Monday 21 May 2012

Week 8 - Online auctions


Q1: 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?
e-Bay's business model is consumer to consumer.  e-Bay is globalization and adopt person-to-person trading. which has traditionally been conducted through such forms as garage sales, collectibles shows, flea markets and more, with their web interface. This facilitates easy exploration for buyers and enables the sellers to immediately list an item for sale within minutes of registering.

Q2: 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?
e-Bay is one of the only major Internet "Pure Plays".  It means that e-Bay allows anybody to bid the items and allows anybody post their products on internet.  After that, when the products are bid and sale out, e-Bay receives a commission from them.  So, e-Bay has been able to maintain its dominant position. Amazon allows consumers go onto the website and buy items which Amazon has in stock. Amazon is more of a company where as eBay allows anyone to put items up for auction.  e-Bay taps into people competitive nature which for some consumers makes it more worthwhile to bid and try to win

Q3: 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?
e-Bay apply the security system to ensure that consumer and supplier have a safety environment in the website.  e-Bay is using Paypal security system. This is a function which eBay trusts and has a protection element for buyers and consumers (eBay, 2009). Such programs as Paypal are put in place to protect buyers and sellers if they use this program on eBay. If the buyer/seller uses another paying method then the Paypal protection does not apply to them (eBay, 2009). e-Bay also provide a feedback to know about who is being fraudulent. This allows e-Bay to know about people trying to scam the system.  The types of fraud eBay users are identity thief, fraudulent emails, buyers fraud and seller fraud.
 
Q4: eBay 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?
It allows customers to feel part of a community in order for them to feel comfortable in the auction environment. This allows them to be familiarized with other customers and discuss different items which in the long run will allow more buying and selling to be done on eBay, that is further benefit effort to conceptualize.

Q5: 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?
It is a win-win situation for both businesses. Because of eBay’s leading reputation in the virtual auction marketplace people are more likely to go there first to bid on goods rather than search for a particular business, as they know they will find it on eBay. Therefore by setting up shop on eBay other businesses are getting promoted there as well as through their own business. However, at the same time, eBay would be getting some profit off businesses using their site.

Q6. 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?



No comments:

Post a Comment