Global Trade on eBay India

Global Trade on eBay India

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Agenda

• eBay’s Vision – Global Trade

• The Global Trade Opportunity in India

• Introduction to eBay and eBay India

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Introduction to eBay

• Founded in September of 1995, eBay is The World’s Online Marketplace®.

• eBay has a global presence in 33 international markets, including the USA.

• eBay has 157 million registered users worldwide.. • Profitable since its launch, eBay net revenues totaled $1.086 billion

in Q2-05. • In Q2-05, gross merchandise volume (GMV), the value of all

successfully closed listings on eBay worldwide, was $10.9 billion. • eBay users worldwide trade more than $1,381 worth of goods on the

site every second. • At any given time, there are approximately 55 million items available

on eBay worldwide, and approximately 5 million items are added per day. eBay users trade in more than 50,000 categories.

• The most expensive item sold on eBay to date is a private business jet for $4.9 million.

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Registered users

157Million

Q2-05 38% Y/Y

1999 2000 2001 2002 20031998 2004

Q1 Q1 Q3 Q4 Q1Q4Q3Q2 Q2Q1 Q3 Q4Q4Q3Q2 Q3 Q1Q4 Q4 Q1 Q2 Q3 Q4Q3Q2Q2Q1 Q2

2005

Q2Q1

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Listings

440Million

Q2-05 32% Y/Y

1999 2000 2001 2002 20031998 2004


2005

Q2Q1

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Gross Merchandise Volume

$10.9Billion

Q2-05 36% Y/Y

1999 2000 2001 2002 20031998 2004


2005

Q2Q1

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Total company revenue

$1.09Billion

83% 6 Year CAGR

Q2-05 40% Y/Y

1999 2000 2001 2002 20031998 2004


2005

Q2Q1

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Transaction Velocity

2.8US2.2

3.4

Inc.4.4

Transactions per day (Millions) - Q4 2004

Source: eBay Estimates

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Introducing eBay India

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Introduction to eBay India

• Founded in March 2000 as Baazee.com (formerly eBay India)

• eBay India is India’s leading online marketplace

• Over 1.7 million registered users from 240 towns in India

• Since Aug 2004, a 100% subsidiary of eBay.com

• Most popular online shopping destination. (Source: IDC)

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Built on Community, Grounded in Commerce

Built on principles of: • Trust• Open communication • Respect

eBay India’s community includes: • Individuals• Small businesses • Brands

technoshoppe (1183)

shopeasy (108)

ristcomputers (1152)

wespro (1190)

homeandsecurity(2455)

cellphonewala (4909)

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A Vibrant Marketplace

On any given day, eBay India has over 100,000 live listings across 2500 categories of products and services

A digital camera sells every 31 minutes

A camcorder sells every 96 minutes

A USB device sells every 60 minutes

A VCD sells 51 minutes

A MP3 player sells every 48 minutes

A piece of men’s apparel sells every 13 minutes

A book sells every 64 minutes

A toy sells every 15 minutes

A watch sells every 4 minutes

A piece of jewellery sells every 5 minutes

A laptop sells every 150 minutes

A mobile handset sells every 16 minutes

A Bollywood costume sells every 1.5 days.

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Agenda




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Global Trade on eBay

Definition: Global Trade is all trade on the eBay platform between sellers and buyers who live in different countries and thus, the goods cross international borders.

Vision: Create an open, abundant, safe and efficient global marketplacewhere buyers and sellers have equal ability to trade with each other locally as well as globally.

Exports from sellers from 33 countries to buyers from over 150 countries take place on eBay.

Global Trade accounts for 40% of the activity in many countries

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eBay Reach: Global Trade Trends

N. America

'04 Export'04 Import

$1,381 $2,808

Graphs show 2002-2004Global Trade Gross

Merchandise Volume

12%2Yr CAGR

45%2Yr CAGR

47%2Yr CAGR

61%2Yr CAGR

53%2Yr CAGR110%

2Yr CAGR

75%2Yr CAGR

59%2Yr CAGR

Europe


$2,169 $1,622 Asia Pac

$468 $385'04 Export'04 ImportROW


$139 $63

$4.2B Global Trade Volume in 2004

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Fun Global Facts… America

• US Sellers export 4 collectibles every minute

• Buyers from Canada buy 16 items every minute from US sellers

• Every minute 2 Toys are sold to Canadian buyers from US sellers

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Fun Global Facts… Asia

• Hong-Kong sellers export 139 items every hour to UK

• Every 10 minutes 3 Toys are sold to US Buyers from Singapore

• Every hour 25 items are sold to UK buyers from China

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Fun Global Facts… Europe

• Every 5 minutes 3 collectibles are sold to Austrian Buyers from Germany

• Every minute 2 auto parts are sold to Austrian buyers from Germany

• Every minute 1 collectible is sold to an American buyer from UK

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Agenda




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Joining the eBay Global Marketplace

• Indian users can use one single eBay India ID to trade internationally

• Indian sellers can sell on any of the other eBay 32 country sites

• Indian buyers can buy international products

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Big Potential for Indian Sellers

• First Time Opportunity for individuals, exporters to sell globally online

• Asia Pacific has the fasted growth rate of 75% among all eBay regions

• Indian Culture Products in big demand on eBay eg. Sarees listings on eBay 5 times more than what being sold from India

• The High Potential Categories are Jewellery & Watches, Apparel and Accessories and Handicrafts

• Collectibles from India like Stamps, Antiques, Bollywood Memorabilia also in great demand

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… By enabling the eBay India community

Tap into the Market Educate the Community Reduce Friction

• Launch the eBay India Site

• Display Indian listings globally

• Promote the India community globally

• Host seminars and events

• Build Online training resources and programs

• Offering an opportunity for Job Creation and Social Enterprise

• (NGOs, Rural community, Unemployed, Minority, Retired)

• Improve global payments functionality

• Explore logistics tie-ups

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Exciting Early Results

• …at any time, more than 2000 items are available to international buyers

• ..1 item sells to international buyers every 12 minutes

• …buyers from over 80 countries have bought on eBay India

• 620 sellers have transacted globally till date

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Exciting Early Results

• … every hour 1 piece of apparel sells internationally from India

• …A piece of jewellery sells internationally every 90 minutes

• …top export Categories so far: – Jewelry & Watches (Diamond Rings / Earrings) /

Gemstones)– Apparel & Accessories (Sarees / Salwar Kameezes)– Home and Crafts (Handicrafts / Fengshui)– Coins & Stamps (Vintage Indian coins)– Musical Instruments (Brass trumpets)

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And sellers are excited with the Success

indiastamps (Mr. Sharma)

80 years old, sold stamps to a buyer in Italy

indiantreasures_in1 (Shivani Shukla)

Within 15 days, sold her first piece of ethnic wear to a buyer in the USA

hypnosis_in1 (Hitesh)

Sold Sarees to a Buyer from the USA

deltamarketing_in1 (Mr. Khurana)

Sold costume jewelry to buyers from the USA, Switzerland, and the UK

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The Seller & Buyer of a global transaction

eBay ID: illusions-india

Name: Dr. Vineet Srinivasan

Age: 31

Location: Mumbai, India

User Since: July 2003

Offline Profession: Dentist

Selling: Jewellery

eBay ID: shubhangimhtName: Mark Baugh

Age: 40

Location: Dallas, Texas

User Since: March 2005

Offline Profession: Vice President

Buyer: Jewellery

I’d like to tell you about the wonderful diamond I received today that is a gift for my wife Katrina. Over the years, Katrina has given me three wonderful children which although they are a blessing the expense of caring for my family has kept me from being able to give Katrina the ring I always wanted her to have. Until I found Illusions Jewelers who sold me a very affordable diamond, internally Flawless in Clarity at a price I could afford. To top it all off they were able to do all of this via the Internet from India even though I live in Dallas Texas, they might as well been next door!

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The Global Transaction….

Buyer location: Dallas Texas, USA

Seller location: Mumbai, India

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In Summary

• eBay is a great place to start a new business– Low cost of entry– Level playing field– National access– Global marketplace

• Already, a source of livelihood for a few thousand sellers

• Direct access to millions of global end users for small exporters

• Making the world a single, unified marketplace

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Documents

Global Trade on eBay India