e bay strategy
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E Bay StrategyTRANSCRIPT
04/10/2023 Slide no. 1
Agenda• eBay – The Company• Business Model of eBay• Acquisitions• Pricing Methods• Auction Methods of eBay• Strengths• Vulnerabilities• Recommendations
04/10/2023 Slide no. 2
eBay – The company
• eBay’s mission is ‘to provide a global trading platform where practically anyone can trade practically anything.”
• The online auction website was founded as AuctionWeb in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar.
• The company officially changed the name of its service from AuctionWeb to eBay in September 1997
• eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything, with more than 90 million active users globally
04/10/2023 Slide no. 3
Business Model of eBay• eBay is an online person-to-person trading community on
the Internet, where buyers & sellers come together
• sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items
• Browsing and bidding on auctions is free of charge
• Revenue generation : sellers are charged two kinds of charges– Insertion Fee
• additional listing options – A Final Value fee
04/10/2023 Slide no. 4.
Acquisitions• A total of 26 companies have been acquired as of
April 2008. Few of them are:– PayPal: PayPal has made it possible for people
to pay and get paid online across different locations, currencies, and languages.
– Skype: connect people around the world & expanded its customer base
– StumbleUpon : StumbleUpon is a discovery engine that finds the best of the web. It uses positive and negative user ratings to form collaborative opinions on website quality.
04/10/2023 Slide no. 5
Pricing Method• 6 types of pricing methods
– Markup Pricing
– Target-Return Pricing
– Perceived Value Pricing
– Value Pricing
– Going-rate Pricing
– Auction type pricing
• English auction
• Dutch auction
• Sealed-bid auction
04/10/2023 Slide no. 6
Auction Methods of eBay
• Normal Auctions
• Reserve Auctions
• Fixed Price or ‘Buy it Now’ auctions
• Multiple items or ‘Dutch’ auctions
04/10/2023 Slide no. 7
Strengths• eBay, worlds largest online auction website with more than 90 million active users globally.
• The term 'eBay' has become a generic term for online auctions.
• Effective use of Customer Relationship Management
• EBay now controls the biggest share in the Customer to Customer e-market 04/10/2023 Slide no. 8
Strengths
• Provides extra ordinary search tool
• EBay.com was rated to be the easiest website to navigate by special rating websites like Gomez.com
• Business Model : No issues of managing inventory
• eBay’s Intellectual property
• Diversification of products & markets
• Acquisitions04/10/2023 Slide no. 9
Vulnerabilities• Fake Auctions
• System breakdown could effect the trading activities
of eBay
• Competitors– Bonanzle– Amazon.com– Yahoo– Overstock.com– Google
• Payment method
• Shipping of products
• Inability to control the contents of the auction and
auction items
• Expansion into Different Geographies04/10/2023 Slide no. 10
Recommendations
Taking care of e-mail scams
Filter Content
Building a Shipping Calculator
04/10/2023 Slide no. 11
Recommendations(Contd.)
Standard mode of payment
Localization
04/10/2023 Slide no. 12
ReferencesMarketing Management 13edition-Philip Kotler http://pages.cs.brandeis.edu/~magnus/ief248a/eBay/history.html
http://techcrunch.com/2009/09/04/ebay-acquisition-map-shows-where-it-got-on-the-wrong-track/
http://www.ebayinc.com
http://en.wikipedia.org/wiki/Criticism_of_eBay
04/10/2023 Slide no. 13