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Information Technology

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1. Business –to-Consumer (B2C) is a business model that states any business that sells its products and services to consumers. EBay’s B2C business model is successful because it is based upon trust, fairness, and opportunity. Buyer and sellers trust eBay to have honest sellers and serious buyers. If a buyer or seller violates the rule of trade they will be banned from the site. Also the buyer and seller are given a satisfaction rating which encourages ethical behavior. On eBay the buyer purchases the product at what they believe the item is worth and seller sells the product at the least amount they are willing to take. This creates fairness for both parties. Finally opportunity is a part of eBay’s success. The buyer has the opportunity to find the product of their choice from anywhere in the world and the seller can sell to anyone in the world. This creates advantage and opportunity for all involved. 2. Amazon and Yahoo have not promoted themselves enough to be competitive. EBay is well known for e-bartering, but Amazon and Yahoo are not. To compete Amazon and Yahoo have to make buyers and sellers aware of the service and make their service as safe and reliable as eBay. Also Amazon and Yahoo should produce higher incentives o try their services. Research for new and innovative services that eBay cannot provide should be looked into. 3. A seller that sets up on eBay will receive all of the benefits of an e-business such as high accessibility, increased customer loyalty, improved information, increased convenience and global reach by setting up on eBay. To set up a business on eBay means the seller will receive an international market base with low overhead. On eBay the seller can increase their selling base and the sellers products can be viewed 24 hours a day 7 days a week. The seller will mostly gain by setting up on eBay. 4. Electronic, Reverse, and Forward actions are the three types of auctions. Electronic auctions are buyers and sellers both solicit bids to form a price. Reverse auction is when buyers want to purchase a product and the seller with lowest selling price wins. Forward auctioning is sellers use an auctioning channel to get bidders and the highest bidder wins. Forward auctioning is the online auction eBay uses.

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