eBay saw a 20-percent jump in its net income during this year's first quarter, strongly helped by payment service PayPal, the company announced Wednesday.
eBay recorded $476 million in income, compared to 2010's first quarter income of $398 million. Revenue increased by 16 percent to $2.5 billion year over year. Marketplaces saw a 12-percent year-over-year increase in net revenue, to $1.55 billion, up from about $1.39 million in 2010's first quarter, the company reports. Gross merchandise volume, excluding vehicles, was up by 8 percent overall compared to the same time last year.
In the U.S., GMV was up by 10 percent year over year. International GMV was up by 8 percent, eBay notes. However, it was PayPal's big gains during this year's first quarter that really helped eBay.
The payment processor saw growth of 28 percent in the number of payments processed, while the number of PayPal accounts grew by 16 percent, giving PayPal about 97.7 million registered accounts, eBay reports.
"In the first quarter, PayPal continued to drive strong growth globally," says eBay President and CEO John Donahoe. "eBay sharply accelerated growth in the U.S., and we announced several acquisitions that we believe will enhance our leadership and innovation in commerce and payments. This year is off to a strong start."
The first quarter marked a good time for membership growth as well, as the number of active eBay users increased by 5 percent during that time compared to the same quarter of 2010.
Amazon also reported its first-quarter numbers Wednesday. It reported a drop of 33 percent in net income, compared to 2010's first quarter. However, its sales increased 38 percent year over year, according to news reports.
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Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.