How Much Is Ebay Worth In 2019 and How Do They Make Their Money? 

Those who have a reasonable knowledge of all things e-commerce would be familiar with eBay’s success story. Originally called AuctionWeb, the online shopping and auction website’s name was changed to eBay in late 1997. The company’s founder Pierre Omidyar who is worth an estimated $9.23 billion was inducted into the billion-dollar club barely three years after its launch, a strong indication of how far eBay has come. Let’s take a look at eBay’s net worth, income streams, and how it grew to become a household name in online shopping.

How Does eBay Make Its Money? 

For a company that provides an easy digital platform for users to resell unwanted stuff, what they do is based on an incredibly simple service – a big garage sale. eBay was launched in 1995 with the primary aim of serving as an auction site where interested buyers could bid on items listed by sellers.

When Pierre Omidyar started the company, he came with a unique strategy that left market regulation in the hands of buyers and sellers by setting up a forum where those using it could rate themselves. Omidyar’s inferred trust in people apparently worked as eBay could boast of no less than 200,000 monthly auctions, about two years after. However, the shopping marketplace has since deviated slightly from its original strategy in conformity with digital trends from other online retail giants such as Amazon. The following are the ways the multinational e-commerce corporation makes its money.

Paypal

Today, eBay’s mode of operation is now far fetched from its initial auction-only model. Nearly 90% of eBay’s sales are made via the “Buy It Now” function on its site, thanks to PayPal. The massive online marketplace acquired PayPal as its main payments processor for $1.5 billion in 2002. The fees generated by the online payment company account for more than a third of eBay’s revenue.

eBay and PayPal; eBay net worth
Image Source

However, after 12 years, eBay which has become one of the largest and most successful e-commerce platforms decided to make Paypal an independent company. In line with keeping up with competitors like Alibaba and Amazon, this was a move meant to connect more buyers and sellers across the world by broadening eBay’s payment options for users. Moreover, the benefits of the separation were not onesided. PayPal was growing faster than eBay at the time, hence the breakup availed the online payment company the liberty to seek out other lucrative opportunities.

READ   Floyd Mayweather - Height, Net Worth & Boxing Record

When the two companies split in 2015, eBay accounted for more than 50 percent of PayPal’s profits and over 30 percent of its revenue. Therefore, it wasn’t a surprise when they also announced that they’ll continue working closely until 2020. Unlike what is obtainable today, when the eBay-PayPal agreement comes to end in 2020, PayPal will no longer process card payments for eBay but will remain a payment option for shoppers on the site.

In a bid to take more control over its user experience across the world, eBay replaced PayPal with Ayden. The massive online marketplace signed a longterm deal with the Amsterdam-based payments company to become the primary payments processor for its sites. With its sole focus on providing back-end payments services, some of Ayden’s client base include global brands such as Spotify, Netflix, and Uber.

User Charges

After PayPal, the heart and soul of eBay is its marketplace. It is clearly another revenue stream for the company. Simply put, sellers are charged for transaction fees and they are charged a specific amount after listing their first 50 items every month for free. However, the user charges vary in relation to item categories. It is also needful to point out that 10% of every listing sales’ total amount goes to eBay.

Enterprise

eBay Enterprise which is the company’s conventional subsidiary that specializes in creating online shopping sites for their brands is another money-spinner. With its range of client-friendly services, the division accounts for about 6% of eBay’s total revenue.

See Also: How Much Is Apple Worth In 2019 And How Do They Make Their Money?

What’s eBay Net Worth In 2019?

Over the years, the massive online marketplace has developed and acquired several online marketplaces including Classifieds and StubHub. In addition to its founder who owns 5% of eBay and 6% of Paypal’s shares, eBay’s growth has made many of its largest shareholders very wealthy.

However, it is worthy to note that 90% of the company shares are held by mutual funds and other institutional shareholders. With a current share price pegged around $40, eBay’s net worth (market value) is estimated at $42 billion while PayPal is valued at $102 billion.

Recommended

What Was Paul Allen’s Net Worth When He Died and Was He Married With Kids?

Paul Allen was an American business tycoon, investor, and philanthropist. He owes a substantial part of his $20 billion wealth to Microsoft of which...

What You Should Know About Josh Altman’s Net Worth, Wife and Family

Being a real estate agent can be a glamourous job especially in top city areas like Los Angeles. Through shows like Million Dollar Listing, young real...

What We Know About Joe Rogan’s Net Worth, Wife and Kids

Joe Rogan is popular in the United States of America for several reasons. He is famous as a stand-up comedian, an Ultimate Fighting Championship...

The Truth About Carson Wentz’s Accomplishments, Wife and Net Worth

Carson Wentz has made his mark as one of the top quarterbacks in the National Football League. He is undoubtedly one of the best...

The Untold Truth Of Christina Milian: Her Net Worth, Husband and Daughter

Christina Milian is an American actress, singer, songwriter, and television personality. After her career took off in 2000 with that Def Jam deal, Milian...

20 Richest Black (African American) Actors and Actresses and Their Net Worth

Over the years, Forbes has annually published a list of the highest-paid actors and actresses in Hollywood as well as the highest-paid TV stars...

Top 15 Worst Things Donald Trump Has Said So Far

If you've never heard of Donald Trump or any of his controversial statements then you must be a new resident on earth. The American...

15 Famous Basketball Players Who Have Aged Badly

Some basketball players who were at the top of their game, and were unstoppable at the time they played have aged badly. Not just...

How Much Money Has Marshawn Lynch Made In His NFL Career?

Marshawn Lynch's net worth is currently $30 million. His career has seen tremendous success and likewise his finances since going from his school's second...

These Facts Will Tell You Who Dina Meyer Is and What Her Net Worth Is

When Beverly Hills 90210 was running, it was one of the most-watched and most followed shows on television. This fact made it a great...

The 20 Most Famous MMA Fighters in UFC and Their Net Worth

The realization that the WWE is not really all that it claims to be has led many fans of combat sports to seek other...

Facts About Mike Busey, His Net Worth and Snapchat Membership Information

For many, Mike Busey represents the best thing about the modern world. The dream of the liberal movement to create a world where everyone...

Featured Today

20 Richest Black (African American) Actors and Actresses and Their Net Worth

Over the years, Forbes has annually published a list of the highest-paid actors and actresses in Hollywood as well as the highest-paid TV stars...

Why Did Dave Grohl Get Divorced From His First Wife Jennifer Youngblood?

It was once said that hard work would beat talent when talent fails to work hard. Such motivational quotes go a long way to...

What Happened To Fergie Olver? His Net Worth And Sexual Assault Scandal

Fergie Olver is a Canadian ex-sportscaster and game show host widely known for co-anchoring the popular children's game show called Just Like Mom along...

Who Is CNN Dana Bash, What Is Her Salary & Why Did She Divorce John King?

The award-winning Dana Bash is an amazing American journalist, television anchor, and chief political correspondent for CNN. Best known for her unparallel contributions since...

Related Stories