Ebay Analysis

Topics: Auction, EBay, Online auction business model Pages: 4 (1089 words) Published: March 27, 2005
The name "eBay" (http://www.ebay.com) is synonymous with "online auctions". Founded in September 1995, the company qualifies as a genuine cultural and economic phenomenon (Bunnell, 2000, p.vii). The site can be credited with creating and defining an entire industry and has remained the dominant force in the online auction world, with anywhere from 70 to 90 percent of the person-to-person online auction market. eBay is also the 15th most visited site (http://www.MediaMetrix.com) on the web. In the face of large competitors such as eBay, internet powerhouse, Amazon.com Auctions (http://www.amazon.com/auctions), is battling for online auction dominance over eBay. Amazon is not just a bookseller but also a genuine e-commerce platform for online merchants. With the addition of online auctions to its already colossal department store, Amazon is a major player for online auction supremacy.

eBay is able to condense over four million items into thirteen main categories that are quite user friendly (ApnaGuide.com, 2000). They are easily navigated and buyers are able to find what they're looking for without any troubles. Whereas Amazon.com Auctions can get a bit category crazy. Not only do some categories become needlessly rough (Jewellery), while others are just too general (Tools), but sometimes there is no clear division between subcategories. Take, for example, Home Accessories, Home Appliances, and Household Items in Home & Garden, where buyers have multiple places to look for the same type of item and might miss an auction in which they would have participated. Just to demonstrate the popularity of both sites, below are three searches that were conducted:

Search Item: "Throwing Copper"
eBay: 30 results, 7 of which had bids, highest number of bids: 2 Amazon.com Auctions: 1 result, of which 0 had bids

Search Item: "the matrix dvd"
eBay: 41 results, 28 of which had bids, highest number of bids: 14 Amazon.com Auctions: 38 results, of which 1 had bids, highest...
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