as an online payment system for buyers, through which sellers receive their money electronically, and then have their money transferred to their bank accounts in their respective currencies.
As an auction site, eBay has no real competition online. The numbers which are used as indicators of its continued dominance are in an area where Google's Checkout don't exist (Google Checkout is still prohibited on eBay). PayPal earned $417 million from $11 billion worth of transactions (an increase of 57 percent). These numbers reflect an increase in online activity; from search to email use and even online shopping, as online advertising rises, online shopping parallels it, rising at equal rates, if not greater. eBay inevitably made money.
EBay's Profitable Price Hike
On July 19, eBay hiked listing costs six percent to the howls of sellers, many of whom moved to Yahoo auctions, while others set up their own web sites. EBay hiked pricing to eliminate commodity products which simply occupied space, and to increase the unique listings which bidders had identified eBay with. Analysts differed on how this would affect eBay, but seven months down the line we can see increased growth, less expensive commodity listings and more money made than the first two quarters of 2006. The increase in listing charges was one of the core reasons why EBay's revenue increased, as more bidders sought to buy more competitively priced goods.
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