TERM PAPER OF E-COMMERCE

Topic :- eBay Inc. ´aution anything, anywhere& to anybodyµ

Submitted to:- Dr. SYED HEIDER ALI Submitted by :- Saurabh Tiwari MBA(E-business) semIII Roll no. 40

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Index
1. Acknowledgement 2. About eBay (origin, growth and present) 3. Business model of eBay(revenue structure) Online auction business model Competitors of eBay 4. Online security and payment system Profit and transactions Online security Identification process Specimen of online form of eBay 5. Ethical and social issues Prohibited or restricted Items Some interesting products on eBay 6. Appendix EBay Q109 Earnings Release eBay_PayPal Fast Facts(Q2-2009 FINAL) eBay Market places Fast Facts Picture of PIERRE OMIDYAR 7. Bibliography 3 4 8

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ACKNOWLEDGEMENT

I wish to give my special thanks to Dr. SYED HEIDER ALI for giving me this topic and providing me with such a great guidance which helped me to complete this project. He provided all the useful information and guided me at every step of the project. SAURABH TIWARI

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website. PayPal(acquired in October 2002). eBay Inc. The benefit to consumers is clear. Since its inception. Omidyar's hobby is known as eBay. but subsequent methods include a substantial segment of listings in the "Buy It Now" category. This means that eBay users worldwide trade more than $1. does this by providing the Internet platforms of choice for global commerce. a computer programmer. eBay Inc." With a presence in 39 markets. eBay has established localized websites in thirty other countries. is headquartered in San Jose. California. has expanded to include some of the strongest brands in the world. payments and communications. Shopping. eBay Inc.com and others. From day one. including eBay. and other businesses. In addition to its original U. eBay Inc.A Short History The eBay Inc. Kijiji. and is at the heart of eBay's continuing success. also owns PayPal.Since its initial public offering in 1998. StubHub. It's an idea that the BusinessWeek once called "nothing less than a virtual. eBay has changed the face of Internet commerce. the site has become a cultural barometer of sorts. providing a view into what objects consumers want most at any time.900 worth of goods on the site every second. is an American Internet company that manages eBay. an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. including the U. eBay provides an open trading platform where the market determines the value of items that are sold. 4|P a ge . StubHub.S. Founded in 1995. In 2007. the company has continued to innovate and connect people . the world's largest online marketplace . a global leader in online payments and communications as well. Skype (to be sold soon). connects hundreds of millions of people around the world every day. Skype(acquired in 2005). Today. Omidyar built eBay around what remain the company's core values.where practically anyone can sell practically anything at any time.and not just through its marketplaces.com. Over the years.S. empowering them to explore new opportunities and innovate together.:. A majority of the sales take place through a set-time auction format. self-regulating global economy. wrote the code for an auction website that he ran from his home computer. a belief that: People are basically good  Everyone has something to contribute  An open environment brings out the best in people. when Pierre Omidyar. eBay Inc.About eBay eBay Inc. and approximately 84 million active users worldwide. Two critical acquisitions have made eBay Inc. eBay was born over Labor Day weekend in 1995. The success of eBay underscores the truth of these values.. the total value of sold items on eBay's trading platforms was nearly $60 billion.

PayPal's Q1 2008 global total payment volume of $14. Gumtree. PayPal. United States Pierre Omidyar. easily and quickly send and receive payments online. 1995 San Jose. Kijiji. Skype. www. Electronic commerce. Founder and Chairman John Donahoe. love it.com List of domain names Online auction Required to buy and sell Multilingual Industry Products Revenue Net income Employees Slogan Website Type of site Registration Available in PayPal enables any individual or business with an email address to securely.PROFILE OF COMPANY About eBay Inc.500 (Q1 2008) What ever it is. Acquired by eBay Inc.ebay. in October 2005.4 billion accounted for nearly 9 percent of worldwide eCommerce. in October 2002. & Shop victoriously! & From collectibles to cars. sell it.779 billion USD (2008) 15. Shopping mall. PayPal builds on the existing financial infrastructure of bank accounts and credit cards and uses the world's most advanced proprietary fraud prevention systems to create a safe payment solution. Skype is an Internet communication company that has revolutionized the way people talk online. With more than 309 million registered users as of early 2008. It has 149 million registered users and is accepted by millions of merchants worldwide .541 billion USD (2008) $1. $8. Type Founded Headquarters Key people Public (NASDAQ: EBAY) September 3. CEO Lorrie Norrington. buy and sell all kinds of items on eBay & Buy it. you can get it on eBay. President of eBay Marketplaces Auctions Online auction hosting.on and off eBay. Skype allows people everywhere to make unlimited voice and video calls 5|P a ge . California. Acquired by eBay Inc. Today. PayPal is a global leader in online payment solutions.

including ringtones and avatars.online for free using its software.nl. Royal. Other key acquisitions have strengthened eBay Inc. and Netherlandsbased Marktplaats. and personalization.A 22/24 Bd. such as calls (using its software) made to and from landline and mobile phones. voicemail. Skype is available in 28 languages and is used in almost every country on Earth. In addition to its presence on eBay. CA 95125 6|P a ge . an online solution that helps people discover and share content on the web and o market-eading online classifieds sites including LoQUo.S. Includes:o Shopping. o StumbleUpon.'s portfolio of ecommerce companies. The company has also grown its classifieds business through Kijiji. Skype has relationships with a growing network of hardware and software providers. Intoko. the most visited online apartment listing service in the U.S.com. in 2007. a pioneer in online comparison shopping o Stubhub. 2145 Hamilton Avenue PayPal Headquarters eBay Park North 2211 North First Street San Jose. 6e etage L-2449 Luxembourg San Jose. CA 95131 Skype Headquarters Skype Technologies S. ADDRESS OF eBay. PayPal and Skype Headquarters eBay Headquarters eBay Inc. a leading online marketplace for the resale of event tickets o Rent. This business unit generates revenue through its premium offerings. which launched in the U.com. call forwarding.com.

eBay is now hosting more than 200. 1996 With revenue topping $10.000 auctions in all of 1996.8 billion Registered eBay Users:-10 million Employees:.2 million Registered eBay Users:-41. Fixed priced trading is introduced with "Buy it Now" option. which helps a wide variety of national charities. Idea developed. Gross Merchandise Volume:-$2. listing shares on NASDAQ with the symbol EBAY. eBay launches the Feedback Forum and introduces Final Value Fees. Personalization tool.000 1997 The AuctionWeb brand is officially retired. Jeff Skoll is hired as the first president of the company and Pierre Omidyar leaves his day job to work on eBay fulltime.000 individual auctions per month. for $14.000 Employees: 41 1998 Meg Whitman joins the company as President and CEO. pre-IPO shares are used to endow the charity.GROWTH OF eBay 1995 The first item sold on eBay was a broken laser pointer. My eBay. Soon after. eBay launches the eBay Foundation. Germany and Australia.640 7|P a ge .83 on AuctionWeb.000 on eBay. compared with 250. the company hires its first employee.1 million Employees:-138 1999 eBay expands internationally with sites in the UK. makes its debut. eBay Motors is launched. Gross Merchandise Volume:-$740 million Registered eBay Users:-2. Gross Merchandise Volume (the value of all goods sold on eBay):-$7. eBay goes public in September.com Feedback Stars make their debut.000 in June. The market for Beanie Babies surpasses $500. In a trendsetting move. Gross Merchandise Volume:-$95 million Registered eBay Users:-341.

France and Taiwan. Korea. eBay's APIs are today at the heart of a thriving Developers Program and technology ecosystem.4 billion Registered eBay Users:-22 million Employees: 1. Italy.9 billion Registered eBay Users:-62 million Employees:.3 billion Registered eBay Users:-42 million Employees:. Canada.com.000 EMPLOYEE NUMBER 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 EMPLOYEE NUMBER 2003 8|P a ge . California.2. Gross Merchandise Volume:-$14. on September 17 to offer assistance to victims of September 11 attacks International expansion accelerates with eBay marketplaces in Ireland.900 2001 eBay introduces Auction for America.500 2002 First ever eBay Live! Conference takes place in Anaheim. eBay acquires Half. New Zealand.4. First eBay University is held. Gross Merchandise Volume:-$5. Singapore and Switzerland eBay Stores is launched Gross Merchandise Volume:-$9. eBay acquires PayPal.2000 eBay starts the year as the #1 e-commerce site. a charitable trading platform. eBay makes the first of several APIs (Application Programming Interfaces) publicly accessible. eBay continues international expansion with marketplaces in Austria.

eBay expands into Hong Kong.700 GROSS MERCHANDISE SALES 2007 2005 2003 2001 1999 1997 1995 0 2000 4000 6000 8000 10000 GROSS MERCHANDISE SALES 2004 eBay Live! held in New Orleans. Classified advertising site Marketplaats.8 million Total Payments Volume:-$18 billion Employees: 8.100 9|P a ge . eBay Live! held in Orlando.com is acquired. eBay acquires the Bazee marketplace in India. Rent. PayPal Buyer Protection services increased to $1.000.nl is acquired eBay expands into Malaysia and the Phillipines. eBay opens its China Development Center in Shanghai to accelerate technology innovation Gross Merchandise Volume:-$34.8 billion Registered eBay Users:-95 million Total PayPal Accounts:-40 million Total Payment Volume(sum of PayPal processed transactions): $11. Gross Merchandise Volume:-$23. PayPal Buyer Protection services introduced for eBay transactions.2 billion Registered eBay Users:-135 million Total PayPal Accounts:-63.6 billion Employees: 5.

Meg Whitman.com. eBay acquires leading international classified advertising sites LoQuo and Gumtree. Gross Merchandise Volume:-$44. eBay's India Development Center launches to further accelerate the pace of innovation. eBay Live! held in San Jose. The two millionth passenger vehicle is sold on eBay Motors eBay Live! held in Las Vegas. and Sweden. California.com. Gross Merchandise Volume:-$52.2005 eBay launches Kijiji.200 2007 PayPal Buyer Protection services doubled to $2. 10 | P a g e .000.5 billion Registered eBay Users:-222 million Total PayPal Accounts:-133 million Total Payments Volume:-38 billion Total Skype Users:-171 million Employees: 13.200 2006 eBay Express is launched.com in the next six months than have been made in the past 6 years.5 billion Employees: 10. eBay acquires Skype. into Poland.com. a local classifieds site available in nearly a dozen countries. declares that users will see more changes to eBay. eBay acquires StumbleUpon.2 million Total Payments Volume:-27. eBay acquires online ticketing site StubHub. eBay launches ProStores.3 billion Registered eBay Users:-181 million Total PayPal Accounts:-96. eBay acquires Shopping. eBay Live! held in Boston at which time CEO. eBay expands. PayPal acquires the Verisign Merchant Gateway.

com/ http://www.ebay.ebay.th/ http://www.nl/ http://www.ebay.vn/ http://ebay.ebay.fr/ http://www.ebay.za/ http://www.com.ebay.com.com.co. The comfort can be an illusion but it does exists.gittigidiyor.ebay.ebay.be/ http://www.de/ http://www.com/ http://www.ebay.The company has different sites for different country. The user feel more comfortable shopping in their zone or country.mx/ 11 | P a g e .sg/ http://www.co. This makes eBay more close to local people.co.it/ http://www.il/ http://www.co.tradera.cn (site now redirects to eachnet.com. Anybody (registered users) can shop from any site using the same profile.com.ebay.pl/ http://www.ie/ http://www.co.ebay.nz/ http://www.hk/ http://www.ebay.com/ http://www.com) http://www.ph/ http://www.ebay.at/ http://www.ebay.ebay.kr/ http://www.ebay.uk/ http://www.auction.ebay. thus help customization.ebay.ebay.my/ http://www.ebay.ebay.ebay. List of domain names NAME OF COUNTRY Australia Austria Belgium Canada China (now defunct) France Germany Hong Kong India Indonesia Ireland Israel Italy Japan Malaysia Netherlands New Zealand Philippines Poland Singapore South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey United Kingdom United States Vietnam Mexico WEB SITE http://www.com.ebay.ca/ http://www.sekaimon.ch/ http://ruten.in/ http://id.co.com/ (Joint venture with Yahoo! Japan) http://www.ebay.com/ http://www.au/ http://www.tw (joint venture with PCHome) http://www.ebay.es/ http://www.ebay.com.

markmonitor.5% Madras 10. 2145 Hamilton Avenue San Jose CA 95125 US +1.2% Canada 2.17. The IP location of the server are different.com(which an American site) and the eBay.135.9% Visitors by Country Visitors by City Visitors by City: Registrant: Domain Administrator eBay Inc.1 66.2% Bombay 15.4083767400 Fax: +1.1% Philadelphia 1.9% Delhi 3.5% San Francisco 3.11 Massachusetts Cambridge .8.Here is comparison between eBay.4% Hyderabad 5.200.8% United States 1.9% New Delhi 16.6% ebay.7% Los Angeles 6.9% Boston 1. One can see that registrar for the two site are different.1% Germany 1.com Apache-Coyote/1. The IP address of two servers are different.Akamai Technologies India 93.in(which is the Indian site).8% China 2.2% New York 5.in Registrant Organization Created Expires IP Address IP Location eBay International AG 2005-02-16 2012-02-16 96. eBay.8% India 1.27 California .4083767514 12 | P a g e . 1995-08-04 2018-08-03 whois.8% Bangalore 8.Campbell Ebay Inc United States 71% Great Britain(UK)2.com Registrar Created: Expires: Whois Server: Server Type: IP Address: IP Location Visitors by Country: MARKMONITOR INC.1% Chicago 2.

com (then leading site). 2001 July 8.dk & bilbasen.dk Business Online auction Auction house E-commerce payment systems Auction house Online marketplace E-commerce payment systems Online auction Online auction E-commerce payment systems Online auction Electronic commerce Online auction Classified advertising Classified advertising Classified advertising Classified advertising Classified advertising Online shopping Classified advertising Voice over Internet Protocol Social network service Online auction Electronic commerce Electronic commerce Browser plugin Electronic Commerce Classified advertising In April 2009. 2007 May 30. 2005 June 2. 2006 April 24. 2004 May 18. 2005 March 9. 2000 December 12. 2004 August 14. 2005 June 30.com OpusForum. 2003 July 11.org Skype Meetup. Like in India it bought the Baazee.com Tradera StubHub GittiGidiyor StumbleUpon Bill Me Later dba. iBazar PayPal CARad.com EachNet Baazee. 2005 May 19. 1998 April 27. These acquisition were for two reasons one expansion and other elimination competitor from the local market. 2006 January 10. 2008 Company Up4Sale.com Butterfield & Butterfield Billpoint Alando Half. 2003 June 22. and August Capital. Ebay announced the plan of taking Skype IPO in 2010.com Loquo Gumtree Shopping. 2007 October 6. 1999 June 22. 1999 May 18. 1999 June 13.nl Rent. 2005 September 13. 2008 October 6.com Precision Buying Service Internet Auction Co.Expansion and acquisition eBay has been heavily in evolved in expansion and acquisition. 2002 January 31. 2004 December 16. and selling StumbleUpon to a group of private investors including Sherpalo Ventures. 2004 November 10. 2001 March 5. Here is the list of acquisitions:AcquisitionsAcquisition date July 16. 13 | P a g e . 2007 May 3.com Craigslist Marktplaats. 2000 January 8. Accel Partners.

Sellers and bidders can participate from anywhere that has internet access. 2. The eBay is the pioneer site to provide C2C services. This convenience increases the number of bidders. at the discretion of the seller). multiple identical items are offered in one auction. In a Dutch auction. Several types of online auctions are possible.consumer (C2C). This increases the number of listed items (ie. reducing costs. flea market and thrift shops to both dispose of and acquire used merchandise. In return for linking like-minded people the eBay money. This makes them more accessible and reduces the cost of "attending" an auction. In an English auction the initial price starts low and is bid up by successive bidders. individual consumers used garage sales. In fact it was the first innovative idea of such nature in web world. Strengths of the business model The strategic advantages of this business model include: 1. consumers no longer had to venture out of their homes or offices in order to bid on items of interest and sellers could relinquish expensive retail space that was no longer needed in order to reach buyers. The C2C ventures provide a way for consumers to sell to each other.the highest price at which all items will be sold (treasury bills. are auctioned this way). giving purchasers time to search. Before eBay. 14 | P a g e . Items are listed for a number of days (usually between 1 and 10. and bid. for example. No time constraints. The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved. In fact it is one of few Web companies that has been profitable from day one and has stayed so for several years. with the help of an online business. decide. The items do not need to be shipped to a central location. Bids can be placed at any time (24/7). with all winning bidders paying the same price -.Business model of eBay The business model of eBay is consumer-to. number of sellers) and the number of bids for each item (e. Online auction business model The online auction business model is one in which participants bid for products and services over the Internet. Almost all online auctions use the English auction method.g. No geographical constraints. With the introduction of online auctions. and reducing the seller's minimum acceptable price. number of bidders).

Intensity of social interactions. the ease of access. sometimes draw criminals wishing to sell stolen products. Network economies. neither sellers nor other users learn how individual buyers rated the seller. some bidders may bid primarily to "play the game" rather than to obtain products or services. they attempt to convert part of the consumers' surplus (defined as the area above the market price line but below the firm's demand curve) into producers' surplus. When leaving feedback. these ratings are anonymous. 5. in a virtuous circle. which. Because of the potential for a relatively low price. 7. Large number of sellers. the potential for a relatively high price. in turn. there are a large numbers of bidders. Because of the large number of bidders. buyers are asked to rate the seller in each of these categories with a score of one to five stars. will encourage more bidders. etc. the broad scope of products and services available. and the more valuable the business model becomes for all participants.3 or below in any of the four rating categories appear lower in search results. eBay began using detailed seller ratings with four different categories. Criticism of online auction Auction sites. Large number of bidders. classified advertisements and other independent sales venues. The listings of sellers with a rating of 4.. which will encourage more sellers. Some criticism is leveled at online auction websites for uneven representation of items offered for sale. 4. and ease of access. flea markets. In 2007. studying photographs 15 | P a g e . and the social benefits of the auction process. and photos may not be adequate. Unlike the overall feedback rating. The more the circle operates. the larger the system becomes. The social interactions involved in the bidding process are very similar to gambling. Potential bidders can typically protect themselves by reading the text.5. with five being the highest rating and one the lowest. Descriptions may omit important information. Power Sellers are required to have scores in each category above 4. like garage sales. The bidders wait in anticipation hoping they will "win. This creates a highly loyal customer segment. Auctions are a form of first degree price discrimination. but for law enforcement organizations.3. finding stolen goods offered online is sometimes easier than more traditional detection methods. The large number of bidders will encourage more sellers. Captures consumers' surplus. As such. This can also skew the prices of items/services/goods in the auction. there are a large number of sellers. 6. reduced selling costs." Much like gambling addiction.

 Fixed Price format with Best Offer allows the seller to accept best offers. pensioners and others that are unable to find employment in the mainstream workforce. Best offer is not available for auction style listings. Within the online auction community this is commonly viewed as an attempt at unfair market protection and trade restraint. These are as following: Auction-style listings allow the seller to offer one or more items for sale for a specified number of days. the trading practices of online auction venue corporations is not regulated by state or federal agencies. Bidders can bid for any number from one item up to the total number offered. citing potential illegalities. Studies show that a large proportion of unsatisfactory online purchase experiences are the result of careless consumerism.  Fixed Price format allows the seller to offer one or more items for sale at a Buy It Now price. However. Buyers who agree to pay that price win the auction immediately without submitting a bid.  Dutch Auctions allow the seller to offer two or more identical items in the same auction. Auction-style bidding Bidding on eBay's auction-style listings is called proxy bidding and is essentially equivalent to a Vickrey auction. In the U. a seller may submit a counter offer to the buyer. 16 | P a g e . best offer is not available in every category. The winning bidder pays the second-highest bid plus one bid increment amount (i. If a buyer submits a best offer. Presently. In addition. Sellers also meet specific requirements in order to sell with best offer.e.S. retirees.. Online auction selling has attracted millions of laid-off workers.and asking questions of the seller before bidding. Reduced overhead sometimes enables independent online sellers to offer goods at lower prices than large retailers. Process of Auction on eBay eBay offers several types of auctions. as well as the disabled. The seller can establish a reserve price. Online auction venue corporations are accused of engaging in discriminatory trade practices that unfairly impact such customers. large retailers have lobbied Congress to require online auction sites to share private sales information about sellers. with the following exceptions. some small predefined amount relative to the bid size). the seller either rejects or accepts the best offer. If the best offer is not satisfactory. instead of simply the second-highest bid. parents of young children.

00. eBay will display that the current winning bidder is Gunjan. eBay displays that the current winner is Rakesh. which is equal to the second-highest bid ($3. this time at $2. even though her previous bid was much larger than that. since this amount may be higher than the amount required to win the auction. since Rakesh's bid is higher than Gunjan's.25. but instead is always displayed. which are auctions of two or more identical items sold in one auction. which equals the second-highest bid ($2. at any given moment. The Dutch Auction format is scheduled to be discontinued in May 2009.since the bid increment amounts are relatively insignificant compared to the bid size. one bidding increment above the current winning bid. with a bid of $3. each bidder is required to bid one full bidding increment above the currently displayed winning bid. The current winning bid is not sealed. with a bid of $1. and since no one else has bid yet. statistically. each bidder enters both a bid and the number of items desired. Again. which is equal to one bidding increment above the winning bid. eBay will also display that the minimum allowable bid is $2. Since Gunjan's bid is now higher than Rakesh's. Since Rakesh has already bid more than Gunjan. Rakesh bids $3.00.25). eBay will display that the current winner is Rakesh. the highest bidder's bid is not necessarily displayed. If Gunjan were to win the auction. 17 | P a g e . Suppose that Gunjan bids again.00 for the item. bidders can bid any amount greater than or equal to the minimum bid.75) plus the bid increment ($.25.00) plus the bid increment ($.25).00 and that the bid increment amount in this price range is $.25. Dutch Auctions For Dutch Auctions.50.25. Once the total numbers of items desired by all bidders is greater than or equal to the total number offered.75.25).25.00 for the item.25).00) plus the bid increment amount ($. eBay will also display that the minimum allowable bid is $3. Suppose then that Gunjan bids $2. eBay will display that the current winning bidder is Rakesh. Again. which is equal to the second-highest bid ($2. Until the total number of items desired by all bidders equals the total number of items offered. and that the minimum allowable bid is $1.00. one bid increment above the winning bid. having been supplanted by other formats such as Fixed Price auctions. Suppose Gunjan bids one more time. However. it is not widely used. with a bid of $2. with a bid of $3. Example of bidding on an auction-style listing. Suppose bidding for an item starts at $1. they are not considered from a strategic standpoint. she would have to pay the amount equal to the winning bid ($3. at $10. All winning bidders pay the same lowest winning bid.

register user STOP AUCTION PROCESS N Check user authenticit y/ balance y N WINNER STOP Y Information CREDIT /DEBIT COMPANY SERVER eBay seller 1 2 BUSINESS PROCESS AT eBay 18 | P a g e PALPAY SERVER PAYPAL SERVER Credit to sellers A/C .

salvage and other goods. MercadoLibre -in Portuguese (Brazil) is a website dedicated to online auctions. and brokers of subprime loans in the world. Prosper -an online auction website where individuals can buy loans and request to borrow money. Taiwan and Hong Kong. Hobby Markets Online -a series of person-to-person marketplaces for high-end collectibles. loan sale advisors. uBid .Competitors of eBay Apex auctions -a Brighton-based auctioneer who specialize in auctioning CNC and manual machines. The Debt Exchange -one of the largest internet loan sellers. Bidtopia -is an online auction site. Heritage Auction Galleries -the world's largest collectibles auctioneer and the third largest auction house. Overstock -is an online retailer headquartered in Cottonwood Heights. TradeMe -Internet-auction website operating in New Zealand as of 2009. Utah. Oztion -is an online auction site designed for Australians. SalvageSale . Bidorbuy -is South Africa's largest internet auction website.) 19 | P a g e .is an online auction marketplace built for the disposal of insurance and corporate surplus.deals in Excess inventory from the world's most trusted brands Yahoo! (Yahoo! Auctions is active in other countries such as Japan. Tradus (former QXL) -is an online auction company that operates in Europe. near Salt Lake City. Lixtor -is an Internet-auction website operating in New Zealand since 2005. eBid -is an online auction website. GunBroker-is an Atlanta based auction website specializing in the sale of firearms.

-based eBay. and New Zealand where TradeMe. The UK based ebay.co. owned by the Fairfax media group is the dominant online auction website. plus several optional adornment fees. most sellers that operate as a full time business do follow state tax regulations on their eBay transactions. ProPay.15 to a maximum rate of GBP £3 per £100 for an ordinary listing and from 0. The company's current business strategy includes increasing international trade. eBay has already expanded to over two dozen countries including China and India.co. For most listing categories. Paymate.75% or less of the final price (as of May 2009). there are fees to list a product (Insertion Fee) and fees when the product sells (Final Value Fee). 20 | P a g e . making deals more attractive to buyers. In its Q1 2008 results. law. The impact of driving buyers and sellers to use PayPal means not only does eBay turn buyers into clients (as a pure auction venue its clients used to be predominantly sellers) but for each new PayPal registration it achieves via the eBay auction site it also earns offsite revenue when the resulting PayPal account is used in non-eBay transactions. and Moneybookers.uk (ebay. it is not a common practice. Although some state laws require purchasers to pay sales tax to their own states on out-of-state purchases. However. all based on various factors and scales. The U. The eBay fee system is quite complex. but off the eBay auction site it was up 61 percent. where Yahoo! had a head start. eBay requires sellers to include the VAT fees in their listing price and not as an add-on and thus eBay profits by collecting fees based on what governments tax for VAT. eBay now owns the PayPal payment system which has fees of its own.S. Reduced FVF's are available to business registered customers. A more recent strategy involves the company increasingly leveraging the relationship between the eBay auction site and PayPal. Under current U. a state cannot require sellers located outside the state to collect a sales tax.com takes $0. However for the tax called Value added tax (VAT).75 percent to 10% (writing as of June 2009) percent of the final price. eBay sellers are permitted to offer a variety of payment systems such as Paypal. In addition. total payment volume via PayPal increased 17 percent. The only places where expansion failed were Taiwan and Japan.10 to $4 (based on the opening price) for a basic listing without any adornments and 8.Profit and transactions eBay generates revenue from a number of fees.S.uk offices) takes from GBP £0.

establish their own PayPal deposit account or request a transfer to their bank account. bidding. Note that this contrasts with the consumer protection they offer. as credit card issuers are automatically informed of the seller's country of origin. In general the Seller Protection Policy is intended to protect the seller from certain kinds of charge backs or complaints if seller meets certain conditions including proof of delivery to the buyer.eBay runs an affiliate program under the name eBay Partner Network. PayPal is an example of a payment intermediary service that facilitates worldwide e-commerce. the payment option used. the country of the recipient. PayPal performs payment processing for online vendors. PayPal serves as an electronic alternative to traditional paper methods such as checks and money orders. This policy should be read carefully before assuming protection. In addition. The recipient of a PayPal transfer can either request a check from PayPal. The payout is 50% to 75% of the fees paid for an item purchased. for which it charges a fee. they might get a refund via chargeback from their credit card company. the amount sent and the recipient's account type. Safety and protection policies followed by PalPay The PayPal Buyer Protection Policy states that customers may file a buyer complaint within 45 days if they did not receive an item or if the item they purchased was significantly not as described. Payment system The eBay ensures full security to customers will up loading a product for bid. The fees charged depend on the currency used. If the buyer used a credit card. auction sites. In particular the Seller Protection Policy 21 | P a g e . it protects sellers in a limited fashion via the Seller Protection Policy. According to PayPal. eBay affiliate marketers Fees are paid a percentage of the eBay seller's transaction fees. delivery and payment. PayPal states the Seller Protection Policy is "designed to protect sellers against claims by buyers of unauthorized payments and against claims of non-receipt of any merchandise". A PayPal account can be funded with an electronic debit from a bank account or by a credit card. PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. It sometimes also charges a transaction fee for receiving money (a percentage of the amount sent plus an additional fixed amount). and other commercial users. the country of the sender. eBay purchases made by credit card through PayPal may incur a "foreign transaction fee" if the seller is located in another country.

A class-action lawsuit was filed against PayPal. days after the company's successful initial public offering. the payment method and the destination country the item is shipped to (simply having a tracking mechanism is not sufficient to guarantee the Seller Protection Policy is in effect).includes a list of "Exclusions" which itself includes "Intangible goods". There are also other restrictions in terms of the sale itself. "Claims for receipt of goods 'not as described'" and "Total reversals over the annual limit". 22 | P a g e .

These e-commerce sites are dependent on network of network i. age telephone. Like Trojan horse.com) stores or online retail (e-retail) are such virtual companies those are doing business of physical product with them self producing anything. Process of sign up The sign up process includes filling up of online form and then identification check. Traditional business process and model are switching click model of business.Online security E-commerce is booming with growth of internet and mobile services. hacking etc. Online auction firms (eBay) or online books (Amazon. In addition to these the online auction sites also face some problems of peculiar types. This confirms the identification to the user. 23 | P a g e . He/she has to type in the secret code in the email that is generated by the system. warehousing anything or marketing anything. The form requires an individual to fill in details of name. address. Once form filling process is over the company server makes a call on the landline number or send SMS on the mobile. The internet has its on problems which are inherited to these e-commerce operations. Some businesses are using internet as medium of expansion of their marketing strategy or consolidation strategy and then graduating to enterprise resource planning (ERP).e internet. The online auction sites problems face these problems :y y y y y y y Hacking Viruses and Trojan horses Fraud online auction site Fraud on part of seller Fraud on part of buyer Stealing of credit card password Undeclared or hidden fees The VeriSign provides certification to the eBay site. It ensures SSL framework protocol to the users. nationality. While some business have developed on the computer and internet itself with having any physical supply chain or marketing chain. In both the cases a secret code is given to the person owning the phone.

IDENTIFICATION PROCESS ONLINE FORM User fills form CODE SEND BACK eBay server SMS OR SECRET CODE IS SEND DATABASE 24 | P a g e .

SPECIMEN OF ONLINE FORM OF eBay 25 | P a g e .

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or they sell so many items that they need two accounts to keep things organized.All the details of the person are stored into database. even the IP address at eBay International AG and stored and processed by eBay Inc. The two accounts can never bid on each other s listings or be involved in the same listing in any way. Even if the login name is correctly identified by the system. located San Jose. If a user is under 18. 27 | P a g e . Any members find that they need two accounts if they sell two different types of items. CA. he/she can use eBay with a parent or guardian. nor be involved with each other's Member Profiles. USA. the person is to login through proper process. When ever the person log in he or she welcomed by the eBay by the login name of the user. An account holder need to be at least 18 years old to register on eBay. because when to buy and sell on eBay he/she must be actually making a legally binding contract. They can have two accounts with the following limitations :y y The two accounts must have different user IDs and different email addresses.

Nazi paraphernalia. Used underwear (see Panty fetishism) and dirty used clothing. Tobacco (tobacco-related items and collectibles are accepted. Regional laws and regulations may apply to the seller or the buyer.com (the US site). provided they are not Native American in origin). as the site grew. magazines. it became necessary to restrict or forbid auctions for various items. Note that some of the restrictions relate to eBay.Ethics and social issues Prohibited or restricted Items In its earliest days. firing pins. Lottery tickets. including sealed containers. Live animals (with certain exceptions). Bootleg recordings. Lock-picking tools. if the sale or ownership of an item is regulated or prohibited by one or more states. Teachers' editions of textbooks including home school teacher's editions. Crossbows and various types of knives are also forbidden. brass casings and shells. Drugs and drug paraphernalia. slides.) Alcohol (alcohol-related collectibles. Military hardware such as working weapons or explosives. and practice locks fall into the category of burglar tools. accessories. as well as some wine sales by licensed sellers are allowed). However. Any items of a sexual nature must be listed in the Adult Only category. Generally. Child Pornography. including any parts that could be used to assemble a firearm as well as (as of July 30. Certain copyrighted works or trademarked items. which prohibits. eBay was essentially unregulated. barrels. Among the hundred or so banned or restricted categories. sweepstakes tickets. etc. trigger assemblies. Human parts and remains (with an exception for skeletons and skulls for scientific study. 28 | P a g e . cylinders. Firearms and ammunition. eBay will not permit its listing. 2007) any firearm part that is required for the firing of a gun. or any other gambling items. while other restrictions apply to specific European sites (such as Nazi paraphernalia). including bullet tips.

necrophilia.Obscene Materials including bestiality. Non-physical items no longer can be sold through eBay. rape. Adult products that are delivered digitally. Links to sites that contain prohibited items. restrictions which vary by country. and incest. are prohibited in the UK following media pressure about the sale of items assessed by police to be 'illegal'. scat. Knives. 29 | P a g e . Pre-owned sex toys. They can only be advertised through classified ads on eBay and do not get feedback. Services including any sexual activity. Ivory products. Virtual items from massively multiplayer online games. Many other items are either wholly prohibited or restricted in some manner. other than cutlery.

Some interesting products on eBay In October 2008. Iceland will provide the winning bidder with a habitable environment.com wherein David Thorne (writer) claims to have attempted to pay a Chiropractor's bill with a picture of a 7-legged spider. 30 | P a g e .[109] Both the e-mail exchange and the picture have become internet hits. The picture stemmed from an article on the site 27bslash6.95. amidst the 2008 2009 Icelandic financial crisis one seller had put up Iceland for sale. Icelandic Horses and admittedly a somewhat sketchy financial situation. Auction started with 99 pence but had reached 10 million pounds (US $17. with bidding ended at a sale price of US$10. However. which he valued at $233. Bidders' questions included: "Do you offer volcano/earthquake insurance?" In November 2008.28 million).95. The notice read Located in the mid-Atlantic ridge in the North Atlantic Ocean. a Swedish man put a digitally hand-drawn picture of a 7-legged spider onto eBay. singer Björk was "not included" in the sale.000. On eBay. the bidding price started at $233.

PIERRE OMIDYAR 31 | P a g e .

ebay.ebay.verisign.org www.com www.in www.com 32 | P a g e . Implementation and Control) 10th by Pearce.technology.society) by Kenneth C Laudon and Carol Gurercio Traver (Pearson education) Stratigic Management (Formulation.com) www.BIBLIOGRAPHY E-Commerce (business.wikipedia. Robinson and Amita Mital (Tata McGraw hill ) Web Based DNS Lookup (NSLookup) (ZoneEdit.

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