Online Auction

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XBIS/219

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Instructor
Online Auction The largest online auction site in the world is eBay. People from all over the world come to eBay to buy and sell items. For an individual to sell an item on eBay, a seller must first create an eBay account and a PayPal account. Once the eBay account is created the seller can upload a picture and provide a brief description of the item that he or she wishes to sell. The seller can choose the price of an item to include prices for shipping and returning. Once the item is posted the seller has the option to pay an additional fee to include a “Buy It Now” tab. The “Buy It Now” tab allows buyers to purchase an item for a specific price rather than waiting until the closing time of an item. If the buyers choose to place bids on an item, the seller then can determine which bids for an item he or she wishes to take (eBay, 2011). Some advantages to both small and large scale sellers with eBay is the website’s popularity. There are over 180 million members, creating an enormous market for sellers. Another advantage of eBay to both small and large scale sellers is the convenience. Sellers can post items to sell without worrying about following internet regulation and policies. Some of the disadvantages for both small scale and large scale sellers are the profit losses associated with eBay. There are many fees that eBay charges it sellers such as a listing fee, final value fee, and fees to use PayPal which is also conveniently owned by eBay. In addition, feedback ratings can adversely affect your sells and the competition of selling the same products with others is extremely high due to the amount of sellers that partake in using eBay (eBay, 2011). Furthermore, based on what I have learned about eBay, I do not believe I would use it as a source to start an electronic