Everything at your finger tips

Everything at your finger tips

Wednesday, 6 May 2015

ONLINE AUCTION


What is eBay's business model?
EBay follows the broker business model, where they acts as a middle person and bring the buyers and sellers together. Ebay offers sellers opportunities to sell their products through an action method and convenes the transactions through a safe payment system.
 
Why has it been so successful?
Ebay is a worldwide auction site and is the first site to introduce this type of buyer and seller interaction. It has also built trust with customers and it can credited itself with a secure payment option for customers. With Ebay allowing the process of asking the buyer or seller direct questions about the product can make the transaction between customer and seller worries free.
Q2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay.
How has eBay been able to maintain its dominant position?
Amazon and Yahoo offer new products, unlike eBay that offers new, old and used products. Also Amazon and Yahoo have direct suppliers and there is no way to offer less money or have the power to control the amount you may want to spend. Therefore the customer has the feeling that they have more control over their purchase and can bid on products.
 
Q3: Ebay has a system where customers can communicate between one another. This allows for a more positive transaction between parties involved. Additionally if has a arrangement where customers and buyers can leave feedback about each other. This gives the buyer and seller credibility and can influence others to use the same buyer or seller for future reference.

What kinds of fraud, if any, are eBay users most susceptible?
Ebay has a security payment system in place, through PayPal. This can give customers peace of mind, as transactions are easily done.
 
 
Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients").
 
What is the purpose of this conceptual twist and does eBay gain something by doing it?
Ebay has created a way for people worldwide to connect through a web site that offers and attracts many customers a range of products that may not be assessable to them. By bringing people and countries together eBay benefits from the profit that is made for selling products. However it also has also made it easier for communities and countries to interact in a safe business environment. Therefore this could be seen as a good thing and bring together communities can make a strong sense of pride. Also as quoted by
John Kander, Fred Ebb, “money makes the world go round.”
Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
There are many reasons why a business may set up a shop on eBay. It could provide to be a cost effective way to sell products that may be a surplus in the shop. It could also save money on renting a premises to sell products, paying staff can become expensive.  Furthermore eBay provides a hassle free environment to many business, as all the transactions are done directly through a PayPal system where the money goes directly into the business account.
There are also opportunities to market products worldwide, unlike a shop, where there may only be products available to shoppers who come into the store.
 
 
 
 
 
 
 
 
 
 

 
Source:
http://www.adweek.com/files/imagecache/node-detail/news_article/ebay-paypal-hed-2014.jpg
http://www.allgreatquotes.com/money_quotes.shtml
http://replacemyremotecarkey.com/EBAY/top.jpg
http://www.sellerexpress.com/wp-content/uploads/2013/01/ebay_supported_countries.jpg

No comments:

Post a Comment