...eBay: “The world’s largest online marketplace”- A Case Study J.Gopalkrishnan* V.K Gupta** Abstract eBay, Inc. is the largest and most popular marketplace on the Internet, allowing members to buy and sell almost anything. Launched in 1995, about 147 million people now use eBay. An estimated 430,000 people in the United States make all or most of their living by selling on eBay. eBay’s online payment service, called PayPal, enables transactions nearly anywhere in the world. eBay proclaims “trust” between buyers and sellers as the key to the success of the marketplace. eBay is the “The world’s Online Marketplace”, which is its positioning statement, and it means many things about the company’s identity. It enables trade on local, national and international basis, with a diverse and passionate community of individuals and small businesses. eBay offers an online platform where millions of items are traded each day. The objective at eBay was to “to develop the work ethic and culture of eBay as a fun, open and trusting environment and to keep the organization focused on the big picture objectives and key priorities. The company market capitalization had surpassed that of even Amazon.com, making it the “world’s most valuable Internet retailer”. Pierre Omidyar, founder, is focused to achieve excellence in strategic management for improving the company’s strategy, sustaining the company’s growth and business performance, and potentially expanding from online auctions into general “etailing”...
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...Amazon versus Ebay Amazon versus Ebay Analyze each company’s history, product / services, major customers, major suppliers, and leadership and provide a synopsis of each company. Seattle based Amazon.com was founded in July, 1994, but it was introduced to the world in June, 1995 by its CEO Jeff Bezos. Bezos who was a hedge fund manager in New York left to head west after coming across a finding that the usage of the internet is growing 2300 percent a month. He came up with a plan to get his own retail business online, and headed to Seattle to begin his dream. He started with only 3 employees working out of a garage. Jeff Bezos was able to get Kleiner Perkins Caulfied & Byers to fund Amazon. Some of Amazon.com products include a variety from books, to CDs, videos, and video games. Amazon product line also includes groceries, supplies for pets, greeting cards, and has auctions. A major supplier for Amazon is Ingram, a book distributor, who is still the provider for 60 percent of the books. Amazon is also allied with sites such as Yahoo, Excite, GeoCities, and Netscape. Amazon.com also has links that can be used for household purchases such as groceries and prescriptions. Bezos leadership is demonstrated by observing his comfortableness when he is around the people he addresses on a regular basis from customers, to investors, and the employees. Other leadership qualities of Bezos include his understanding of e-commerce, being focused, having an entrepreneurial team to back...
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...What eBay has Done For The E-commerce Business? CITN120-Introduction to Networking If you’re a consumer looking to buy or sell an item or maybe catch a fantastic bargain, you have probably heard of eBay. The company’s founder Pierre Omidyar started his journey on September 3, 1995, as a simple home page and a broken laser pointer and created something that had never been done before. Pierre simply intended the listing on his web page of a broken laser pointer to be a test more than a serious offer to sell at auction. He was shocked when he received a response, “I’m a collector of broken laser pointers,” and sold the item for $14.83. When Pierre received this answer back he knew that he had created something big and transitioned from one of commerce, buying and selling things, to one of e-commerce, connecting people around the world together over the internet. In 1996 Pierre and his hand picked business team set out with their vision, which was to create the first online auction website for consumers to buy and sell their items. Since the start up, eBay has become the market leader and pioneer in the on-line auction industry and its brand name has become synonymous with e-commerce. eBay doesn’t actually sell any goods itself, it is simply a meeting place where the merchandise is sold and delivered by third party sellers that are not employed in any way by eBay. This unique e-commerce business gives sellers a place to reach buyers, and gives buyers access to the world’s...
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...ebay1.Describe the business model that the founder of ebay adopted. Introduction: Ebay Inc or known as NASDAQ:EBAY is an American based company that focuses on consumer to consumer business. It is an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide and it was from the start meant to be a marketplace for the sale of goods and services for individuals. Ebay was founded in Pierre Omidyar's, San Jose living room back in 5th September 1995. Using auction style bidding, one of the first items sold on eBay was a broken laser pointer for $14.83. Astonished, Omidyar contacted the winning bidder to ask if he understood that the laser pointer was broken. In his responding email, the buyer explained: “I'm a collector of broken laser pointers”. Moving on from there, now Ebay a multi-billion dollar business with operations localized in over thirty countries. Ebay expanded from its original "set-time" auction format to include "Buy It Now" standard shopping; shopping by UPC, ISBN, or other kind of SKU (via Half.com); online classified advertisements online event ticket trading (via StubHub); online money transfers (via PayPal[5]) and other services. Ebay has also incorporated business models such as: Ubiquity - Internet/Web technology which is available everywhere: at work, at home, and elsewhere via mobile devices, anywhere and anytime. The marketplace is extended beyond traditional boundaries and is removed...
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...sell their own personal items to anyone with internet access at any time. eBay is full of much strength such as their ability to globalize their brand. This is also one of their main weaknesses. Since eBay is an online business, anyone with internet can access the website. While they have the potential to reach out to everyone, not everyone uses the internet. One of the issues eBay faces is that the internet usage in Asia is very low especially considering over half the population resides there. E commerce was growing everywhere which definitely helps eBay’s business. One of eBay’s great accomplishments is their ability to acquire several other successful businesses. They don’t just take over random businesses because they can; they acquire businesses that can help them out with their own business. For example, PayPal goes hand in hand with the type of business eBay runs. It gives users a more secure way to use their website which consumers definitely appreciate. Along with their feedback forum which allows consumers to voice their opinions, the fact that both sides (buys and sellers) feed off one another and cause the popularity of the other side to rise really makes consumers feel like they are a part of the business. This is part of what makes eBay such a great success. Although they have their share of challenges with globalization and competition, they do so many things right. The idea of eBay originated from French born Pierre Omidyar, a computer science graduate from...
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...Ebay Use Case Week6: Use Cases Assignment MIS1101 Use Case Template. Copyright (c) 2004-2005 TechnoSolutions Corporation (Learn more about “TopTeam for Use Cases” at www.technosolutions.com) Permission is hereby granted, free of charge, to any person obtaining a copy of this document and its associated documentation, to use the document on their projects for any commercial or non-commercial purpose. However you may not publish, distribute, sublicense, and/or sell copies of this document. THE DOCUMENT IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE DOCUMENT OR THE USE OR OTHER DEALINGS IN THE DOCUMENT. TECHNOSOLUTIONS CORPORATION MAKES NO REPRESENTATIONS ABOUT THE SUITABILITY OF THIS DOCUMENT FOR ANY PURPOSE. Use Case: Selling a couch on Ebay Id: UC- 2011021401 Description Seller registers a couch for sale on Ebay. Seller firsts selects “Sell” link on Ebay, registers a credit card. Seller then posts descriptive information about the couch including pictures, price, auction start and end times as well as method of payment accepted, shipping information and other terms and conditions of sale. The auction...
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...eBay was launched in 1995 as the first online auction by Pierre Omidyar with the intention of creating a person-to-person trading community based on a democratized, efficient market where everyone could have equal access through the same medium, the internet. The name eBay stood for “electronic Bay area” coined because Pierre’s initial concept was to attract neighbors and other interested San Francisco Bay area residents to the site to buy and sell items of mutual interest. eBay.com provided a venue for online sellers to auction or retail a wide variety of products ranging from computer parts, videos, books, movies, automotives and real estate to buyers from different locations. It brings together buyers and sellers every day on a local, national and international basis through a range of websites. It provides online marketplace for the sale of goods and services, as well as other online commerce, or ecommerce, platforms and online payment solutions to a diverse community of individuals and businesses. Effectively, eBay created a meeting place or community where different sellers and buyers can meet, exchange, trade and make business transactions with each other. The said virtual community marketplace concept destroys the physical barriers of time and geography in real world marketplaces. eBay’s business model is based not only on providing the infrastructure for the said community but also maintaining the trust and safety programs that ensured the integrity of the trading community...
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...eBay Goes on a Shopping Spree Introduction The author provides a case analysis of the eBay shopping spree assigned reading in the E-commerce: Business, Technology and Society textbook. The purpose of the research is to explain whether or not making so many acquisitions is a risky proposition. Additionally, the author will argue why eBay can successfully compete with its top three competitors. Finally, the researcher will explain why eBay is the perfect model for the integration of all the aspects of e-commerce. Questions Question #1: Explain whether or not you think making so many acquisitions is a risky proposition and why? The acquisitions are risky but support the eBay overall open source commerce platform called X.commerce. Therefore, the acquisitions are warranted as a calculated risk which enables merchants to more easily integrate online and offline commerce efforts (Laudon & Traver, 2012). Specifically, the acquisitions of RedLaser and Milo allow eBay to build services to help sellers offer goods locally, both online or through a mobile device, providing them with another channel for product distribution (eBay Annual Report, 2012). RedLaser allows consumers to scan barcodes in order to find the goods they are looking for in a variety of locations, both online and offline, while Milo enables local inventory to be viewed online or on a mobile device. The eBay acquisition strategy shows a strong commitment of connecting local retailers with shoppers. The...
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...Name: Nirupam Kulkarni Roll No. 31 Case: eBay Company Background: 1. Started by Pierre Omidyar in 1995, in the year of its boom it had recorded 2 million transactions 2. Mostly antique items, but covers items ranging from toys, gardening equipment, restaurant equipments to cars, Traded $9 Billion worth of merchandise in 2001. 3. In 2002 it had 37 million customers and $129 million profits 4. Just a mediator between sellers and buyers hailing from diverse social and economic background. Community and Customer Involvement: 1. Contention that eBay was started as an open market between good people, which prefer honest dealings. 2. The whole business depended on trust between buyers and sellers who have not even seen each other. 3. Even with an extremely low fraud rate, the company insured its auctions up to $200 for an auction. Strict disciplinary action was often taken against consistent defaulters. 4. The website was built as a community of individuals according to their own preferences, so that it will reflect what the community of traders on the site believed the trading platform should be rather than the developer community. 5. The technical issues and website appearances, packaging and shipping policies, categories are decided by the customers and the company together, through community help boards for the community user’s issues and opinions, discussion forums and category specific chat-rooms. 6. The company...
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...2011 EBay is an online internet site that allows people from all over the world to bid on a variety of products new and used that are located all over the world. EBay offers you a way to place your items up for sale and turn a profit through an auction type setting but, it is all done entirely online. Depending on the product you are selling and the amount you set your reserve at you will be charged a fee for placing your product online. If the product does not sell or the person who purchases does not pay then you will be able to relist the product for no charge. The advantage to selling online is that you are able to sell to people all over the world in all types of settings. Just because you no longer need something it does not mean that there is not someone out there who needs the product you are looking to get rid of. This environment allows you to still do your regular day to day tasks as well as sell goods through the auction so you will not be losing out on income from anywhere else. The disadvantages are that you may get ripped off by people who use credit cards or pay pal accounts that no longer work. In this instance you will have to report a grievance to eBay so that you are able to get your money back and that person will be penalized for their actions. Another disadvantage would be that you keep placing items up there and not selling them which would result in a loss of money for you if you pay to place items on eBay that never sell. I feel as if eBay is a...
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...Background and interest: My name isI have a B.S. degree in Computer Information Science from Everest University. I’m currently employed as a Technical Support Specialist with Bay Technical Associates Inc. I served in the United States Marine Corp for four years. My interest in technology is based on the growing demand for technical professions in a wide array of industries. According to Marquardt, K (n.d.) the demand for computer systems analysts should grow at a steady clip this decade, as businesses and organizations increasingly rely on information technology. Personal/professional vision: I have entrepreneurship aspirations to start my own e-commerce website. I’m currently in the research aspect of developing a business plan for my website. Five years from now I see myself with a successful e-commerce website with top quality product and competitive prices. Northcentral and you: My education at NCU will contribute to the success of my online storefront by providing me with the educational and professional skills I need to start and run a successful online storefront. Northcentral resources: I feel comfortable accessing the student e-mail system, writing center, and library. I haven't used the APA style format in several years, so this is the area I may need support from Faculty and Advisers. Two outside resources: I read an article on the NY Times website about Walmart plans to increase stores and e-commerce in China. Reference: Marquardt , K. ((n.d.)). best technology...
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...201001793H This is the story of eBay eBay, founded by a French computer programmer, Pierre Omidyar, was the first company to incorporate the auction process online. When eBay first started out, it was known as AuctionWeb, back in 1995. The first item sold on eBay was a broken laser pointer, which sold for an amount of $14.83. Puzzled, Pierre contacted the buy to ask him if he knew that the laser pointer was broken. The buyer replied, “I am a collector of broken laser pointers!” From then on Pierre concluded that there will always be a market for a product; the only challenge was reaching it! Auction web, was then, the legal property of Echo Bay Technology Group. Pierre had tried to purchase the domain name of ‘EchoBay.com’ only to realize later that it was already taken. So instead, Pierre then proceeded to purchase the name ‘eBay.com’ instead, and from then on, the company is what we see now known as eBay. Fun Facts about eBay! 1. eBay used to be known as AuctionWeb between 1995 to 1997 2. The first item to be listed and sold on eBay was a BROKEN laser pointer! 3. The “buy out now” option gets more sales than the “bidding” option 4. A 2007 Lamborghini Gallardo Spyder was sold on eBay mobile for $139,000 5. A Gulfstream II Jet sold for $4.9 million as the most expensive item on eBay 6. eBay was the first company to use Twitter to promote its earnings-call Part A Promotional mix of eBay for its...
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...Amazon versus eBay ACC 557 October 22, 2013 Professor Darren Tennyuk Amazon versus eBay Jeff Bezos, founded Amazon.com in 1994 when he left his job as Vice-President of the Wall Street firm D.E. Shaw to move to Seattle. After reading a report that projected annual Web growth at 2.300 percent he launched his website in 1995. He began drawing up a plan to sell a list of products on the internet. Bezos narrow his list to five most common products: compact discs, computer hardware, computer software, videos, and books. The $40,000 investment from Nick Hanauer and $100,000 from Tom Alburg help created a more user friendly website that we used today. Amazon.com is one of the largest Internet sellers of media in the world today. It selection of products have expanded to clothing, beauty products, house wares, and thousands other items. Bezos was so amazed that people all over the world were purchasing from Amazon. He decided to add an option for buyers to write their own reviews, which became a huge success for Amazon.com. At the time, people began to review Amazon as an online community and not as a place to purchase things. According to Swartz (2006) states, “By 1997, Amazon.com had generated $15.7 million in revenue. Once the company went public the same year, they decided to add CDs and movies to their website.” In 1998, some additional new items were added to Amazon product line: software, electronics, video games, toys, and home improvement items. Amazon became so successful...
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...Abstract In this case, it mainly defines how eBay enter the Chinese market and state problems why eBay failure problems in China compare to Tao Bao. We will introduce EBay, compare and contrast between eBay and Tao Bao, also, we talk about reasons failure in China. Introduction to EBay EBay which is a management that allows people from all over the world to buy and sell items, auctions and shopping online. EBay was founded on 4th September 1995 and by name Auction web of Pierre Omidyar in California. People can sell goods on EBay over the network. As an online auction site, eBay created a buyer but also the seller of unprecedented business model which was C2C mode. EBay has differences from traditional marketing because e Bay make a large number of small business and individuals through its sales platform to interact with small items, so creating amazing trading volume and profit. Also, its great value and market energy generated is sufficient to counterbalance the traditional business model. As a third party transaction, eBay itself does not directly involved in the transaction, but specifically for consumers with business information and value- added services. Through this e-commerce information intermediary platform, information can flow between the buyer and the seller each other. EBay collected information through selling; charged fees to users store and get huge revenue (Kathy Burns-Millyard, n.d.). Thus, eBay overthrown smaller flea market in the past, though the...
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...The original idea behind the acquisition of skype by eBay was to add value to the company's core operations by combining PC-based voice calls with online auction website’s which would boost communication between buyers and sellers. Even though this seems as a well though trough idea, eBay seemed to have bought Skype without implementing a strategy how to incorporate both systems. The most important flaw was the lack of clarity for its users. The Skype contact option could possible get more play if people actually knew about it and if eBay spent time on promotion. eBay's leadership never saw fit to aggressively bring the eBay, Skype and Paypal systems together. Examples of how to fix this could be simple and at very little engineering effort or cash cost. For example by adding a couple of strategically placed "call me now" or "send a few bucks" icons could make a big difference. Even a couple of quasi-discreet "call me now" and "send a few bucks" icons in strategic locations could make a world of difference, at very little engineering effort or cash cost. More information begets more trust, which then leads to more completed transactions, goes the theory. I suppose it could have worked, but that would have required an effort from the various management and engineering teams involved. Heck, call up the marketing department, too. Unfortunately, there never seemed to be a whole lot of that action going on. eBay seems to have bought Skype and set it on auto-pilot (destination:...
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