elgato
Joined: 24 Feb 2005
Posts: 17240
Location: Texas
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| Posted: Tue Oct 18, 2011 2:22 pm Post subject: EBay's Marketplaces growth to dominate |
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EBay has been working on a turnaround of its online marketplaces for over a year and growth has begun to pick up in recent quarters.
EBay shares are up more than 20 percent so far this year, but further gains will depend on growth continuing, or even increasing, analysts and investors said.
"Continued acceleration at the core eBay Marketplaces will be of paramount importance," said Fred Moran, an analyst at Benchmark Capital.
EBay's Internet marketplaces, the biggest of their kind, bring together buyers and sellers and the company makes money by charging fees on transactions and other activity.
The marketplaces business started as an auction website, but eBay has moved away from that model and now about 60 percent of sales are fixed price.
Having more fixed prices has made eBay's marketplaces more accessible to a broader audience of shoppers, helping the company compete better with Amazon.com Inc, the world's largest Internet retailer.
"The transition to fixed-price has paid off and enhanced the growth rate," Moran said. "If that continues in the third quarter, the stock should be rewarded.
http://www.reuters.com/article/2011/10/17/us-ebay-idUSTRE79G76A20111017 |
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