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San Francisco Chronicle: The eBay logic

Verne Kopytoff reports on the eBay phenomenon.

The company’s only responsibilities are to maintain what is essentially a souped-up classified ad service and ensure that there are plenty of users. As a result, EBay enjoys an operating profit margin of 84 percent, one of the best in the Internet industry. In contrast, Amazon.com’s profit margin is 25 percent.

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