Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is eBay Inc (EBAY) Exploiting this Shift in Industry Dynamics?

The biggest advantage to the online shopping stores over brick and mortar stores is that they do not face any barriers when targeting customers in any part of the world. They are just one click away from their target customer. However, the business heavily depends on an effective delivery system.


The big names in this industry, like eBay Inc (NASDAQ:EBAY),, Inc. (NASDAQ:AMZN)Wal-Mart Stores, Inc. (NYSE:WMT), are nearing saturation in the U.S. market. The key to their successful survival for these big players lies in their ability to increase their international presence.

eBay Inc (NASDAQ:EBAY) is taking steps to increase its international market share

Source: eBay – Financial Releases

In the light of continued transition from print classifieds to online classifieds, eBay Inc (NASDAQ:EBAY) is leveraging the shift in market dynamics by adopting an aggressive growth strategy. Classifieds are now becoming the preferred e-commerce format worldwide and hence, represent an attractive market.

Recently, the e-commerce giant bought two leading Belgium online classified websites, and, as the company continues to pursue its international growth through acquisition under its Marketplace segment. The company has also restated regarding its international expansion strategy that it plans to follow it, which it has done so with its previous investments in India and now in Germany.

eBay Inc (NASDAQ:EBAY)’s motives behind the acquisition of these sites is to increase its presence in the European markets. Even at present, a major chunk of eBay Inc (NASDAQ:EBAY)’s sales turnover comes from the international market. Also, it makes the company less dependent on the U.S. market for generating its sales, should the U.S. economy be hit by financial crisis in the future.

The two relatively popular websites will form part of the Classifieds group, and attract traffic of 5.5 million unique visitors on a monthly basis. This accounts for approximately 50% of the population of Belgium.

eBay Inc (NASDAQ:EBAY) Classifieds Group further plans to spend more on the development of the local Belgian business, developing the platforms to deliver a faster pace and be more intuitive for the active users. In addition, it is a complement to the eBay’s existing expertise in creating leading mobile platforms. In the light of the huge upside for mobile growth for and, the development of novel mobile technologies will be the target of the company in the future as well.

Last month, eBay secured a multi-year contract from SCA for fulfilment, order management, freight and customer care solutions in the U.S. and Canada. This contract is likely to result in higher revenues for eBay in the coming years.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.