eBay METRICS

Radio-Controlled Toys

Toys are big business on eBay, raking in nearly $1.4 billion annual sales worldwide.* The Toys & Hobbies category is the ninth largest on eBay. In the fourth quarter of 2004, radio-controlled toys was the third largest subcategory in the Toys & Hobbies category in the U.S.

other

trucks ^7% 19%

tanks

1%

aircraft 29%

boats 4%

cars

40%

MARKE TSHARE: Cars and trucks make up nearly three-fifths of the RC toy market on eBay in Q4 2004.

PERCENTAGE GROWTH RATE BY WEEK

120

100

80

60

40

October November December 2004

This graph shows the percentage growth rate in successful listings week-over-week for RC Toys in the fourth quarter (scale shows highest week equals 100.) Note the obvious build-up toward Christmas. 72% of the listings are auctions; 58% of them succeed. 15% of the items are listed at a fixed price and 40% succeed. RC aircraft accounts for nearly a third of the sales with four airplanes listed for every helicopter. 66% of helicopter listings succeed compared to 60% for airplanes.

TAKING OFF: The Raptor 30 V2 Gas/Nitro is the most popular RC helicopter. Made by Thunder Tiger, it is approximately 4 feet long and can cost as much as $3,500 fully equipped.

The most expensive item in the RC Toys subcategory was a $14,000 helicopter that was specially equipped for aerial photography. It did not sell.

airplanes helicopters ^10% 13%

PROFILE: RAPTOR 30

cars 37%

trucks 40%

AVERAGE UNIT PRICE TRUCKS $168 HELICOPTERS $165 CARS $102 PLANES $63

RAPTOR 30 OCTOBER AVG PRICE $447 LOW/HIGH PRICE $150/$1, 275 TOTAL LISTINGS 91 SUCCESS RATE 76%

NOVEMBER $513

$178/$1,325 114 64%

DECEMBER $529

$150/$1,500 121 72%

SALES FOR ASSEMBLED UNITS Listings include parts and supplies as well as kits and completely assembled units. Separating listings for “assembled” units provides a more accurate reading of prices. This chart shows the percentage of sales for assembled units by type. Helicopter listings were up in December to 2, 287 from and average of 945 for the two months previous. On average, 3,744 airplanes were listed each month in Q4.

This table shows the price and availability of Raptor 30 units and accessories over a three-month period. Note that required components such as transmitters and gyros may not be included with the item. One seller who spent $1, 500 on his Raptor 30 and its equipment said, “I don’t have the time to fly, so my loss is your HUGE gain!”

Source: Marketplace research by terapeak.com.

Thank you to Chris Smith of Terapeak for assistance.

*eBay Q4 Financial Report

Make: 191