Ecommerce_Ebay

8/7/2019 Ecommerce_Ebay

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E-bay

Presented By

Gaurav GuptaKarthik R

Ramit BansalShubham Jain

Sushant SharmaTanuj Shukla


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Seller

eBay TradingCommunity

1.26 million registered users

800,000+ simulation auctions

Buyer

Lists item

AuctionsFees($$)

Notification of Winning buyer!

FeedbackOn buyer

1

8

4

5

Feedbackon seller

Notification of Winning bid!

2

4

Bids on item3

Buyers and sellers leave

Feedback on each other 7

Ships item (after exchanging e-mail)6

Sends payment (after exchanging e-mail)6

Registration0 Registration0


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How The Service Works


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PayPal overview

50M user accounts

5 currencies, 45 countries

Alternative funding optionsfor buyers who dont owncredit cards or prefer not touse them:

Bank account transfer eCheck Stored balance

Buyer Credit5

04

9

540

450

Q 00

Q 00

Q 00

4Q 00 Q 0 Q 0 Q 0 4Q

0 Q 0 Q 0 Q 0 4Q 0 Q 0 Q 0 Q 0 4Q

0 Q 04

Q 04

PayPal Member Account Growth through Q2 04

A growing communityof users


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eBay is a premier growth company

(Real $M)

STARBUCKS

GMV

Years from incorporationNote: Sales and GMV adjusted to reflect 2003 dollars. http://www.bea.gov/dn/home/gdp.htm

Source: eBay; US Department of commerce; Bureau of Economic Analysis; BCG analysis.


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1

10

100

1,000

10,000

100,000

1,000,000

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43

STARBUCKS

and so is PayPal!

GMV

1 5 10 15 20 25 30 35 40

Years from incorporation

TPV

(Real $M)

Note: Sales and GMV adjusted to reflect 2003 dollars. http://www.bea.gov/dn/home/gdp.htm

Source: eBay; US Department of commerce; Bureau of Economic Analysis; BCG analysis.


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How PayPal works

Senders

Visa/MC,Amex, Discover

Bank Account

Debit Card (e.g., Switch-

Solo in UK)Stored Value

Account

Bank Account

PayPal Debit MasterCard

Paper Check

Another PayPal account

Stored ValueAccount

Receivers

eCheck


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Why PayPal works for buyers

Free to usePay anyone with a credit card or bank account: online walletFast, secure payment 1 week 1 minuteStores financial information securely to maintains user privacyWorks cross-border

eCommerceP2P/remittances

Importance PP competitiveness

Cost

Convenience

Rewards/loyalty points

Security

Network


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Why PayPal works for sellersEnables credit card acceptanceFaster payment = faster inventory turnEasy to sign upNo setup, monthly or gateway feesCompetitive price with no minimum time commitmentFraud protection 25 bp vs. 110 bp


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Complementary missions

The worldsonlinemarketplace

The worldsonline

paymentsstandard

PoweringOnline

Commerce


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Symbiotic relationship with eBay

Increasesvelocity of trade

Enhances trust &safety

EnablesinnovationProvides the

aggregationpoint for smallbusiness

Drives criticalmass of buyers& sellers

Solved counter-party problem


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PayPal enables global trade

Can be used in 45countries

PayPal available

PayPal available + Local Bank Acct. Withdrawal

Currencies Supported: US $, CA $, GBP , Euro , JP Yen

Localized: US, UK, DE, FR, BE, CH, NL, AT


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A Global Destinyay al

$0.63 $0.74$0.88

$1.10$1.30

$1.41 $1.59

$2.12

$2.63

$2.86$3.07

$4.42

$3.76

$4.46

Q1 01

Q2 01

Q3 01

Q4 01

Q1 02

Q2 02

Q3 02

Q4 02

Q1 03

Q2 03

Q3 03

Q4 03

Q1 04

Q2 04

U

illions

Milestones Multi-currency support in November

2002 UK site: September 2003 DE site: July 2004 FR site: August 2003

ay al will continue to support e ayin key geographies where e ay is

strong and payments solutions arerequired

% o ay al re enues rom nt'l

%

%

%

%

%

%

Q1 03

Q2 03

Q3 03

Q4 03

Q1 04

Q2 04


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Can banks profit from remittances?

Yes, but

Market competition is fierce MTOs have 90% of the official market (Western Union, MoneyGram) MTOs have robust physical distribution, low access barriers, real time funds transfer Internet P2P players (e.g., Yahoo PayDirect)

Need to overcome the the first mile problem Establish profitability to serve customers Customer-friendly interface Customer acquisition No real time funds transfer between institutions Legal/Regulatory barriers USA Patriot Act, card associations, NACHA

Need to overcome the the last mile problem Receivers are largely unbanked, exhibit low financial literacy Local bank networks (branches and ATMs) still in development FATF


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Possible market strategies

Banks Learn from past experiences C2it, from Citibank Acquire user base lower barriers to access Offer a compelling product Compete on price, value

MTOs Business model already works Compete on real time funds transfer Offer a customer-friendly UI, fast and secure payment to reach out new

customer segments Upgrade product line to offer P2P, delayed payment offering

New technologies mean new opportunities Leverage ATM networks Use the proliferation of the Internet


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Partnering for success in remittances

PayPal offers User network of 50 million, with stored

financial information Millions of immigrants Convenient, always on front end in key

sender countries: US, UK, DE Pricing is 50% less than MTO

Real time funds availability (instant ACHor credit cards)

Innovative products Trusted payments brand in US Secure platform Money transmitter license Compliant with USA Patriot Act International account-to-account transfers

PayPal needs Banked senders and receivers, who are

online; OR Partner to deliver funds from a users

PayPal account; OR Physical access points for offline or

unbanked receivers

Access to customers in receiver countries Sponsorship into the ATM network Compliance OFAC, AML, etc Trusted payments brand in receiver

countries


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Thank You!

Ecommerce_Ebay

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