Partnering with Posts

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Partnering with Posts
UPU Conference June 8, 2007 Nick Staheyeff
CEO eBay International
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Agenda

• eBay
• Role of Shipping at eBay
• Cross Border Transactions - a World of
  Opportunities
  
• Challenges to be Overcome
• Looking Forward to Working Together

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Internet Adoption is Transformational
Global Internet Users (in millions)
1,300M
The fastest rate of technology adoption in history
730M
Source IDC
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eBays Evolution
1995-98 US only, collectibles only
1999 Moved beyond collectibles, expanded
internationally (Alando, iBazar)
2000 Introduced Fixed Price (Buy It Now) and
eBay stores 2002 Acquired PayPal, removing fric
tion and building a huge new business
2004-05 Entered new marketplaces
Marktplaats.nl, Mobile.de, Rent.com,
Shopping.com, Kijiji, ProStores.
2005 Acquired Skype, removing friction and
building another business
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2007 a Broad Array of Online Assets
Payments
Marketplaces
Communications
Provide a global online trading platform where
practically anyone can trade practically anything.
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eBay Marketplaces Around the World
eBay site or majority investment
Minority investment
Asia/Pacific Australia Korea New Zealand Tai
wan China Singapore Hong Kong India Philippin
es
Malaysia Thailand
Americas USA Canada Argentina Brazil Chile
Colombia Ecuador Mexico Peru Uruguay V
enezuela
MercadoLibre sites
Present in 39 international markets
33 Markets
Europe Austria Belgium France Germany Ireland
Italy Netherlands Poland Spain Switzerland Sw
eden UK, Turkey
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On an Average Day on an eBay Site (US/DE)
. . . a diamond ring is sold on eBay every 2
minutes
. . . more than three watches are sold every
minute
. . . five womens handbags are sold every minute
. . . and an automobile is sold every minute.
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eBay - the Worlds Online Marketplace
Every day, more than 1 B. page views, 298 Mil.
searches
and 17 Mil. bids 14,1 Gigabit/s
233 Mil. registered users Worldwide
More than 100 Mil. items offered on the site (o
ver 6 Mil. each day)
USD 52 B. Trade volume (GMV) 2006 (worldwide)
Every second, more than USD 1,800 worth of goo
ds is sold
170,00 people in Europe and 1.3 Mil. people
worldwide make a significant portion of their
living on eBay.

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Role of Shipping at eBay
Importance to Sellers
Importance to Buyers

• 5 of top 7 bad buyer experiences on
  eBay are shipping related

• Packaging and shipping is the 3rd most time
  consuming activity for sellers (15
  of time)
  
• Packing and shipping ranked the 2nd most
  difficult task by sellers
  

Shipping Mission Ensure the final stage of the
buyer and sellers eBay transaction is a great
experience

• Item was late
• Shipping was too expensive
• Item was never received
• Item was damaged/defective
• Item was poorly packaged

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Shipping - an Important Factor in Buying Decisions
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What We Do

• Tools for sellers
• Tools for buyers
• Relationships with carriers

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Examples of Tools for Sellers

• Shipping Calculators

Shipping Labels
Integrate zip to zip shipping cost directly into
their eBay Listing
Purchase shipping labels online
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Examples of Tools for Buyers
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Cross Border Trade Already Large, Huge Potential
Cross Border Trade currently accounts for 20 of
eBay Incs business However, Cross Border Trade
remains a relatively underdeveloped area of
eCommerce We believe that real opportunity for
eCommerce growth lies in opening international
markets and providing smoother Cross Border
operations
(0.19)
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Overall Barriers to International Selling
Problems with international shipping is one of
the biggest barriers to international selling.
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Cross Border Trade Shipping Challenges
The shipping challenges most often cited by eBay
sellers as barriers to selling items
internationally include

• Higher shipping costs
• Availability of tracking and delivery
  confirmation
  
• Variability in shipping time
• Customs paperwork, cost and delays

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Examples of our Shipping Relationships

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Good Collaboration
The USPS is an example of what can be achieved

• integration into our shipping calculators
• label printing solutions
• home pick up services
• co-branded packaging materials
• co-marketing programs
• promotional programs
• educational outreach to the eBay community  

Other worldwide Postal Services can learn from
this experience and develop their own innovative
solutions

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Looking Forward and Working Together

• In a more competitive environment for Postal
  Services, there will always be pressures to
  maintain revenues.  eCommerce is part of the
  solution.
• eCommerce is an enormous opportunity for Postal
  Services across the EU.  The Postal Services that
  thrive in this new world of competition will be
  those who grasp the importance of eCommerce.
• eBay is different from other eCommerce players
  we are big business powered by small business.
  
  
• The small businesses on eBay depend on their
  local Post Office for their survival, but local
  Post Offices also depend on eCommerce for an
  increasing part of their business.  
• This is a symbiotic relationship.

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• Thank You!