ABOUT E-BAY

• It is an online auction and shopping website

• eBay enables trade on a local, national and international basis
• 1st company to popularized online shopping
• It has 90 million active users globally
• In 2009, the total worth of goods sold on eBay was $60 billion
-- $2,000 every second.
 The Business Model

• Broker model.
• Buyers and sellers are brought together
• Sellers fix a reserve price on their property,
• Time limit set by the seller for bidding
• Sellers are permitted to list items for sale,
• Buyers bid on items of interest
• Commission on things sold
• The items are arranged by topics, where each type of auction
has its own category.
 Types of auctions
• • Normal Auctions
• Reserve Auctions
• Fixed Price or ‘Buy it Now’ auctions
• Multiple items or ‘Dutch’ auctions
•HOW E-BAY GENERATES REVENUE?

•Insertion Fee
•When an item is listed on eBay a nonrefundable which ranges
between 30 cents and $3.30, depending on the seller's opening
bid on the item.

•Additional listing options

• A fee is charged for to promote the item, such as highlighted
or bold listing.

• Final Value
•A (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.
• E-BAY BUSINESS MODEL A SUCCESS

• it was the first organization to produce a broker business

model over the internet.
• It has developed a ‘community’
• No Time Constraint
• No Geographical Constraints
• No Language Barriers
• Intensity of Social Interactions
• Large Number of Bidders
• Large Number of Sellers
• Network Economies of Scale