eBay has been successful because it is able to transform many small, primarily local markets into global ones at a low cost to its users.
Q2: ebay enables an online listing of a product for a fee similar to that to put an advertisement in the classifieds, however, eBay provides a greater consumer base than does a newspaper due to the international community. It is eBay’s ability to bring together so many buyers and sellers which has assisted in its success. eBay has little upfront expenses which enables people to become entrepreneurs. Purchasing through eBay can mean the product is purchased at less than market value and encourages buyers to search for the product on eBay first. Owning PayPal has been a good move for eBay as it generates further revenue from this.
(Google Answers, 2011).
Google Answers. (2004). Why is eBay such a successful eCommerce business venture? Retrieved May 7, 2013, from http://answers.google.com/answers/threadview?id=345309
Q3: The eBay Toolbar includes Account Guard to help members to protect their eBay account information. One of the biggest threats to the security of eBay account and members' identity is fraud email and websites. Both are used to obtain personal and account information. To help protect members against this threat, eBay has adopted a strategy including the development technology solutions such as Account Guard and community vigilance. Because of this, eBay users are not very susceptible to fraud at all. Fraudulent activity is still occurring, but there are more and more ways to prevent it. eBay is very quick to point out that it’s only a very, very tiny fraction of all transactions which enter into some kind of significant disagreement.
Q4: The main purpose of this is to bring buyers and sellers together, the customers. eBay drives its whole engine. In order to operate this business model, its vast collection of people who make the marketplace valuable have to participate in a way where they recognize a kind of shared interest in the success of the marketplace. eBay is a prime example of customers forming a community, If their customers work together to negotiate transactions, they pay eBay-fees in terms of there transactions over web sites. Making the community function play fairly on a level playing field are all vital aspects for eBay to be successful. If people were distrustful of one another and took advantage of each other, the whole model would break down.
Q5: Brand name vendors may choose to set-up shop on eBay because it is cheaper and more easily accessible than a physical store, they can also advertise a larger range of products without the problem of having old stock on the shelves of stores. also with the feedback it is easy to find out what they are doing well and what they could improve on. They are also able to save money on promotion of a new site as well as the ease that customers can find their products.
Q6. In July of 2010 eBay introduced the Accepted Payments policy. Buyers and sellers are given greater protection through insurance and intervention offered by eBay if a transaction was not to unfold in the anticipated manner. Another possible change is the new basic store fees for books. It was recognised that previous rules made it difficult for store owners to make a profit. As such new rules were introduced to make it less expensive. “Insertion fees will be a flat 5c with a final value fee of 9.9%. This will significantly lower the upfront cost for books...(so) that both the seller and eBay share in the success of a sale” (eBay, 2010).
eBay. (2010). New Basic Store fees for Books and Music listings. Retrieved May 7, 2013, from http://www2.ebay.com/aw/au/201007.shtml
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