Booming eBay aims at offline stores

Booming eBay aims at offline stores

Online giant eBay, who realised a turnover of nearly 3 billion euro in the last quarter of 2012, have found an offline growth strategy in 'ordinary' cash registers.

Almost twenty procent of growth in all areas

eBay is booming in recent years: its turnover rose from 2.495 billion dollar in the fourth quarter of 2010 to 3.380 billion dollar a year later and 3.992 billion dollar (+18 %) in the last three months of 2012. The growth is significantly bigger than analysts had expected and helps eBay to a net profit of 751 million dollar (560 million euro).

 

For the full year 2012, the online trading platform reached a turnover of 14.1 billion dollar (almost 11 billion euro), an increase of 21% compared to 2011. 175 billion dollar (131 billion euro) worth of transactions were facilitated by eBay last year, a growth of 18 %. Almost ten billion euro passed through mobile devices, more than double the amount of 2011.

 

The increase in sales on eBay is partly due to a better search functionality, but also to the promotion of free delivery as well as smooth return policies. Another boost was the option to shop via mobile devices, which attracted four million new clients.

 

Net profits go down

eBay's performance in the fourth quarter of 2012 resulted in a net profit of 751 million dollar (560 million euro). This means a decrease of 62% in profits compared to the same period a year ago, but last year's result was exceptional because of the sale of Skype, which boosted the income with an extra 2.1 billion euro. eBay ended 2012 with a net gain of 2.609 billion dollar (1.95 billion euro), 19% less than the year before.

 

For the first quarter of 2013, eBay expects a turnover of between 3.65 and 3.75 billion dollar (2.73 and 2.79 billion euro) and forecasts a turnover of around 16 billion dollar (12 billion euro) for the whole year.

 

Paypal in physical shops

To keep growing, the online giant has built an offline strategy around its payment branch PayPal: the concern has reached an agreement with cash register producer NCR to integrate PayPal into its physical store cash registers. This way, millions of shops will soon offer PayPal as a payment method as well.

 

Moreover,agreements with American retail giants Home Depot and Toys "R" Us enable consumers to pay with PayPal in these shops as well. Another reminder that the future belongs to the companies who are best able to combine all channels...

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