Premium Essay

Ebay Evaluation

In: Business and Management

Submitted By gmann1
Words 485
Pages 2
eBay® Options

One of the largest players in online shopping is eBay® and they have 200 million shoppers to prove it (www.ebay.com). What started out as an online garage-sale-style auction, has evolved into a global force in the retail industry. With its various formats for selling items and options for small and large businesses, as well as individuals, eBay® is “the place” to go when looking for every day discount items or unique collectables.

Like any form of business, there are benefits and draw backs to this colossal online system, regardless of the business size. For the individual, the enormous popularity of eBay® has all but eliminated any ability to make a profit, unless the item is unique or a collectable. Small business owners have difficulty making a reasonable profit on eBay® because with so many people selling the same items, the prices are too cutthroat to profit. Likewise, the fees that eBay® charges for use of the web site make a deep cut into small business profits. However, the marketing angle is invaluable to small businesses. A small business can reach customers on a global scale for just the monthly eBay® fee, and then use that access to convert shoppers to their own websites. Once the buyer is on their own website, eBay® is out of the picture, along with the cutthroat competition and the eBay® fees. Anything a customer purchases directly from the small business web site has a better profit margin and aids in creating a direct customer base for future business.

Similarly, large businesses recognize the extreme value of eBay®‘s marketing power. For the large business however, the fees for selling on eBay® are minimal compared to the costs of traditional selling and marketing methods. Likewise, the cutthroat competition does not affect large businesses because they are using eBay® to liquidate excess merchandise. They can

Similar Documents

Premium Essay

Ebay

...which strengths and weaknesses are relevant to, and are capable of dealing with changes that take place in the business environment. Internal Resources and Capabilities Financial Resources Ebay is a Public Listed Company with corporate responsibilities to its shareholders. In 2006, it earned a gross profit of $4.7 billion and its total assets were $13.5 billion. This financial strength gives it opportunities to invest in activities to increase its financial strength through growth into related and other industries, global markets and also to investing in technology to increase customer satisfaction. It also allows it to invest in marketing to attract further customers and to invest in fraud prevention to protect its valuable intangible asset, its brand name. The Value Chain If organizations are to achieve competitive advantage by delivering value to customers, managers need to understand which activities their organization undertakes are especially important to creating value and which are not. Primary Activities The in bound logistics (Sales and Marketing) for Ebay is effectively the sales and marketing process attract customers to the ebay site so that there are products to sell and customers to buy their products. Attraction comes from the household brand name of Ebay and word of mouth...

Words: 4759 - Pages: 20

Premium Essay

Providing Business Intelligence to Ebay Customer

...appreciate time and this is done basically on the information provided. Business Intelligence systems are used to enrich the timeliness of information necessary for the company, to allow access to all the information wherever it is stored and offer the information in business terminologies. It reduces the distribution costs spent on the information as well as the handling time, helping planning and forecasting. Understanding of its important role, eBay – the largest and most popular marketplace on Internet has applied and used IS in their business and become very successful company. Launched in 1995, eBay started as a place to trade collectables and hard-to-find items, after just few years eBay become more and more popular, known as a global marketplace where business and individuals can buy and sell practically anything. eBay is a highly visible company that has been immensely successful in their implementation of a business strategy that incorporates their information strategy. By remaining flexible and adaptable, the ever-changing eBay has developed a technology platform that differentiates them from their...

Words: 7772 - Pages: 32

Premium Essay

Dell

.............................................................................................. 8 Introduction: 21st Century Marketplace .................................................................................................................. 9 Research Framework ................................................................................................................................................... 17 Case Studies.................................................................................................................................................................... 25 Consumer Reports: Car Buying Guide ............................................................................................................. 25 eBay .................................................................................................................................................................... 65 FDA Nutrition Fact Panels...

Words: 18219 - Pages: 73

Premium Essay

Consumer Behavior

...Content: Introduction: Market size and trends of the two markets P2 Comprehensive analysis The ALIBABA and the ebey market pattern P4 The principles involved in the introduction of the new product P10 Characteristics of those consumers who might be adopters P12 Hidden psychological motivations that hindered/contribute to success P14 Role of peer pressure or other elements P16 Conclusion: Recommendation/ Opinion P18 Reference P19 Introduction Market size and trends of the two markets. Alibaba since March 10, 1999 after the establishment soon became China's largest Internet companies and the world's second largest Internet companies, Alibaba is the world's leading small business e-commerce company, Alibaba Group's flagship business. Alibaba market through its three trading around the world to millions of buyers and suppliers engaged in online business.Three online marketplaces: focuses on serving importers and exporters in the international market, domestic trade in China market, and, through an associated company, to promote Japanese exports and the domestic market in Japan.In addition, Alibaba is also on the international market with a global wholesale trading platform for smaller, you need small quantities of goods to buyers fast delivery service.All transactions with the formation of a market more than 240 countries and regions from over 61 million registered users of the online community.In order to be transformed into...

Words: 6708 - Pages: 27

Premium Essay

Ebay

...EBAY INC FORMReport) 10-K (Annual Filed 01/31/14 for the Period Ending 12/31/13 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 2065 HAMILTON AVENUE SAN JOSE, CA 95125 408-376-7400 0001065088 EBAY 7389 - Business Services, Not Elsewhere Classified Retail (Catalog & Mail Order) Services 12/31 http://www.edgar-online.com © Copyright 2014, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K [x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2013 . OR [] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to . Commission file number 000-24821 eBay Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 77-0430924 (I.R.S. Employer Identification Number) 2065 Hamilton Avenue San Jose, California (Address of principal executive offices) 95125 (Zip Code) Registrant's telephone number, including area code: (408) 376-7400 Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: Title of each class Name of exchange on which registered Common stock The Nasdaq Global Select Market Securities registered pursuant...

Words: 90940 - Pages: 364

Free Essay

E Bay

...[pic] eBay, A Company Analysis [pic] Analyzing, eBay’s Strategies, Financial Performance, S.W.O.T, and Competitive Strength in the Online Auction Industry Prepared for: Dr. Patrick Kreiser Prepared By: Katelynn Coghlan Tommy Pauley Patrick Scott October 26, 2005 There is no doubt that eBay holds the power in the online auction industry. An analysis of the key factors of their company was compiled to find out what the eBay strategy is, and how they are doing financially. Also an internal analysis of their strengths and weaknesses and an external analysis of their opportunities and threats have been provided. Finally, a strength assessment of the main competitors in the online auction industry has been determined to see how strong each competitor is. From its beginning in a San Francisco living room, eBay has grown to be in a league by itself. Analysis of eBay’s Strategy and Business Model Before eBay could begin to compete in the online auction industry a strategy and business model needed to be developed (Appendix A). eBay had to define the businesses they would be competing in and how they would compete in those specific businesses. They also needed to define how they would be a successful service to their customers. Corporate level strategy eBay’s corporate level strategy was to become a diversified business. They wanted to diversify not only the products they offered but also their...

Words: 4036 - Pages: 17

Free Essay

Ebay Analysis

...[pic] eBay, A Company Analysis [pic] Analyzing, eBay’s Strategies, Financial Performance, S.W.O.T, and Competitive Strength in the Online Auction Industry Prepared for: Dr. Patrick Kreiser Prepared By: Katelynn Coghlan Tommy Pauley Patrick Scott October 26, 2005 There is no doubt that eBay holds the power in the online auction industry. An analysis of the key factors of their company was compiled to find out what the eBay strategy is, and how they are doing financially. Also an internal analysis of their strengths and weaknesses and an external analysis of their opportunities and threats have been provided. Finally, a strength assessment of the main competitors in the online auction industry has been determined to see how strong each competitor is. From its beginning in a San Francisco living room, eBay has grown to be in a league by itself. Analysis of eBay’s Strategy and Business Model Before eBay could begin to compete in the online auction industry a strategy and business model needed to be developed (Appendix A). eBay had to define the businesses they would be competing in and how they would compete in those specific businesses. They also needed to define how they would be a successful service to their customers. Corporate level strategy eBay’s corporate level strategy was to become a diversified business. They wanted to diversify not only the products they offered but also their customer base and global reach. By using...

Words: 4036 - Pages: 17

Premium Essay

Case Study: Ebay

...Case Study: eBay eBay owns one of the world’s largest online auction platforms. In 2008, the company operated in 39 countries with 276M registered users worldwide. In 2007, the total value of all successfully closed items was $59B with an average $2,039 worth of goods trading on the website every second. eBay makes their money by charging a small fee to sellers who list their product along with a description of the item on the website. Items can be sold at fixed price or by auction. After a bidder wins an auction or a buyer purchases a product, sellers and buyers settle their transactions via PayPal, a money transferring service, also owned by eBay. eBay’s Feedback Forum is where eBay users leave comments about each others buying and selling experiences. Buyers can learn about other buyers’ experience with a particular seller buy viewing his rating and reviews before buying from that individual. Sellers can also vet buyers in the same way. Users with the enough positive ratings receive colored stars, which indicate the highest rating. eBay participants sign user agreements that specify the trading rules and expectations. eBay’s staff investigate alleged misuses such as fraud, trading offenses and illegally listed items. Resolutions include banning a user from future trading on eBay. How eBay Creates Value Value creation is the primary objective of any firm. Value creation occurs when there is additional value being added to the bottom line of a business a result of...

Words: 1167 - Pages: 5

Premium Essay

Ebay Structures Its Bid for Change

...eBay Structures Its Bid For Change Kendra L. Brown Webster University eBay Structures Its Bid For Change Problem Statement Adoption of an improper organizational structure design that is not flexible enough to the unstable and the rapidly changing external environment in eBay’s domestic and international markets. Analysis and Evaluation A functional organizational structure with various operational areas, such as finance, operations, human resources, and legal units was adopted for the eBay during its establishment. In a functional structure, workers and activities are organized into areas of their expertise or units given specific functions. Therefore, the structure promotes efficiency and development of distinctive, specialized organizational capabilities. However, this kind of structure also causes problems in coordination and conflicts across the functions (Lee, Kozlenkova & Palmatier, 2015). During the Company’s establishment, a system design based on the behavioral model was also integrated into the functional structure design to encourage proper human relations and emphasize on groups’ efforts and interpersonal processes. The objective of this structure was to support the creation of an online community whereby two complete strangers acting as buyers and sellers would engage in open communication, interactions, and trustworthy relationships. The structure would also enhance elimination of bureaucracies, fairness in decisions making...

Words: 1169 - Pages: 5

Premium Essay

Auditing

...fixed prices: 1. Expand into New Markets: With the shrinking market of auction bidders on eBay and a growing market of fixed price buyers, customers may not prefer to go in the direction of purchasing goods in an online auction. Since, in an online auction the customer has to wait till the end of the auction to see which buyer with the highest bid wins that item. Whereas, in a fixed price type of format, there are no bids placed and the price remains constant. Customers may prefer the idea of price stability over waiting to see if they get the item as they may be time-sensitive and want the item right way. Therefore, eBay may want to focus and expand its market to customers who do not prefer online auctions. 2. Fixed price “Buy-It-Now” format is beginning to dominate eBay and is a key to future growth. Fixed price items make up of 42% of the gross merchandise sold on eBay. Over the past six years, this fixed price format has been growing at a faster rate than auctions. (Trouble at eBay) 3. Meet consumer expectations in the marketplace by matching its competitors who also offer products at fixed prices online through their websites. Customers who are not interested in purchasing goods in online auctions will then purchase goods from eBay at fixed prices. Since eBay acts as the ‘middle man’ the concept of fixed prices allows customers to purchase goods offered by other retailers through eBay instead of customers visiting other retailer’s websites. Therefore, attracting more customers...

Words: 4140 - Pages: 17

Premium Essay

Ebay

...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”...

Words: 3943 - Pages: 16

Free Essay

Amazon vs Ebay

...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...

Words: 2941 - Pages: 12

Premium Essay

Ebay

...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...

Words: 2424 - Pages: 10

Premium Essay

Ebay Strategy

...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...

Words: 671 - Pages: 3

Premium Essay

Ebay Case Analysis

...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...

Words: 2598 - Pages: 11