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Tuesday, 27 September 2016

eBay’s Strategic Plans Will Not Be Affected By The Split Of PayPal

PayPal Holdings Inc walked out from their parent company eBay a year before along with their IPO after surpassing the valuation in the ecommerce industry. The online marketplace had a casualty dominance of the Amazon, but of late the company has seen an improvement in their valuations after the separation of PayPal.

PayPal is the key component and is one of the strongest participants in the online marketplace and one of the key components is its Payment revenue that increases 14% each year. This is one of the three parts in the present business divisions. The online marketplace, announced that the two companies are going to operate as two distinct companies in accordance with the payment landscapes and the global commerce. Carl Icahn, the activist investor was the main reason for the split up of the both the companies because PayPal wanted to become the leader of the online payment industry and eBay wants to work on facilitating the online commerce in the ecommerce industry.

According to eBay’s numbers, the online payment industry is accountable for the $6 spent online and are now planning to raise the that figure, which is easy for the company to be seen as an unconditional intermediary instead of considering it as a established and large online brand.

The company has seen a thirty percent increase in its stock for the past 3 months, especially the exceptional performance by its ticket selling marketplace, StubHub. The online marketplace has the ecommerce prowess and the recognition in the market for the years to come and has the potential of closing its nine billion dollar debt as the balance sheet has eight billion dollars in cash. In August, the online marketplace hit the market by beating the Q2 earnings and they have seen a six percent increase, year after the year in the revenue. By hitting one billion live listing, the online marketplace has set up a new record for the first time and they are also buying back shares for higher rates with their buyback plan of $2.5 billion in place.

StubHub – The ticket selling market

This is an online marketplace that provides the services for the buyers and sellers of the tickets for concerts, live events, theaters, sports and other stage events. From being the second largest marketplace in the United States, the StubHub has become the largest ticket marketplace in the world. The current financial valuation of the company is not disclosed by them; however they had sixteen million visitors and about ten million live events each month in 2015. The company was founded in 2000 by Eric Baker and Jeff Fluhr and then it was acquired by the online marketplace, eBay in January 2007. The company became the largest ticket selling marketplace in the digital age that interacts with the sellers and the buyers to get tickets for any sports event, concert or theater performance.
They are the major sponsors of the entertainment and sports event and they had more than one hundred and twenty partners in December 2015 who is mostly the sports team and from the entertainment venues. The sellers normally post the tickets that are available at their desired price. The site has a big list of tickets posted for the sports event, entertainment, concerts and theatres that are listed even on eBay.

Close5 – Classification marketplace

The online marketplace has built their personalized classified platform, Close5. It is a location based app that provides consumer to consumer ecommerce and it competes with many competitors like Classy and Threadflip. They allow the consumers to sell and also buy products within the domestic location instead of shipping the items. To interest the locals, the app is contesting a contest for the users to submit their messiest garage or closet that can get the chance to win the makeover certificate. And they are celebrating their launch in San Diego by offering to donate the funds to the charity in the city whenever the app is downloaded.

The mobile phone users can simply snap an image and upload it in the app and enter the description about the product and start selling the item. The app has a chat feature that allows the user to communicate with the buyers and sellers, so that they can discuss about the place and time when they can proceed with the transaction. The app is available for both the Apple and the Android users.

eBay’s recent acquisitions

To diversify the marketplace from the rest of the players and to get more valuations, the online marketplace made many acquisitions in the last few years.


This company offers intelligent solutions that are powered with the help of the Big Data analytics, Artificial intelligence and Machine learning for many businesses. There proprietary, massive scalable, end to end platform provides rapid deployment for the personalized solutions that include the unparalleled personalization, prediction and optimization. They have a potential team of members who is expertise in the data mining, data analysis, algorithmetic development, mathematics, video processing, software design, genetic programming, machine language, digital imaging and natural language processing. They have been partners with eBay and in May 2016 the online marketplace acquired Expertmaker.

The online marketplace has 3 parts of structured data initiatives and they are, providing the best product experience, collecting the data and enriching and processing the data. The processing and enriching of the data is handled by Expertmaker, especially with the normalization of the product.


Ander Michelena and Jon Uriarte founded the TicketBis in 2009 in Spain. As the name suggests, this is an online platform that offers the users to buy or sell tickets and it operates in thirty one countries. This online company acts as a middleman between the people who wish to buy tickets and those who wish to resell the tickets. The tickets are mainly for the live entertainment events, concerts, theatres and the sports events. Like all other ticket selling platforms, the sellers on this platform can fix the price of the ticket and the company charges a service charge for all the members involved in the transaction.

The moment when a buyer buys the ticket, the seller has to send the ticket to the buyer before the event .The seller has to send the ticket to TicketBis and they deliver it to the buyer, and if the ticket is delivered before the event, the company has to refund the ticket price to the buyers. eBay acquired the company for one hundred and sixty five million dollars in the mid of 2016.


The company analyses the loss and win of a data and correlates it with the firmographic, demographic and behavior of the data from the company’s external data source, CRM, the open web and the marketing automation system to identify the hidden buying signals and patterns. It combines the natural language processing with the machine learning and process a predictive analytics. The online marketplace, eBay acquired the SalesPredict by July 2016 and the company helps in identifying the significant product attributes that affect the product’s price in the ecommerce platform. The sellers will get help from the SalesPredict with the information about the item or product’s value that in turn helps in the in increasing the customer sales conversion.

The new strategic plan and transaction management plan help the online marketplace to flourish in the ecommerce industry in the years to come.
Author Bio : Anand Rajendran is the Co-Founder and CEO of Zoplay a well known Software products development and Mobile App Development Company based in Chennai, India. He has extensive experience in building and leading innovative and collaborative software development teams to deliver major software applications like Zobay an Ebay Clone script developed by Zoplay. He loves exploring new things and sharing his knowledge with others.

A Guest Post From Jay Baruchel 


  1. What a nice post! You really tried but this stuff has happened since last year 2015.

    1. Yes that True but he was trying to explain what PayPal is exactly all about.

  2. do anyone have a reliable means e enjoy is glo cheat pls share


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