Q1: eBay is
one of the only major Internet "pure plays" to consistently
make a profit from its inception. What is eBay's business model? Why has it been so
successful?
The company eBay Inc. is an
American multinational corporation; headquartered in San Jose, California
whose business model is CONSUMER TO CONNSUMER. The company manages eBay.com, an online
auction and shopping website in which people and businesses buy and sell a
broad variety of goods and services worldwide. The latest
earnings figures for eBay are, as usual, good and getting better. Even
more impressive is the fact that eBay's share price has resolutely defied the dotcom
downturn. Such an across-the-board success cries out for an explanation.
Reasons of eBay’s success IS eBay has always fed off the enthusiasms - some
would say obsessions - of its users, further reason eBay is so successful is
because it offers something quite amazing.
Apart from its grand success
in auction business, it has also outwitted all the other competitor sites
in terms of its consistent rise in revenue generation from the business. It
stands as the only website that solely deals in auctions and in this way makes
the best out of its enterprise. Below is the list of 10 key reasons of eBay’s
success.
·
One:
Commitment
·
Two:
Sufficient Start-up Funding, Well Spent
·
Three:
Effective, Persistent Marketing and PR
·
Four:
Find Great Stuff to Sell
·
Five:
Never Sell Junk
·
Six:
Give Great Customer Service
·
Seven:
Create an Efficient, Pleasant Facility
·
Eight:
Create Polished Listings & Photos
·
Nine:
Pay Attention to the Details
·
Ten:
Do Good Recordkeeping
Q2: Other major web sites, like Amazon.com
and Yahoo!, have entered the auction marketplace with far less success than
eBay. How has eBay been able to maintain its dominant position?
eBay’s popularity and ability to reach a large
numbers of consumers anytime, day or night, places it far above other major web
sites, like Amazon.com and Yahoo! Internet businesses require a URL that is
easy to remember, a shopping cart so that customers can select items and
continue shopping on your site and a service that allows them to accept credit
card for instance PayPal or other account companies. eBay has been able to
maintain its dominant position on online auction. The Amazon sells products by
itself but eBay does not sell goods by itself. The seller registers and sells
through eBay. Everyone can sell and buy on the eBay, it is more freedom. It delivers good service at lower price, it
offers free to bid and has its own safe payment method which provides security
to its customers. eBay ticks all of these boxes and continues to lead its
competitor market with new innovations and thus remains atop of the online
auction marketplace
Q3: What method does eBay use to reduce the
potential for fraud among traders on its site? What kinds of fraud, if any, are
eBay users most susceptible?
As in any website or a general rule eBay always
reminds its users to never reply to emails that ask for your personal
information, get a safe browser, update your anti-virus software, check your
messages in My eBay, report suspicious emails and choose a strong password but
the most significant method which eBay is using to reduce fraud is the feedback
system. Feedback is made up of comments and ratings left by other eBay members
you've bought from and sold to. These comments and ratings are valuable
indicators of user’s reputation as a buyer or seller on eBay. They are included,
along with an overall feedback score, in a member profile.
Commerce
can attract fraudsters, and online commerce is no different. The most common
attempt of fraud may occur when a seller lists an item they don’t intend to
send but accepts money for it. There are so many kinds of fraud such as Fake
products or not as described, the second chance offer, feedback scams, lost in
the post, to good to be true deals, doubtful payment methods, charge backs (
Buyers can buy items via Paypal, claim that the item was never received, and
receive a PayPal refund).
Q4: eBay makes every effort to conceptualize its
users as a community (as opposed to, say "customers" or
"clients"). What is the purpose of this conceptual twist and does
eBay gain something by doing it?
The disadvantage of online
auction is that the user cannot check the items physically. The transaction is
totally based on trust. The purpose of the conceptual twist of conceptualizing
its users as a community is that the members are more likely to feel like they
are part of something. Members won’t just see other members as ‘other members’
but as people in the same community as them, who want the same things and have
the same goals and objectives. This means that members of the community see
each other as their own potential customers or retailers and eBay is simply the
method in which they do business with each other. Yes, eBay goes gain from this
conceptual twist as it should make the members more reliable, more trustworthy
of each other and less likely to participate in fraud against another member
Q5: eBay
has long been a marketplace for used goods and collectibles. Today,
it is increasingly a place where major businesses come to auction
their wares. Why would a brand name vendor set-up shop on eBay?
The concept of marketing and
selling has been changed by the recent concepts totally. E-bay is the place
which has gained market repute and share. It is the single portal which helps
vendor to reach worldwide customers with a single click. Now the branded stores
have been establishing their stores one-bay for the auction of their wares.
By setting shop on E-bay a brand
vendor can approach billions of clients at the same time; it is the one of the
best source of marketing. Currently many brands are en-cashing this advantage
like Dell, Acer, Samsung and Orange.
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