ebay case study

Was found by Pierre Omidayar in 1995

Introduction to eBay

It is an auction website where everyone has equal access to a single global marketplace.

Growth Of Ebay

It started with a broken laser pointer which was sold for $14.83.

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Initially only collector items were auctioned, until businesses discovered that eBay was an efficient way to reach out to new consumers and other businesses.Today, people can buy and sell virtually any product or service as long as it is not illegal or violate eBay’s rules and policies

Perceived value pricing: The customer’s value perception is estimated on the image of the product. It is based on model “connecting individuals who will not be connected otherwise.

Voice of customer program: created an opportunity for customers to have voice in making decisions for the company, which made customers feel like they are owners.

Fee Structure of eBay

It doesn’t buy or sell anything. It just creates a platform for exchange.

It charges an insertion fee and a final value fee based on transaction happening It was adopted to deter low price objects and low volume sales happening and to encourage high volume sales.

Future Of eBay

Should encourage personal selling by developing a mobile application. I.e.. Personal

communication between buyer and seller.

Should invest and develop in developing countries like Africa.

Summary

Disclaimer!

Created by Sarath Chandra, BITS Pilani, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow