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eBay results beat expectations as PayPal expands

July 22, 2011 By: Dr Search Principal Consultant at the Search Clinic Category: Customer Service, eBay, Ecommerce, internet, Online Marketing, Technology Companies, Uncategorized

Online auction company eBay has reported better than expected profits thanks mainly to growth at its PayPal division.
eBay results beat expectations as PayPal expandsSecond quarter net income was £176 million, down from £257 million for the same period a year ago.

But the fall in earnings was largely due to eBay’s takeover of GSI Commerce, a digital marketing and ecommerce firm, earlier this year.

Ebay’s main online Marketplace business showed signs of a turnaround and its PayPal division grew well.

PayPal gained members and the value of merchandise sold through its eBay.com website rose.

Taking out one-off cost – including those of acquiring GSI – income was 19% higher than last year’s £331 million.

However after eBay increased their charges in May there was a considerable backlash from UK etailers- some of whom claim that eBay’s new charges make them unprofitable.

These higher charges are making them switch from eBay to Amazon- who has kept their UK charges flat.

The EBAY share price still trades at a discount to it’s record price set on 1st October 2007 of $39.90.

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