This is something that is interesting. People think ebay is one thing, but it is something very different. I do not think they understand how different this business is. Is really cold and i forgot my gloves. Im getting some gloves delivered to us. It is 39 degrees in san jose. Lets go inside to jon erlichman. What is that all about . It is a really fun place, frankly. I feel like i am back at the mall as a teenager. They have a guitar shop. I do not play guitar like cory johnson. You see a place like where you would do your shopping. It is creative. There is this whole changing retail space where you can now use paypal or even your phone or tablet. There is a Clothing Store right here and were going to go into an indepth look at how it transforms itself to get ready for the future. All right. We will have much more on the business throughout the day. First, i want to go through ebay by the numbers. Here is a look. Ebay, the global ecommerce and payments company, with more than 31,000 employees in 33 countries around the world. They are driving three different businesses. There is the online marketplace, where active users buy, sell, or bid on 500 million items. Things are sold every six minutes. A pair of sunglasses is sold every 18 seconds. Globally, clothing, shoes, and accessories are sold on mobile devices. Then, there is paypal. People send or receive money. 729 times last quarter. That is more than the populations of the u. S. , australia, and others combined. Payment ranges from the lira to the yen. Looking use technology to make payments for the worlds biggest brands. All of it adds up to more than 14 billion in revenue for ebay last year. For more on the booming business, i am joined by the man who is responsible for turning them into a global ecommerce platform and a leader in global payments. John donahoe is the ceo of ebay. Under his leadership, they have grown to over 15 billion today. Congratulations on that. This is a big time of year for you. Were happy to have you here. Lets talk about thanksgiving. How did it go for ebay . It was a very strong week. It has never been a better time to be a consumer. Technology is changing how we are able to shop. It is no longer just about black friday. It is the cyber five. It started on thanksgiving day. People shop on their couch. They start shopping on their smartphone or tablet or laptop. That continues throughout the holiday weekend. For that five day period, we saw at all of our properties a 96 increase in mobile commerce volume. I got 50 of my shopping done. Are you done . I am not quite done. Going into this holiday, you were a little nervous. You said you had angst about the commerce market. How do you feel now . Do you feel a bit more optimistic . Were cautiously optimistic. I cannot comment on the quarter. We did not have a federal budget, we had a shutdown. As things come into this quarter, we hope that consumers see that there are great deals and opportunities out there. You can get great gifts for your loved ones. We are trying to make been as easy as possible for consumers. It was the Biggest Online shopping day ever. We were up 20 or so. Growth is still slowing down. One of your big strategies is connecting online and offline. Lets talk about connective glass. This is something cool they were doing. You tested it in new york. Now youre in San Francisco. Like you said, we used to think in terms of shopping digitally or shopping in a store. Mobile technology is enabling the line to blur. You can have a seamless experience that has technology involved, but you can have choice around how you receive the item. We started with kate spade saturday in new york. We put a touchscreen on the storefront. If people walked by, they could shop. They can have it delivered to them with ebay now. That extended to the westfield mall here in the bay area. We have these gigantic touchscreens. Consumers walking by can in gauge in a large touch green experience. They can see what they want and have it delivered to them. Here is a great example. Sony has a store in the mall. They have a touchscreen at another point in the mall. They can shop and then go over to the store to pick up and buy it or they can have it delivered to them later on at home. You have said this is not an experiment. How fast do you plan to scale this . We approach innovation. Were good at consumer innovation and creating new experiences. Just as with ebay now, we have the ability to buy something from a number of retailers and have it delivered to you in the moment. You got some gloves today. I am waiting for them. You wanted them within an hour. You wanted them today. We rolled it out and now we have it in five cities. It will go to 25 next year. We started in one or two regions and we will slowly roll it out. What about the perception problem . A lot of people feel like ebay is an auction. You are much more than that, but that is still what they think. 80 of our items are fixed price. You see more and more people coming to ebay. Our new active user growth has been accelerating all year long. More consumers are coming to ebay. They like what they see and they are telling their friends. That will take time to change, but the real experience is a great one and we see consumers responding. Is the goal to beat amazon . Were very different. Our focus is on enabling commerce. Should we assume that anything we want will be available on ebay . Yes. Anything you want. We are partnering with retailers all around the world. We do not compete with them. You can get things from sellers in the united states, things from sellers all over the world. You can get things from best buy, who lists on ebay. What can i get on ebay that i could not get on amazon . You can get goods from all over the world. You could get goods 25 of our transactions are across borders. You can reach consumers all over the world. What about some of the other competition . Twitter, pinterest they have a lot of traffic. Do you think of them as competition or do you think of them as referrals . Not at all. There has never been a better time to be a consumer. Technology is changing the options that consumers have and how they can shop. And there are choices. Our focus is on commerce. What were good at is connecting a buyer and seller to do a transaction safely and reliably. That is our peace of the pie and it is a growing piece of the pie. It is growing to a 10 trillion market. We think theres plenty of opportunity for us to be successful and others as well. Were going to talk more about payment after this break. The ceo of ebay we will hear more about him and a few moments. Theyre working on delivery by drone, but ebay can already get you your packages in just one hour. That is something that amazon does not offer. That is next on bloomberg west. Welcome back. We are inside ebay. We are broadcasting live from ebays headquarters in san jose. I am emily chang. In the world of sameday delivery, time is money. Ebay has an advantage over its competition. They promise sameday delivery at one hour. That is something amazon and google do not offer. We will tag along with a courier a bit later in the show. I want to talk to john donahoe, the ceo of ebay. I am waiting for my gloves. She was very polite and she told me her progress. I know that she is en route and she has found my gloves. Lets talk about ebay right now. Can you give me any numbers . Were not publishing any numbers. But we have done as we have partnered with retailers. When you have a situation and you want something, like today you do not want to wait until this afternoon to pick them up. You want them now. As you saw, you go on ebay and you order the gloves. The courier will have them within an hour. Why not tell us more about how it is working . When i downloaded the app, there were only a few reviews. We are building the consumer experience. When you build a new experience, you have to get it right. The consumers who are using it like it a lot. It is evidence that we think it is successful. It has expanded from one market to three, then three to five. We just bought another company that will help us expand across the u. S. Amazon made a lot of headlines talking about delivery by drone. They are working on that. Are you going to show me one . Were not working on long term fantasies. Were working on things that will change the experience today. You think it is a longterm fantasy . We will see. Other companies are also looking at delivery. Do you think that how do you have an edge on that . We have active consumers that come to ebay intending to shop. We have paypal, which makes payment easy and safe. We start with an enormous advantage of an ecosystem and a willingness to partner with retailers. Not compete. There will be a lot of people trying different innovations. Our focus is on delivering a great experience to consumers, both here in the u. S. And around the world. Speaking of drones and googles moon shots, do you think that is important . Should you have that mentality to work on or think about far reaching ideas . I think bold innovation is important. Our focus is on commerce. I think that that is a bold innovation. I would call that a bold innovation. Five years ago, what we were doing and mobile was considered bold. Today, we will do 20 billion in mobile payments volume. By having those moon shots, they can grow to be important. Paypal is now 42 of the revenue that you bring in . When does it become the majority . It is only a couple years out. What is great about paypal is that it serves the entire market. What it is doing is making payments safe and easy. We have always done that online. We are the clear leader in online payments. Were now the clearly are in mobile payments. The reality is that people like to shop. No one wants to pay. Paypal is making it easy to shop and make the payment just a frictionless experience. You also made a big acquisition. What is the strategy for next year going to be . Small acquisitions or bigger that . This is a great example. Braintree you think about buying. They are sharing mobile business models. We will continue to grow in those. We bring the same principles to the offline world. Beacon will allow i walked in with my mobile phone. I do not carry a wallet anymore. It recognizes that i walked into the starbucks. When i got the front of the line, they have my name and picture on the Cash Register and said, would you like the usual . When i bought it, she pressed click and i got a text on my phone. We will talk with david marcus, the president of paypal later. Alibaba just made a huge sales on a single day. How do you get in on that action . We have a Small Business in china. We enable sellers to reach consumers all over the world. This year, we will do 6 billion of volume. We can reach consumers all over the world. We have a strong presence in china. It is a crossborder presence. We will continue to look at that. It is the early days. I want to ask you about leaning in. Sheryl sandberg wrote about you. You have been vocal about how you and your wife have balanced work and family. You have done a lot to try to elevate women here at ebay. Any advice for working dads on how they can help women . In my case, my marriage is a partnership. You could argue that my wife is my boss. We worked hard to balance dual careers and raise a family. For me, this issue is one of competing and winning. If we are going to be successful, we have to have the best people. By definition, half of the people in the world are women. We have to have the best women and men to have a diverse team to lead to the best possible decisions. I think it is a matter of Good Business and that extends back to the family. It is also a matter of being a good husband. That is good to hear. The ceo of ebay, thank you so much for joining us and thank you for having us. When Top Tech Companies try to attract new talent, free perks are often a way to persuade potential workers. The culture at ebay may have some asking where all that free stuff is. Jon erlichman has been checking this place out. Lets take a look. Among the many interesting things you will find, pez dispensers. The founders wife was a pez dispenser collector. That played a role in the creation of the company. I am partial to chewbacca. Welcome back. We are inside ebay. I am emily chang. Were with jon erlichman. Guess what . We have good news. My gloves have arrived. My fingers can be warm. Thank you for keeping me so well updated. They look good. This is what i got. Arent they cute . In one hour, that is pretty good. It is really great to meet you. Thank you. I am excited. Ebay and john donahoe said this they are exploring new areas. They need people to make this happen. We wanted to find out about the culture of this place. What goes into the hiring process . What kind of perks do they have and is that important . Here is more on that story. From the free gourmet meals at facebook to the pingpong tables at google, Silicon Valley is known for offering perks. Ebay takes a different approach. We have a variety of perks, but that is not the way that we ask people to join our company. There is a free gym and Shuttle Service from San Francisco to san jose, but employees pay for food and massages. The perk is working for our work company. People come and they believe in our purpose. That purpose, to enable Global Commerce by 2015. Ebay is adding to its army of technology to Customer Support staff. Already more than 31,000 strong. New hires come from an intern program. There were 800 interns this year. They may not care so much about the freebies. They care about the impact. They care about the impact that the Company Makes around the world. And by recruiting from 300 schools globally, they also get a feel for how the next generation will use the brand. When you ask people what they think of with ebay, what do they often say . What is interesting is that ebay has changed so much. Not everyone realizes that. Sometimes they think were an auction company. They are hiring 500 new grads this year. The business is growing faster. We are a Technology Company that works off of a platform. The intention is to be able to grow the business without having to grow the number of employees at the same rate. There is a little bit of insight into how it all works behind the scenes. Good to hear. Markets are coming up and we will be with him in the new gloves. More next. Welcome back. We are inside ebay and we areow. Jon erlichman is here to tell us what it is all about. They build these elaborate sets in hollywood to try to re create what happens in real life. Ebay is doing the same thing to test out their technology. They need to explain how this whole world of commerce is changing. Here is more on that story. This looks like a shopping mall. This is where the Honey Mustard is. It is not a store at all. It is a fake storefront staffed by actors to demonstrate the future of shopping. This is our technology playground. It gives us a chance to showcase what is on the market. He is the chief product officer. It is his job to push paypal into brick and mortar retail. You look at what ecommerce retailers for able to do for online shoppers. They made a custom storefront. None of that existed today. That means that everything from replacing Cash Registers to figuring out how to make shoppers comfortable. There also partnering with brands. This is interactive glass. We turn a storefront into an interactive store. You walk up, you touch the glass, you select the product. Put that in your mobile phone. It is really easy. Last quarter, paypal use moved 600,000 every second. The revenue was 12. 6 billion. We have moved money from consumers to merchants. We take a small transaction fee. The mobile payments crowded the field. Companies compete for the action. We have active consumers who use the paypal wallet to shop. That is a meaningful advantage. We have her relationship with the consumer that goes beyond just sixteen numbers. For a place where there is technically no shopping, it is pretty busy here. There are a couple of partners per day. That is the best acquisition that they ever made. I went to head out to cory johnson, who is standing by with the paypal president , david marcus. This paypal business is fascinating. It is growing like a weed. The building that we are in was once mostly ebay. About 10 years ago but no more. David marcus is the president of paypal. How many employees are paypal versus ebay . There are two campuses. This is the paypal campus. The other is the ebay marketplace. How many people work for paypal . About 13,000. Is growing on a revenue basis. What is it that you think has changed about paypal . When ebay acquired paypal, it was losing hundreds of millions of dollars per year. It was a competitive purchase. Now, as a standalone business, it is doing quite well and growing at double digits. Ecommerce is growing. More people are buying on mobile. Paying on mobile. During the shopping season, this year, both black friday and cyber monday over 90 more consumers used paypal to buy things than last year. Those were numbers that i could not believe. 91 more sales on thanksgiving. 99 more on black friday. That is incredible growth. Why is that happening now . What are you learning about this years shopping . People do not want to be in busy stores. They prefer to buy online and on mobile. Especially mobile. It is growing like crazy. Because your growth is so great, can you see the results of what is going on . Or is your growth just too big to see . We can see it. In europe this year, we saw that the economy was slowing down. We had to compensate. The team really fights when those things happen to try to compensate for the macro. We try to compensate by being more aggressive and getting more merchants and doing more promotions. We are their share of checkout volume. When we have macro events, the team tries to compensate. In the u. S. , your growth is hard to see at a macro level. What are you seeing on the economic environment . This quarter was slow to start. If you look at the Holiday Shopping season, it was pushed late. Other than that, things are looking better and better. You have done so many acquisitions. Talk to me about beacon. We were just talking about this. How do you describe it . We want to change how people shop. People love shopping. They hate paying. Is that because they are cheap . Everybody is like that. We want to remove the friction and make a completely invisible to pay. With beacon, we did that. You can go into a coffee shop, like you did, and you just walk in. Your phone vibrates, so you know you are checked in. Your photo appears on the point ofsale system and you pay completely hands free. You do not have to go to another Cash Register . We have pointofsale systems that check in. It enables any retail store or co