ITEC 610

Scott Cnockeart Benjamin Muthoka Chris Lange Murdock McCormick

eBay is the largest online marketplace where local, national, and international participants can make sales and purchases. Buyers and sellers are able to use auction-style listings, or make immediate sales using the “Buy it now,” Fixed Price,” and eBay store listings.

Echo was shortened to “e”. Because the domain name was already registered. and eBay was born.Pierre Omidyar. joined eBay. 2008) .    1995 . created eBay and it was originally called EchoBay. September 1998 – eBay goes public October 2002 – eBay acquires PayPal (Mullen. March 1998 .Meg Whitman.com. In his home. the name we all know.

BROKEN X $14 . a laser pointer…. First item sold on eBay was….

Annual Revenue 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (MSN. 2009) in Millions .

Issue 4136 ) (O’Brien and Marakas.eBay is still a market leader in the online auction market commanding a respectable 17% online market share. 372) . (BusinessWeek.

chat rooms. Improved communication between buyers and sellers through Skype.S.g. A commanding international market share especially in Europe with Germany generating a staggering $7 billion in annual sales second only to the U.    Superior customer service through the use of different technologies to provide online support. which at its acquisition had a 54 million customer base. 2009) . E. ( O’Brien and Marakas. Leveraging PayPal by increasing services such as the recently added iPhone application that has attracted thousands of Net shopping sites. discussion boards and automatic email response technology.

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A time consuming and exhaustive vetting process that delays introduction of innovative technology into the market. better search results from Google. Issue 4136 ) (O’Brien and Marakas.      A decreasing international presence especially in majors markets like China. Disgruntled sellers due to a new feedback system that stands to put them at a disadvantage. 372) . Declining sales which has seen Amazon gain 5 million more visitors while eBay lost 8 million in the same time period.g. Claims of a non user-friendly website by online buyers. E. (BusinessWeek. Fierce competition from Google and Microsoft for online classifieds.

) .. eBay has positioned itself to be the worlds largest online marketplace.    The company has a presence in 39 markets. n. the US included Almost 1 billion users worldwide eBay has forever changed the idea of internet commerce (eBay Inc.d.

 Consumer benefits of eBay  Provides an open trading forum for buyers and sellers to conduct business  Some sellers provide links to online stores  Provides an excellent opportunity for entrepreneurs to start a small business   The market controls the value of products being sold Contains an extensive search database  Virtually anything can be located via search engine  Advanced features allows more search detail (eBay Inc..) . n.d.

 User friendly interface  Items of interest can be browsed using different views  Sellers provide details of selected items  Items can be selected to watch  Personal online account creation  Contains recently purchased/won products  View items previously checked to watch  Access personal eBay mail from sellers   Experience the excitement of the process Painless payment process via eBay owned PayPal (eBay Inc. cont.d. n.. Consumer benefits of eBay.) .

.d. n. Paypal online payment service      Built on our current financial system of banks and credit cards Secure method to send and receive online payments effectively Payment solutions global leader Accepted by millions of merchants worldwide Currently utilized on and off eBay (eBay Inc.) .

 Netherlands.com. mobile. share ideas. n. roommates..nl.de (eBay Inc.com. LoQUo. moving services  Online Classifieds   People meet. Intoko. apartment listing guide  Online Classifieds  Information on apt. Marktplaats. German auto ads.com. virtual tours. Kijiji.d. and trade locally Available in hundreds of cites and regions globally  Gumtree.) . Rent. availability and rates.

  Users find eBay online auctions cumbersome Competitors are breaking into online classifieds markets. 145-148) . 372) (Xiaojuan & Davison. providing free services searchable by location:   Google Base Microsoft’s Windows Live Expo  eBay lost China’s market due to TaoBao. a company that allowed for more of a consumer to consumer approach to eCommerce (O’Brien & Marakas.

Komiak. 1) eBay could continue to make acquisitions1 eBay currently has a 25% stake in Craigslist  eBay has acquired online classifieds sites:  Kijiji  Gumtree  LoQUo   eBay completed acquisition of Skype in 2005 in an attempt to link buyers and sellers quickly and easily  2) eBay could continue to go global2  eBay has already expanded globally to over 22 countries 1: (O’Brien & Marakas. 187-204) . Imhof. 372-373) 2: (Komiak.

 3) Incorporate PayPal into Craigslist 4) Incorporate more on-site advertising and make eBay item postings free  (O’Brien & Marakas. 372-373) .

10 being best .Proposed Solutions Impact on Business Model 9 10 5 User Satisfaction 5 9 10 User Cost Totals 1) Acquisitions 2) Global Expansion 3) Incorporate PayPal into Craigslist 4) Use advertising to make postings free 6 7 9 20 26 24 9 10 10 29 Based on a scale from 1-10.

they need to take a proactive approach and allow users to post products for little or no money These costs can be recouped through the use of site advertising .  For eBay to truly compete with the new products developed by Microsoft and Google.

2008).)..d. Why eBay Lost to TaoBao in China: The Global Advantage.).html Komiak.com/living/online/history-ebay.happynews.d.msn.htm McMillan. A. Komiak. Maltby.d. Can eBay Get Its Tech Savvy Back? BusinessWeek. Retrieved on June 15.msn. S.).com/detail/stock_quote?Symbol=ebay&getquote=Get+Quote Mullen. (2009).ebay.). (2008). Conducting International Business at eBay: The Determinants of Success of e-Stores. 413 6. n. 2009. Retrieved August 1. E. Electronic Markets. P.com/aboutebay/thecompany/companyoverview.cnn. (2009.html  eBay inc. Retrieved August 2. X.ebay. eBay inc. How eBay works.htm       O’Brien. M.com: http://moneycentral. & Marakas. 187-204. New York. D. M. J une 0 6 ). (2009.happynews. 48-49.com/2008/10/17/smallbusiness/ebay_twilight. MSN.  . R. & Davison.com: http://www. 2009. 2009 from Business Source Complete database. Learn how eBay began as a small business in someone's living room and grew into one of the top earning Websites on the Internet.d. M. Y.ebay. (n. (October 17.com: http://pages. from http://moneycentral.com/help/account/questions/about-ebay. Retrieved August 1. 145-148.. 2009 from Computers and Applied Sciences Complete database. n. G. Xiaojuan Ou. (n.com: http://pages. from www. C. & Imhof. (2008. 2009 from http://money. A. from http://pages. R etrieved August 01. 2009. 2009. Management Information Systems. J.smb/index. eBay Inc. Retrieved July 31. (2009). Retrieved August 1.ebay. from http://pages. Communications of the ACM: 52. 18. The eBay Company. NY: McGraw-Hill Irwin.

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