Ebay -- the Largest E-Business

Topics: EBay, Electronic commerce, Online auction business model Pages: 3 (952 words) Published: November 17, 2012
ebay – the world’s largest e-business
eBay is definitely the world’s largest e-business so far. As the pioneer of e-commerce, eBay is “sustained by trust, and inspired by opportunity (Chaffey, Dave).” In this case study, I am trying to figure out that how the characteristics of the digital media with strategic decisions taken by its management team have supported eBay, the world’s largest e-business, growth. Analyzing the growth of eBay can definitely help me impress the acknowledge of e-Commerce.

Case Study Facts
eBay is an online auction and shopping website where people and businesses buy and sell goods and services world wide. eBay’s mission statement is, “pioneer new communities around the world built on commerce, sustained by trust, and inspired by opportunity (Chaffey, Dave).” As the world’s largest e-business, eBay has various to avoid the risk of fraud, such as PayPal and “Trust and Safety Programs”. The cost of access the largest online marketplace in the world is extremely low. “The vast majority of eBay’s revenue is for the listing and commission on completed sales. For PayPal purchases an additional commission fee is charged.” eBay thinks highly of the interaction between buyers and sellers. eBay released a social media called Neighborhoods in which buyers and sellers can discuss brands and products they have a high involvement with. eBay announced the Detailed Seller Ratings (DSRs) in 2008. It significantly increases the conversion rate by increasing positive shopping experiences. Generally, eBay’s objectives are to increase the registered users; increase the active users who are the sellers, bidders, and buyers on the eBay marketplace; increase the volume and value of each transaction. At the same time, three defining approaches increase the growth of eBay marketplace. First, increase the number and size of categories within the marketplace. Second, formats for interaction. Third, “delivery specific sites localized for different for different...
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