BRIEF INTRO ON EBAY:
Founded in September 1995, eBay is a platform for the sale of goods and services by a diverse community of individuals and businesses. Today, the eBay community includes more than 114 million registered members from all around the world.
Globally, eBay has more than 25 million items listed for sale at any one time, and an additional 3.5 million items are added daily. There are more than 50,000 categories including collectables, antiques, sports memorabilia, computers, IT and office, art, antiques, toys, dolls, stamps, comics, magazines, music, pottery, glass, photography, electronics, jewellery and gemstones.
eBay provides an international platform where practically anyone can trade practically anything.
Although eBay is a global company, eBay.com.sg offers a trading platform tailored to the unique needs of Singaporeans. The eBay community consists of both passionate Singaporeans and international buyers and sellers trading in a variety of goods.
PURPOSE:
Founded by computer programmer Pierre Omidyar, who aimed to create a virtual marketplace for the sale of goods and services for and by individuals, it has become an online platform “enabling trade on a local, national and international basis”.
It is built on commerce, sustained by trust, and inspired by opportunity.
Mission of connecting people & businesses to buy & sell goods & services.
FEATURES:
Business model: C2C (consumer to consumer)
Payment scheme: Buyers can pay through paypal, credit card, cheque, cashier’s cheque, money order, direct cash payment upon meet-up between buyer and seller, bank-to-bank funds transfer.
Types of auctions:
- Auction-style listings: allow the seller to offer one or more items for sale for a specified number of days. The seller can establish a reserve price.
- Fixed Price format: allows the seller to offer one or more items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid.
- Dutch Auctions: allow the seller to offer two or more identical items in the same auction. Bidders can bid for any number from one item up to the total number offered.
Help readily available: Interactive Help pages and a 'Live help' link on topics inlcuding Account Security, Account Suspension and helps users navigate the site easily
DESIGN:
- Layout is simple & allows easy searching for an item.
- Users can easily access previous sub-sections that they were in.
Founded in September 1995, eBay is a platform for the sale of goods and services by a diverse community of individuals and businesses. Today, the eBay community includes more than 114 million registered members from all around the world.
Globally, eBay has more than 25 million items listed for sale at any one time, and an additional 3.5 million items are added daily. There are more than 50,000 categories including collectables, antiques, sports memorabilia, computers, IT and office, art, antiques, toys, dolls, stamps, comics, magazines, music, pottery, glass, photography, electronics, jewellery and gemstones.
eBay provides an international platform where practically anyone can trade practically anything.
Although eBay is a global company, eBay.com.sg offers a trading platform tailored to the unique needs of Singaporeans. The eBay community consists of both passionate Singaporeans and international buyers and sellers trading in a variety of goods.
PURPOSE:
Founded by computer programmer Pierre Omidyar, who aimed to create a virtual marketplace for the sale of goods and services for and by individuals, it has become an online platform “enabling trade on a local, national and international basis”.
It is built on commerce, sustained by trust, and inspired by opportunity.
Mission of connecting people & businesses to buy & sell goods & services.
FEATURES:
Business model: C2C (consumer to consumer)
Payment scheme: Buyers can pay through paypal, credit card, cheque, cashier’s cheque, money order, direct cash payment upon meet-up between buyer and seller, bank-to-bank funds transfer.
Types of auctions:
- Auction-style listings: allow the seller to offer one or more items for sale for a specified number of days. The seller can establish a reserve price.
- Fixed Price format: allows the seller to offer one or more items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid.
- Dutch Auctions: allow the seller to offer two or more identical items in the same auction. Bidders can bid for any number from one item up to the total number offered.
Help readily available: Interactive Help pages and a 'Live help' link on topics inlcuding Account Security, Account Suspension and helps users navigate the site easily
DESIGN:
- Layout is simple & allows easy searching for an item.
- Users can easily access previous sub-sections that they were in.
- Website is organized into five sections: Buy, Sell, My eBay, Community and Help.
STRENGTHS:
- No time constraints. Bids can be placed at any time (24/7). Items are listed for a number of days (usually between 1 and 10, at the discretion of the seller), giving purchasers time to search, decide, and bid. This convenience increases the number of bidders.
- No geographical constraints. Sellers and bidders can participate from anywhere that has internet access. This makes them more accessible and reduces the cost of "attending" an auction. This increases the number of listed items (ie.: number of sellers) and the number of bids for each item (ie.: number of bidders). The items do not need to be shipped to a central location, reducing costs, and reducing the seller's minimum acceptable price.
- Intensity of social interactions. The social interactions involved in the bidding process are very similar to gambling. The bidders wait in anticipation hoping they will "win" (eBay calls the successful bidder the "winner"). Much like gambling addiction, some bidders may bid primarily to "play the game" rather than to obtain products or services. This creates a highly loyal customer segment for eBay.- Large number of bidders. Because of the potential for a relatively low price, the broad scope of products and services available, the ease of access, and the social benefits of the auction process, there are a large numbers of bidders.
- Large number of sellers. Because of the large number of bidders, the potential for a relatively high price, reduced selling costs, and ease of access, there are a large number of sellers.
- Network economies. The large number of bidders will encourage more sellers, which, in turn, will encourage more bidders, which will encourage more sellers, etc., in a virtuous circle. The more the circle operates, the larger the system becomes, and the more valuable the business model becomes for all participants.
- Captures consumers' surplus. Auctions are a form of first degree price discrimination. As such, they attempt to convert part of the consumers's surplus (defined as the area above the market price line but below the firm's demand curve) into producers's surplus. On-line auctions are efficient enough forms of price discrimination that they are able to do this.
WEAKNESS:
- Risk of fraud, buyer-seller relationship dependent on trust- there may be dishonest/untrustworthy buyers/sellers.
- Certain payment methods have inherent weaknesses. eBay does not recommend cash or cash wire transfers as a payment method since buyers do not retain any proof of their payment and will have little to no remedy for transaction problems.
STRENGTHS:
- No time constraints. Bids can be placed at any time (24/7). Items are listed for a number of days (usually between 1 and 10, at the discretion of the seller), giving purchasers time to search, decide, and bid. This convenience increases the number of bidders.
- No geographical constraints. Sellers and bidders can participate from anywhere that has internet access. This makes them more accessible and reduces the cost of "attending" an auction. This increases the number of listed items (ie.: number of sellers) and the number of bids for each item (ie.: number of bidders). The items do not need to be shipped to a central location, reducing costs, and reducing the seller's minimum acceptable price.
- Intensity of social interactions. The social interactions involved in the bidding process are very similar to gambling. The bidders wait in anticipation hoping they will "win" (eBay calls the successful bidder the "winner"). Much like gambling addiction, some bidders may bid primarily to "play the game" rather than to obtain products or services. This creates a highly loyal customer segment for eBay.- Large number of bidders. Because of the potential for a relatively low price, the broad scope of products and services available, the ease of access, and the social benefits of the auction process, there are a large numbers of bidders.
- Large number of sellers. Because of the large number of bidders, the potential for a relatively high price, reduced selling costs, and ease of access, there are a large number of sellers.
- Network economies. The large number of bidders will encourage more sellers, which, in turn, will encourage more bidders, which will encourage more sellers, etc., in a virtuous circle. The more the circle operates, the larger the system becomes, and the more valuable the business model becomes for all participants.
- Captures consumers' surplus. Auctions are a form of first degree price discrimination. As such, they attempt to convert part of the consumers's surplus (defined as the area above the market price line but below the firm's demand curve) into producers's surplus. On-line auctions are efficient enough forms of price discrimination that they are able to do this.
WEAKNESS:
- Risk of fraud, buyer-seller relationship dependent on trust- there may be dishonest/untrustworthy buyers/sellers.
- Certain payment methods have inherent weaknesses. eBay does not recommend cash or cash wire transfers as a payment method since buyers do not retain any proof of their payment and will have little to no remedy for transaction problems.
- Pictures displayed by seller may differ from the real condition of the item.
- Some people take a long time to respond to emails when auction have ended, some take ages to pay out for goods they have bought, others take time sending the goods.
- People who exaggerate the descriptions of their goods on sale. New should be new and not sort of new. Good condition should not mean broken bits, scratches, missing or non existent parts.
- Consumers may feel trapped when a product they have received has gone bad or isn’t working right. The price of obtaining a good at such a bargain is, in most cases, that the seller is not readily accessible. Shipping back and forth may also get expensive and warrantees may not exist. The price of shipping may actually make the product more expensive than buying it locally.
POTENTIAL:
- Link with real auction houses. One of the problems in selling the products and especially high quality products is that the auction in the net is not truthfully. If Ebay collaborates with prestigious real auction houses, the wins will be bigger.
SPECIAL HIGHLIGHTS:
- Auto conversion of currency on items located in other countries. - e.g
US $6.00 (approximately S$ 8.84)
- Some people take a long time to respond to emails when auction have ended, some take ages to pay out for goods they have bought, others take time sending the goods.
- People who exaggerate the descriptions of their goods on sale. New should be new and not sort of new. Good condition should not mean broken bits, scratches, missing or non existent parts.
- Consumers may feel trapped when a product they have received has gone bad or isn’t working right. The price of obtaining a good at such a bargain is, in most cases, that the seller is not readily accessible. Shipping back and forth may also get expensive and warrantees may not exist. The price of shipping may actually make the product more expensive than buying it locally.
POTENTIAL:
- Link with real auction houses. One of the problems in selling the products and especially high quality products is that the auction in the net is not truthfully. If Ebay collaborates with prestigious real auction houses, the wins will be bigger.
SPECIAL HIGHLIGHTS:
- Auto conversion of currency on items located in other countries. - e.g
US $6.00 (approximately S$ 8.84)
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