Case study-An evaluation of the e-business strategy of eBay
With the widespread Internet usage, the amount of trade conducted electronically has grown overwhelmingly. From management perspective, the e-commerce will take important impact on its whole process for all companies on the entire business market. For many online selling companies, the eBay has most competitive compared with other online selling companies in the world. We will analyse using the online selling is mainly giving more effective information to users to deal with the business transaction. And supplier and customer service can be solved more quickly through the use of network.
eBay has built an online person-to-person business relationship on the Internet. Buyers and sellers are brought together in one platform where sellers are permitted to list items for sale, buyers to ask items of their interests and all eBay users to browse through listed items form the interface of eBay in automated way. The items are arranged by topics, where each type of auction has its own category. eBay has both streamlined and globalized traditional 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.
The main revenue of the eBay comes from three areas which are advertisement, on commission sell and interest of the transitory deposit capital. And the third one is the particular and main sources of the revenue of eBay. Between the times which buyers pay for the goods and the seller verify the received it, the capital for this deal will keep in the eBay for transitory settle. The interest for the capital will be considerable by the huge flow of capital investment.
For eBay, it built a new relationship of each factors in business, the typical shopper at eBay.com is customer. The most obvious model is that of selling products or services online. This model is especially efficient for digital liable products and services.（Turban, King, Viehland, Lee, 2006, p.22）And the e-commerce model in which businesses sell to individual shoppers (B2C). In addition, eBay also provide us consumers transact directly with other consumers (C2C). For example, individual customers could sell personal property and other stuff to the others. And eBay online sites allow individuals to place items up for auction. EBay offers several types of auctions. （Turban, King, Viehland, Lee, 2006, p.8） Firstly, 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. Secondly, 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. Thirdly, 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.
From make revenue from e-commerce perspective, the eBay jointly announced a definitive agreement for eBay to combine Gmarket, Korea's leading e-commerce business, with eBay's existing online marketplace in Korea. According to John Donahoe, eBay's president and chief executive officer, "The combination of Gmarket and IAC establishes an exceptionally strong leadership position for eBay in one of the world's largest, most dynamic and innovative e-commerce markets, this deal creates strong operational synergies between the two market leaders, offers more opportunities for sellers and enhances our ability to serve complementary consumer segments." (Anonymous, 2009) Young Bae Ku, Gmarket's president and chief executive officer report states that "This transaction will provide us an excellent opportunity for our next growth stage in Korea...
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