eBay 2013 Annual Report Download - page 8

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partners and completing transactions online or through mobile devices, as well as rewarding our top buyers and sellers for their loyalty.
We offer consumers choice.
We offer choice to consumers across a number of dimensions:
We offer a variety of specialized vertical experiences.
We continue to focus on customizing our buying and selling experiences to make it easier for users to list, find and buy items by offering
formats dedicated to specific products or categories. On our core eBay.com websites, we have built specialized experiences for certain vertical
formats, such as Daily Deals, Fashion, Motors (vehicles; parts and accessories) and Electronics. Our Daily Deals vertical offers a variety of
products in multiple categories at discounted prices with free shipping. StubHub is a leading marketplace for event tickets, enabling fans to buy
and sell tickets to a large selection of sports, concert, theater and other live entertainment events.
Payments
Our Payments segment includes our core payments brand PayPal, which enables individuals and businesses to securely, easily and
quickly send and receive payments online and through a broad range of mobile devices in approximately 193 markets worldwide and in 26
currencies as of December 31, 2013. We have a related consumer credit business, Bill Me Later, which enables U.S. merchants to offer, and U.S.
consumers to obtain, credit at the point of sale for ecommerce and mobile transactions through Bill Me Later's relationship with one or more
chartered financial institutions. The majority of our Payments revenue comes from a take rate on the net TPV that we enable. In 2013, we
generated $54.4 billion in on eBay net TPV attributable to transactions on eBay Marketplaces, which represented 30% of our net TPV. We
define net TPV as total dollar volume of payments, net of payment reversals, successfully completed through our PayPal payments networks,
including Bill Me Later, during the period; excluding payments sent or received through PayPal’s payment gateway business. We define on
eBay net TPV as the total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks,
including Bill Me Later, during the period for transactions on our Marketplaces platform. We define Merchant Services Net TPV as the total
dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, including Bill Me Later, during
the period, excluding PayPal’s payment gateway business and payments for transactions on our Marketplaces platform.
Our objective for the Payments segment is to become the digital wallet of choice for consumers and merchants to pay and get paid
virtually anywhere, anytime and on any Internet connected device, whether they are online or in the physical world. We believe that simplifying
and integrating payments can provide value to consumers and drive incremental sales for our merchant partners. The PayPal digital wallet gives
people a fast, safe and convenient way to receive, send or spend their money. Our payment networks are designed to be simple, safe and secure
and are built upon the existing global financial infrastructure to create global, real-time payment solutions. PayPal connects with financial
institutions around the world, and consumers can typically use their payment method of choice, regardless of where a seller is located. Users of
our PayPal
6
• By listing format: Merchants and individuals can choose to list their products and services through fixed price listings or an auction-
style format on our core Marketplaces platform.
◦ Our fixed price format on eBay.com allows buyers and sellers to close transactions at a pre-determined price set by the
seller. Sellers are also able to signal that they would be willing to close the transaction at a lower price through the Best
Offer feature.
◦ Our auction-
style format allows a seller to select a minimum price for opening bids.
◦ Our classifieds websites have listings in over 1,500 cities around the world and are designed to help people list their
dba.dk, eBay Classifieds (eBay Classifieds, eBay Kleinanzeigen and eBay Annunci), Gumtree, Kijiji, iBazar, 2dehands.be,
2ememain.be, LoQUo, Marktplaats.nl and mobile.de. In addition, we have a non-
controlling equity investment in craigslist,
Inc., which operates the craigslist classifieds websites.
• By item condition: Merchants and sellers can list, and consumers can search for and buy, items that are new, refurbished and used,
common and rare items and branded and unbranded products on our core Marketplaces platform.
• By delivery format: Consumers can have items shipped to them through shipping options offered by the seller and selected by the
buyer on our core Marketplaces platform. For certain items in a limited number of U.S. markets, consumers can have the items
couriered to them in about an hour through our eBay Now service. Finally, in the case of items purchased from certain retailers,
consumers can pick up items they purchased online or through mobile devices in one of the retailer’
s physical stores (which we refer
to as in store pickup). This brings more choice for buyers and sellers around delivery cost and convenience.