January 25, 2007, 12:00 AM

eBay’s merchandise sales grow 19% in 2006 to $52.47 billion

Total sales of goods, or gross merchandise volume, as eBay calls such sales, reached $52.47 billion for the year, up 19% over the $44 billion it recorded in 2005. EBay earned $1.1 billion on $6 billion in revenue.

Kurt Peters

Executive Editor


Sales of goods over eBay.com reached $14.4 billion in the fourth quarter, up 20% over the $12 billion in the previous year’s fourth quarter, eBay has reported. EBay merchandise is getting more expensive as the number of listings was up 12% to 610 million from 546 million a year earlier.

Total sales of goods, or gross merchandise volume, as eBay calls such sales, reached $52.47 billion for the year, up 19% over the $44 billion it recorded in 2005. Fixed-price sales, that is, non-auctions, represented 38% of all sales in the fourth quarter, up from 34% a year earlier.

EBay has 221.6 million registered users, up 23% from 180.6 million at the end of 2005. Active users totaled 81.8 million, up 14% from 71.8 million a year earlier.

EBay also hosts 593,000 stores, up 55% from 383,000 a year earlier.

EBay’s fourth quarter revenue reached $1.7 billion, up 29% from $1.3 billion a year earlier. Net income was $346 million. Full-year revenue was $6 billion, up 31% from $4.6 billion a year earlier. Net income totaled $1.1 billion, up 4% from a year earlier.

EBay breaks its business into three units: Marketplaces, where goods are bought and sold and which includes comparison shopping engine Shopping.com and classified ads; Communications, which includes Internet telephone service Skype; and Payments, which includes PayPal.

Marketplace revenue in the quarter reached $1.2 billion, 24% growth over a year earlier. Skype Q4 revenue reached $66 million, up 164% over a year earlier.

PayPal’s revenue totaled $417 million in the quarter, up 37%. In addition to making the PayPal payment option available to eBay sellers and merchants on other platforms, eBay operates PayPal Merchant Services, which processes other kinds of payments. Total payment volume through PayPal Merchant Services was $11 billion, up 36% over a year earlier. PayPal payments accounted for $3.9 billion of that volume.

EBay reports 133 million PayPal account holders, up 38% from 96.2 million a year earlier, with 37.6 million active accounts vs. 28.1 million a year ago.

EBay executives Gary Briggs and Tod Cohen, are speaking at Internet Retailer Conference & Exhibition, June 4-7 in San Jose. Briggs will address How eBay Will Continue Re-Shaping the E-Retailing Industry on June 5 and Cohen will address The Face-Off Over Internet Regulation also on June 5.



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