In its SEC filing, success factors eBay believes are important to enable it to compete in its market include:

• ability to attract buyers and sellers;

• volume of transactions and price and selection of goods;

• customer service; and

• brand recognition.

It also notes that for its competitors, other factors it believes are important are:

• community cohesion, interaction and size;

• system reliability;

• reliability of delivery and payment;

• web site convenience and accessibility;

• level of service fees; and

• quality of search tools.

This implies that eBay believes it has optimised these factors, but its competitors still have opportunities for improving performance in these areas which will make the market more competitive.

Risk management

The SEC filing lists the risks and challenges of conducting business internationally as follows:

• regulatory requirements, including regulation of auctioneering, professional selling, distance selling, banking, and money transmitting;

Consolidated Statement of Income Data

Year Ended December 31

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