Introduction
The eBay Inc. is an American Internet company that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell goods and services worldwide. In addition to its original U.S. website, eBay has established localized websites in several other countries.
eBay Inc’s objective of site is to provide the following:
According to eBay's mission statement, "eBay's mission is to provide a global trading platform where practically anyone can trade practically anything."
· A place to buy. To purchase nearly anything consumer need or want at prices better than they can find in traditional brick-and-mortar or even online stores.
· A place to sell. For sellers to sell almost anything and with its global reach, it can provide unusual items as well.
· A place to shop. Because of the immense variety of things that can be found for sale on eBay, it allows consumer to window or comparison shop, as well as gives you insight into the real market value or "street value" of most types of goods around the world.
· A place to collect. eBay is the world's largest marketplace for rare, discontinued, collectible, or hard-to-find items, no matter what the type or price.
· A website. eBay's service exists entirely online, and all aspects of business other than the delivery of bought and sold items themselves are typically handled through the eBay website.
· Free for buyers and inexpensive for sellers. It costs nothing to become an eBay member, to shop for goods, or to purchase goods from eBay sellers. Sellers pay a minimal amount to list items for sale, and another small percentage of the value when an item is sold. There are no monthly fees or other hidden costs.
· Green. eBay is has proven to be a boon to the environment. Millions of tons of goods that would otherwise go into landfills or more resource-intensive recycling programs instead find new homes every year thanks to eBay. Eg. consumer electronics items like computer parts and mobile phones that release toxic substances once they're discarded and exposed to the environment.
· Socially responsible. With eBay eliminating middlemen and lowers barriers to buying and selling, potters in rural Mexico and bead weavers in central Asia can sell hand-made goods directly and inexpensively to a massive global audience. This brings new economic opportunities to developing areas and increases cultural understanding between populations. eBay has become one of the world's most interesting and exciting trans-national ambassadors.
· A safe environment to shop eBay's site includes a selection of tools like the feedback system that are designed to help you to remain safe as an eBay member.
According to eBay's mission statement, "eBay's mission is to provide a global trading platform where practically anyone can trade practically anything."
· A place to buy. To purchase nearly anything consumer need or want at prices better than they can find in traditional brick-and-mortar or even online stores.
· A place to sell. For sellers to sell almost anything and with its global reach, it can provide unusual items as well.
· A place to shop. Because of the immense variety of things that can be found for sale on eBay, it allows consumer to window or comparison shop, as well as gives you insight into the real market value or "street value" of most types of goods around the world.
· A place to collect. eBay is the world's largest marketplace for rare, discontinued, collectible, or hard-to-find items, no matter what the type or price.
· A website. eBay's service exists entirely online, and all aspects of business other than the delivery of bought and sold items themselves are typically handled through the eBay website.
· Free for buyers and inexpensive for sellers. It costs nothing to become an eBay member, to shop for goods, or to purchase goods from eBay sellers. Sellers pay a minimal amount to list items for sale, and another small percentage of the value when an item is sold. There are no monthly fees or other hidden costs.
· Green. eBay is has proven to be a boon to the environment. Millions of tons of goods that would otherwise go into landfills or more resource-intensive recycling programs instead find new homes every year thanks to eBay. Eg. consumer electronics items like computer parts and mobile phones that release toxic substances once they're discarded and exposed to the environment.
· Socially responsible. With eBay eliminating middlemen and lowers barriers to buying and selling, potters in rural Mexico and bead weavers in central Asia can sell hand-made goods directly and inexpensively to a massive global audience. This brings new economic opportunities to developing areas and increases cultural understanding between populations. eBay has become one of the world's most interesting and exciting trans-national ambassadors.
· A safe environment to shop eBay's site includes a selection of tools like the feedback system that are designed to help you to remain safe as an eBay member.
Ebay’s other businesses to provide the company with better services.
PayPal (acquired by eBay Inc.) A global leader in online payment solutions that, enables any individual or business with an email address to securely, easily and quickly send and receive payments online. PayPal's service builds on the existing financial infrastructure of bank accounts and credit cards and uses the world's most advanced proprietary fraud prevention systems to create a safe payment solution.
Skype The world’s fastest-growing Internet communication offering, allowing people everywhere to make unlimited voice and video communication for free between the users of Skype software.
Shopping.com Shopping.com pioneered online comparison shopping and is one of the fastest growing shopping destinations on the Internet. With millions of products, thousands of merchants and millions of reviews from the Epinions community, Shopping.com empowers consumers to make informed choices and, as a result, drives value for merchants.
Rent.com Provides extensive information about apartments, including availability, rental rates, virtual tours, roommate searches, and links to moving resources.
Online Classifieds Designed to help people meet, share ideas and trade on a local level, eBay Inc. online classifieds websites are available in hundreds of cities and regions around the world.
Online Classifieds Designed to help people meet, share ideas and trade on a local level, eBay Inc. online classifieds websites are available in hundreds of cities and regions around the world.
Business Model
eBay.com uses online auction business model, one in which participants bid for products and services over the Internet. The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved.
Like most auction companies, eBay does not actually sell goods that it owns itself. It merely facilitates the process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for individuals and businesses who use the site to auction off goods and services.
eBay.com uses online auction business model, one in which participants bid for products and services over the Internet. The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved.
Like most auction companies, eBay does not actually sell goods that it owns itself. It merely facilitates the process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for individuals and businesses who use the site to auction off goods and services.
Globalisation and the reach of the internet have allowed the auction business model to extend beyond its traditional realm of the trade in goods into the area of service provision.
Weaknesses of eBay
As an auction site it is still exposed to a reputation as a place for criminals to unload stolen, diverted and counterfeit products. Stolen goods are so rampant that major law enforcement organizations now use such websites to catch criminals and recoup stolen goods. However, eBay do have tighten security to prevent such happenings, but we cannot be certain totally as well.
As an auction site it is still exposed to a reputation as a place for criminals to unload stolen, diverted and counterfeit products. Stolen goods are so rampant that major law enforcement organizations now use such websites to catch criminals and recoup stolen goods. However, eBay do have tighten security to prevent such happenings, but we cannot be certain totally as well.
Strengths of eBay
-No time constraints. Bids can be placed at any time (24/7). Items are listed for a number of days (usually between 1 and 10, at the discretion of the seller), giving purchasers time to search, decide, and bid. This convenience increases the number of bidders.
-No geographical constraints. Sellers and bidders can participate from anywhere that has internet access, maiking them more accessible and it reduces the cost of "attending" an auction. This increases the number of listed items (ie.: number of sellers) and the number of bids for each item (ie.: number of bidders). The items do not need to be shipped to a central location, reducing costs, and reducing the seller's minimum acceptable price.
-Intensity of social interactions. The social interactions involved in the bidding process are very similar to gambling. The bidders wait in anticipation hoping they will "win" (eBay calls the successful bidder the "winner"). Much like gambling addiction, some bidders may bid primarily to "play the game" rather than to obtain products or services. This creates a highly loyal customer segment for eBay.
-Large number of bidders. Because of the potential for a relatively low price, the broad scope of products and services available, the ease of access, and the social benefits of the auction process, there are a large numbers of bidders.
-Large number of sellers. Because of the large number of bidders, the potential for a relatively high price, reduced selling costs, and ease of access, there are a large number of sellers.
-Network economies. The large number of bidders will encourage more sellers, which, in turn, will encourage more bidders, which will encourage more sellers, etc., in a virtuous circle. The more the circle operates, the larger the system becomes, and the more valuable the business model becomes for all participants.
-Captures consumers' surplus. Auctions are a form of first degree price discrimination. As such, they attempt to convert part of the consumers' surplus (defined as the area above the market price line but below the firm's demand curve) into producers' surplus. On-line auctions are efficient enough forms of price discrimination that they are able to do this
Payment Methods
How you pay for an item depends on the payment methods accepted by the seller. Basically the various payment methods are paypal, credit card, personal checks, cashiers checks or money orders.
Paypal
Ebay’s endorsement and facilitation of Billpoint as a standard means of payment for its users is likely to attract a large number of buyers and sellers who are tired of the time-consuming practice of sending and receiving money orders. The “viral” aspect of this approach is that users of the Billpoint increase exponentially because buyers must register for the service to pay sellers who use the system. The same type of viral tactics is used by systems such as Paypal. Unless users register for this system and provide personal information they may not want to reveal, they can’t paid by the system.
Credit card
While merchants and financial institutions prepare to adapt to a market in which they may need to support a number of payment schemes, the credit card issues are pushing toward a method of payment that will reduce the financial burden of fraud on merchants and on consumers while keeping online purchases card- based.
Personal checks, cashiers checks or money orders.
Another alternative method of paying is through personal checks, cashiers checks or money orders. By using this method, payment is traceable to a particular mailing address and provides a proof of payment. In addition, most banks offer a stop payment service if problems arise before the cash is cashed. Some money orders services may have the option to stop payment if problems arise before the payment is cashed. However, there are some disadvantages to this method too. Firstly, sellers must wait for funds to clear and payment is extremely difficult to recover in cases of fraud.
Layout
With a distinctive colour of yellow, the layout of ebay is generally simple and user- friendly. At the homepage, you can find the search engine. This can help navigator saves time by narrowing their search to specified key words. In addition, upon entering the homepage, there is a log in icon by immediately logging in of account for frequent customers.
Even though ebay have numerous product in their database, they have sub divided the products into, for example, Greek antiques, Roman antiques etc. By narrowing the specifications of their product, consumers can save a lot of
time in finding the product they want.
How you pay for an item depends on the payment methods accepted by the seller. Basically the various payment methods are paypal, credit card, personal checks, cashiers checks or money orders.
Paypal
Ebay’s endorsement and facilitation of Billpoint as a standard means of payment for its users is likely to attract a large number of buyers and sellers who are tired of the time-consuming practice of sending and receiving money orders. The “viral” aspect of this approach is that users of the Billpoint increase exponentially because buyers must register for the service to pay sellers who use the system. The same type of viral tactics is used by systems such as Paypal. Unless users register for this system and provide personal information they may not want to reveal, they can’t paid by the system.
Credit card
While merchants and financial institutions prepare to adapt to a market in which they may need to support a number of payment schemes, the credit card issues are pushing toward a method of payment that will reduce the financial burden of fraud on merchants and on consumers while keeping online purchases card- based.
Personal checks, cashiers checks or money orders.
Another alternative method of paying is through personal checks, cashiers checks or money orders. By using this method, payment is traceable to a particular mailing address and provides a proof of payment. In addition, most banks offer a stop payment service if problems arise before the cash is cashed. Some money orders services may have the option to stop payment if problems arise before the payment is cashed. However, there are some disadvantages to this method too. Firstly, sellers must wait for funds to clear and payment is extremely difficult to recover in cases of fraud.
Layout
With a distinctive colour of yellow, the layout of ebay is generally simple and user- friendly. At the homepage, you can find the search engine. This can help navigator saves time by narrowing their search to specified key words. In addition, upon entering the homepage, there is a log in icon by immediately logging in of account for frequent customers.
Even though ebay have numerous product in their database, they have sub divided the products into, for example, Greek antiques, Roman antiques etc. By narrowing the specifications of their product, consumers can save a lot of
time in finding the product they want.
Ebay have also provided “help corner” to guide navigators in better understanding of ebay. When you choose particular categories, ebay not only displayed the picture in clear view, it also provides clear explanation on the product.
In addition, ebay also have special feature like “sneak peak”. “Sneak peak” is a place whereby navigators can have a look, try new things out, hear from the folks at ebay behind the changes. It also allows navigators to give suggestion or feedback as to how to make ebay a better website for all.
