eBay 2015 Annual Report Download - page 14

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addressable market according to Gross Merchandise Volume (“GMV”). GMV consists of the total value of all
successfully closed transactions between users on our Marketplace and StubHub platforms during the applicable
period, regardless of whether the buyer and seller actually consummated the transaction.
Our company is only successful when the buyers and sellers we enable are successful. We are primarily a
transaction-based business that generates revenue from the transactions that we successfully enable. We also
generate revenue through marketing services, including classifieds and advertising. In addition, we have created
an open source platform that provides software developers and merchants access to our application programming
interfaces, or APIs, to develop software and solutions for commerce. As of December 31, 2015, our Marketplace
and StubHub platforms had more than 162 million active buyers and more than 800 million listings globally. The
term “active buyer” means, as of any date, all buyers who successfully closed a transaction on our Marketplace
and StubHub platforms within the previous 12-month period. Buyers may register more than once and, as a
result, may have more than one account.
For additional financial information as well as the geographic areas where we conduct business, please see
“Note 6 — Segments” to the consolidated financial statements included in this report. Additionally, please see
the information in “Item 1A: Risk Factors” under the caption “Our international operations are subject to
increased risks, which may harm our business,” which describes risks associated with eBay Inc.’s foreign
operations.
Notable Business Transactions in 2015
On September 30, 2014, we announced that our Board of Directors (“Board”), following a strategic review of
the company’s growth strategies and structure, approved a plan to separate PayPal into an independent publicly
traded company. On July 17, 2015, we completed the distribution of 100% of the outstanding common stock of
PayPal to our stockholders, pursuant to which PayPal became an independent company. See “Note 4 —
Discontinued Operations” of our consolidated financial statements for additional information.
Additionally, during the second quarter of 2015, our Board approved a plan to sell Enterprise. On July 16,
2015, we signed a definitive agreement to sell Enterprise, and on November 2, 2015, the sale closed. See “Note 4 —
Discontinued Operations” of our consolidated financial statements for additional information.
eBay Inc.’s platforms offer the following features:
We are a leading commerce platform for buyers and sellers.
Our business model and pricing are designed so that our business is successful when our sellers are
successful. The majority of our revenue comes from a take rate on the GMV of transactions closed on our
Marketplace and StubHub platforms. In 2015, we generated $82 billion in GMV.
Our eBay Top Rated Seller program, or eTRS, rewards qualifying sellers with fee discounts and improved
search standing for qualifying listings if they are able to maintain excellent customer service ratings and meet
specified criteria for shipping and returns. We believe that sellers who fulfill these standards help promote our
goal of maintaining an online marketplace that is safe and hassle-free.
eBay Money Back Guarantee covers items purchased on our websites in the U.S., the U.K., Germany,
Australia and Canada through a qualifying payment method and protects most buyers with respect to items that
are not received or are received but not as described in the listing. Some purchases, including some vehicles, are
not covered. eBay Money Back Guarantee provides coverage for the purchase price of the item, plus original
shipping costs, for a limited period of time from the original date of transaction, and includes a streamlined
interface to help buyers and sellers navigate the process.
The size and scale of our platforms are designed to enable our buyers and sellers to leverage our economies
of scale and capital investment, for example in sales and marketing, mobile, customer acquisition and customer
service.
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