EBAY

EBAY:
THE WORLD’S LARGEST AUCTION SITE
case study analysis
MKT460
E-Commerce and Marketing
2017_2018
66939-28956000
University of bahrain
Collage of Business Administration
Department of Management and Marketing
By:
Sara Jaffar Sedaif20155412
Section: 01
Instructor’s name:
Dr. Waleed A. Aziz
1635661752601. What is eBay’s business model?
001. What is eBay’s business model?

9308199060A business model is the company’s way to deal with its target customer and how it will deliver them its message to generate revenues and make profits. It explains how the company plan to make money through making a business plan to consider what products or services it will provide in the marketplace. There are many different types of business models like click and mortar, brick and mortar, direct sales and many others.

eBay started with a business model that provides infrastructure for conducting C2C, B2C and B2B auctions electronically. people can sell and buy whatever they want over the internet. eBay generates its revenues through a posting fee up front, a commission that is a percentage of the final sale amount. eBay decide on the posting fee based on the amount of exposure the seller wants the item to receive. If the seller would like the item to be among the featured auctions in a specific product category the fee will be higher and even higher fee if the seller wants the item to be listed on the homepage under featured items. Moreover, eBay provides the seller with the option to publish the auction in a boldface font but for an additional charge.

Therefore, eBay’s business model is pure play as it is practicing all its operations through the internet. eBay has developed and creates many sites that are specialized in different fields like eBay Motors to enable users to easily find the items they want. After few years, eBay started a new way to deal with its customers by doing e-tailing at fixed prices. It also created a special feature which is eBay stores that are rented to individuals and companies to be used in selling from catalogues or conduct auctions. Then, it introduced the eBay Business Marketplace that combined all business-related listing in one place to make it easier for the small businesses to find their needs. It launched eBay Express which enables instant purchasing using a shopping cart to buy multiple items at the prices set by the sellers. Plus, it creates eBay AdContext and eBay Community Wiki to best serve its customers and make higher profits.

00A business model is the company’s way to deal with its target customer and how it will deliver them its message to generate revenues and make profits. It explains how the company plan to make money through making a business plan to consider what products or services it will provide in the marketplace. There are many different types of business models like click and mortar, brick and mortar, direct sales and many others.

eBay started with a business model that provides infrastructure for conducting C2C, B2C and B2B auctions electronically. people can sell and buy whatever they want over the internet. eBay generates its revenues through a posting fee up front, a commission that is a percentage of the final sale amount. eBay decide on the posting fee based on the amount of exposure the seller wants the item to receive. If the seller would like the item to be among the featured auctions in a specific product category the fee will be higher and even higher fee if the seller wants the item to be listed on the homepage under featured items. Moreover, eBay provides the seller with the option to publish the auction in a boldface font but for an additional charge.

Therefore, eBay’s business model is pure play as it is practicing all its operations through the internet. eBay has developed and creates many sites that are specialized in different fields like eBay Motors to enable users to easily find the items they want. After few years, eBay started a new way to deal with its customers by doing e-tailing at fixed prices. It also created a special feature which is eBay stores that are rented to individuals and companies to be used in selling from catalogues or conduct auctions. Then, it introduced the eBay Business Marketplace that combined all business-related listing in one place to make it easier for the small businesses to find their needs. It launched eBay Express which enables instant purchasing using a shopping cart to buy multiple items at the prices set by the sellers. Plus, it creates eBay AdContext and eBay Community Wiki to best serve its customers and make higher profits.

1813462165352. Why is the business successful?
002. Why is the business successful?

1045117620eBay’s success is attributed to its unique business plan in allowing individuals or businesses to list new or used items for auctions for a very low fee. eBay is developing year by year and discovering new ways to cope with the changes in the environment and to satisfy its customers. It also succeeded in executing on new opportunities more effectively, and optimize revenues more rigorously. The simplicity of using the websites attracted a large number of users. As well as the wide range of the provided products which are categorized into groups to ease the process of searching and purchasing. The search engine suggests other products and users can filter them based on location, prices, conditions and so on.

eBay’s customer service is great due to its work in providing the customers with the ability to provide their opinions and feedbacks which created ongoing relationships with them. What is more, eBay keeps written or reliable electronic records of inventory, money spent on items for resale, and more. This makes eBay control its transactions and modify its business plan.

00eBay’s success is attributed to its unique business plan in allowing individuals or businesses to list new or used items for auctions for a very low fee. eBay is developing year by year and discovering new ways to cope with the changes in the environment and to satisfy its customers. It also succeeded in executing on new opportunities more effectively, and optimize revenues more rigorously. The simplicity of using the websites attracted a large number of users. As well as the wide range of the provided products which are categorized into groups to ease the process of searching and purchasing. The search engine suggests other products and users can filter them based on location, prices, conditions and so on.

eBay’s customer service is great due to its work in providing the customers with the ability to provide their opinions and feedbacks which created ongoing relationships with them. What is more, eBay keeps written or reliable electronic records of inventory, money spent on items for resale, and more. This makes eBay control its transactions and modify its business plan.

1076862133603. To what extent can eBay be responsible for nature
of the items offered for sale on its site?
003. To what extent can eBay be responsible for nature
of the items offered for sale on its site?

25878167760eBay is concentrating on providing the suitable products that convenient its customers and meet their needs. For this reason, eBay has specific rules and conditions on the type of items that can be sold on its website. Sellers should follow these rules which are regulated based on the country and state laws, otherwise, it will be removed by eBay’s team. It provides a list of the prohibited and restricted items like cell phone service contracts, cosmetics, credit cards. food and health care items, event tickets real estate and many other items. eBay is responsible to sue any sellers or bidders that are selling prohibited items. Also, they might be subjected to a range of other actions, including restrictions on the buyers’ and sellers’ accounts.

00eBay is concentrating on providing the suitable products that convenient its customers and meet their needs. For this reason, eBay has specific rules and conditions on the type of items that can be sold on its website. Sellers should follow these rules which are regulated based on the country and state laws, otherwise, it will be removed by eBay’s team. It provides a list of the prohibited and restricted items like cell phone service contracts, cosmetics, credit cards. food and health care items, event tickets real estate and many other items. eBay is responsible to sue any sellers or bidders that are selling prohibited items. Also, they might be subjected to a range of other actions, including restrictions on the buyers’ and sellers’ accounts.

1407062165354. What is the purpose of the local sites?
004. What is the purpose of the local sites?

5175846990Websites are those online portals that facilitate online transactions of goods and services through the transformation of information and funds over the internet. There are many different types of websites like retail selling website which is the most common one, business to business services, consultancy websites and many others. With the advancement of the technology, people are turning to the web for various purposes. The internet is not limited to searching for information or connecting with people, but it is a platform where products and services can be sold and purchased.

All the business companies are looking for a wide range of audience, creating a local website will enable them to reach broader targeted customers and by this, its sales and revenues will increase.

Buyers are not restricted to specific working hours as online websites are available 24/7. Which will give the customers the chance to purchase whenever they want and wherever they are.

Setting up an e-commerce store is easier than setting up a physical store as it is lower in cost because owners do not need to pay salaries for employees and the renting cost of the store. Also, it can be managed easily, and it is available to everyone.

Nowadays, people are searching for the easiest and fastest ways to purchase the desired products and services, creating a website will serve their demand and it creates a competitive edge over those who may still perform offline.

00Websites are those online portals that facilitate online transactions of goods and services through the transformation of information and funds over the internet. There are many different types of websites like retail selling website which is the most common one, business to business services, consultancy websites and many others. With the advancement of the technology, people are turning to the web for various purposes. The internet is not limited to searching for information or connecting with people, but it is a platform where products and services can be sold and purchased.

All the business companies are looking for a wide range of audience, creating a local website will enable them to reach broader targeted customers and by this, its sales and revenues will increase.

Buyers are not restricted to specific working hours as online websites are available 24/7. Which will give the customers the chance to purchase whenever they want and wherever they are.

Setting up an e-commerce store is easier than setting up a physical store as it is lower in cost because owners do not need to pay salaries for employees and the renting cost of the store. Also, it can be managed easily, and it is available to everyone.

Nowadays, people are searching for the easiest and fastest ways to purchase the desired products and services, creating a website will serve their demand and it creates a competitive edge over those who may still perform offline.

-112143189781The Report …

00The Report …

-3810075565eBay is an E-commerce business, that operates in many countries all over the world. It started in 1995 by providing the users with the ability to sell and buy anything over the internet. The business planned to communicate with its targeted customers in different ways and it is improving its strategy continuously. Sellers can conduct auctions with the amount of price they decide on and buyers will communicate them if they are interested in buying that product. eBay is the interface through which sellers and buyers can conduct business.

eBay uses multiple channels to undertakes its e-commerce transactions. Firstly, it collaborated with “Icollector.com” of the United Kingdom to auction fine art, and with “sothebys.com” the art auction house Sotheby’s. eBay and Sotheby’s promoted Sotheby’s live auctions through eBay’s live auctions technology due to the lack of profit. eBay conducted C2C, B2C and B2B auctions globally and has over 60 local sites in the United States ease the process for the users in finding the items located near them and to have the chance to meet the sellers face-to-face to conclude transactions. eBay uses a seller payment protection to ensure that all the users are safe, and all their transactions are secured and protected. For instant, eBay provides eBay Motors to categorize the items for small businesses. Then, it launched eBay stores which are rented to individuals and companies. What is more, eBay introduced eBay Business Marketplace to make the process easier for the users to find what suits them.

There are many benefits of practicing e-commerce. First, eBay is the best place to sellers who want to sell items at the price they agreed on. Second, eBay is performing all over the world and everyone trust conducting transactions over it due to its brand recognition. Third, practicing commerce over the internet helps people reach their targeted customers and maximize their profit as the website is available all the time. Finally, eBay provides buyer and sellers with a high protection level to provide them with the safety marketplace.

From the other hands, there are some drawbacks faced by eBay. The eBay management team are hiring non-technical executives from outside the internet industry, following a theory that those executives would bring new ideas and insights from other industries, which means that the hires ones are not well equipped to make decisions for an internet company. Moreover, it is difficult to ensure the security or privacy of online transactions which may prevent some
0eBay is an E-commerce business, that operates in many countries all over the world. It started in 1995 by providing the users with the ability to sell and buy anything over the internet. The business planned to communicate with its targeted customers in different ways and it is improving its strategy continuously. Sellers can conduct auctions with the amount of price they decide on and buyers will communicate them if they are interested in buying that product. eBay is the interface through which sellers and buyers can conduct business.

eBay uses multiple channels to undertakes its e-commerce transactions. Firstly, it collaborated with “Icollector.com” of the United Kingdom to auction fine art, and with “sothebys.com” the art auction house Sotheby’s. eBay and Sotheby’s promoted Sotheby’s live auctions through eBay’s live auctions technology due to the lack of profit. eBay conducted C2C, B2C and B2B auctions globally and has over 60 local sites in the United States ease the process for the users in finding the items located near them and to have the chance to meet the sellers face-to-face to conclude transactions. eBay uses a seller payment protection to ensure that all the users are safe, and all their transactions are secured and protected. For instant, eBay provides eBay Motors to categorize the items for small businesses. Then, it launched eBay stores which are rented to individuals and companies. What is more, eBay introduced eBay Business Marketplace to make the process easier for the users to find what suits them.

There are many benefits of practicing e-commerce. First, eBay is the best place to sellers who want to sell items at the price they agreed on. Second, eBay is performing all over the world and everyone trust conducting transactions over it due to its brand recognition. Third, practicing commerce over the internet helps people reach their targeted customers and maximize their profit as the website is available all the time. Finally, eBay provides buyer and sellers with a high protection level to provide them with the safety marketplace.

From the other hands, there are some drawbacks faced by eBay. The eBay management team are hiring non-technical executives from outside the internet industry, following a theory that those executives would bring new ideas and insights from other industries, which means that the hires ones are not well equipped to make decisions for an internet company. Moreover, it is difficult to ensure the security or privacy of online transactions which may prevent some

0133350potential customers from buying or selling through the internet. Also, some people are still restricted to offline selling and buying, and others find the process hard to conduct.

The outlook of eBay that it will diversify more and will provide products in new regions. In my opinion, eBay needs to develop its strategy focusing on creating physical stores in the Gulf countries with the online website, which will expand its customers and increase its revenues. Last but not least, performing in a new field like providing groceries will be a great idea to its future.

0potential customers from buying or selling through the internet. Also, some people are still restricted to offline selling and buying, and others find the process hard to conduct.

The outlook of eBay that it will diversify more and will provide products in new regions. In my opinion, eBay needs to develop its strategy focusing on creating physical stores in the Gulf countries with the online website, which will expand its customers and increase its revenues. Last but not least, performing in a new field like providing groceries will be a great idea to its future.