eBay Net Income

eBay was profitable in 2023, as it reported a profit of $2.77 billion. Compared to a net loss of $1.27 billion in 2022, a net income of $13.6 billion in 2021, and a net income of $5.67 billion in 2020. Related Visual Stories Who Owns eBay eBay's main shareholder is its founder, the billionaire Omidyar, who stepped down from the board of eBay. By 2020, he owned (and might still own 4.69% of the company's stock) followed by other institutional investors, such as Vanguard (11.41%) and Blackrock (8.51%). eBay Business Model eBay's core business is a platform business model that makes money from transaction fees through its marketplaces. In short, eBay primarily makes money by charging fees on successfully closed transactions. For instance, in 2021, on an $87 billion worth of gross merchandise value sold on eBay, the company generated $9.77 billion in transaction revenues at an 11.19% take rate (fee). eBay Revenue In 2023, eBay generated $10.11 billion in revenue compared to $9.79 billion in 2022 and $10.42 billion in 2021. eBay Employees eBay had 12,300 employees in 2023, compared to 11,600 employees in 2022 and 10,800 employees in 2021. eBay Buyers eBay had 132 million buyers in 2023, compared to 134 million in 2022, 147 million in 2021, and 185 million in 2020. eBay Revenue per Employee eBay revenue per employee was $822,114 in 2023, $844,397 in 2022, and $964,815. eBay GMV eBay reported $73.2 billion in gross merchandise volume in 2023, compared to $73.9 billion in gross merchandise volume in 2022 and $87.36 billion in 2021. Is eBay Profitable? eBay was profitable in 2023, as it reported a profit of $2.77 billion. Compared to a net loss of $1.27 billion in 2022, a net income of $13.6 billion in 2021, and a net income of $5.67 billion in 2020. eBay Revenue Breakdown In 2022, eBay generated $9.77 billion in transaction revenue and $650 million in marketing services revenue. How Much Does eBay Take? In 2023, eBay's take rate was 13.81%, 13.25% in 2022, and 11.19% in 2021. eBay Bidding System eBay bidding is a way for buyers to bid on a product whose sale price is decided by auction. The bidding process itself is automated, with eBay acting on the buyer’s behalf. eBay Organizational Structure eBay was until recently a multi-divisional (M-form) organization with semi-autonomous units grouped according to the services they provided. Today, eBay has a single division called Marketplace, which includes eBay and its international iterations. Etsy vs. Ebay eBay vs. Amazon In 2023, eBay generated $10.11 billion in revenue, compared to nearly $574.78 billion from Amazon in the same period. Whereas in 2022, Amazon generated $513.98 billion in revenue, vs. eBay's over $9.79 billion. In comparison, looking at revenues, Amazon was over 57 times larger than eBay in 2023. Amazon Business Model Amazon has a diversified business model. In 2023, Amazon generated nearly $575 billion in revenues while it posted a net profit of over $30 billion. Online stores contributed over 40% of Amazon revenues. Third-party Seller Services and Physical Stores generated the remaining. Amazon AWS, Subscription Services, and Advertising revenues play a significant role within Amazon as fast-growing segments. Amazon Mission Statement Amazon's mission statement is to "serve consumers through online and physical stores and focus on selection, price, and convenience." Amazon's vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” Customer Obsession In the Amazon Shareholders' Letter for 2018, Jeff Bezos analyzed the Amazon business model, and it also focused on a few key lessons that Amazon as a company has learned over the years. These lessons are fundamental for any entrepreneur, of small or large organization to understand the pitfalls to avoid to run a successful company! Who Owns Amazon With 64,588,418 shares, Jeff Bezos is the primary individual investor. Owning 12.7% of the company. Other top individual investors include Amazon's CEO Andy Jessy, who has 94,729 shares. Top institutional investors include mutual funds like The Vanguard Group (6.6% ownership) and BlackRock (5.7% ownership). Amazon Revenues Amazon generated over half a trillion dollars in revenue in 2023, of which $231.87B from online stores, over $140.05B from third-party seller services, $90.76B from AWS, $46.9B from advertising, $40.21B from subscription services, $20.03B billion in physical stores, and $4.96B from other sources. Amazon Profitability Amazon was profitable in 2023. On nearly $575 billion in revenue for 2023, Amazon generated a net profit of over $30 billion. Since 2014, Amazon hasn't recorded a net loss, but it did record a net loss of over $2.7 billion in 2022, while it recouped that in 2023. Indeed, in 2014, Amazon reported a net loss of $241 million, and it would be profitable until 2021. In 2022, Amazon turned unprofitable again and highly profitable again in 2023. Amazon AWS Business Amazon AWS follows a platform business model that gains traction by tapping into network effects. Born as an infrastructure built on top of Amazon's infrastructure, AWS has become a company offering cloud services to thousands of clients from the enterprise level, to startups. And its marketplace enables companies to connect to other service providers to build integrated solutions for their organizations. Amazon Prime Revenue Amazon subscription revenue in 2023 was over $40 billion, compared to over $35 billion in 2022 and nearly $32 billion in 2021. Amazon Prime grew from a $4.5 billion revenue segment in 2015 to an over $40 billion segment in 2023. Amazon Advertising Revenue Amazon Cash Conversion Working Backwards The Amazon Working Backwards Method is a product development methodology that advocates building a product based on customer needs. The Amazon Working Backwards Method gained traction after notable Amazon employee Ian McAllister shared the company’s product development approach on Quora. McAllister noted that the method seeks “to work backwards from the customer, rather than starting with an idea for a product and trying to bolt customers onto it.” Amazon Flywheel The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages on customer experience to drive traffic to the platform and third-party sellers. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel. Jeff Bezos Day One In the letter to shareholders in 2016, Jeff Bezos addressed a topic he had been thinking quite profoundly in the last decades as he led Amazon: Day 1. As Jeff Bezos put it "Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1." Regret Minimization Framework A regret minimization framework is a business heuristic that enables you to make a decision, by projecting yourself in the future, at an old age, and visualize whether the regrets of missing an opportunity would hunt you down, vs. having taken the opportunity and failed. In short, if taking action and failing feels much better than regretting it, in the long run, that is when you’re ready to go! Network Effects A network effect is a phenomenon in which as more people or users join a platform, the more the value of the service offered by the platform improves for those joining afterward. Platform Business Model A platform business model generates value by enabling interactions between people, groups, and users by leveraging network effects. Platform business models usually comprise two sides: supply and demand. Kicking off the interactions between those two sides is one of the crucial elements for a platform business model’s success. Jeff Bezos Empire Jeff Bezos was best known for founding eCommerce giant Amazon in 1994. However, the entrepreneur owns companies in several industries, including health care, retail, robotics, real estate, and media. Many of these companies have been acquired by Amazon over the years, but some have been the result of direct investment from Bezos himself (through his investment arm is called Bezos Expeditions). Amazon Subsidiaries Amazon is a consumer e-commerce platform with a diversified business model spanning across e-commerce, cloud, advertising, streaming, and more. Over the years Amazon acquired several companies. Among its 12 subsidiaries, Amazon has AbeBooks.com, Audible, CamiXology, Fabric.com, IMDb, PillPack, Shopbop, Souq.com, Twitch, Whole Foods Market, Woot! and Zappos. Read next: Amazon Business Model What Is the Receivables Turnover Ratio? How Amazon Receivables Management Helps Its Explosive Growth Amazon Case Study: Why from Product to Subscription You Need to “Swallow the Fish” What Is Cash Conversion Cycle? Amazon Cash Machine Business Model Explained Why Is AWS so Important for Amazon Future Business Growth? Amazon Flywheel: Amazon Virtuous Cycle In A Nutshell Amazon Value Proposition In A Nutshell Why Amazon Is Doubling Down On AWS The Economics Of The Amazon Seller Business In A Nutshell How Much Is Amazon Advertising Business Worth? What Is the Cost per First Stream Metric? Amazon Prime Video Revenue Model Explained Jeff Bezos Teaches You When Judgment Is Better Than Math And Data Alibaba vs. Amazon Compared in a Single Infographic Amazon Mission Statement and Vision Statement In A Nutshell

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