Our next question comes from Mark Mahaney with Citigroup.

Mark Mahaney – Citigroup

John, I wanted to ask you a question about the timing or the speed at which you think it’s optimal to try to remove sub-par sellers off the network. Are there still levers you have there to accelerate that? And how do you balance not trying to be too disruptive to the seller community with trying to limit the length of duration in which buyers on the site can still have sub-par experiences? Thank you.

John J. Donahoe

Thanks Mark, that’s a great question and one that we spend literally hours each day on. Here’s how we are trying to do it -- the first thing is we are not assessing sub-par sellers. We’re letting our buyers do it and so these detailed seller ratings where buyers are rating our sellers, that’s the foundation we are using and so I think that’s a very important principle here, where we are creating a marketplace that allows transparency. And as I mentioned earlier, what’s interesting is when you lay out our highest rated sellers -- that is sellers that have 4.8 and above and then look at sellers 4.6 to 8, 4.4 to 6, 4.4 and below, you see growth rates now increasingly very consistent with those where buyers are increasingly buying from the highest rated sellers and buying less -- in fact, they have stopped buying from lower rated sellers. And so that tells us the eBay marketplace is getting safer.

Now, I think some would say we should be moving faster and even more aggressively on that. I think our sellers would say we are probably moving too fast and too aggressive. We are trying to strike that balance where a long-term seller has the opportunity to improve their service on eBay and improve their ratings from buyers, but we see clear evidence that the site today is safer and easier to use than it was six months ago. You know, we put these changes in, in March -- it’s safer today. Buyers are telling us that in their qualitative data and what’s yet to happen is have that convert into more purchases.

Mark Rowen

Next question please.

Operator

Our next question comes from Brian Pitz with Banc of America Securities.

Brian Pitz - Banc of America Securities

Thanks. Would you discuss where you expect the take rates for marketplace to go? Do you expect to be really just more than a modest impact at this point? And any color you can give us on expected exchange rates that are baked into your guidance? Thanks.

John J. Donahoe

Let me take the take rate point and then Bob will take the exchange rate. Our goal with our pricing changes this year was to modestly reduce our take rate. We are obviously significantly rebalancing our fees to reduce the up-front fees and put more -- align our success with that of our sellers and the net effect of what we expect in a conversion neutral environment is the take rate will come down modestly over time. We’ve also gone to category-based pricing because margins for sellers differ significantly by category. So conversion impacted on the short-term but the general direction we are trying to do is to ensure that our marketplace is the most competitive marketplace for sellers to sell on.

Robert H. Swan

Just one other observation on that, Brian, is in the quarter, our take rate actually went up, which is a function of modestly lower take rates but also the mix of our business. So our highest take rate business, Stub Hub, continues to demonstrate great growth and our lowest take rate business, Vehicles, has really been suffering by the overall economic environment. So those are two kinds of degradations about the overall take rate that’s reflected in Q3’s results.

In terms of exchange rates, I would -- we try to stay away from giving specific rates but what I would say is 90 days ago when we spoke to you and we were looking at a Euro that was about $1.58 to the dollar and a pound that was about $1.98 to the dollar. And today, reflected in our guidance for the rest of the year, it’s closer to a spot rate that’s about $1.36, $1.37 and a pound that’s about $1.78 to $1.77 to the dollar, so what’s transpired over the course of the last three months is about a 10% strengthening of the dollar and that will impact our revenues from the last time we spoke to you by about $200 million bucks.

Mark Rowen

Next question please.

Operator