Current Strategies of eBay * Fixed-price listings would be favored over auctions * A new fee structure would drop the cost of listing an item but increase eBay’s cut when the item is sold * A new search engine algorithm would give top billing to items based on price and customer satisfaction rating * Seller feedback to buyers would be eliminated * Fee reduction for highly rated sellers, fixed-price listing, and sellers offering free shipping is implemented
Q: Do you agree or disagree with Donahoe that eBay’s current strategy doesn’t mean that certain sellers will lose?
A: No, I disagree.
Let’s look through some of the strategies and analyze them.
To compete in the fixed-price marketplace, eBay enacted a series of
…show more content…
| $50.01–$1,000.00 | | $1,000.01 or more | |
Fixed price format listings Buy It Now price | Insertion fee | $0.99 or more | $0.50 | Fixed price final value fees | Total cost to buyer | Electronics* | Clothing, Shoes and Accessories | Books, DVDs & Movies, Music, Video Games | All other categories | $0.99– $50.00 | 7.0% | 10.0% | 13.0% | 11.0% | $50.01–$1000.00 | 7.0% of the initial $50.00, plus 5.0% of the remaining | 10.0% of the initial $50.00, plus 8.0% of the remaining | 13.0% of the initial $50.00, plus 5.0% of the remaining | 11.0% of the initial $50.00, plus 6.0% of the remaining |
eBay’s challenges are multi-faceted, and it remains to be seen whether by simply returning to its roots as an auction site it can win back buyers and sellers who have long since given up on using the site. Online retailing has evolved significantly since eBay was founded over a decade ago. Savvy consumers have learned how and where to find deals online, but value intangibles beyond price when making their purchase decisions. Consumers expect a level of service that in some respects is beyond eBay’s ability to control in its role as middleman. Given that, eBay would be better served looking beyond product strategy and focusing instead on improving the shopping experience for buyers and sellers as its constant tinkering seems to be doing more harm than good.
eBay allows buyers to rate any
EBay has paved the wave in this industry and being in a billion dollar industry making things happen to benefit consumers in many ways.[5]
In 1999, Amazon became a merchant platform by introducing zShop, “a new service that allows anyone to sell merchandise through its website”. (Moore, 1999) It not only creates extra revenue from the $9.99 monthly subscription fee from sellers but also “60 cents per transaction for payments made with 1-Click, as well as 4.75 percent of the final sale”. (Moore, 1999)
It is very unlikely that this would occur, because members of eBay who sale products on the site usually if not always own the product being sold, therefore no one should be able to dictate the price at which owned goods could
eBay has a choice preferred standpoint. Regularly contributed similar to the world 's greatest store, and have a bigger number of things available to be purchased than anyplace else. However its maintainability props on patch up unstable ground as omnichannel world envision, for arranging purposes, that everything is available to be purchased in each commercial center, each methods, and each channel. Partaking connected shoppers may never get to that world, yet it 's a helpful arranging presumption.
Positive and negative consequences for buyers and sellers of the special event tickets in case the fixed price approach is used
3. How does the current market condition affect eBay’s decision? Should eBay go ahead with the offering?
eBay needs to focus on several issues to become more competitive. One issue is the fact that their competitors, like Amazon, make website purchases less difficult. On Amazon a customer can make a quick buy instead of having to bid on an item, wait for the auction to end, and then see if they won the auction. Another issue for eBay is the customer’s perception that scams are more likely on their site since purchases involve individuals and not companies. Even though eBay has the buyer protection plan to counter this idea, some customers might still shy away because they do not want to take a chance of having to go through the dispute resolution process in case it is a scam. When looking at Amazon’s return policy, they back their buyers 100%. If the buyer is not satisfied with the product or it doesn’t match the description that was on the website, Amazon will give the buyer a full refund. Looking at this from a buyer’s perspective, it makes purchasing more convenient to return a product as opposed to having to track down the buyer and trying to work out a resolution. I think that if eBay changes the protection policy and would
1.What did Bidder's Edge do that was different than eBay's normal customers? Why does it matter to EBay?
Today’s highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct business.
E-commerce is a product that has been available since the early 90’s. It is something that people are familiar with. A product that is now part and parcel of people’s lives.
After these initial changes, six months later, eBay’s initial offering of $18 a share closed at $47 a share. Whitman is given credit for increasing eBay’s customer base from 750,000 members to more than seven million by 1999 (Anonymous, 2016). Whitman’s, strategic marketing and brand building of eBay were effective planning processes, in launching a successful IPO.
There are likewise low leave boundaries in this industry. EBay possesses 35.14 % of the business sector starting 21st of February, 2012, which leaves space for them to grow. EBay requirements to stay aware of purchasers needs and needs alongside watching out for its rivals keeping in mind the end goal to be fruitful.
Briefly describe the pricing structure that is used with this product and explain the benefits of this method.
2.The other is to delay the offering for six months. This will cost eBay approximately $1 million in direct expenses; however eBay's additional losses will be far greater due to the delay of major investment initiatives.
The fact that eBay does have some successful competition means that its strategic capability has become less unique. There is a hint in their competitor profile that innovation and perhaps adaptability to different cultures as they innovate is not core to eBay and something which has been developed more successfully by others working within their own national culture. Indeed, eBay rules in its own territory of North America and in Europe. The search capability of eBay also means that niche players do not really make sense, whereas the consumer trust that comes from being a big player is worth everything when trading on-line, as is the notion that whatever you want it will be on eBay because of its size. Thus, the so-called network effects of eBay (the bigger the company, the more successful it will be) and its first mover advantage that has led to this level are key to its success.