PayPal Merchant Services: Harvard Case
Services Marketing
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Introduction
PayPal
• Founded in December 1998, PayPal is a leading global online payment company.
• Purchased by eBay in October 2002.
• Over 100 million registered accounts globally and available in 55 markets.
• PayPal has a local presence in 13 countries outside the US, including UK, Canada, Australia, Austria, Belgium,France, Germany, Italy, Spain, Ireland, Netherlands,Switzerland and China.
• Supports payments in U.S. Dollars, Canadian Dollars,Australian Dollars, Euros, Pounds Sterling,Chinese Yuan
• Regulated by the FSA.
• Passported License to 25 EU countries.
• Becoming a major player in the Merchant (off-eBay) space.
•
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For Off-eBay merchant services PayPal can target both existing users as well as New Users.
1) Existing users
2) New Customers
In the new world,a lot of people are involved in internet.Many people are transferring money over the internet.
Many small companies,bloggers,web publishers earn money through their sites and advertisements. PayPal offers them a quality and secure way to manage and transfer their money.
Product changes:
Many off-ebay customers are not attracted towards PayPal because of the fee based revenue model.People mainly prefer free services.Even credit cards offer a interest free credit period in which money transfer/transaction can be done without paying any extra money.Paypal should also think on modifying its service on the similar lines.
1) Paypal should try to give service free for a limited number of days else some fee or interest should be charged
2) Paypal should concentrate on revenue through advertisements on its PayPal portal,sponsorships,bulk deals, special promotions.
3) PayPal can use differential model for fees.e.g. First few transactions can be made free and some money can be charged over a certain limit or vice versa.
Q4: On the merchant side, to what extent should paypal emphasize the recruitment of large, established online retailers versus small and midsized merchants? what changes, if any, should be made to pricing terms, product features and other policies ?
PayPal should
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]
With the new age of technology we have entered, it would seem simple to enter the internet sales industry but things are not always as they seem. Entering the internet sales industry will prove to be a
In proposing eBay as publicly traded on an open market organization in recognizing prospect livelihood, complete model is great and fits development without the requirement for progressing costly base or staffing costs. Gained account recognizes substance which unites suppliers and clients. Figures out how to maintain a set-up where request and supply shows value determination.
We make sure our customers agree with our payment. We explain to our customers our payment plan. We also make sure our customers understand and agree our payment plan. We accept cash, check and credit card. We have two kinds of payment plan: full payment one time and monthly payment with 10% interest. We have a discount of a customer who makes full-payment. If customers have any questions or complain, they can use 24 hour hot-line.
Ebay is primarily service providers who connect the sellers and buyers by providing platform to sell and buy any goods.
PayPal is a system which customers can use to pay electronically and securely for goods over the Internet. Small, medium and corporate
Alipay’s core service is an escrow service which solves the concerns related to settlement risk between buyer and seller. In this system, after a buyer commits himself/herself to an online transaction, his/her payment is held in an Alipay account until he receives the product ordered. After the product is received the buyer notifies Alipay and the payment is then forwarded on to the seller. As of December 2006, Alipay had 33 million registered users. (Source: “Alipay - 33 Million Registered Users,” www.imnewswatch.com, February 5, 2007) PayPal was a leading online payment company purchased by eBay in mid-2002. In June 2007, PayPal had 143 million user accounts across the world. Through PayPal, individuals and businesses could send or receive money over the Internet. PayPal supported payments in US Dollars, Canadian Dollars, Australian Dollars, Euros, Pounds Sterling, and Japanese Yen. Buyers could also pay for their online purchases on various e-commerce websites and auction sites like eBay using the balance in their PayPal account. Though this mode of transaction was quick, there were also a number of complaints from disgruntled PayPal users. Most of the complaints were related to the dispute resolution procedures of PayPal. In eBay China, transaction fees used to be charged as a percentage of the value of completed sales. This ranged from RMB 10 for a sale worth RMB 500 to RMB 115 for one worth RMB 20,000 (Source: “EBay China
If you would like to know about the payment methods available on this website you can always contact the customer care department who'll inform you of the daily limits and transaction processing
When looking at eBay’s target market, the segmentation of users appears to be majority males, ranging from 25-34 years old. Over half of the users don’t have kids and also lack college experience. The majority of the people are Caucasian and have a household income of $100,000. After looking at this information there are some good opportunities that eBay could capitalize on.
Payment terms for your customers - we will accept all major credit cards and PayPal online payments.
Each and every client of web administrations may be a "player" of eBay. Along these lines, there are an endless number of suppliers and everybody can offer something as a potential supplier for eBay. EBay plan of action gives an administration that brings the purchasers and vendors together. The suppliers don 't have much power aside from on account of the exchange of the top of the line things at the end of the day costly products: land or autos or types of gear. It is clear that both the purchasers and merchants need insurance for their things (Cheng, 2005, p. 159). eBay utilizes PayPal as a part of a request to accommodate smooth and brisk installment of things where the vendors need to get their cash rapidly. Be that as it may, it is entangled to offer costly where the suppliers have more power. Keeping in mind the end goal to encourage the offering costly things, eBay acquired Skype where to side can without much of a stretch import and trade information. The suppliers all in all don 't have much power unless they are managing the top of the line things.
The online payment marketplace is experiencing an explosion of innovative ideas, plans, and announcements, which one commentator has likened to a “goat rodeo”, a chaotic situation in which powerful players with different agendas compete with one another for public acceptance, and above all, huge potential revenues. Others liken the payment marketplace to a battle among the four platform titans Apple, Google, Facebook, and Amazon. Each of these titans have their own versions of a future payment system that challenges the other players. And let’s not forget PayPal, the reigning power in alternative online payment, or the credit card companies who process over 70% of online payments, or the
1. Analyze the marketing environment and the forces shaping eBay’s business over the years. What conclusions can you draw?
- Small-Medium Enterprises (SMEs) wishing to build an online presence at Yahoo! website by subscribing to the Yahoo! Merchant Solutions program which help SMEs to create and run a virtual store front in under an hour! The package comes with a domain name parking service, a business application suite such as business web mail service as well as all the hosting needs all rolled into one simple solution. The revenue source will include the monthly subscription fees of the SMEs for the running, maintenance and 24/7 support extended to the merchants. This greatly reduced the transaction costs involved in
What aspects of eBay’s strategic capability are easily copied by new entrants and if so would you copy them and how would you copy them?