eBay profit and transactions
eBay generates revenue from a number of fees. There are fees to list a product and fees when the product sells. The eBay fee system is quite complex and takes $0.25 to $80 per listing and 2-8% of the final price. In addition, eBay now owns the PayPal payment system which has fees of its own.
Under current U.S. law a state cannot require sellers located outside the state to collect a sales tax, making deals more attractive to buyers.
The company’s current business strategy includes increasing revenue by increasing international trade within the eBay system. eBay has already expanded to almost two dozen countries including China and India. The only places where expansion failed was Japan and Hong Kong where Yahoo had a head start.
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