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March 30, 2011

Average Selling Price Of Merchandise On eBay:


The number of listings have increased from 2.4 million in 2006 to 2.9 million in 2009.

TRADITIONAL RETAILERS HAVE STARTED TO LIST THEIR MERCHANDISE ON EBAY – Traditional retail players like the U.K.'s Saville Row, Jigsaw and Ed Hardy have started to list their merchandise on eBay website.

NUMBER OF INTERNET USERS CONTINUE TO GROW RAPIDLY – Global Internet-users have increased from 700 million in 2003 to around 1.7 billion in 2009,  and  these numbers would only increase.

This chart  from Market Analytics Trefis.com represents the average sale price of items sold on eBay's properties including eBay.com, Half.com, Rent.com and Shopping.com. The average price incorporates the wide range of prices found on eBay--from low priced merchandise to expensive electronics, motor vehicles, and boats.Average Selling Price of Merchandise on eBay has declined from around $60 in 2007 to $51 in 2009. 


The eBay Transaction Take Rate represents eBay's commission on items sold. Take rates are primarily a function of pricing actions initiated by eBay to drive higher-priced listings and higher conversion rates on their platforms.Forecast Rationale

EBAY'S VOLUME VS. PRICING DECISIONS
According to TREFIS ANALYSIS for EBAY There is a strategic trade-off between between volume and price. eBay has shown the willingness to use pricing as a means to bring more sellers on board, as well as to provide incentives for sellers to enhance the user experience by engaging in safer, simpler transactions.

MIX OF THE PRODUCTS SOLD
Higher priced products have lower take rates

MORE COMPETITION 
Amazon--as well as brick and mortar stalwarts like Wal-Mart- will continue to expand and improve their online presence.

MORE DISCOUNTS TO POWERSELLERS  eBay to continue providing more discounts to powersellers, as they improve their service levels.

Sources for historical data and explanations can be found on the Trefis.com website (link)