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Chapter 1 Introduction to e-business and e-commerce 45

strong local competitors; laws and business practices that favour local
different and more stringent consumer protection, competitors or prohibit foreign ownership of certain
data protection and other laws; businesses;
cultural ambivalence towards, or non-acceptance of, profit repatriation restrictions, foreign currency
online trading; exchange restrictions, and exchange rate fluctuations;
seasonal reductions in business activity; volatility in a specific country’s or region’s political or
expenses associated with localising products, economic conditions; and
including offering customers the ability to transact differing intellectual property laws and taxation laws.
business in the local currency;

Year ended Change Year ended Change Year ended
December 31, from December 31, from December 31,
2005 2005 to 2006 2006 2006 to 2007 2007
(in thousands, except per cent changes)
Net Revenues by Type:
Net transaction revenues
Marketplaces $ 3,402,301 24% $ 4,203,340 22% $ 5,135,363
Payments 1,001,915 40% 1,401,824 31% 1,838,539
Communications 24,809 677% 192,756 95% 376,715
Total net transaction revenues 4,429,025 31% 5,797,920 27% 7,350,617
Advertising and other net revenues 123,376 39% 171,821 87% 321,712
Total net revenues $ 4,552,401 31% $ 5,969,741 29% $ 7,672,329
Net Revenues by Segment:
Marketplaces $ 3,499,137 24% $ 4,334,290 24% $ 5,363,891
Payments 1,028,455 40% 1,440,530 34% 1,926,616
Communications 24,809 686% 194,921 96% 381,822
Total net revenues $ 4,552,401 31% $ 5,969,741 29% $ 7,672,329
Net Revenues by Geography:
US $ 2,471,273 26% $ 3,108,986 20% $ 3,742,670
International 2,081,128 37% 2,860,755 37% 3,929,659
Total net revenues $ 4,552,401 31% $ 5,969,741 29% $ 7,672,329

Year ended December 31,
2005 2006 2007
(in millions)

Supplemental Operating Data:
Marketplaces Segment(1):
Active users(2) 71.8 81.8 83.2
Number of listings(3) 1,876.8 2,365.3 2,340.5
Gross merchandise volume(4) $ 44,299 $ 52,474 $ 59,353
Payments Segment:
Active registered accounts(5) 41.3 49.4 57.3
Net total payment volume(6) $ 26,066 $ 35,800 $ 47,470
Communications Segment:
Registered users(7) 74.7 171.2 276.3
Notes on supplemental operating data.
1 Rent.com, Shopping.com and our classified websites are not included in these metrics.
2 All users, excluding users of Half.com, StubHub and Internet Auction Co., our Korean subsidiary, who bid on, bought, or listed an item
within the previous 12-month period. Users may register more than once and as a result may have more than one account.
3 Listings on eBay Marketplaces trading platforms during the period, regardless of whether the listing subsequently closed successfully.
4 Total value of all successfully closed items between users on eBay Marketplaces trading platforms during the period, regardless of
whether the buyer and seller actually consummated the transaction.
5 All registered accounts that successfully sent or received at least one payment or payment reversal through the PayPal system within
the previous 12-month period.
6 Total dollar volume of payments, net of payment reversals, successfully completed through the PayPal system during the period,
excluding the payment gateway business.
7 Cumulative number of unique user accounts, which includes users who may have registered via non-Skype based websites, as of the
end of the period. Users may register more than once and as a result may have more than one account.
Source: SEC (2008), BBC (2005)