About eBay - Part I
Hello Everybody! I have been a power seller on eBay for a while but I must confess that I am very disappointed with the way the online auction giant has treated power sellers in the past. eBay is always about the sellers which I don't have a problem with, but the least eBay could do is protect the powerful sellers from stingy selfish fraudulent buyers who don't care about anything but themselves. This is research I did about eBay and the recommendations I have for the new Director or MD or whoever is in charge of decision-making. I have a few recommendations for eBay executives. I am very upset.
Quick Facts about eBay.com
Over Labor Day in 1995, Pierre M. Omidyar created a simple auction site and posted it to various bulletin boards. As the site slowly but steadily grew in popularity, it has always been the “eBay Community” that has contributed to and made the site truly “The World’s Online Market Place.” Over the years as the Internet and the technology supporting the Internet improved, eBay, with the vital input of the community, kept pace. Over 96 percent of online auctions are done through eBay.
eBay has expanded into eBay Stores along with “Buy It Now” options to augment their very successful auction model. eBay is truly a great business success story and probably one of the most successful online success stories. eBay has over 125 million registered users. A global presence in 28 international markets, including the United States. Over 20 million items are on sale at any time, with 2 million added daily. eBay members have left nearly 2 billion feedback comments regarding their eBay transactions. 1/100th of 1 percent of transactions on eBay result in confirmed cases of fraud. Enough of the brief history of eBay.
eBay Business Model
eBay operates a transaction fee revenue model. In the transaction fee revenue model, a company receives a fee for enabling or executing a transaction. For example, eBay provides an online auction marketplace and receives a small transaction fee from a seller if the seller is successful in selling the item (Laudon & Traver, 2010). However, eBay’s new CEO plans to move eBay into a different business model of sales revenue model, a kind of model where companies derive revenue by selling goods, information, and services to customers using the buy-it-now shopping cart. The new CEO wants to make this transformation in the next three years.