eBay 2011 Annual Report Download - page 46

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With respect to our online competition, additional competitive factors include:
Some of PayPal's competitors, such as Wells Fargo, First Data, American Express and Royal Bank of Scotland, also provide processing or
foreign exchange services to PayPal. If PayPal were to seek to expand the financial products that it offers, either alone or through a commercial
alliance or an acquisition, these processing and foreign exchange relationships could be negatively affected, or these competitors and other
processors could make it more difficult for PayPal to deliver its services.
GSI
Our GSI business segment has two main businesses: ecommerce services and interactive marketing services.
Ecommerce Services
The market for the development and operation of ecommerce services that enable companies to operate ecommerce businesses and integrate
their ecommerce businesses into their multichannel retail offerings is continuously evolving and intensely competitive. In our ecommerce services
business, we face competition from in-house ecommerce solutions, technology and service providers which supply one or more components of an
ecommerce solution, and other providers of integrated ecommerce solutions. Many of our prospective ecommerce services clients evaluate
managing all or some aspects of an ecommerce operation with internal resources. As a result, we often compete with in-house solutions promoted
and supported by internal information technology staffs, merchandising groups, and other internal corporate constituencies as well as with
technology and service providers that supply one or more components of an ecommerce solution that allow prospective clients to develop and
operate their ecommerce business in-house. This group of providers may include the prospective client itself and companies that offer: Web
platforms (e.g., Art Technology Group (which is owned by Oracle), IBM, Demandware and Microsoft); customer care/call center services (e.g.,
West Communications, Sykes Enterprises, and Convergys); fulfillment and logistics (e.g., PFS Web, Innotrac, DHL, and UPS); and systems
integrators and technology providers (e.g., Accenture, EDS, Sapient, Infosys, Oracle and IBM).
We believe that we compete with ecommerce services competitors primarily on the basis of the following:
Interactive Marketing Services
The market for interactive marketing services is continuously evolving and intensely competitive. In our interactive marketing services
business, we face competition from other providers of interactive marketing services, other providers of traditional marketing services and in-
house marketing departments, as our prospective interactive marketing services clients evaluate managing their marketing services with internal
resources as well as through interactive marketing agencies. As a result, we often compete with in-house solutions promoted and supported by
internal marketing departments as well as with service providers that supply one or more interactive marketing services. This group of providers
may include the prospective client itself and companies that offer: email management and data aggregation (e.g., Experian, Harte-Hanks and
Epsilon); online marketing and design services (digital marketing services agencies such as Omnicom Group, WPP Group, Publicis and
41
•
security of transactions and the ability for buyers to use PayPal without sharing their financial information with the seller;
•
low fees and simplicity of fee structure;
•
ability to develop services across multiple commerce channels, including mobile payments and payments at the physical point of sale;
•
trust in PayPal's dispute resolution and buyer and seller protection programs;
•
customer service; and
•
brand recognition.
• website ease-of-
use and accessibility;
•
system reliability;
•
data security; and
•
quality of developer tools such as our Application Programming Interfaces and Software Development Kits.
• offering the choice of a complete integrated solution or a component-
based solution;
•
promoting the client's brand and business, rather than our own;
•
providing scale and operating leverage with an enterprise focus;
•
establishing a commitment to invest in and enhance our platform; and
•
aligning our financial interests with those of our clients.