Abstract

The last several decades have seen the development of a global marketplace for the exchange of
goods and services. The development of the internet has made trading online easier and faster.
Online shopping is already widely popular, especially since it makes people feel at ease and
convenient to shop whenever and wherever they like. Furthermore, under-utilized innovation
modifies our communication style. In the realm of advertising, especially online media or what is
often referred to as e-commerce, don't discount the role that online retailers play as a
communication channel, where e-commerce promotion is already quite advantageous. The
purpose of this study is to examine e-Bay's e-commerce platform. eBay has been building
genuinely Internet-friendly inventories in secret. eBay is a brilliant idea for business using
Internet network and has empowered supply and demand on the web with incredible outcome.

INTRODUCTION

Pierre Omidyar, a computer programmer of French descent, created eBay in 1995. Initially, the
company wanted to build a platform where people could directly buy and sell goods to one
another. Omidyar soon discovered, though, that the platform's true value lay in its capacity to
support auctions. This made it possible for buyers to place bids on products, raising their prices
and enabling sellers to get paid more for their goods.

eBay's distinctive business strategy has been a huge success. Over a million people had
registered with the company by 1997, and it was growing at a remarkable pace. eBay became a
publicly traded firm and went public in 1998.

eBay grew its business by purchasing several other companies in the early 2000s. The business
bought PayPal in 2002, a well-known online payment service that made it simple and safe for
eBay customers to pay for their goods. eBay purchased Skype in 2005. Skype was a well-known
online communication tool that let users chat with one another in real time. These purchases
increased eBay's user appeal and solidified its position as the industry leader.

One of the biggest and most prosperous internet marketplaces in the world today is eBay. It
continues to be a well-liked destination for both buyers and sellers, with millions of goods
offered for sale and over 182 million active users. While the company continues to face
competition from other online marketplaces, its unique business model and strong brand
recognition have helped it to maintain its position as a leader in the industry.
 eBAY MISSION STATEMENT
eBay’s mission statement is “to provide a global online marketplace where practically anyone
can trade practically anything, enabling economic opportunity around the world.”

eBAY BUSINESS MODEL: AN OVERVIEW

The core of the eBay business model is a marketplace where customers can bid on goods or buy
them straight from sellers. Founded in 1995, the company has expanded to become one of the
largest e-commerce platforms globally, with millions of users across more than 190 countries.
eBay provides its users with a variety of services in addition to its marketplace, including
financing, advertising, and payment processing. The business generates income from a number
of sources, such as commissions from vendors, advertising, and joint ventures. Customers on
eBay come in different shapes and sizes, both as people and as companies.

To increase its reach and product offerings, the organization also has agreements with a number
of technological companies and retailers. Traditional brick-and-mortar businesses and other
online marketplaces like Amazon and Alibaba compete with eBay. In spite of this, eBay has
maintained growth and modified its business plan to maintain its position as a leader in the e-
commerce industry.
With its focused shopping communities and online auctions, e-Bay has a business plan tailored to
their market. "Antiques & Entertainment" is the primary part. The lack of an organization
dedicated to collecting items is what inspired Pierre Omidyar to found eBay. To the surprise of
seasoned veterans in the sales field, the collection is quietly one of the most well-liked in terms
of clean product offers.

SWOT ANALYSIS eBAY

Strength

 A sizable and engaged user base: eBay boasts millions of global users who purchase and
sell things on the site, providing it with a powerful network effect and drawing in both
consumers and sellers;

A user-friendly platform: eBay provides features like personalized suggestions and
thorough product listings to make it easier for users to locate what they're looking for;

a solid and safe payment processing system: eBay's safe and dependable payment
processing system fosters user confidence and trust;

 A group of skilled workers: eBay employs a group of people with experience in

technology, e-commerce, and customer care, who work to maintain and enhance the
platform and assist users;

Data and algorithms: eBay targets advertisements and makes personalized product
recommendations to specific customers based on data and algorithms, which can enhance
user experience and increase sales;

Intellectual property: eBay possesses a variety of intellectual property, including patents
and trademarks, which it may use to safeguard its reputation and keep rivals from stealing
its ideas.

Weaknesses

 fierce competition: eBay must contend with fierce rivalry from other e-commerce sites
and online marketplaces in order to stay afloat and retain its market share.
  Dependency on third-party sellers: A sizable percentage of the products sold on eBay are
supplied by third-party vendors, which implies that eBay has no control over the caliber
or dependability of those products. This may result in unhappy customers and harm
eBay's standing;

Restricted control over pricing: As an open marketplace, eBay's platform allows sellers to
determine the prices at which they will sell the things they have to offer. This implies that
eBay may not be able to provide the best prices for particular products due to its limited
control on pricing;

 Reputation for low-quality goods: eBay's prior associations with counterfeit and low-
quality goods have harmed the company's standing and deterred potential customers;

Difficulties in overseeing subsidiaries: eBay has several subsidiaries, including StubHub,
which can complicate business processes and make it challenging to create efficiencies
and synergies.

Opportunities

 Entry into new markets: eBay is well-established in a number of global markets, but there
are still a lot of areas where the business could grow. For instance, eBay might try to get
into developing nations with sizable and expanding populations, like Indonesia and India,
or it might increase its footprint in already-existing areas by introducing new goods and
services;

Entry into new product categories: eBay provides a large range of products, but there are
still a lot of areas in which the business may grow. For instance, eBay can try to enter
new markets like food or home furnishings or increase the range of services it offers,
such appliance repair or house cleaning;

Collaborations and partnerships: In order to grow, eBay may consider forming alliances
with other businesses or institutions.

 Acquisitions and subsidiaries: eBay may try to expand by expanding its current
subsidiaries or by making acquisitions. To increase its reach, the corporation might, for
instance, buy more e-commerce sites or online marketplaces. It might also put money
into its subsidiaries, like StubHub, to help those companies flourish.
Threats

 rivalry is fierce: eBay must contend with fierce rivalry from other e-commerce sites and
online marketplaces in order to stay afloat and retain its market share. It may be
challenging for eBay to compete with these rivals given their possible advantages in areas
like product range, cost, delivery time, or customer support;

Shifts in customer behavior: The e-commerce sector is developing quickly, and
consumers' buying habits are ever-changing. eBay's business may suffer if customers start
using other shopping channels or platforms instead of online marketplaces like eBay;

 Economic downturns: A decline in consumer spending can have an effect on eBay's

operations. Customers may be less inclined to purchase and sell things on eBay's
platform if they are more frugal with their money during a recession, thereby harming the
company's earnings and expansion;

Trust and reputation: eBay's success depends on both its user base's trust and its
reputation. eBay's reputation could be harmed and users might be less inclined to use the
site if it does not adequately secure user privacy, handle customer complaints, or stop the
sale of fake or subpar items;

Risks related to regulations: Given its size and prominence, eBay is vulnerable to
regulatory scrutiny and may be hit with fines or other consequences if it doesn't perform.
 BUSINESS COMPOSITION OF eBAY

eBay Customers Segments

 Buyers: These are people or companies that utilize eBay's marketplace to buy products
from sellers;
 Sellers: These are people or companies that offer products to customers on eBay;
 Advertisers: These companies use eBay's platform to market their goods to a wide range
of prospective buyers. They might spend money on extra marketing services to make
their products more visible on eBay, including highlighted listings or classified ads.

eBay Value Propositions

 The ability to shop for a large selection of goods from sellers worldwide, frequently at
low costs, is eBay's value proposition for customers. Additionally, eBay provides features
like buyer protection and simple returns to enhance the convenience and security of the
shopping experience;

 The ability to access a wide audience of potential buyers and sell products quickly and
effectively is eBay's value proposition for sellers. Additionally, eBay provides tools like
payment processing and seller protection to enhance the ease and security of the selling
process;

 The opportunity to reach a sizable and active audience of prospective buyers who are
actively using eBay to shop for products is eBay's value proposition for advertising. eBay
as well

eBay Key Partners

 Payment processors
 Shipping and logistics companies
 Affiliate marketing networks
 Subsidiaries, such as StubHub
 Strategic partners and collaborators in the e-commerce industry
 Vendors
 Investors
 COMPETITORS OF eBAY

Amazon: An extensive worldwide e-commerce business, Amazon provides a broad range of

goods and services, including online marketplaces for the purchase and sale of items. The
Amazon platform is well-known for its large assortment of goods, affordable prices, and quick
delivery choices. The business also provides services like Amazon Marketplace, which enables
independent merchants to reach Amazon's sizable customer base, and Amazon Prime, which
offers free shipping and access to streaming video.

Alibaba: Alibaba is a Chinese e-commerce business that runs a marketplace for both retail and
wholesale trading in addition to offering additional services including cloud computing and
digital media. Businesses of various sizes utilize Alibaba's platform to purchase and sell goods
and services, and the corporation is well-known.

Walmart: Walmart is a big, international retailer that runs an online marketplace in addition to
its physical locations. Along with a large selection of low-cost products in its online shop,
Walmart now provides grocery delivery and in-store pickup services. Walmart has a large
presence in the US market and its physical locations offer them a substantial logistical and
distribution advantage.

eBAY GROWTH AND FUTURE PROSPECT

eBay has been very focused as a service provider. The major variation from this strategy has
been the purchase of Half.com, which is a fixed-price retailing operation. This is a place where
consumers can go to buy new items. In addition, the company recently acquired Paypal, a
leading provider of person-to-person payment services. eBay has many other service operations:

eBay International. eBay has consciously tried to create a global marketplace. Even though
users from other countries may bid on U.S. auctions, the legal and financial barriers prevent easy
trading. Country-specific sites are seen as the way to overcome this. As of now, eBay has
country-specific sites in Austria, Australia, Canada, France, Germany, Ireland, Italy, Japan,
Korea, New Zealand, Switzerland and the UK.
eBay Motors. In addition to selling used cars online, this site features motorcycles, as well as
auto parts. The company has created a unique trading environment with services such as
financing, inspections, escrow, auto insurance, vehicle shipping, title & registration, and a lemon
check.

eBay Stores. eBay Stores expands the marketplace for sellers by allowing them to create
customized shopping destinations to merchandise their items on eBay. For buyers, eBay Stores
represents a convenient way to access sellers’ goods and services. Buyers who shop at eBay
Stores are able to make immediate and multiple-item purchases for fixed-price and auction-style
items

eBay Professional Services. Professional Services on eBay serves the fast grow-ing and
fragmented small business marketplace by providing a destination on eBay to find professionals
and freelancers for all kinds of business needs such as Web design, accounting, writing, technical
support, among others.

eBay Local Trading. eBay has local sites in 60 markets in the U.S. These sites feature items that
are located near them. As a result, buyers pay low shipping rates—especially for difficult-to-ship
items such as automobiles, furniture or appliances

CONCLUSION

eBay is a successful online marketplace that allows buyers and sellers to easily connect and
conduct transactions. The company’s business model is based on generating revenue through fees
charged to sellers and advertisers, and it also leverages its subsidiaries to generate additional
revenue. eBay has strengths, such as a large and active user base, but it also faces competition
and regulatory risks. The company has opportunities for growth, such as expansion into new
markets and product categories, but it must also address threats to maintain its success.

42 Krishnamurthy
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permission of Idea Group Inc. is prohibited.
in online firms have been written off. The company does not have adequate cash to
operate for a long period of time. The company has accumulated a vast deficit.
However, this has not stopped the company from making new acquisitions and
forming new partnerships. A key partnership was announced with Target on
September
2001. Target agreed to use Amazon.com technology for order fulfillment and
customer
care services on its Target.com, MarshallFields.com, Mervyns.com and
GiftCatalog.com