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Ebay And Ecommerce Essay

1094 words - 5 pages

EBAY

introduction:-
The eBay platform offers an unprecedented opportunity to build a new eBay business or expand your current business, reach new customers, and create a potential new stream of revenue. Leverage the resources of the eBay Developers Program to tap into eBay's marketplace of over 200 million users with tools and services that meet the diverse needs of buyers and sellers on eBay.

History of eBay:-

eBay was founded in Pierre Omidyar's San Jose living room back in September 1995. It was from the start meant to be a marketplace for the sale of goods and services for individuals.

In 1998, Pierre and his cofounder Jeff Skoll brought in Meg ...view middle of the document...

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.
Browsing and bidding on auctions is free of charge, but sellers are charged two kinds of charges:
When an item is listed on eBay a nonrefundable Insertion Fee is charged, which ranges between 30 cents and $3.30, depending on the seller's opening bid on the item.
A fee is charged for additional listing options to promote the item, such as highlighted or bold listing.
A Final Value (final sale price) fee is charged at the end of the seller's auction. This fee generally ranges from 1.25% to 5% of the final sale price.
eBay notifies the buyer and seller via e-mail at the end of the auction if a bid exceeds the seller's minimum price, and the seller and buyer finish the transaction independently of eBay. The binding contract of the auction is between the winning bidder and the seller only.

Revenue model:-
eBay does not have inventory like Amazon.com. It only provides technology platforms and tools for e-commerce. ebay has various revenue model, it earns transaction fee from owning paypal, an online paying service system for users to buy items online more conveniently. ebay also gains sales from the service of listing customer’s product to be sold to other users as well as some advertisement fee. ebay generated overall revenue around $6 billion from its three primary business: auctions, payments (PayPal) and communication (Skype).

|Ebay |US $ (in thousand) |Percentage |

Transaction fees
Marketplace
Payments
Communications
| |4,203,340 |70.4% |
| |1,401,824 |23.5% |
| |192,756 |3.2% |

Advertising and other
| |171,821 |2.9% |
|Total Revenue ...

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