eBay Inc. (EBAY): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the modern engine of eBay Inc., moving past the old auction-house image, and honestly, the strategy is sharper than many realize. After spending years analyzing these platforms, I see a business model now deeply rooted in trust-think Authenticity Guarantee-and heavy tech reinvestment, evidenced by their Q3 2025 spend of $423 million on technology. They are transforming from a simple listing site into a curated commerce engine. So, dive in below to see the full nine-block canvas, including how their Promoted Listings advertising alone pulled in $525 million in that same quarter, all while sitting on $5.3 billion in cash and investments.

eBay Inc. (EBAY) - Canvas Business Model: Key Partnerships

Shipping and logistics providers (e.g., FedEx, UPS)

For the peak season starting late September/early October 2025, eBay Labels faced carrier surcharges. UPS applied a Demand Surcharge to all UPS Ground, UPS Ground Saver®, and UPS Air packages on eBay Labels, along with Additional Handling and Large Package surcharges for domestic shipments. FedEx announced a Demand Surcharge starting October 27, 2025, with specific amounts like $0.76 per Pak and Small Box for certain services. USPS peak season rates began October 5, 2025. eBay International Shipping (EIS) continued its rollout to manage excluded shipping locations automatically for more sellers.

Financial partners like Klarna for Buy Now, Pay Later access

eBay expanded its partnership with Klarna to the US in April 2025, offering Pay in 4 and Financing options. Since the initial launch in six European markets in December 2024, the Klarna resell feature has generated over 500,000 new listings on eBay as of April 2025. Klarna processes nearly 3 million transactions daily worldwide.

eBay also announced a strategic partnership with Checkout.com in April 2025 to serve as a global payments acquiring partner, aiming to maximize payment acceptance and drive efficiency.

Third-party authentication and grading services (e.g., PSA)

The eBay for Charity program enabled buyers and sellers to raise over $49 million worldwide in Q3 2025.

Technology and infrastructure providers (e.g., cloud services)

The company is focused on its agentic commerce platform, which integrates hybrid cloud infrastructure and proprietary large language models.

Customer engagement platform partners like Brevo

The company is focused on driving growth through its AI shopping agent, which delivers real-time, hyper-personalized experiences.

Key operational and partnership scale metrics as of Q3 2025:

Metric	Value	Period/Context
Gross Merchandise Volume (GMV)	$20.1 billion	Q3 2025
Revenue	$2.82 billion	Q3 2025
Enthusiast Buyers	16 million	As of Q3 2025
Annual Spend Per Enthusiast Buyer	Above $3,200	Trailing Twelve Months as of Q3 2025
Advertising Revenue	$525 million	Q3 2025
First-Party Ads Revenue	$496 million	Q3 2025
eBay for Charity Funds Raised	Over $49 million	Q3 2025 Worldwide

The ecosystem relies on various partners to facilitate transactions at scale:

• Shipping Carriers (UPS, FedEx, USPS) for label services.
• Payment Acquirers (Checkout.com) for global processing.
• Buy Now, Pay Later Providers (Klarna) for buyer financing.
• Resale Enablers (Klarna) for circular commerce listings.
• Nonprofit Partners (30+) for Global Give grants.

The non-GAAP operating margin for Q3 2025 was 27.1%.

eBay Inc. (EBAY) - Canvas Business Model: Key Activities

You're looking at the engine room of eBay Inc., the core activities that keep the marketplace running and growing as of late 2025. It's not just about listing items anymore; it's about sophisticated technology and trust-building programs. Here's the breakdown of what eBay is actively doing to maintain and expand its global commerce footprint.

Developing and maintaining the core marketplace platform

This is the foundational work: keeping the lights on for millions of users and billions of listings. The scale is immense, requiring constant upkeep and modernization. As of the first quarter of 2025, eBay reported having 2.3 billion active listings on the platform, which is a 15% increase from 2023. The platform connects 134 million active buyers globally as of Q2 2025. To put that in perspective, the US retail eCommerce market share is estimated at 3.5% as of May 2025. The activity here is focused on stability and enhancing the core experience, evidenced by US GMV growing 7% year-over-year in Q2 2025.

Key platform maintenance and enhancement activities include:

• Ensuring platform uptime and performance across 190+ global markets.
• Managing the inventory base, which reached 2.3 billion active listings in Q1 2025.
• Driving growth in key segments, where focus categories grew over 6% YoY in Q1 2025.
• Improving core site features, such as the item page, which is the most visited page on eBay.

Processing all transactions via Managed Payments

The shift to Managed Payments is a completed, critical activity that centralizes financial operations. By the end of Q2 2021, eBay was already processing over 80% of on-platform Gross Merchandise Volume (GMV) through this system, and by 2025, it processes billions in payments globally. This activity simplifies accounting for sellers, as all transactions are managed in one place. For sellers without stores, the fee structure as of 2025 is typically 12.35% on the order value, plus a per-transaction fee of either $0.30 or $0.40. Furthermore, cash flow management is streamlined, with payments generally available within 2 business days after order confirmation in 2025.

The financial scale of transactions processed through this system is tied directly to GMV. For the full year 2024, total GMV was $74.7 billion. In Q2 2025, total GMV was $19.5 billion. This activity is essential for revenue capture and operational efficiency.

Investing in AI for personalized discovery and listing tools

eBay is heavily investing in AI to reinvent the user experience. In 2024, the company improved its AI platform to enable Large Language Models (LLMs) approximately 100 times larger than previously possible. This investment directly fuels seller productivity tools; the majority of sellers now use generative AI tools like the 'Magical Listing' offering. This tool, which automatically produces item descriptions from photos, was expanded from Sports Trading Cards to all categories in the U.S. by the end of 2024. For buyers, AI is reshaping discovery; the new 'eBay.ai' tool helps less experienced users by recommending products based on natural-language descriptions. A concrete result from late 2024 was the introduction of AI-generated CRM subject lines, which drove a greater than 40% increase in quality visits versus the prior approach. In 2025, eBay launched five new AI features, including an AI shopping agent.

Executing Authenticity Guarantee and trusted programs

Building trust is a major activity, especially given that a Bain & Company survey revealed 87% of online shoppers worry about counterfeit products on secondhand marketplaces. eBay executes the Authenticity Guarantee program to counter this. This service is free to buyers and is integrated into listings for high-value items. For example, for sneakers sold for $750 or more, a signature is required upon delivery for extra security. In 2025, this program expanded in the UK to cover all aspects of clothing, including apparel, shoes, and accessories. This focus on trust supports high-value categories, where Trading Cards saw double-digit growth for the 9th consecutive quarter as of Q4 2024.

Here's a look at the financial impact of key categories and related activities:

Metric	Value/Period	Context/Date
Full Year 2024 Revenue	$10.3 billion	FY Ended December 31, 2024
Q2 2025 Revenue	$2.73 billion	Up 6% spot YoY
Q2 2025 GMV	$19.5 billion	Up 6% spot YoY
Advertising Revenue (Q2 2025)	$455 million	First-party ads grew 17%
Focus Categories GMV Contribution	Over 1/3rd of total GMV	Q1 2025

Marketing to drive Gross Merchandise Volume (GMV) growth

Marketing efforts are directly tied to driving GMV, which ended 2024 on a high note with three consecutive quarters of growth. Q4 2024 GMV grew 4% year-over-year to $19.3 billion, contributing to the full-year 2024 GMV of $74.7 billion. In Q2 2025, GMV accelerated further to $19.5 billion. A significant marketing and strategic activity involves advertising; Q4 2024 advertising revenue reached $445 million, with first-party advertising revenue growing 18% year-over-year to $434 million. The company is actively marketing its focus categories, which are outpacing core category growth. For instance, in Q2 2025, focus category GMV grew by over 10%, outpacing core categories by 9 percentage points. This marketing and category focus is designed to deliver sustainable, long-term growth, with management raising the full-year 2025 outlook for GMV growth toward the high end of low-single-digit FX-neutral growth.

eBay Inc. (EBAY) - Canvas Business Model: Key Resources

You're looking at the core assets eBay Inc. relies on to run its global marketplace as of late 2025. These aren't just things they own; they are the engines driving transactions and value.

Global e-commerce platform and proprietary technology

The platform itself is a massive, interconnected system serving buyers and sellers across more than 190 markets around the world. This scale is best seen in the transaction volume it processes.

Metric	Amount (Q3 2025)
Gross Merchandise Volume (GMV)	$20.1 billion
Total Revenue	$2.82 billion
Mobile GMV	$13 billion
International Revenue Percentage	48%

The technology underpinning this is constantly evolving, with recent focus on AI-driven features announced at eBay OPEN25 in August 2025, such as an AI assistant for messaging and an Inventory mapping API.

Strong brand equity and a vast, active user base

Brand equity translates directly into the number of people who trust and use the platform. The user base is large, though growth is measured in modest single digits lately.

• Active buyers worldwide: 134 million
• Approximate number of live listings: 2.4 billion
• Enthusiast buyers: Roughly 16 million
• Spend per enthusiast buyer (Trailing 12-Month basis): Over $3,200

This user base is highly engaged, with nearly 75% of mobile shoppers falling in the 18 to 34 age range, according to 2025 data.

Cash and non-equity investments totaling $5.3 billion (Q3 2025)

Liquidity is a key resource for investment and shareholder returns. As of September 30, 2025, the balance sheet held significant liquid assets.

The company's cash and cash equivalents and non-equity investments portfolio totaled $5.3 billion as of September 30, 2025. This financial strength supported capital returns in the quarter, which included $625 million in share repurchases and $132 million paid in cash dividends.

Proprietary data and machine learning algorithms

The data generated from billions of listings and millions of transactions feeds proprietary machine learning models that enhance core revenue drivers, particularly advertising.

AI/Data Metric	Value
First-party advertising revenue (Q3 2025)	$496 million
First-party advertising revenue growth (Q3 2025)	Nearly 23%
Promoted listings adoption (Q3 2025)	Over 4.4 million sellers
Active promoted listings vs. total listings	Nearly 1.2 billion of over 2.4 billion

The impact of prior AI rollouts, like AI-generated subject lines, showed a greater than 40% increase in quality visits versus the prior approach.

Key personnel and technical talent

The human capital drives the innovation in the platform and algorithms. While the latest full headcount isn't available for late 2025, the end of 2024 figures show the scale of the technical workforce.

• Global employees (End of 2024): 11,500
• U.S. employees (End of 2024): 7,000

The company continues to hire for specialized roles, with interview processes detailed for Software Engineering, Data Science (Analytics), and Applied Research roles for the 2026 cycle, with applications closing in mid-February 2026 for recent college grads.

eBay Inc. (EBAY) - Canvas Business Model: Value Propositions

You're looking at the core reasons why buyers and sellers choose eBay Inc. in late 2025. It's all about scale, trust, and friction reduction, backed by some serious operational numbers.

Global access for sellers to a massive buyer base

The sheer size of the platform remains a primary draw. For sellers, this means immediate access to a huge pool of potential customers. As of the first quarter of 2025, eBay connected approximately 134 million active buyers worldwide. This massive base is supported by a dynamic inventory, with the platform hosting around 2 billion to 2.3 billion live listings. The marketplace generated a Gross Merchandise Volume (GMV) of $20.1 billion in the third quarter of 2025 alone, reflecting a 10% year-over-year increase on an as-reported basis. This activity translated to a Q3 2025 revenue of $2.8 billion, up 9% as-reported compared to the prior year. The platform sees over 700 million monthly visits, with the United States accounting for 69.83% of that desktop traffic.

Here's a quick look at the scale of the marketplace activity:

Metric	Value (Latest Reported)	Period/Context
Active Buyers	134 million	Q1 2025
Active Sellers	18-18.3 million	2025 Estimate
Gross Merchandise Volume (GMV)	$20.1 billion	Q3 2025
Total Revenue	$2.8 billion	Q3 2025

Trusted marketplace for unique, pre-loved, and authenticated items

eBay Inc. has successfully positioned itself as a leader in the circular economy, which is a key differentiator against newer, single-category platforms. You see this in the product mix: about 40% of everything sold falls into the pre-owned category, making it a sustainability leader. This focus resonates with consumers; 86% of eBay users state that buying pre-loved items drives sustainability and innovation. The platform handles a mix of new and used, with roughly 80% of items sold being brand new. For sellers, this means catering to both the bargain hunter and the brand-new shopper.

Simplified, AI-powered listing and selling experience

eBay is heavily investing in making the seller journey less burdensome through artificial intelligence. This is designed to create a virtuous flywheel: better seller tools mean more unique inventory, which attracts more buyers. Since 2023, 10 million sellers have used eBay's AI tools to create listings. Currently, the platform sees around 500,000 listings per day crafted with AI assistance. The use of generative AI to optimize titles for syndicated product listing ads on Google has demonstrably led to 'measurably higher quality scores, ranking and overall performance,' resulting in incremental GMV. Tools like the AI Messaging Assistant help sellers draft replies to common buyer questions, which they review before sending.

The adoption of AI in listing creation is substantial:

• 10 million sellers used AI tools since 2023.
• 200 million listings created with AI since 2023.
• 500,000 AI-assisted listings generated daily.

Buyer security via Authenticity Guarantee and buyer protection

To combat consumer hesitation-where 87% of online shoppers worry about counterfeits on secondhand sites-eBay has scaled its Authenticity Guarantee program. This program is now expanded in the UK to cover the entire outfit, including apparel, shoes, and accessories, building on existing coverage for watches, handbags, sneakers, and jewelry. The program achieved a major milestone in the April-June 2025 period, surpassing one million items inspected in a single quarter globally for the first time. To date, the program has inspected a cumulative total of 15 million items. The service is free for the buyer, and eligible apparel items start at a price point of £200+. All authenticated items receive a unique, QR-enabled authentication card.

Flexible payment options, including Buy Now, Pay Later

eBay supports flexible payment methods to help buyers manage cash flow, which is critical in a market where 36% of users cite managing cash flow as the chief reason for using Buy Now, Pay Later (BNPL). While eBay's specific BNPL adoption isn't detailed, the broader U.S. market shows significant trends: 15% of U.S. adults used BNPL in 2024, projected to reach 95 million users by 2025. BNPL payments accounted for 5.3% of total U.S. eCommerce payment volume by early 2025. Younger consumers drive this, with 74% of all BNPL users falling between the ages of 18 and 44.

Finance: review Q4 2025 cash flow forecast against Q3 operating cash flow of $934 million by next Tuesday.

eBay Inc. (EBAY) - Canvas Business Model: Customer Relationships

You're looking at how eBay Inc. manages its relationships with its massive user base as of late 2025. The focus is heavily on scaling interactions through technology while reserving high-touch service for the most valuable partners.

Automated self-service tools for buyers and sellers

eBay Inc. is deeply embedding automation to handle routine interactions, freeing up resources. For sellers, the platform has seen 10 million sellers use its AI tools to create 200 million listings since 2023. Currently, 500,000 listings per day are crafted with AI assistance. The company improved its AI platform in 2024 to handle LLMs approximately 100 times larger than previously possible. This powers tools like the 'magical listing' feature, which automatically produces item descriptions from photos. For buyers, an AI assistant answers questions based on listing details.

Dedicated account management for high-volume merchants

The structure for dedicated support is clearly tiered based on financial contribution. eBay has recently adjusted its support structure, informing some sellers they no longer meet the threshold for higher-tier support, which is now reserved for those making up the top 10 percent of Gross Merchandise Volume on the platform. For top-tier partners, the Developer Loyalty Program offers concierge-level service for gold, silver, and bronze partners. This management approach supports the platform's core base of approximately 18.3 million sellers globally.

Community-driven support and forums

While direct staff interaction has been streamlined, community support remains a channel. eBay retired the Monthly Community Chat format, moving instead to occasional discussion threads centered around specific, timely updates. At its OPEN25 conference, eBay unveiled new features leveraging community interaction data, such as an AI Messaging Assistant that drafts suggested replies to common buyer questions using listing data. Furthermore, the platform introduced Automated Positive Feedback for on-time tracked deliveries when customers remain silent, streamlining a common post-transaction step.

AI-driven hyper-personalized shopping recommendations

The push for personalization is central to engaging the platform's 134 million active buyers as of Q1 2025. The company is continuing to develop its AI models in 2025 to refine features like Shop the Look. The new 'eBay.ai' tool is specifically designed to help less experienced users by recommending products based on natural-language descriptions, as approximately 70 percent of transactions come from existing enthusiasts. The platform launched five new AI features recently, including an AI shopping agent.

Proactive customer support for high-value transactions

Trust in high-value categories is reinforced through specific protections and AI-driven oversight. eBay extended its Authenticity Guarantee service to watches and jewelry in Japan, reinforcing confidence in luxury purchases. For high-value vehicle transactions, buyers under the Vehicle Purchase Protection program receive fraud protection, title issue coverage, and undisclosed defect coverage for up to $100,000. New seller protections announced at OPEN25 include enhanced Item Not Received (INR) Protections, where sellers are not penalized if tracking confirms delivery after a premature refund. The company is actively hiring for roles focused on leveraging AI to achieve a global standard for hyper-personalized and proactive customer interactions.

Here is a snapshot of the user base that these relationships serve:

Metric	Value (Late 2025 Data)
Active Buyers Worldwide (Q1 2025)	134 million
Active Sellers Globally	18.3 million
Total Active Listings	Over 2.3 billion
Q1 2025 Gross Merchandise Volume (GMV)	$18.8 billion
Q1 2025 Revenue	$2.585 billion
Mobile Share of Sales	61%

The platform is also using data to foster direct seller-to-buyer relationship building through targeted promotions. Sellers can use Buyer Groups within Seller Hub to create tailored offers for segments like recent purchasers or those who haven't bought recently, aiming for more repeat purchases and stronger loyalty.

eBay Inc. (EBAY) - Canvas Business Model: Channels

You're looking at how eBay Inc. gets its value proposition to its customers across its various touchpoints as of late 2025. It's a multi-pronged approach, blending the core website experience with heavy mobile focus and specialized destinations.

eBay.com and international localized websites

The core platform remains a massive channel, connecting its global user base. As of the third quarter of 2025, eBay reported a total Gross Merchandise Volume (GMV) of $20.1 billion for the quarter. This volume flows through its localized websites across more than 190 markets. The platform supports 134 million active buyers worldwide as of Q3 2025. Traffic flow shows a slight preference for desktop on the main site, with 48.55% of monthly visits coming from desktop devices in March 2025, while mobile devices accounted for the remaining 51.45%.

Highly-rated eBay mobile applications

Mobile is clearly where a significant portion of the action is happening. In the first quarter of 2025, a whopping $12 billion in GMV was processed through mobile devices, which represented approximately 64% of the total GMV for that quarter. This underscores a mobile-first user base, with nearly 52% of all site visits originating from mobile devices overall. The app maintains consistent interest, averaging 2.67 million global downloads monthly from January to March 2025. To be fair, the demographic using this channel is younger; nearly 75% of eBay's mobile shoppers are aged 18 to 34.

Specialized verticals like eBay Motors and Goldin

eBay uses dedicated destinations to capture high-intent buyers in specific categories. For instance, the Motors, Parts & Accessories category was a notable growth driver, contributing approximately 1 percentage point to the total year-over-year GMV growth in the second quarter of 2025. Furthermore, the momentum in collectibles, which includes the high-value segment served by platforms like Goldin Auctions, is strong, with this focus category GMV outpacing core categories by 9 percentage points in Q2 2025.

Social media integration for seller-generated content

While specific financial metrics tied directly to seller-generated content shared via social media aren't explicitly broken out, eBay is clearly integrating these concepts into its broader engagement strategy. The company is focused on enhancing its marketplace through AI-powered listing tools and live commerce, which often intersects with social engagement models.

Direct email and push notifications via CRM systems

eBay leverages its Customer Relationship Management (CRM) systems to drive repeat visits and transactions. In a specific example of CRM channel effectiveness, the introduction of AI-generated subject lines and pre-headers for personalized CRM emails in the U.S. drove a greater than 40% increase in quality visits compared to the previous approach. For context on direct messaging channels, general industry benchmarks for email marketing show an average open rate of ~32.55% and a Click-Through Rate (CTR) of ~2.03%-2.62%. For mobile app push notifications, the overall opt-in rate hovers around 60%, and for retail apps specifically, sending weekly notifications can result in 2-5x higher retention rates.

Here's a quick look at some of the key channel metrics we've discussed:

Metric	Value	Period/Context
Total GMV	$20.1 billion	Q3 2025
Active Buyers	134 million	Q3 2025
Mobile GMV Share	64%	Q1 2025
Mobile GMV Amount	$12 billion	Q1 2025
Mobile Traffic Share	~52%	Q1 2025
Advertising Revenue	$525 million	Q3 2025
CRM Email Quality Visits Lift	>40%	U.S. AI Personalization Impact

Finance: draft Q4 2025 channel performance variance analysis by next Tuesday.

eBay Inc. (EBAY) - Canvas Business Model: Customer Segments

The customer base for eBay Inc. is a diverse ecosystem, segmented by their primary transactional role and purchasing intent on the platform.

The total active buyer base, measured on a trailing 12-month basis as of Q3 2025, stood at 134 million, representing approximately a 1% year-over-year growth.

Segment Metric	Value (Late 2025 Context)	Source Period
Trailing 12-Month Active Buyers	134 million	Q3 2025
Enthusiast Buyers (Approximate Count)	16 million	Q3 2025
Average Spend Per Enthusiast Buyer (TTM)	Over $3,200	Q3 2025
Total Active Listings	Over 2.4 billion	Q3 2025
Active Promoted Listings	Nearly half of total listings	Q3 2025

Consumer-to-Consumer (C2C) sellers of used and unique goods form the historical core of the marketplace, though the mix is shifting toward professional sellers.

Small-to-Medium Business (SMB) merchants (Business-to-Consumer) are increasingly important, evidenced by the platform's focus on seller tools and capital programs. More than 4.4 million sellers adopted at least a single Promoted Listings product during Q3 2025. Furthermore, data from 2025 suggests that approximately 65% of sellers rely on eBay for their small business.

Enthusiast buyers and collectors (e.g., trading cards, luxury watches) are a high-value cohort driving significant transaction volume. This segment, which includes buyers who also sell, was approximately 16 million people as of Q3 2025. GMV growth in focus categories, which include collectibles and trading cards, accelerated to over 15% in Q3 2025. The average annual spend for these enthusiasts exceeded $3,200 on a trailing 12-month basis in Q3 2025.

Value-conscious buyers of refurbished and pre-loved items are served by strategic category emphasis. The platform has observed a notable acceleration in demand for bullion and collectible coins, alongside growth in refurbished tech. One source noted that 86% of eBay users say buying pre-loved items drives sustainability and innovation.

Global customers across over 190 markets represent a geographically diverse base. In Q3 2025, U.S. GMV grew about 13% year over year, while International GMV saw nearly 4% FX neutral growth. For fiscal year 2024, the United States accounted for 50.94% of total revenue, with the United Kingdom at 14.66% and Germany at 9.45%.

• The platform facilitates connections across more than 190 markets.
• Total Gross Merchandise Volume (GMV) reached $20.1 billion in Q3 2025.
• Total advertising offerings generated $525 million in revenue in Q3 2025, representing 2.6% of GMV.

eBay Inc. (EBAY) - Canvas Business Model: Cost Structure

You're looking at the major expenses that drive the eBay Inc. platform, the costs that eat into the revenue generated from the $2.82 billion in net revenues reported for Q3 2025. Honestly, managing these costs while investing in AI and marketplace improvements is the core challenge for the finance team right now.

The Cost Structure is heavily weighted toward operating expenses, though Cost of Net Revenues is substantial. Here are the key figures from the third quarter of 2025.

Cost Component	Q3 2025 Amount (USD Millions)	Notes
Cost of Net Revenues	$821	Covers direct costs like payment processing and infrastructure.
Sales and Marketing Expenses	$606	Investment in driving traffic and seller acquisition.
Technology and Product Development Costs	$423	Spend on engineering, platform maintenance, and AI initiatives.
General and Administrative Overhead	$282	Corporate overhead, legal, and support functions.
Provision for Transaction Losses	$106	Costs related to fraud, buyer protection, and disputes.

The Cost of Net Revenues was $821 million in Q3 2025, resulting in a GAAP Gross Profit of $1,999 million and a Non-GAAP Gross Margin of 71.6% for the quarter.

You should note that the Non-GAAP Gross Margin decrease year-over-year was attributed to several factors that fall under this bucket, including managed shipping costs, traffic acquisition costs, and depreciation expenses.

The specific line item for Authentication, shipping, and compliance costs isn't broken out separately in the primary statements, but elements of shipping are clearly impacting the Cost of Net Revenues, as seen by the focus on managed shipping costs impacting the gross margin. Furthermore, the 19% increase in Transaction Losses year-over-year points to rising costs in consumer protection and fraud management.

Drilling down into the operating expenses, you see where the strategic spending is:

• Sales and marketing expenses totaled $606 million in Q3 2025. This was up 2% year over year, but flat quarter-over-quarter.
• Technology and product development costs were $423 million.
• General and administrative expenses were $282 million. This figure was up 4% year over year, but importantly, it was noted as being down as a percentage of revenue.

The total operating expenses for Q3 2025 were $1,423 million on a GAAP basis. That's a lot of money going out the door to keep the marketplace running and growing.

Finance: draft 13-week cash view by Friday.

eBay Inc. (EBAY) - Canvas Business Model: Revenue Streams

You're looking at the core ways eBay Inc. makes money as of late 2025, based on the latest reported figures from the third quarter of 2025. Honestly, it's all about transaction volume and seller services.

Final Value Fees (transaction commissions) on Gross Merchandise Volume

This is the biggest piece of the pie. The Final Value Fee (FVF) is charged as a percentage of the total sale amount, which includes the item price, shipping, and any applicable taxes. Since eBay manages payments, this single fee incorporates the payment processing cost. The rates vary quite a bit based on the category and the seller's subscription level. For Q3 2025, the Gross Merchandise Volume (GMV) was a solid $20.1 billion.

Here's a look at the typical fee structure for the portion of the sale up to a certain threshold, reflecting the January 2025 adjustments:

Seller Type / Sale Portion	Final Value Fee Rate (Percentage)	Fixed Per-Order Fee
Non-Store & Starter Store Sellers (Portion up to $7,500)	Typically 12.8% to 13.6%	$0.30 (for orders $10 and under) or $0.40 (for orders over $10)
Non-Store & Starter Store Sellers (Portion above $7,500)	2.35%	N/A
Basic/Premium/Anchor/Enterprise Store Subscribers (Most Categories, Portion up to Threshold)	11.5% to 14.95% (Varies by category)	$0.30 (for orders $10 and under) or $0.40 (for orders over $10)
International Selling Fee (Additional)	Typically between 1% and 2%	N/A

Advertising revenue (Promoted Listings)

This is a high-margin stream that's growing fast. For the third quarter of 2025, eBay Inc.'s total advertising offerings generated $525 million in revenue. That represented 2.6% of the total GMV for the quarter. Drilling down, the first-party advertising products-like Promoted Listings-brought in $496 million in Q3 2025, which was up 25% on an as-reported basis year-over-year.

Managed Payments processing fees

You won't see a separate line item for this, because as of 2025, these costs are baked right into the Final Value Fee structure you see above. This consolidation simplifies the payout process for sellers, but it means the FVF percentage reflects the full cost of the transaction processing infrastructure.

Insertion fees and seller subscription fees

Insertion fees are what you pay to list an item, but many sellers avoid them. Here's the breakdown on what you get for your subscription level:

• Casual sellers generally get up to 250 free listings per month.
• After the free limit, extra listings cost about $0.35 per listing in standard categories.
• Premium Store subscribers pay $74.95 monthly and get 10,000 free fixed-price listings.
• Anchor Store subscribers pay $349.95 per month and receive 25,000 free fixed-price listings.

Ancillary services revenue (e.g., shipping labels, authentication fees)

eBay Inc. pulls in revenue from services that enhance the core transaction. While a specific dollar amount for this segment isn't broken out in the Q3 2025 summary, the focus on trust and convenience drives this stream. For example, the expansion of the Authenticity Guarantee program supports high-value sales and likely generates associated fees. Also, the company has distributed over $1 billion in working capital to sellers through its Seller Capital program since 2021, though this is a financing partnership, not a direct revenue stream from fees.