Ebay With Logo PPT Template

eBay-The
Customer
Marketplace
Group 2
Nikhil Yadav (PGP31158)
Prakhar Agarwal (PGP31162)
Mihir Joshi (PGP31154)
Roshan Ranjan (PGP31169)
Abhinandan Das (PGP31124)
Kumar Saurabh (PGP31151)
Agenda
eBay-A brief History

Online Auction Process
Consumer Market
Present growth
Comparative analysis
Issues and Solutions
History
Pierre Omidyar
In 1995 Founded Auction Web with the idea of
Providing an Internet site where person-to-person trading could take
place
Buyers and sellers rushed to the site, and by 1997 Auction Web became eBay.
1996
15,000 auctions daily
2 million hits per week
Main category is collectibles
1998
Expansion
Benchmark Capital came on board
Meg Whitman made president and CEO
Online Auction Process
Involved listing an item for

sale with a closing date and
time.
The seller
Provided a description of
the item
Most provided pictures
Could specify
a minimum opening
bid
A bid increment
A reserve price
Not disclosed to
the bidders
The transaction between seller

and high bidder
Executed with out eBays
involvement
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.
Fixed price format with best offer
Allows the seller to accept best offers. If a

buyer submits a best offer, the seller either
rejects or accepts the best offer. If the best
offer is not satisfactory, a seller may submit
a counter offer to the buyer.
Consumer Market
Evolution of eBay:
Consumer auction market for small segment of population to sell
collectibles
37 million users listing 12 million items daily with own laws,
feedback system, enforcement, payment processing unit
Voices- full day focus group sessions to obtain feedback from
users
Policing at eBay
eBay relied on its community to help police its

site
the community is also self-policing, and
users frequently form neighborhood watch
groups to help guard against misuse or
violations of the sites etiquette.
Present Growth
1.00E+07
1.00E+05
Number (in thousands)
1.00E+03
1.00E+01
1996
1998
Years
Registered Users
Listed Items
Sales
2000
Comparative Analysis
1.E+07
1.E+06
Net Income
1.E+05
1.E+04
1.E+03
1995 1996 1997 1998 1999 2000 2001 2002
Years
eBay Fees
Listing Fee
Item
$0.30- $3.30
Depending on minimum value of

item
$40
Cars
$25
Motorcycles
$50
Real estate timeshare (3-10 days)
$75
Real estate timeshare (30 days)
Selling Price
Success Fee
$0- $25
5.25% of closing value
$25-$1000
5.35% up to $25 and 2.75%

after that
$1000Remaining
closing value
Incremental 1.75% after

$1000
Cars
$40
Motorcycles
$25
eBay Fees
Optional Listing fee Additional Features
$0.15
Additional photo after 1 free photo
$0.75
Supersize 1 photo
$0.25
Adding image to preview
$0.05
Buy-it-now Capability
$19.95 each
Adding image to gallery and Feature plus highlighting
$5.00
Purple highlighting in group listing
$2.00
Bold font size in group listing
Issues
Will eBay be able to sustain the growth
Will diversification of business help or destroy the existing unique

flea-market feel
Quality of suggestions that were flowing in
Recent increase in transaction and services fee
SWOT Analysis
Strengths
Weaknesses
The company is a giant

marketplace used by more
than 100 million people to
buy and sell all manner of
things to each other.
The company exploits the
benefits
of
Customer
Relationship Management
(CRM).
Business-to-Consumer
(B2C), then mixed with
Consumer-to-Consumer
(C2C).
Fraud includes counterfeit

goods being marketed to
unsuspecting
(and
suspecting!) buyers.
It should be pointed out that
fraud and theft are problems
with individuals, not eBay.
The weakness is that
unscrupulous
individuals
can exploit the C2C business
model.
Opportunities
Threats
Acquisitions provide new

business
strategy
opportunities. eBay has
been buying up firms including
payment
system PayPal.
Aspirating
consumers
are growing segments in
many
developing
nations.
International competitors
competing in their domestic
markets may have the
cultural experience that
could
give
them
a
competitive advantage.
Yahoo! Dominates the
Japan market
Internal Factors Evaluation

Strengths
Weight
Rating
Weighted Score
eBay Global Brand for
.20
0.80
.20
0.60
Generic Brand
.30
0.90
Weaknesses
Fraudulent activities
.10
0.40
System Breakdown in
.20
0.40
1.00
3.10
auction
Customer Relation
Management
trading activities
TOTAL
External Factors Evaluation

Opportunities
Weight
Rating
Weighted Score
Acquisitions
.20
.80
Market Development
.15
.45
Market Penetration
.20
.80
Threats
Success attracts
.15
.45
Illegal practices
.15
.75
Credit card charges
.15
.45
TOTAL
1.00
3.4
competition
Recommendations
What did eBay actually do?
Acquired GSI Commerce (a retail ecommerce service

provider) in 2001
Main focus was GeC Services which accounted for 75% of
GSI revenues, while divesting from other business areas
Strategic expansion from flea market to marketplace with
large merchants on eBay
Needs of sole proprietors and small businesses ($48B) still to
be addressed by eBay and PayPal
Needs of large merchants to be addressed by GSI
Opportunity of growth for PayPal in the large merchant
segment

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eBay-The

eBay-A brief History

Meg Whitman made president and CEO

Online Auction Process

Involved listing an item for

The transaction between seller

Allow the seller to offer one or more items

Fixed price format

Allows the seller to offer one or more items

Fixed price format with best offer

Allows the seller to accept best offers. If a

eBay relied on its community to help police its

Depending on minimum value of

Real estate timeshare (3-10 days)

Real estate timeshare (30 days)

5.25% of closing value

5.35% up to $25 and 2.75%

Incremental 1.75% after

Additional photo after 1 free photo

Adding image to preview

Adding image to gallery and Feature plus highlighting

Purple highlighting in group listing

Bold font size in group listing

Will eBay be able to sustain the growth

Will diversification of business help or destroy the existing unique

Quality of suggestions that were flowing in

Recent increase in transaction and services fee

The company is a giant

Fraud includes counterfeit

Acquisitions provide new

Internal Factors Evaluation

eBay Global Brand for

External Factors Evaluation

Credit card charges

What did eBay actually do?

Acquired GSI Commerce (a retail ecommerce service

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