stockrowWhat it does
eBay is a global online marketplace that connects buyers and third-party sellers. People and businesses use its websites and mobile apps to list, discover and purchase goods; eBay provides the technology and services that help them complete transactions. Its focus categories include vehicle parts and accessories, collectibles, refurbished items, apparel, luxury goods and sneakers.
Sellers range from individuals to global businesses. They can use eBay’s tools to create listings, advertise products, arrange shipping and receive payments. Buyers can search a broad range of inventory, including pre-owned goods. For qualifying purchases, eBay’s Money Back Guarantee offers a refund when an item does not arrive, is damaged or faulty, or materially differs from its description. Its Authenticity Guarantee covers eligible luxury, collectible and other high-value items.
The company also operates specialized marketplaces and formats. eBay Live enables live shopping, while Depop is a marketplace for secondhand fashion. eBay acquired Depop on July 30, 2026. The company has been testing ways to show Depop inventory in eBay search results while maintaining distinct experiences for the two brands.
Founded in 1995, eBay is headquartered in San Jose, California. Jamie Iannone is its chief executive officer.
How it makes money
eBay reports one operating segment. Its revenue comes principally from marketplace activities and advertising, rather than from the full value of the goods sold by third parties. Marketplace revenue primarily consists of commissions for connecting buyers and sellers, including final-value, listing, feature and foreign-exchange fees. It also includes store subscriptions, shipping and certain other fees. Discounts, coupons and rewards reduce reported marketplace revenue.
Advertising revenue primarily comes from sellers paying to promote listings, as well as from third-party advertising. Sellers can use promoted listings and other advertising tools to increase the visibility of their inventory. Store subscriptions provide a recurring fee stream, while transaction-related fees depend on activity on the marketplace.
In FY2025, marketplace revenue was $9.1 billion and advertising revenue was $2.0 billion. Total net revenue was $11.1 billion in 2025; revenue was $3.2 billion in Q3 2026.
eBay tracks gross merchandise volume, or GMV, as the total value of paid transactions on its marketplaces, including shipping and taxes and without adjustment for returns or cancellations. GMV is not the same as eBay’s revenue. The company defines its take rate as net revenue divided by GMV; it uses the measure to track how it monetizes marketplace volume.
In Q3 2026, the take rate fell year over year as faster growth in eBay Live and consumer-to-consumer transactions, changes in category and price mix, and Depop outweighed contributions from shipping, advertising and financial services. Depop’s shipping investments are substantially recognized as reductions to revenue.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Marketplace revenues | $9.1 billion | 82.0% | 5.31% |
| Advertising revenues | $2.0 billion | 18.0% | 21.9% |
Customers and how it sells
eBay serves both sides of its marketplace: buyers looking for goods and sellers seeking access to customers. Sellers include individuals, small businesses and global businesses. The company’s services are available through its main website, localized websites, mobile apps and off-platform marketplaces.
At the end of 2025, eBay had 135 million active buyers and 2.5 billion live listings globally. An active buyer is an account that paid for a transaction during the preceding 12 months; a person may have more than one account. In Q3 2026, eBay had 16 million enthusiast buyers, who contributed over 70% of GMV on its core marketplace.
The platform operates in more than 190 markets. In FY2025, the United States accounted for 52.2% of revenue, the United Kingdom for 14.1%, China for 11.3% and Germany for 8.81%. Revenue is attributed to geographies primarily based on the customer’s location. In 2025, 51 percent of GMV was generated outside the United States.
Cross-border services are part of the customer offering. In Q3 2026, eBay launched international shipping in the United Kingdom and Germany, allowing participating sellers to ship to an eBay hub while eBay handles international transportation, customs, returns and post-purchase support.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $5.8 billion | 52.2% | 10.5% |
| United Kingdom | $1.6 billion | 14.1% | 3.78% |
| Rest of world | $1.5 billion | 13.6% | 8.52% |
| China | $1.3 billion | 11.3% | 7.19% |
| Germany | $978.0 million | 8.81% | 0.62% |
Suppliers and costs
eBay’s marketplace uses both its own technology and services supplied by others. Its infrastructure includes proprietary computing systems, technology-provider partnerships and a private cloud. The company also works with shipping partners to provide integrated delivery services and with payment partners to support transactions.
Operating costs include maintaining and developing the platform, marketing, customer service and shipping programs. In 2025, operating margin fell to 20.5% from 22.5% in 2024, primarily because of higher non-recurring general and administrative expenses related to legal matters and restructuring, as well as higher shipping-program costs.
eBay invests in marketing and lower shipping costs for Depop. Access to eBay’s carrier rates has lowered Depop’s shipping and parcel rates. In Q3 2026, sales and marketing expense increased as eBay invested in its strategic priorities, including Depop. The company also announced a reduction of approximately 9% of its workforce to align resources and support investment in growth initiatives.
- Revenue$11.1B
- Cost of revenue−$3.2B
- Research and development−$1.6B
- Selling, general and administrative−$3.6B
- Other operating costs−$420.0M
- Operating income$2.3B
Competitive position
eBay competes for buyers, sellers and transactions across online, mobile and offline channels. Alternatives include retailers, distributors, auctioneers, search engines and other commerce participants. Competition involves price, selection, services, technology and geographical reach. It was reported on 22 October 2026 that Amazon is a competitor whose growth has affected eBay’s popularity and results.
The company has built a large marketplace: at the end of 2025 it had 135 million active buyers and 2.5 billion live listings. Its tools also address tasks such as creating listings, finding the right vehicle parts and arranging delivery. Programs including the Money Back Guarantee and Authenticity Guarantee are intended to support trust in transactions.
Our reading: The combination of buyers and listings gives eBay a meaningful marketplace advantage because sellers can reach an established audience and buyers can find a broad selection. That advantage is not exclusive, since users can transact through other channels.
Our reading: Authentication, buyer protection and category-specific tools provide another source of differentiation, particularly for goods where condition, fit or authenticity matter. Their protection against competition is limited by the availability of alternative platforms and the need to keep earning customer trust.
eBay identifies low barriers to launching competing platforms, including the availability of commercial software and potential partnerships.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Amazon | Online commerce and marketplace activity | High |
Growth opportunities
eBay’s growth strategy centers on focus categories, consumer-to-consumer selling and recommerce, or the buying and selling of pre-owned goods. In 2025, GMV grew as the company invested in focus categories, country-specific initiatives and shopping across categories. Focus-category GMV growth outpaced the rest of the marketplace that year.
In Q3 2026, focus-category GMV grew 24%, with collectibles, motors, fashion and refurbished goods contributing. The company is investing in category-specific services, including trading-card authentication and tools for vehicle transactions. It also offers live shopping through eBay Live.
Depop adds a secondhand-fashion marketplace to eBay’s portfolio. The company is testing Depop listings in eBay search results and investing in marketing and shipping across the two businesses. In Q3 2026, it introduced a Depop balance feature that lets customers retain sale proceeds in the app for future purchases.
Artificial intelligence is another area of investment. eBay uses it to help sellers prefill listing details and generate titles and descriptions, and to improve product discovery for buyers. Its international shipping programs are intended to make cross-border selling easier. The company launched those programs in the United Kingdom and Germany in Q3 2026 and completed a nationwide rollout of managed shipping to new and reactivated U.S. listers.
- $10.4BFY2021
- $9.8BFY2022
- $10.1BFY2023
- $10.3BFY2024
- $11.1BFY2025
Structural risks
- Competition: Users have many alternatives for buying and selling. eBay identifies low barriers to launching competing platforms and must compete on fees, inventory, customer experience, trust and delivery.
- Buyer and seller activity: Results can vary with eBay’s ability to attract and retain users, convert visits into sales and respond to changes in consumer confidence and discretionary spending. Changes in interest in its focus categories can also affect results.
- Cross-border trade: Tariffs and the elimination of the U.S. de minimis exemption increase costs and customs requirements for cross-border sellers. eBay experienced more canceled orders in 2025 as users adapted to U.S. trade policies.
- Regulation and legal obligations: eBay faces extensive regulation, including marketplace, product-safety, tax-reporting, content-moderation and data requirements. Compliance can increase costs and burdens for the company and its users.
- Technology and security: Cyberattacks, data-security breaches, systems failures or interruptions could harm the business. Its marketplace depends on technology used to process transactions and serve customers globally.
- Currency and international operations: Foreign-currency movements can materially affect financial results. International operations also face local economic conditions, payment fraud, shipping disruptions and changing trade policies.
Bottom line
Our reading
eBay is a marketplace business whose revenue depends on transactions and services sold to the people and businesses using its platforms. Its buyer base, selection and trust programs support its position, while competing channels remain easy for users to access. Growth initiatives such as Depop, advertising and shipping broaden its activity, but changes in business mix, cross-border rules and customer demand can affect how marketplace volume translates into revenue.