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***P O W E R S E L L E R N E W S L E T T E R***
ISSUE 1 DEC 14, 1999
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At last! The new and improved PowerSeller Newsletter is here! We will update you every two weeks on policy changes, competitive analysis, productivity tools, site enhancements, policy updates, promotional efforts and partnerships. In this issue, we will cover these topics:

* Tools --> Improved shipping options on the Sell Your Item page and Credit card payment related issues
* Promotional Efforts and Partnerships --> eBay efforts to attract more buyers to our site
* Technology Enhancements --> Hot and Warm Back-up System
* Policy Updates --> PowerSeller Logo

If you have any questions, concerns or suggestions regarding this newsletter please respond to this email within 2 weeks. We would love to hear from you and we hope this information will help you sell more effectively.

We would also like to inform you, as our valued PowerSeller, you are provided with dedicated email support 24 hours a day, 7 days a week. For any support, billing or SafeHarbor issues, please write to powerseller@ebay.com. No need to write to different email addresses anymore!

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GALLERY IS A GOOD THING FOR SELLERS!
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You may wonder about how a certain listing feature can increase the success of your auctions. We will be glad to share with you an interesting piece of data. Our data shows that by including your auctions in the gallery section, your bid/item ratio will increase by an average of 1.05 bids per item.

The most successful categories for gallery usage are:
(1) Computers (2.71 additional bids/item)
(2) Coins & stamps (2.01 additional bids/item)
(3) Sports memorabilia (1.85 additional bids/item)

In addition, the preliminary data that we have collected indicate an increase of the average selling price across all categories.

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POWERSELLER POLICY UPDATES -- PowerSeller Logo
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The PowerSeller logo issue is being resolved. The PowerSeller Logo License will allow usage in the following places:
(a) About Me page of a PowerSeller; (b) individual item listings in the item description of a PowerSeller auction item; (c) the primary web site of a registered PowerSeller; and (d) real-world trade show or store signage.

The two outstanding issues are: (1) the user agreement is being modified to reflect the allowed usage of the logo, along with enforcement guidelines for misuse of the logo by PowerSellers and non-PowerSellers; and (2) server load capability must be confirmed to support access levels for the logo - access will be via a direct URL to our image server.

As soon as the language is approved, we will send it to all registered PowerSellers via email. Once the agreement is put on the web, we will notify all registered PowerSellers via email so that you can click-through and accept the license.
Stay tuned for more updates. Please hold any enforcement issues until the language is completed.

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POWERSELLER PRODUCTIVITY TOOLS
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1. Improved Shipping Options on the Sell Your Item page

Perhaps you have read about this on our Announcement Board but we would like to give you heads up about the upcoming changes on the Sell Item Page. Many of you have asked us to clarify and provide additional shipping options on the Sell Your Item page at http://cgi5.ebay.com/ws/eBayISAPI.dll?ListItemForSale

Based upon your suggestions, we are considering some changes that should improve the page. The current shipping options are:
* Will ship to home country only (default)
* Will ship internationally

The proposed shipping options are:
* Will ship to United States ONLY (default)
* Will ship to the United States AND: (Check all that apply)
- Canada
- Central America / Mexico
- Europe
- Asia
- Australia
- South America
- Caribbean
- Africa
- Middle East
* Will ship worldwide

A seller's shipping options will appear on the individual item pages. And if you choose to ship to other parts of the world, your item will appear in appropriate International Search results pages.

Feel free to email us with other suggestions on the Shipping options before Wednesday, December 15, 09:00 PST at:
ship-options@ebay.com

2. Credit Card Related Issues

- Great News! American Express and Discover are now officially accepted at eBay.
To place your American Express or Discover Card on your account for automatic monthly billing, simply go to the site map and click on "Place or update my credit card on my eBay account." Once your card is on file, it will automatically be charged each month for the previous month's activity as long as the charge can be authorized. Please note that this new payment option is available only to those eBay members billed in US dollars.

- Did you know that making a one-time credit card payment on your eBay account just became easier!
As of November 30, 1999, you are now able to make a one-time credit card payment to your eBay account on-line. The days of printing a one-time credit card payment coupon, completing the form and mailing or faxing the information to the eBay PowerSeller Department for processing are over. Now you simply complete the on-line form and submit the information. Your credit card will be charged and your eBay account status will be updated, as long as the charge can be authorized. This new feature is currently available only to those eBay sellers billed in US dollars. However, in the very near future, on-line one-time credit card payments will be available to our entire member community, whether you are billed in US dollars, Australian dollars or pounds sterling. To access the on-line one-time credit card page simply go to: http://pages.ebay.com/tr/en-us/services/buyandsell/pay-coupon.html

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PROMOTIONAL EFFORTS AND PARTNERSHIPS
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Our goal is to steer even more buyers to the eBay site to see and bid on your items during the busy holiday season. To help achieve this goal, eBay has launched the Holiday O'Rama page to highlight and celebrate unique items in key categories. This page is located here: http://pages.ebay.com/tr/en-us/holidayorama

In addition, eBay continues to introduce more buyers to your auctions by partnering with major key Internet players. Most recently, we have implemented portions of our partnerships with AOL and Warner Brothers. The large user base of AOL (19 million members worldwide) will help bring new members to the eBay site. We have also developed a number of other partnerships with web sites focused on the holiday season, which will drive targeted traffic to the Holiday O'Rama page.

We also have several printed advertisements in various media: eBay Magazine, eBay Visa Statement Inserts, Kinko's Holiday catalog.
eBay's presence is still strong at over 70 tradeshows in 1999 alone. We will greatly increase our promotional efforts for the coming millennium both locally and globally.

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eBAY INTERNAL TECHNOLOGY ENHANCEMENTS
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Over the last few months, we've been keeping you informed about our continued efforts toward site stability and our goal of implementing a high-availability system, or a "hot backup". Before updating you on the hot backup status, we'd like to define the terms "warm backup" and "hot backup", so that we're all on the same page:

A "warm backup" allows eBay to recover from most major hardware or software failures in its database, within a timeframe of 20 minutes to 2 hours. Examples of "major hardware failures" are CPU or system board failures that cause the operating system to reboot itself. An example of a "major software failure" is the operating system crashing and rebooting itself. In many cases, it is faster to let the system reboot itself than to move to the warm backup. A reboot takes approximately 45 minutes, whereas going to a warm backup could take longer. A "hot backup" means that eBay can recover from most major hardware and software failures in a timeframe ranging from 5 minutes to 1 hour. A "hot backup" can recover faster since it is TWO systems sharing all the disks and the data that support eBay. We say that this can take "up to an hour" because we need to allow time for determining why the system failed and to make sure that using the hot backup is the right thing to do.

We are very excited about the new high availability system, but we need to remember that it will not prevent all future problems. As we gain more experience with the new system, we expect recovery times to continue to improve.

For the most recent updates on what's happening in technology and site performance at eBay, go here:
* TECHNOLOGY: Site Bulletin - http://pages.ebay.com/tr/en-us/welcome.html
* SITE PERFORMANCE: Announcement Board - http://www2.ebay.com/aw/announce.shtml