eBay Inc. Announces First Quarter 1999 Financial Results
Achieved Record First Quarter Net Revenues of $34.0 million
San Jose, CA, April 26, 1999 - eBay Inc. (NASDAQ: EBAY; www.ebay.com), the world's largest person-to-person online trading community, today reported financial results for its first quarter ended March 31, 1999.
The Company generated net revenues of $34.0 million in the first quarter of 1999, a 469 percent increase over the $6.0 million reported for the same period last fiscal year. Gross profit margin decreased to 85 percent for the quarter from 89 percent a year ago. Net income for the current quarter was $5.9 million, or $0.05 per share on a fully diluted basis. eBay's net income before the effect of non-cash charges related to stock based compensation and acquisition expenses was $7.0 million, or $0.05 per fully diluted share, compared with $569,000 or $0.01 per fully diluted share during the first quarter of fiscal 1998.
The primary contributor to the increase in revenues for the quarter was the increased activity on the site. Gross merchandise sales (the value of goods traded) for the current quarter were $541 million, up 76 percent from the $307 million reported in the fourth quarter of 1998. The number of registered users increased more than 1.6 million to over 3.8 million at March 31, 1999, an increase of about 75 percent from the more than 2.1 million registered users at December 31, 1998. In addition, eBay hosted over 22.9 million auctions during the first quarter of 1999, up from 13.6 million in the fourth quarter of last year.
The Company remains committed to providing a safe, easy-to-use trading environment on the eBay site. As a result, the Company made significant personnel investments during the first quarter which affected costs in all income statement categories. Cost of sales increased during the first quarter largely due to labor and related costs associated with the Company's expansion of its customer service department and depreciation of recently acquired site equipment. In addition, the Company realized additional costs in volume-driven transactional expenses such as ISP connectivity charges and bank processing charges for customer fees paid by credit cards. The increase in sales and marketing expenses in the first quarter over the prior period was primarily due to personnel growth, the expansion of online advertising, tradeshow programs and international marketing. Product development expenses increased due to additional headcount and the use of consultants, but were otherwise relatively unchanged compared to the fourth quarter of 1998. General and administrative expenses increased substantially over the previous quarter again primarily due to the Company's investment in personnel, increases in professional service fees and incremental costs associated with being a public company.
For the first quarter, eBay recorded certain non-cash charges of $666,000 and $453,000 related to the amortization of stock compensation and acquisition-related expenses, respectively. The Company recorded a tax provision of $4.3 million, representing an effective tax rate of 42 percent of first quarter pretax income.
"We are excited to start 1999 with strong first quarter results and positive growth across all metrics. This past quarter, we continued our efforts to bring a wider audience to eBay through a variety of marketing endeavors including online and traditional advertising, grassroots marketing, public relations and strong word of mouth referrals. We also brought eBay to the international market with the launches of the U.K. and Canadian sites," stated Meg Whitman, President and CEO of eBay. "In addition, we expanded the end-to-end trading solutions to include packaging, shipping, photo hosting and authentication services for our users. As we grow, we continue to focus on our mission to provide our users the tools to help them trade practically anything on earth."
The Company's overall balance sheet is largely unchanged from the fourth quarter of 1998. The Company added $8.4 million in net fixed assets consisting mostly of computer hardware and software and advanced an $18.8 million payment for future marketing efforts as part of the strategic alliance with AOL. The Company's balance sheet was strengthened with the completion of its secondary stock offering completed in April 1999.
About eBay
eBay (www.ebay.com), the world's personal trading communityTM, pioneered person-to-person online trading. Founded in 1995, eBay has developed an efficient and entertaining trading site on the Web that is available 24 hours a day, seven days a week. Currently, there are more than 1.8 million items listed for sale. More than 250,000 items are added daily in more than 1,000 categories including: antiques; books, movies and music; coins and stamps; collectibles; computers; dolls and figures; jewelry and gemstones; photo and electronics; pottery and glass; sports memorabilia; and toys.
Forward Looking Statements
This announcement contains forward looking statements that involve risks and uncertainties, including those relating to the Company's ability to grow its user base. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the Company's need to manage significant growth in all aspects of its business, the increasingly competitive environment for online trading, including the effect of the recent entry of competitors which have significantly greater financial and marketing resources, issues of integrating new acquisitions and seasonal factors, including a relative decrease in activity during the spring and summer periods. More information about potential factors which could affect the Company's business and financial results is included in the Company's Form 10-K for the period ended December 31, 1998 under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Company's Prospectus dated April 12, 1999. All forward looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements.
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eBAY INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
| |
December 31, |
|
March 31, |
| |
1998 |
|
1999 |
| |
|
|
(unaudited) |
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$ 31,790 |
|
$ 24,850 |
|
Short-term investments
|
40,401 |
|
32,121 |
|
Accounts receivable, net
|
6,369 |
|
12,104 |
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Other current assets
|
4,825 |
|
23,588 |
|
Total current assets
|
83,385 |
|
92,663 |
|
Property and equipment, net
|
7,831 |
|
16,235 |
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Intangible and other assets, net
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1,267 |
|
814 |
| |
$ 92,483 |
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$ 109,712 |
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LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$ 1,385 |
|
$ 3,748 |
|
Customer advances
|
727 |
|
1,022 |
|
Income taxes payable
|
— |
|
2,713 |
|
Deferred tax liabilities
|
1,682 |
|
1,682 |
|
Other current liabilities
|
4,244 |
|
8,947 |
|
Total current liabilities
|
8,038 |
|
18,112 |
| |
|
|
|
|
Total stockholders’ equity
|
84,445 |
|
91,600 |
| |
$ 92,483 |
|
$ 109,712 |
eBAY INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share amounts; unaudited)
| |
Three Months Ended March 31, |
| |
1998 |
|
1999 |
|
Historical
|
|
|
|
| |
|
|
|
|
Net revenues
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$ 5,981 |
|
$ 34,010 |
|
Cost of net revenues
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630 |
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5,121 |
|
Gross profit
|
5,351 |
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28,889 |
|
Operating expenses:
|
|
|
|
|
Sales and marketing
|
2,106 |
|
12,067 |
|
Product development
|
518 |
|
1,924 |
|
General and administrative
|
1,028 |
|
5,043 |
|
Amortization of acquired intangibles
|
— |
|
328 |
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Total operating expenses
|
3,652 |
|
19,362 |
|
Income from operations
|
1,699 |
|
9,527 |
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Interest and other income, net
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22 |
|
639 |
|
Income before income taxes
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1,721 |
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10,166 |
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Provision for income taxes
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(1,573) |
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(4,270) |
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Net income
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$ 148 |
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$ 5,896 |
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Net income per share:
|
|
|
|
|
Basic
|
$ 0.00 |
|
$ 0.06 |
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Weighted average shares—basic
|
26,936 |
|
95,047 |
|
Diluted
|
$ 0.00 |
|
$ 0.05 |
|
Weighted average shares—diluted
|
97,614 |
|
127,979 |
| |
|
|
|
|
Supplemental Information(1)
|
|
|
|
| |
|
|
|
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Historical net income
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$ 148 |
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$ 5,896 |
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Add back of certain non-cash expenses:
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|
|
|
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Amortization of stock compensation
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421 |
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666 |
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Amortization of acquisition-related expenses (2)
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— |
|
453 |
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Total add back
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421 |
|
1,119 |
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Supplemental net income excluding certain non-cash expenses
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$ 569 |
|
$ 7,015 |
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Supplemental net income per share:
|
|
|
|
|
Basic
|
$ 0.02 |
|
$ 0.07 |
|
Diluted
|
$ 0.01 |
|
$ 0.05 |
(1) The accompanying supplemental financial information is presented for informational
purposes only and should not be considered as a substitute for the historical financial
information presented in accordance with generally accepted accounting principles.
(2) Expenses associated with the amortization of acquisition-related charges are included
within cost of net revenues as well as operating expenses under the heading "amortization
of acquired intangibles."
eBay Agrees To Buy Butterfield & Butterfield
SAN JOSE, Calif., April 26,1999 - eBay® (NASDAQ: EBAY; www.ebay.com) today announced that it has agreed to acquire Butterfield & Butterfield, one of the world's largest and most prestigious auction houses. This important strategic acquisition enables eBay to accelerate its penetration into higher priced items on a global basis.
"This transaction will combine eBay's technology and large community of users- with Butterfield's expertise in premium markets and extensive relationships with dealers, auction houses and individuals throughout North America, Europe and Asia," said Meg Whitman, president and chief executive officer of eBay. "We will be able to bring fine and decorative art and collectibles online allowing eBay members unprecedented access to many of the world's outstanding collections."
eBay users also will benefit from the services and expertise offered by Butterfield & Butterfield's team of over 50 specialists who are able to authenticate, appraise and market a wide range of art and fine collectibles including paintings, furniture and jewelry.
"Butterfield & Butterfield is not only one of the oldest and most respected auction houses in the world, but our large staff of specialists provide expertise in a wide range of categories from 17th century European armor to fine paintings," said John Gallo, president of the San Francisco based company. "We believe this will enable a whole new generation of users to safely trade unique, high-end items on eBay."
Gallo added that Butterfield & Butterfield has worked with the major Internet companies and he believes eBay has the most professional management team in the business. "eBay understands the importance of the relationship to the customer which is the underpinning of this industry," he said.
eBay's Whitman added that Butterfield & Butterfield is a perfect match for the person-to-person online trading community. "This is a profitable company with a solid business plan and a first-rate management team. Butterfield & Butterfield also has strong relationships with major auction houses around the world."
Steve Westly, eBay's vice president of marketing and business development said that eBay is excited about Butterfield & Butterfield because it is moving more quickly than any other traditional auction company to embrace the Internet. Butterfield & Butterfield began providing auctions over the Internet through its relationship with a local company and ended the arrangement three weeks ago in order to work with eBay.
eBay will continue its emphasis on the person-to-person online trading space and will utilize its purchase of Butterfield & Butterfield to enter the field of mid-tier auctions.
The transaction will be accounted for as a tax-free pooling of interests. The number of shares to be issued in the transaction will be determined by a formula involving the average price of eBay common stock during a period prior to the closing of the transaction. The approximate value of the transaction is $260 million. The transaction is expected to be accretive in 1999 and eBay may recognize certain one-time expenses related to the transaction in the quarter of closing. Closing is subject to certain conditions, including regulatory approvals, and is expected to take place in the second quarter.
In a related development, Butterfield & Butterfield announced it has determined to withdraw its proposed initial public offering.
Forward Looking Statements
This announcement contains forward looking statements that involve risks and uncertainties, including those relating to the closing of this transaction. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the receipt and timing of regulatory approvals, stock price movements, the Company's ability to integrate this new business and all of the factors that may influence future business and financial results, including those set forth in the Company's Form 10-K for the period ended December 31, 1998 and the Company's prospectus on Form S-1 dated April 12, 1999. Additional information about potential factors that could effect Butterfield & Butterfield's business and financial results is included in Butterfield & Butterfield's preliminary prospectus on Form S-1 dated April 2, 1999. All forward looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements.
About eBay
eBay (www.ebay.com), the world's personal trading communityTM, pioneered person-to-person online trading. Founded in 1995, eBay has developed an efficient and entertaining trading site on the Web that is available 24 hours a day, seven days a week. eBay has more than 2.1 million registered users and over 8 million unique people visited the site in March. Currently, there are more than 1.8 million items listed for sale. More than 250,000 items are added daily in more than 1,500 categories, including: antiques; books, movies and music; coins and stamps; collectibles; computers; dolls and figures; jewelry and gemstones; photo and electronics; pottery and glass; sports memorabilia; and toys.
eBay Enlists Goodby, Silverstein & Partners
For Brand-Building Advertising Effortsd
Agency Selected for Creativity and Consumer Branding Expertise
SAN JOSE, Calif. April 23, 1999 - eBay® (NASDAQ: EBAY; www.ebay.com), the world's leading person-to-person online trading community, today announced the appointment of Goodby, Silverstein & Partners as its advertising agency of record. eBay selected the award-winning agency to further develop brand-building advertising campaigns and integrated communication initiatives.
"We're excited to embark upon a long-term relationship with Goodby, Silverstein & Partners," said Brian Swette, senior vice president of marketing at eBay. "GS&P has a proven track record of delivering creative work that is an honest and relevant reflection of a brand. We are confident they will help expand eBay's recognition as a trusted and famous brand."
With headquarters in the "eBay Area," Goodby's San Francisco office will allow the advertising team to work closely with eBay in San Jose throughout the creative process. "We have an amazing opportunity before us," said Rich Silverstein of Goodby, Silverstein & Partners. "E-commerce is an exciting and rapidly growing industry. In only a few years, eBay has grown into an extraordinary and highly respected company. We're looking forward to helping make eBay one of the top brands of the future."
eBay's print and radio advertising was previously handled by the Acme Idea Company, a strategic and creative consultancy committed exclusively to the building of brands. The need for a full-service agency led to the decision to select a new creative partner for offline advertising, including out-of-home, print and broadcast media.
"We couldn't have chosen a better partner than Acme to launch our inaugural advertising campaign. No one is better at launching a brand, from initial positioning through all launch communications and advertising," continued Swette. "Now, we've enlisted Goodby to help to grow the eBay brand and increase our reach and relevance to consumers."
In October 1998, eBay launched its first national print and broadcast advertising campaign to increase awareness and trial of the company's brand. The national radio campaign has aired on more than 12,000 stations across the country. The national print campaign executed in November 1998 included Parade, People, Entertainment Weekly, Newsweek and Sports Illustrated.
About Goodby, Silverstein & Partners
Goodby, Silverstein & Partners is a full service advertising agency, founded in 1983 and located in San Francisco. GS&P has won a multitude of creative awards for its work and agency recognitions. In 1989, Advertising Age named GS&P Agency of the Year, one of the two youngest agencies to ever receive that honor. In 1990, 1992, and 1994, Jeff Goodby and Rich Silverstein were named by Adweek as National Creative Directors of the Year. For four years (1992, 1993, 1994 and 1998), Adweek chose GS&P as their West Coast Agency of the Year. In 1995, the agency was selected by Adweek as their National Agency of the Year.
About eBay
eBay (www.ebay.com), the world's personal trading communityTM, pioneered person-to-person online trading. Founded in 1995, eBay has developed an efficient and entertaining trading site on the Web that is available 24 hours a day, seven days a week. eBay has more than 2.1 million registered users. Currently, there are more than 1.8 million items listed for sale. More than 250,000 items are added daily in more than 1,500 categories, including: antiques; books, movies and music; coins and stamps; collectibles; computers; dolls and figures; jewelry and gemstones; photo and electronics; pottery and glass; sports memorabilia; and toys.
eBay Inc, Announces Pricing Of Public Offering Of 6,500,000 Shares Of Common Stock
San Jose, CA (April 13, 1999) eBay Inc. today announced the pricing of its public offering of 6,500,000 shares of common stock at $170.00 per share. Of the shares offered, 4,250,000 are being offered by the Company and 2,250,000 are being offered by certain selling stockholders. Goldman, Sachs & Co. and Morgan Stanley Dean Witter are acting as the lead Underwriters of the offering. Other Underwriters for the offering include BancBoston Robertson Stephens, BT Alex. Brown and Donaldson, Lufkin & Jenrette. The Company expects that the shares in this offering will be delivered to the underwriters on April 16, 1999.
Certain selling stockholders have granted the Underwriters a 30-day option to purchase up to 975,000 additional shares of common stock to cover over-allotments, if any. The net proceeds to the Company from the offering will be used for general corporate purposes.
eBay, the world's personal trading community, pioneered person-to-person online trading. Founded in 1995, eBay has developed an efficient and entertaining trading site on the Web that is available 24 hours a day, seven days a week. More than 250,000 items are added daily in more than 1,000 categories, including: antiques; books, movies and music; coins and stamps; collectibles; computers; dolls and figures; jewelry and gemstones; photo and electronics; pottery and glass; sports memorabilia; and toys.
eBay Teams With Mail Boxes Etc. And iShip.com
To Provide Person-To-Person E-Commerce Shipping Solutions
Alliance is first of its kind to provide seamless solution for shipping and delivery services; bridges Internet commerce world with real-world infrastructure
SAN JOSE AND SAN DIEGO, CALIF. AND SEATTLE, WASH. (April 8, 1999) - eBay (NASDAQ: EBAY; www.ebay.com), the leading person-to-person online trading community, today announced a five-year agreement with Mail Boxes Etc. (MBE), the world's largest franchisor of retail business, communications and postal service centers, and a planned agreement with iShip.com, the leader in multi-carrier Web-based shipping services for e-commerce, to provide eBay members with a first-of-its-kind, integrated system for e-commerce shipping.
The three companies -- eBay, MBE and iShip.com -- represent crucial components in the e-commerce industry, and will team together to provide integrated shipping solutions to effectively support the rapidly growing e-commerce industry. iShip.com will provide upfront information to e-merchants and buyers regarding shipping costs and options, helping reduce the need for frequent emails to work out terms of shipping. For eBay sellers with frequent shipping needs, MBE will provide the bricks-and-mortar support for packing and shipping. In addition, eBay and MBE are working to implement a "hold for inspection" program where MBE franchisees will provide a place for delivery and inspection of goods.
"The growth of eBay's person-to-person online trading has created a huge demand for improved shipping solutions for our community of 2.1 million users," said Meg Whitman, president and chief executive officer of eBay. "MBE, with its network of more than 3,000 centers across the country, and iShip.com, with its innovative online-shipping, pricing and tracking solutions, are the ideal partners for eBay to join with in developing a fully integrated shipping system to handle this demand."
The eBay/MBE/iShip.com shipping solution will make the shipping process easy, convenient and efficient for buyers and sellers. With accurate zip-to-zip rate and service information from iShip.com, eBay users will be able to see how much a shipment will cost, even before they place a bid. Web-based pricing streamlines the shipping process while instant package status informs sellers and buyers of the exact location of the goods. Plus, eBay members will benefit from the network of participating MBE centers nationwide, providing convenient drop-off and pick-up locations for e-commerce shipments.
Plans for eBay, MBE and iShip.com provide for iShip.com to develop a co-branded shipping interface page integrated into the eBay site. This page will give members easy access to shipping rates and service alternatives, accurate pricing information, shipping help features and package tracking status. Additionally, MBE and eBay will develop a shipping solutions page that will give tutorial information specific to MBE's services, standard packing requirements, and information on MBE's proprietary declared-value program. The site also will include an MBE locator, so buyers and sellers can find the most convenient center.
In addition, the companies are working to develop MBE's new "hold for inspection" program that the companies anticipate will enable buyers to accept or refuse delivery upon inspection of items shipped to participating MBE locations. This service is planned to provide users another tool to facilitate person-to-person online trading.
"As the volume of e-commerce increases, shipping solutions that bridge the Web and the physical world become critical," said Jim Amos, MBE president and CEO. "MBE will now bring our commitment to world-class customer service to the enormous volume of eBay transactions, ultimately making e-commerce business easier. And, with iShip.com's leading technology, we've tackled the challenges associated with shipping the amount of merchandise now sold online."
"Teaming with eBay and MBE, we're realizing our vision of integrating Web-based shipping services into e-commerce, to give buyers and merchants choice, convenience and efficiency," said Steve Teglovic, co-founder and CEO of iShip.com. "Our e-commerce shipping solution for eBay members means no more doubts about how to ship, where a package is, or what it will cost to send it to the winning buyer," he added.
In support of this new strategic partnership, MBE is investing $10 million to make new technology available to its network of more than 3,000 domestic franchises. This initiative links satellite technology with point-of-sale (POS) computer systems as part of MBE's ongoing drive to "make business easier" for both its franchisees and its growing customer base.
"This move is critical to the future growth of MBE, since it allows us to accommodate the changing needs of our customers, while at the same time attracting new Internet customers," said Amos. "Also, this technology puts MBE one step closer to providing a comprehensive shipping solution for the dynamic e-commerce community."
Mail Boxes Etc., a wholly owned subsidiary of U.S. Office Products Company (NASDAQ: OFIS), is the world's largest franchisor of retail business communication and postal service centers. There are more than 3,700 MBE centers operating worldwide, with master licensing agreements in place for the development of the MBE business in 60 countries around the world. In the United States, MBE centers are owned and operated by licensed franchisees of Mail Boxes Etc., USA, Inc. Outside the United States, MBE centers are owned and operated by MBE master licensees or their franchisees. MBE maintains a Web site at www.mbe.com.
U.S. Office Products Company (USOP) is one of North America's leading providers of office supplies, office furniture, and office breakroom products featuring Starbucks Coffee. USOP also owns and operates Mail Boxes Etc. and Blue Star Group Limited, a leading supplier of office products and business services in New Zealand and Australia. USOP's Web site can be found at www.usop.com.
eBay (www.ebay.com), the world's personal trading community TM, pioneered person-to-person online trading. Founded in 1995, eBay has developed an efficient and entertaining trading site in an auction format on the Web that is available 24 hours a day, seven days a week. eBay has more than 2.1 million registered users. Currently, there are more than 1.8 million items listed for sale. More than 250,000 new items are added daily, in more than 1,500 categories, including: antiques; books, movies and music; coins and stamps; collectibles; computers; dolls and figures; jewelry and gemstones; photo and electronics; pottery and glass; sports memorabilia; and toys.
iShip.com is an Internet shipping services company with the vision of helping buyers and merchants integrate package shipping into the e-commerce process. Its one-stop Web-based shipping service brings multi-carrier choice, the convenience of the Web, and powerful tools for efficient pricing, shipping and tracking to both Web merchants and online shoppers, improving the overall e-commerce experience. iShip.com was founded in 1997, and is based in Bellevue, Washington. For more information, visit www.iship.com.
eBay And Collectors Universe Partner To Offer
Authentication And Grading Services
eBay Continues to Expand Safety Measures for Online Trading
SAN JOSE, Calif. April 6, 1999 - eBayTM (NASDAQ: EBAY; www.ebay.com), the world's leading person-to-person online trading community, today announced the addition of expert authentication and grading options in popular product categories, including trading cards and rare coins. eBay has partnered with Collectors Universe, the premier authentication and grading service company, to continue its commitment to providing user services and tools to ensure safe online person-to-person trading.
The first in a series of new authentication and quality verification services will appear on the eBay site on April 6, 1999 at approximately noon Pacific Standard Time. Current participating companies include two subsidiaries of Collectors Universe, Professional Sports Authenticators (PSA) and Professional Coin Grading Service (PCGS). Collectors Universe offers a financial guarantee that backs both the grade and authenticity of every trading card in a PSA holder and every coin in a PCGS holder. eBay will add autograph authentication starting in June when it launches a program with PSA/DNA, another Collectors Universe subsidiary, which utilizes a synthetic DNA marker to permanently authenticate "signed-in-the-presence" signatures, as well as a team of experts who authenticate vintage autographs.
"We are pleased to announce this relationship with Collectors Universe to provide the industry's most respected authentication and grading services for the eBay community," said Steve Westly, vice president of marketing and business development at eBay. "Backed by a 100% guarantee, this integrated service will be of great use to the growing number of collectors on eBay."
Authentication and grading services are accessible from co-branded eBay and Collectors Universe sites beginning April 6 at http://www.pcgs.com/ebay and http://www.psacard.com/ebay. Information on the authentication and grading services for coins and trading cards will also be available at http://pages.ebay.com/help/community/auth-coin.html and http://pages.ebay.com/help/community/auth-card.html and from individual category homepages, including sports memorabilia.
"eBay has had a significant impact on the world of collecting," said David Hall, founder of PCGS. "Thanks to the contributions eBay has made in person-to-person trading, it's important to provide these authentication services to help people who buy, sell and collect coins and trading cards using the Internet."
eBay sellers will receive a 10 percent discount from PCGS and PSA for the first 30 days. After 30 days, sellers will receive a 10 percent rebate to their eBay account on all services provided by PCGS and PSA. Authenticated and graded coins and trading cards are encapsulated in a tamper-evident holder and sonically sealed with a certificate of authenticity listing a description and grade of the card or coin.
"We're proud to be a part of this new initiative to help buyers and sellers achieve peace of mind in sight-unseen trading by verifying authenticity and grading," said Lou Crain, CEO of Collectors Universe. "We have a long history in sports and non-sports trading cards and rare coins, and are pleased to bring our expertise to the online eBay community."
The process for sellers starts by sending an item or items to PCGS and PSA for grading and authentication, which is done in a one- to 30-day turn around (fee will vary depending on time). Sellers can include a logo in the eBay item description that identifies that the item is authenticated and links to information about its specific grade and authenticity.
"eBay's new authentication capabilities open up a wonderful world of opportunity to truly explore and participate in the collectibles marketplace," said Laura Sperber, owner of Legend Numismatics, one of the largest rare coin companies in the country. The company frequently conducts business on eBay and recently sold a mint-state Morgan dollar for $36,000 on the site. "eBay has exceeded our expectations. I plan to use this service as much as possible."
About Collectors Universe
PSA is the world's largest sportscard grading service and currently grades and authenticates about 100,000 cards per month. PCGS is the leading third party coin grading service having graded and authenticated over five million coins in the past 12 years. PSA/DNA authenticated Mark McGwire's 70th home run ball and was recently chosen by Hank Aaron to authenticate his 715th home run ball and bat.
About eBay
eBay (www.ebay.com), the world's personal trading communityTM, pioneered person-to-person online trading. Founded in 1995, eBay has developed an efficient and entertaining trading site on the Web that is available 24 hours a day, seven days a week. eBay has more than 2.1 million registered users. Currently, there are more than 1.8 million items listed for sale. More than 250,000 items are added daily in more than 1,000 categories, including: antiques; books, movies and music; coins and stamps; collectibles; computers; dolls and figures; jewelry and gemstones; photo and electronics; pottery and glass; sports memorabilia; and toys.
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