04/10/2023 Slide no. 1

Agenda• eBay – The Company• Business Model of eBay• Acquisitions• Pricing Methods• Auction Methods of eBay• Strengths• Vulnerabilities• Recommendations

04/10/2023 Slide no. 2

eBay – The company

• eBay’s mission is ‘to provide a global trading platform where practically anyone can trade practically anything.”

• The online auction website was founded as AuctionWeb in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar.

• The company officially changed the name of its service from AuctionWeb to eBay in September 1997

• eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything, with more than 90 million active users globally

04/10/2023 Slide no. 3

Business Model of eBay• eBay is an online person-to-person trading community on

the Internet, where buyers & sellers come together

• sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items

• Browsing and bidding on auctions is free of charge

• Revenue generation : sellers are charged two kinds of charges– Insertion Fee

• additional listing options – A Final Value fee

04/10/2023 Slide no. 4.

Acquisitions• A total of 26 companies have been acquired as of

April 2008. Few of them are:– PayPal: PayPal has made it possible for people

to pay and get paid online across different locations, currencies, and languages.

– Skype: connect people around the world & expanded its customer base

– StumbleUpon : StumbleUpon is a discovery engine that finds the best of the web. It uses positive and negative user ratings to form collaborative opinions on website quality.

04/10/2023 Slide no. 5

Pricing Method• 6 types of pricing methods

– Markup Pricing

– Target-Return Pricing

– Perceived Value Pricing

– Value Pricing

– Going-rate Pricing

– Auction type pricing

• English auction

• Dutch auction

• Sealed-bid auction

04/10/2023 Slide no. 6

Auction Methods of eBay

• Normal Auctions

• Reserve Auctions

• Fixed Price or ‘Buy it Now’ auctions

• Multiple items or ‘Dutch’ auctions

04/10/2023 Slide no. 7

Strengths• eBay, worlds largest online auction website with more than 90 million active users globally.

• The term 'eBay' has become a generic term for online auctions.

• Effective use of Customer Relationship Management

• EBay now controls the biggest share in the Customer to Customer e-market 04/10/2023 Slide no. 8

Strengths

• Provides extra ordinary search tool

• EBay.com was rated to be the easiest website to navigate by special rating websites like Gomez.com

• Business Model : No issues of managing inventory

• eBay’s Intellectual property

• Diversification of products & markets

• Acquisitions04/10/2023 Slide no. 9

Vulnerabilities• Fake Auctions

• System breakdown could effect the trading activities

of eBay

• Competitors– Bonanzle– Amazon.com– Yahoo– Overstock.com– Google

• Payment method

• Shipping of products

• Inability to control the contents of the auction and

auction items

• Expansion into Different Geographies04/10/2023 Slide no. 10

Recommendations

Taking care of e-mail scams

Filter Content

Building a Shipping Calculator

04/10/2023 Slide no. 11

Recommendations(Contd.)

Standard mode of payment

Localization

04/10/2023 Slide no. 12

ReferencesMarketing Management 13edition-Philip Kotler http://pages.cs.brandeis.edu/~magnus/ief248a/eBay/history.html

http://techcrunch.com/2009/09/04/ebay-acquisition-map-shows-where-it-got-on-the-wrong-track/

http://www.ebayinc.com

http://en.wikipedia.org/wiki/Criticism_of_eBay

04/10/2023 Slide no. 13