The firm offers an automated, well organized website that gives the customers easy time when transacting businesses online. Those selling items are able to display their goods and every detail including prices on the site. Auctioneers have found it easier to use e-Bay since it helps them perform every step involved during auction as well as providing completed transaction to both the seller and the bidder. The company offer buyers free browsing time, this provides cheap channel for buyers to access high quality goods while on the other hand sellers are able to access large market with rich customer base (Tang 371- 376; Feng et al 467-503). The company has protected its customers from fraudulent activities that may occur in the process business transactions.
It provides its clients with insurance for the first $200 of every transaction performed through its site. They give the customers opportunity to socialize freely using their site. They offer clients the opportunity to choose one station where to list their inventories (Tang 371- 374)
The e-Bay company entered into partnership with several other companies which formed the basis of its expansion (Tang 371).
The company is currently involved with products that have ready market. There is also involvement in vertical channels that sees the company sell automobiles and other industrial goods boosting the company’s revenue. The company partners with outside vendors to offer to clients additional assistance services. The firm offers education to its users and this help in improving the customer’s proficiency in online activities. The company has created several sub sites that helps in the sale of some goods like used cars, Kelley Blue Books helps the firm in advertising prices and information regarding commodities on sale (Tang 376-377). The firm has adopted the use of non-auction methods to sell off products. It also created the program that enables buyers to win auctions as fast as possible. The firm uses a strong brand name which has been one of the driving forces behind their success.
They use the brand name to attract new customers through partnership and advertisement in the internet. It partnered with American Online which led to co-branding of the auction sites; this gave eBay a good base to market its products. It also incorporated its activities in MSN through partnership with Microsoft Corporation. The firm has further partnered with several service providers to offer enough space and good inventory management for the big businesses to channel their products (Tang 377). The company acquired PayPal to help in improving the level of the non-auction services. This offers the clients maximum security and efficiency on their transactions.
The firm uses public relations effectively and uses it to provide stories to its customers. It offers its services to United States where it operates local sites in the regional markets.
The local sites enable the users to locate products that are sold within their reach; this is more eminent in Los Angeles, Honolulu, Oklahoma and Miami all in the United States. The American Online digital City enables the customers of e-Bay to access city guide services and Newspapers all over the region (Tang 376). The firm has expanded its services to twenty seven countries, these include; United States, Brazil, Canada, Argentina, Chile, Columbia, Ecuador, Mexico, Uruguay, Venezuela, Austria, European countries, Australia and some countries from the far East. In some countries like Germany it offers services on acquisition of online auction houses. It offers customers wholesale markets, developed retail options and structural efficiencies (Tang 388). The firm offers sellers free listing services and heavy sales promotion in Japan.
The firm’s stores have been used by big companies as preferred channel to sell their products. The state governments also find it convenient to auction their vehicles through e-Bay (Tang 376-377).
Feng, Froud, Johal, Haslam and Williams.
“A New Business Model? The Capital Market and the New Economy”. Economy and Society, Vol. 30, No. 4, 2001: 467-503 Tang, Scott, e-Bay: growing the World’s largest online Trading Community. United States.