Nguyễn Linh Đan _ 2121012310

IP_21DMA02
EBAY
1. Why has eBay succeeded as an online auction marketplace while so many others
have failed?
Several key factors have contributed to eBay's success as an online auction
marketplace:
 Vision and Innovation: Pierre Omidyar was ahead of his time in seeing the
need to fill a void in the still-evolving field of online auctions by developing a
platform for access to global marketplaces.
 User-Centric Approach: In order to build trust and differentiate itself from
rivals, eBay gave top priority to features that are easy for users to use, such the
feedback system.
 Broad Product Offering: eBay began by offering collectibles and then moved
into other areas to better serve the demands of a larger customer base.
 Effective Pricing Structure: eBay's fee structure drew in high-volume sellers
while preserving supply and demand equilibrium.
 Adaptability: Constant development has improved customer experience and
streamlined transactions. Examples include fixed-price choices like "Buy It
Now" and adopting PayPal.
 Global Expansion and Partnerships: By bridging obstacles like language and
currency, international expansion and smart alliances increased eBay's reach.
 Strong Leadership and Strategic Acquisitions: eBay's skills and
competitiveness in the e-commerce space were enhanced by smart acquisitions
and guidance from CEOs such as Meg Whitman.

2. Evaluate eBay’s fee structure. Is it optimal, or could it be improved? Why? How?

A key component of eBay's business strategy is its fee structure, which supports
platform and seller interests while balancing development and upkeep.
 Strengths:
 Balances Interests: eBay's fees encourage profitable transactions, which is
advantageous for the platform and sellers alike.
 Attracts to Volume sellers: By incentivizing and retaining a diverse
inventory, tier fees draw in customers and promote high-volume businesses.
 Supports Operations: Fee income pays for advertising campaigns, platform
upkeep, and technology improvements.
 Areas for Improvement:
  Complexity: For new or low-volume sellers in particular, the fee structure
may be difficult to reach.
 Competitiveness: Lower sellers may be discouraged by higher fees.
Modifications or price reductions might increase eBay's attractiveness.
 Quality Incentives: Better listings may be encouraged if indicators such as
listing quality are factored into fee calculations.
 Flexibility: Providing charge alternatives that are configurable might better
serve the varied demands of vendors.
 Alignment with Success: Increasing seller loyalty and profitability may be
achieved by using performance-based incentives.

3. Discuss Donahoe’s vision for eBay. Is moving away from online auctions
sustainable for the company?
John Donahoe's strategy for eBay places a strong emphasis on broadening the
company's revenue streams to offset its reliance on online auctions in order to
respond to changing consumer preferences.
 Key Points:
 Diversification: Under Donahoe, eBay captured a larger spectrum of
customer behaviors by going beyond auctions to include fixed-price listings
and partnerships for speedier delivery.
 Acquisitions: eBay's capabilities were expanded by strategic acquisitions
such as StubHub and PayPal, which provided other services including
online payments and ticket reselling.
 Focus on Mobile and Technology: Donahoe gave eBay's mobile platform
development top priority since he understood how important mobile
commerce is, and as a result, efforts like the mobile app significantly
increased sales.
 In competition with Amazon: eBay wants to draw in customers looking for
ease and hassle-free returns by providing a larger selection of products,
including returnable items at set rates.
 Sustainability of Shift: Moving away from auctions can be sustainable if
aligned with changing consumer preferences and executed effectively:
 eBay's transition to fixed-price listings and expedited delivery options is
indicative of evolving customer inclinations towards ease and promptness.
 Flexibility and Diversification: Expanding the services beyond auctions
gives you the ability to adapt to changing consumer wants and market
trends while appealing to a wider range of customers.
 Strategic Competition: Differentiating from Amazon and emphasizing seller
reliability, exclusive items, and specialized markets, eBay has been able to
establish a name for itself in the e-commerce stage.
 Execution and Innovation: eBay's capacity to invest in technology, improve
user experience, and build solid alliances, as well as execute efficiently and
consistently innovate, is essential to its success.