eBay operates as an online shopping site that allows visitors to browse through available products listed for sale or auction through each company's online storefront.
Over the years, the company has evolved from a relatively small community user-based auction site to a worldwide commercial behemoth store.
The company is well positioned in the online marketplace space. Since the separation from PayPal in 2015, its marketplace business continues to be the key growth driver for eBay.
eBay’s structured data initiatives to better understand, organize and leverage inventory on its site for delivering more personalized user experiences continues to drive gross merchandise volume (GMV) growth.
In addition to the marketplace business, the company’s advertising business has been doing well. Its focus on growing promoted listing fees (as part of the first-party advertising business) should continue to expand the company’s growth.
Total net revenues were $10.3 billion in 2020. The company’s revenues are classified into two types, namely Net transaction revenues and Marketing services and other (MS&O) revenues, which generated 90.5% and 9.5% of total revenues, respectively, in 2020.
Net transaction revenues primarily include final value fees, feature fees, store subscription and other fees, often from sellers and buyers on Marketplace platform.
MS&O revenues consist of Marketplace revenues, primarily generated from the sale of advertisements, revenue sharing arrangements and first-party inventory programs.