updated 03:28 pm EDT, Sun March 31, 2013
EBay forecasts $23.5 billion revenues in two years
EBay has a bright outlook on its future, as its most recent sales forecast has topped even Wall Street analysts' estimates. The Internet auction site, which is increasingly positioning itself as a retail outlet, estimates that its total volume of merchandise sold will hit $110 billion by the year 2015. EBay also sees a significant portion of its growth coming from developing markets.
Reporting on EBay's most recent financial forecast, Bloomberg notes that the company's current model sees EBay pulling in between $21.5 and $23.5 billion in the year 2015. Analysts had expected EBay to forecast about $21.4 billion.
The company's bright forecast is due in large part to the path set by CEO John Donahoe, who has stressed the addition of new features such as mobile applications and local-shopping tools. These have resulted in share growth of 75 percent since Donohoe took over from Meg Whitman in 2008. Last year, EBay's sales grew 21 percent.
Going forward, developing markets will play a big role in EBay's fortunes. The company expects that by 2015, 25 percent of its users will be based in developing markets. EBay recently rolled out a Russian-language site to address that market, which saw a 75 percent jump in EBay users last year. Russia, China, and Latin America, as well as a few other emerging markets, come under a separate division within EBay. The company is working to develop native-language sites for those markets, as well as to work on improving shipping logistics within those countries.