eBay plans to harness its PayPal platform on mobile to make local shopping better as well. Projects in the works include PayPal check-in — allowing customers to accrue loyalty rewards — as well as letting people pay at restaurants without having to wait for the check, and topping up parking meters when they’re about to expire.
CEO John Donahoe said near the start of the company’s presentations, “eBay Inc. is no longer just an e-commerce company. We’re a global commerce platform.” eBay Inc (NASDAQ:EBAY) currently generates 61% of its business internationally, focusing largely on developed markets. This year, the company will begin to tackle the 1 billion users online that eBay doesn’t yet serve, and expects 40% of new users will come from emerging markets.
Its newest international focus is Russia. Last year, Russians bought $400 million of goods on eBay’s English-language site generating about 30,000 orders every day. The company is creating a Russian-language site along with a daily deal app for local Moscow retailers. Next week, eBay will launch a TV ad campaign in the country to promote its new products.
Expanding operations in Russia is the first big step the company is taking in the big four BRIC economies. India and China are likely its next endeavors as the company just recently received a payments license in India and is still awaiting one in China. The company believes India may develop more slowly than Russia, and while it shows strong exports from China, the company will work to increase the number of imports into the country using its platform.
Brazil, however, will likely be the toughest of these markets for eBay Inc (NASDAQ:EBAY). Mercadolibre Inc (NASDAQ:MELI), of which eBay owns 18%, has a stranglehold on the South American e-commerce market. Its websites average over 30 million unique visitors per month in the region. That’s three times as many as its next closest competitor Amazon.com, Inc. (NASDAQ:AMZN).
The company operates analogously to eBay, including its online payment processing division MercadoPago. I’d be surprised if eBay attempts to claim a stake to the burgeoning Latin American market again. The Mercadolibre Inc (NASDAQ:MELI) brand has only grown stronger since its last attempt.
No matter where eBay decides to expand internationally, the process is the same. It wants to help users bring more global inventory online through local-language websites and helpful mobile apps. It’s working to expand its global shipping platform to make it easier for sellers to reach global users. And it wants to bring a local shopping experience to users as well through partnerships with brick-and-mortar stores.
How to double sales in 3 years
eBay Inc (NASDAQ:EBAY) outlined a rock-solid growth plan last week, demonstrating loads of new features, projects, and initiatives. It’s important for me, as an investor, to understand how management plans to reach its goals. (Hint: it should be important to you too.)
I believe that this company’s management, under John Donahoe, has the ability to execute this well thought out growth plan, and that the company’s sales growth expectations are certainly within reach. After all, it made some lofty projections at its analyst day in 2011, and has met or exceeded them so far.
The article How eBay Will Double Sales in 3 Years originally appeared on Fool.com and is written by Adam Levy.
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