Global Trade on eBay India
Agenda
•
Introduction to eBay and eBay India
•
eBay’s Vision – Global Trade
•
The Global Trade Opportunity in India
2
Introduction to eBay • • • • • • •
•
Founded in September of 1995, eBay is The World’s Online Marketplace®. eBay has a global presence in 33 international markets, including the USA. eBay has 157 million registered users worldwide.. Profitable since its launch, eBay net revenues totaled $1.086 billion in Q2-05. In Q2-05, gross merchandise volume (GMV), the value of all successfully closed listings on eBay worldwide, was $10.9 billion. eBay users worldwide trade more than $1,381 worth of goods on the site every second. At any given time, there are approximately 55 million items available on eBay worldwide, and approximately 5 million items are added per day. eBay users trade in more than 50,000 categories. The most expensive item sold on eBay to date is a private business jet for $4.9 million. 3
Registered users 157 Million
Q2-05 38% Y/Y
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
1998
1999
2000
2001
2002
2003
2004
2005 4
Listings 440 Million
Q2-05 32% Y/Y
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
1998
1999
2000
2001
2002
2003
2004
2005 5
Gross Merchandise Volume $10.9 Billion
Q2-05 36% Y/Y
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
1998
1999
2000
2001
2002
2003
2004
2005 6
Total company revenue $1.09 Billion
83% Q2-05 6 Year 40% Y/Y CAGR
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
1998
1999
2000
2001
2002
2003
2004
2005 7
Transaction Velocity Inc. 4.4
3.4
US
2.8
2.2
Transactions per day (Millions) - Q4 2004 Source: eBay Estimates
8
Introducing eBay India
9
Introduction to eBay India
•
Founded in March 2000 as Baazee.com (formerly eBay India)
•
eBay India is India’s leading online marketplace
•
Over 1.7 million registered users from 240 towns in India
•
Since Aug 2004, a 100% subsidiary of eBay.com
•
Most popular online shopping destination. (Source: IDC)
10
Built on Community, Grounded in Commerce
eBay India’s community includes: • Individuals • Small businesses • Brands
technoshoppe (1183)
cellphonewala (4909)
ristcomputers (1152) shopeasy (108)
Built on principles of: • Trust • Open communication • Respect
homeandsecurity (2455) wespro (1190)
11
A Vibrant Marketplace On any given day, eBay India has over 100,000 live listings across 2500 categories of products and services
A digital camera
sells every 31 minutes
A book
A camcorder
sells every 96 minutes
A toy
A USB device
sells every 60 minutes
A watch
A VCD
sells 51 minutes
A MP3 player
sells every 15 minutes sells every 4 minutes
A piece of jewellery
sells every 48 minutes
A piece of men’s apparel minutes
sells every 64 minutes
sells every 13
A laptop
sells every 5 minutes
sells every 150 minutes
A mobile handset A Bollywood costume
sells every 16 minutes sells every 1.5 days.
12
Agenda
•
Introduction to eBay and eBay India
•
eBay’s Vision – Global Trade
•
The Global Trade Opportunity in India
13
Global Trade on eBay
Definition: Global Trade is all trade on the eBay platform between sellers and buyers who live in different countries and thus, the goods cross international borders. Vision: Create an open, abundant, safe and efficient global marketplace where buyers and sellers have equal ability to trade with each other locally as well as globally. Exports from sellers from 33 countries to buyers from over 150 countries take place on eBay. Global Trade accounts for 40% of the activity in many countries 14
eBay Reach: Global Trade Trends Europe 110%
53%
2Yr CAGR
2Yr CAGR
'04 Import
N. America 12%
45%
'04 Export
$2,169
59%
2Yr CAGR
2Yr CAGR
Asia Pac
$1,622 2Yr CAGR
75%
2Yr CAGR
$4.2B Global Trade Volume in 2004
'04 Import
'04 Export
$1,381
$2,808
ROW 47%
2Yr CAGR
Graphs show 2002-2004 Global Trade Gross Merchandise Volume
'04 Import
'04 Export
$468
$385
61%
2Yr CAGR
'04 Import
'04 Export
$139
$63
15
Fun Global Facts… America
•
US Sellers export 4 collectibles every minute
•
Buyers from Canada buy 16 items every minute from US sellers
•
Every minute 2 Toys are sold to Canadian buyers from US sellers
16
Fun Global Facts… Asia
•
Hong-Kong sellers export 139 items every hour to UK
•
Every 10 minutes 3 Toys are sold to US Buyers from Singapore
•
Every hour 25 items are sold to UK buyers from China
17
Fun Global Facts… Europe
•
Every 5 minutes 3 collectibles are sold to Austrian Buyers from Germany
•
Every minute 2 auto parts are sold to Austrian buyers from Germany
•
Every minute 1 collectible is sold to an American buyer from UK
18
Agenda
•
Introduction to eBay and eBay India
•
eBay’s Vision – Global Trade
•
The Global Trade Opportunity in India
19
Joining the eBay Global Marketplace
•
Indian users can use one single eBay India ID to trade internationally
•
Indian sellers can sell on any of the other eBay 32 country sites
•
Indian buyers can buy international products
20
Big Potential for Indian Sellers
•
First Time Opportunity for individuals, exporters to sell globally online
•
Asia Pacific has the fasted growth rate of 75% among all eBay regions
•
Indian Culture Products in big demand on eBay eg. Sarees listings on eBay 5 times more than what being sold from India
•
The High Potential Categories are Jewellery & Watches, Apparel and Accessories and Handicrafts
•
Collectibles from India like Stamps, Antiques, Bollywood Memorabilia also in great demand 21
… By enabling the eBay India community
Tap into the Market
• Launch the eBay India Site • Display Indian listings globally • Promote the India community globally
Educate the Community
• Host seminars and events • Build Online training resources and programs • Offering an opportunity for Job Creation and Social Enterprise • (NGOs, Rural community, Unemployed, Minority, Retired)
Reduce Friction • Improve global payments functionality • Explore logistics tie-ups
22
Exciting Early Results
•
…at any time, more than 2000 items are available to international buyers
•
..1 item sells to international buyers every 12 minutes
•
…buyers from over 80 countries have bought on eBay India
•
620 sellers have transacted globally till date 23
Exciting Early Results
•
… every hour 1 piece of apparel sells internationally from India
•
…A piece of jewellery sells internationally every 90 minutes
•
…top export Categories so far: – – – – –
Jewelry & Watches (Diamond Rings / Earrings) / Gemstones) Apparel & Accessories (Sarees / Salwar Kameezes) Home and Crafts (Handicrafts / Fengshui) Coins & Stamps (Vintage Indian coins) Musical Instruments (Brass trumpets)
24
And sellers are excited with the Success
indiantreasures_in1 (Shivani Shukla)
indiastamps (Mr. Sharma)
Within 15 days, sold her first piece of ethnic wear to a buyer in the USA
80 years old, sold stamps to a buyer in Italy
deltamarketing_in1 (Mr. Khurana)
hypnosis_in1 (Hitesh)
Sold costume jewelry to buyers from the USA, Switzerland, and the UK
Sold Sarees to a Buyer from the USA
25
The Seller & Buyer of a global transaction
eBay ID: illusions-india
eBay ID: shubhangimht
Name: Dr. Vineet Srinivasan
Name: Mark Baugh
Age: 31
Age: 40
Location: Mumbai, India
Location: Dallas, Texas
User Since: July 2003
User Since: March 2005
Offline Profession: Dentist
Offline Profession: Vice President
Selling: Jewellery
Buyer: Jewellery
I’d like to tell you about the wonderful diamond I received today that is a gift for my wife Katrina. Over the years, Katrina has given me three wonderful children which although they are a blessing the expense of caring for my family has kept me from being able to give Katrina the ring I always wanted her to have. Until I found Illusions Jewelers who sold me a very affordable diamond, internally Flawless in Clarity at a price I could afford. To top it all off they were able to do all of this via the Internet from India even though I live in Dallas Texas, they might as well been next door!
26
The Global Transaction….
Seller location: Mumbai, India Buyer location: Dallas Texas, USA
27
In Summary
•
eBay is a great place to start a new business – – – –
Low cost of entry Level playing field National access Global marketplace
•
Already, a source of livelihood for a few thousand sellers
•
Direct access to millions of global end users for small exporters
•
Making the world a single, unified marketplace
28
29
