About eBay - Part II
Some Basic Things that Make eBay a Good e-Commerce Web Site
Basically, there are several things that make eBay a good e-commerce but I will only mention two of them which are the value proposition and the revenue model. The value proposition simply describes the reasons why customers should buy from eBay. A company’s value proposition is at the heart of its business model because it defines how a company’s products or services meet the needs of the customers who are shopping on the site. eBay has given customers a reason to become repeat customers through the online auction.
Most consumers visit eBay because of the cheap prices of the online market and the fun in taking part in an actual auction compared to the traditional auction where you have to be at the location to make a bid. EBay has all the necessary tools the sellers would need to succeed online. Tools like the Turbo Lister©, the pro shop, the Skype service that allows buyer sellers real-time, real-life interaction, and many other tools.
The revenue model describes how the online auction giant intends to earn money. EBay intends to make money by providing the platform for an online auction marketplace and in the process receives a small but not so reasonable transaction fee from the seller if the seller successfully sells the item in question. EBay charges listing fees, final sale fees, Pro-Store fees, and many more fees. I happen to know all these because I experimented on eBay by selling under the name Lapoinvestment. I still have my account open today, although I no longer use it so I can tell you firsthand that eBay will nickel and dime every seller that passes through its system. As we all agree the function of a business organization is to generate profits and high returns on investments.
My Recommendations
I recommend two things that will change eBay and its website shopping experience and I hope and wish the owner of eBay come in contact with my blog so that he can implement the advice.
- eBay should return to the original business model which is the transaction fee revenue model and fire its new CEO (As of the day of this article - December 17th, 2010)
- eBay should revamp its website and make it more viral and user-friendly, not only for the buyers but also for the sellers.
Till next time, it's bye for now. I have to go enjoy my coffee again.
A
About eBay Part I