eBay is one of the only major Internet "pure plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so successful?
EBay is an Auction Broker -- conducts auctions for sellers (individuals or merchants). Broker charges the seller a listing fee and commission scaled with the value of the transaction. Auctions vary widely in terms of the offering and bidding rules.
EBay opened the doors to online shopping worldwide. Its success was enhanced by enabling anyone to sell and buy products online. The easy step by step guide to creating your own online store, has seen people worldwide, such as stay at home mothers, develop their own business from home.
Also enabled small business owners to expand their business online and worldwide.
In conjunction with PayPal, EBay was also able to change the perception of buying online to be unsafe. Those buyers who were still unsure were still able to use money transfer and cash on pick up. Ensuring all types of customers felt confident when using EBay.
http://digitalenterprise.org/models/models.html#Brokerage
QUESTION 2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?
Expanding their site into different countries, introducing currency conversion and international postage calculators accessible. People and businesses can “import” their own items from overseas, buy luxury products at discounted prices as the Australian dollar improves.
With EBay they are able to sell products as well, which differs EBay from Amazon and Yahoo.
When you think of Amazon you think of an online store, and when you think of Yahoo you think of searching the web and emails.
Just as Google has done with “Google it”, EBay has been able to create a name for themselves where before buying products in store consumers will check EBay for a competitive price. “Have you looked on EBay?” or “Sell it on EBay”
QUESTION 3
What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?
eBay's policies are rules and guidelines that create a safe and fair trading environment for all eBay members. To promote a safe trading environment, eBay enforces these rules and policies.
Trust and Safety Tutorials – A list of tutorials to help you understand eBay’s rules and policies.
eBay’s Rules and Policies are organized in the following categories:
Rules about Feedback – Rules and guidelines about eBay's system for member reputations.
Rules for Everyone – General policies applying to all eBay members, eBay employees and eBay. This section includes rules that protect your privacy and your identity. Learn more about issues like the use of profanity, unsolicited email (spam), and how to participate on eBay’s Discussion Boards and Community content areas (blogs, Reviews & Guides).
Rules for Buyers – This section includes rules involving bidding responsibly and always paying for purchases. Learn more about eBay’s Unpaid Item Policy.
Rules for Sellers – Important listing policies and other rules that apply to selling, such as Seller Non-performance and Shill Bidding.
· Prohibited and Restricted Items – Can you sell hippopotamus ivory on eBay? What about selling lottery tickets? Find out in our comprehensive list of banned and restricted items.
· Rules for Listings – Why is a listing title like “MP3 Player, Not Ipod” considered keyword spamming and not allowed? Can I link to my eBay Store in my auction listing?
· Rules about Intellectual Property – How can a listing that offers an authentic Rolex box be considered encouraging infringement? What is VeRO and why was my item ended because of it? Find out how eBay helps protect intellectual property rights owners against infringement.
eBay’s policies are intended to:
· Support government laws and regulations
· Minimize risks to both buyers and sellers
· Provide equal opportunity to all buyers and sellers
· Protect intellectual property rights
· Provide an enjoyable buying experience
· Support the values of the eBay Community
Learning about eBay's policies will help you avoid breaking rules (including the law) and aid you in trading with reliable, trustworthy buyers and sellers.
Violations of policy may result in a range of actions including:
· Listing cancellation
· Limits on account privileges
· Account suspension
· Forfeit of eBay fees on cancelled listings
· Loss of PowerSeller status
Note: You may contact eBay to report violations by using the “Report” or “Contact Us” links found on most policy pages.
If you have received an email about your account being suspended, see Suspended Account.
Support if you have transaction problems
If you encounter a problem when buying or selling on eBay, we offer guidelines, tools, and protection services that can help.
We make it easy to contact members to resolve problems. If direct communication doesn’t work, you can use eBay’s Resolution Centre to work out a solution with your buyer or seller and report the problem to eBay.
Managing problems as a buyer
· In many cases, communicating with your seller can resolve your concern. Learn how to contact your seller.
· If you paid for an item, but didn’t receive it, or if you paid for and received an item, but it was significantly different from the item description, start by discussing the problem with the seller. If this doesn’t work, you can work it out in our Resolution Centre.
· If you have a problem with a purchase and you use PayPal, you'll open a case in PayPal's Resolution Centre and your purchase may be covered through PayPal Buyer Protection.
Managing problems as a seller
· If a buyer doesn’t pay for an item or you need to cancel a transaction, after trying to resolve it directly with the seller, you can work it out in the Resolution Centre.
· You can report cases of unwelcome bidding or buying.
· You can block bidders based on their user IDs or select buyer requirements for your listings based on criteria including country of registration, their buying history on eBay, and whether they have a PayPal account. Learn more about managing bidders and buyers.
http://pages.ebay.com.au/help/account/safety.htmlhttp://pages.ebay.com.au/help/policies/overview.html
QUESTION 4eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it?
eBay is a community that encourages open and honest communication among all its members.
Our community is guided by five fundamental values:
- We believe people are basically good.
- We believe everyone has something to contribute.
- We believe that an honest, open environment can bring out the best in people.
- We recognise and respect everyone as a unique individual.
- We encourage you to treat others the way you want to be treated.
eBay is firmly committed to these principles. And we believe that community members should also honour them—whether buying, selling, or chatting with eBay friends.
As you can read above, eBay uses the community image to create a family environment where users respect each other when buying and selling. Each user needs to have respect for the other, and should sell and buy in way that they would like others to treat them.Packaging goods in safe manner, describing goods honestly, making payment on time, leaving positive feedback etc. This will also ensure repeat visitors to eBay. If visitors feel comfortable using the site and their experiences are positive, they will continue to return to the site.
http://pages.ebay.com.au/help/confidence/community-values.html
QUESTION 5
The set up costs are low, security settings and accounts are all laid out for you by ebay policies and procedures, customer base is worldwide, able to auction and set buy it now prices on your products. You can see below the features also available to sellers setting up their store;
eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
Selling with eBay Stores
With an eBay Store, you'll get everything you need to create a central shopping destination where buyers can learn about you and all the products you sell. You'll receive powerful tools for designing your Store, plus marketing and reporting features, and dedicated toll-free customer support. Learn how to get started with eBay Stores.
Basics
· Getting started with eBay Stores
With an eBay Store, you can display all your products in one convenient location.
With an eBay Store, you can display all your products in one convenient location.
· Fees for eBay Stores
Find out what it costs to sell with eBay Stores.
Find out what it costs to sell with eBay Stores.
Designing your Store
· Selecting your Store's categories
Organize your Store so buyers can easily find your items
Organize your Store so buyers can easily find your items
· Promoting and advertising items
Advertise your items or provide links to other parts of your Store or your newsletter.
Advertise your items or provide links to other parts of your Store or your newsletter.
· Using HTML to personalise your store
Draw attention to special items or product details.
Draw attention to special items or product details.
· Customising your Store's appearance in listings
Brand your Store with your own custom design
Brand your Store with your own custom design
Marketing your Store
· Promoting your eBay Store
Get tips on attracting buyers to your Store.
Get tips on attracting buyers to your Store.
· Putting Store items on sale
Sales are a great way to draw attention to your listings.
Sales are a great way to draw attention to your listings.
· Using email marketing
Create compelling emails that promote your Store to potential buyers.
Create compelling emails that promote your Store to potential buyers.
· Creating promotional flyers
Create free promotional flyers to print and distribute.
Create free promotional flyers to print and distribute.
· Using traffic reports to understand your business
Which areas of your Store are receiving the most visits? How are buyers finding your listings and moving through your Store?
Which areas of your Store are receiving the most visits? How are buyers finding your listings and moving through your Store?
· Exporting your listings to search engines
Provide your partners with an XML file that contains current information on your listings.
Provide your partners with an XML file that contains current information on your listings.
Managing your Store
· Placing your Store on holiday
Going on vacation? Find out what to do with your Store while you're away.
Going on vacation? Find out what to do with your Store while you're away.
· Closing your eBay Store
We hope you'll contact us first to address any issues.
http://pages.ebay.com.au/help/sell/stores.htmlWe hope you'll contact us first to address any issues.
QUESTION 6
I have a few businesses, and I have used eBay for about 12 years on and off. Currently I have about 600 books listed on eBay (seller name ozrural). I stopped selling on eBay for a few years but they changed the rules this July and it is viable again (for me). What do you think changed?
The change in listing fees were changed. As a seller on eBay or any location, profit needs to be made for business to be viable to continue. The higher the eBay fee for listing items, the less likely people will post items for sale.
As you did, you re-tracked your selling and I assume so would have a lot of other loyal sellers. EBay responded back by lowering the fee again.
Additional (optional) task: If not already a member, join ebay and explore the functions of the site (optional). Consider making a purchase, or perhaps try your hand at selling. Auctions are impacting on all aspects of business so it is useful to understand how they work.
I have been a loyal user of eBay for a long time. Both buying and selling. I have never set up my own store, but do sell items from home on a yearly basis. Just recently, I have sold an old Holden Torana for my partner. He purchased the car for $600 quite a few years ago, with the intention on restoring it. “Surprise, Surprise” the car has only collected cob webs and dust since the purchase. So on eBay it went.
I started the bidding at $600 to get our money back, and set a buy it now price for $1000
To my surprise, the next morning a customer had bought it for buy it now price!! I could not believe it!
Experiences like this one I have only had this week, keeps me and I’m sure many others, returning to eBay.
I started the bidding at $600 to get our money back, and set a buy it now price for $1000
To my surprise, the next morning a customer had bought it for buy it now price!! I could not believe it!
Experiences like this one I have only had this week, keeps me and I’m sure many others, returning to eBay.
This also shows how businesses can be impacted by online auctions. Car yards must surely be losing a lot of business now we are able to sell and advertise our own cars online. Private sale for car is a lot cheaper too. You get to pocket the profits you make yourself rather than giving it dealership and paying interest for a car loan as well.
This goes for a lot of other markets, houses, boats, motorbikes, computers, phones, etc.
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