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[Chaffey, Dave] Digital business and E-commerce 2nd book

Revenue model

The vast majority of eBay’s revenue is for the listing of 

and commission on completed sales. For PayPal pur‑

chases an additional commission fee is charged. Margin 

on each transaction is phenomenal, since once the 

infrastructure is built, incremental costs on each trans‑

action are tiny – all eBay is doing is transmitting bits and 

bytes between buyers and sellers.

Advertising and other  non‑  transaction net revenues 

represent a relatively small proportion of total net rev‑

enues and the strategy is that this should remain the 

case. Marketing services and other revenues accounted 

for an additional $2 billion in 2012.

Another part of the business, Skype Internet telephony, 

was acquired in 2005 by eBay and sold to an investor group 

in November 2009, with a 30% share retained by eBay.




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