eBay Inc (NASDAQ:EBAY) often gets overlooked. And this should not be much of a surprise. After all, rival Amazon.com, Inc. (NASDAQ:AMZN) has been able to dominate the ecommerce business – as well as various other important categories, such as cloud services. To put things into perspective, AMZN has a market cap of $731 billion whereas eBay stock has a value of about $43 billion.

It’s almost as if the competition between the two is an unfair fight. AMZN has a massive ecosystem of warehouses, tremendous resources to pull off acquisitions (such as for Whole Foods and Ring), thousands of talented engineers and a powerful brand. Oh, and the Prime service is a big-time advantage.

Yet this does not mean eBay has no hope. If anything, the shares represent an opportunity to get exposure to ecommerce – at an attractive valuation.

So let’s take a deeper look:

Advantage #1 for eBay Stock: The Platform

Online marketplaces are extremely difficult to create. For the most part, there needs to be the right balance of sellers and buyers to make things work.

But once there is critical mass, the platform will benefit from the network effects. This is when the increase in users leads to more value for the network – which can be extremely difficult for competitors to challenge.

As for eBay, the company was one of the first-movers in ecommerce marketplaces back in the 1990s. Because of this, it was able to fend off operators like Yahoo! and AMZN.

Currently, eBay’s platform has 170 million buyers and 25 million active sellers.

Although, this is not the only marketplace for the company. Note that eBay’s StubHub is the largest player in ticketing in the U.S. During the latest quarter, the GMV (Gross Merchandise Volume) rose by 16% to $1.4 billion.

Advantage #2 for eBay Stock: Restructuring

Since becoming CEO of eBay in July 2015, Devin Wenig has wasted little time in making important changes to the business. For example, he has invested heavily in new technologies to improve the search capabilities, such as with machine learning, AI (Artificial Intelligence) and structured data.

The result is that the shopping experience has gotten much more streamlined.

Next, eBay has rolled out Guaranteed Delivery. This service guarantees delivery of a product within three days – and covers more than 20 million items. This is certainly a must-have as customers have come to expect faster shipments and convenience.

Interestingly enough, eBay has also announced it will be unwinding its strategic relationship with Paypal Holdings Inc (NASDAQ:PYPL). This process will take a couple years.

But it should be well worth it. According to analysts at Wells Fargo & Co (NYSE:WFC), there are several advantages:

• There will be a nice increase in margins.
• eBay will be able to adopt various payment methods, which will likely allow the company to get more traction in foreign markets.
• By having control over the payments system, eBay can make changes to the checkout pages. This could lead to improved conversions.

Advantage #3 for eBay Stock: Financials and Valuation

Marketplaces are often high margin. And this is certainly the case with eBay. During the past year, free cash flows came to a juicy $2.5 billion. In all, there is $11.3 billion in the bank.

With these capital resources, the company has been aggressive with buybacks of eBay stock. They came to about $2.7 billion last year.

Finally, the valuation on eBay stock is fairly reasonable. Consider that the forward price-to-earnings ratio is only about 16.5. This is definitely a good value for a company that has a standout marketplace and significant free cash flows.

What’s more, as brick-and-mortar retailers like Walmart Inc (NYSE:WMT) scramble to bolster their ecommerce platforms, eBay also looks like potential buyout bait.

Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.