eBay
eBay was founded in Pierre Omidyar's San Jose living room back in September 1995. It was from the start
meant to be a marketplace for the sale of goods and services for individuals.
In 1998, Pierre and his cofounder Jeff Skoll brought in Meg Whitman to sustain the success. Meg had
studied at the Harvard Business School and had learned the importance of branding at companies such as
Hasbro.
Meg culled her senior staff from companies such as Pepsico and Disney, created an experienced
management team with an average of 20 years of business experience and built a strong vision for the
company -- that eBay is a company that's in the business of connecting people, not selling them things.
They quickly shed the image of only auctioning collectibles and moved into an array of upscale markets
where the average sale price (ASP) is higher. ASP is a key metric in determining eBay's transaction fees, so
increasing the ASP became an important item. By forging partnerships with namebrands such as GM,
Disney and Sun, eBay has managed to do exactly that. Sun has sold
$10 million worth of equipment and it now lists between 20 and 150 items per day.
The Business Model
eBay has built an online person-to-person trading community on the Internet, using the World Wide
Web. Buyers and sellers are brought together in a manner where sellers are permitted to list items for
sale, buyers to bid on items of interest and all eBay users to browse through listed items in a fully
automated way. The items are arranged by topics, where each type of auction has its own category.
eBay has both streamlined and globalized traditional person-to-person trading, which has traditionally
been conducted through such forms as garage sales, collectibles shows, flea markets and more, with their
web interface. This facilitates easy exploration for buyers and enables the sellers to immediately list an
item for sale within minutes of registering.
Browsing and bidding on auctions is free of charge, but sellers are charged two kinds of charges:
? When an item is listed on eBay a nonrefundable Insertion Fee is charged, which ranges between
30 cents and $3.30, depending on the seller's opening bid on the item.
? A fee is charged for additional listing options to promote the item, such as highlighted or bold
listing.
? A Final Value (final sale price) fee is charged at the end of the seller's auction. This fee generally
ranges from 1.25% to 5% of the final sale price.
eBay notifies the buyer and seller via e-mail at the end of the auction if a bid exceeds the seller's minimum
price, and the seller and buyer finish the transaction independently of eBay. The binding contract of the
auction is between the winning bidder and the seller only.
eBay was founded in Pierre Omidyar's San Jose living room back in September 1995. It was from the start
meant to be a marketplace for the sale of goods and services for individuals.
In 1998, Pierre and his cofounder Jeff Skoll brought in Meg Whitman to sustain the success. Meg had
studied at the Harvard Business School and had learned the importance of branding at companies such as
Hasbro.
Meg culled her senior staff from companies such as Pepsico and Disney, created an experienced
management team with an average of 20 years of business experience and built a strong vision for the
company -- that eBay is a company that's in the business of connecting people, not selling them things.
They quickly shed the image of only auctioning collectibles and moved into an array of upscale markets
where the average sale price (ASP) is higher. ASP is a key metric in determining eBay's transaction fees, so
increasing the ASP became an important item. By forging partnerships with namebrands such as GM,
Disney and Sun, eBay has managed to do exactly that. Sun has sold
$10 million worth of equipment and it now lists between 20 and 150 items per day.
The Business Model
eBay has built an online person-to-person trading community on the Internet, using the World Wide
Web. Buyers and sellers are brought together in a manner where sellers are permitted to list items for
sale, buyers to bid on items of interest and all eBay users to browse through listed items in a fully
automated way. The items are arranged by topics, where each type of auction has its own category.
eBay has both streamlined and globalized traditional person-to-person trading, which has traditionally
been conducted through such forms as garage sales, collectibles shows, flea markets and more, with their
web interface. This facilitates easy exploration for buyers and enables the sellers to immediately list an
item for sale within minutes of registering.
Browsing and bidding on auctions is free of charge, but sellers are charged two kinds of charges:
? When an item is listed on eBay a nonrefundable Insertion Fee is charged, which ranges between
30 cents and $3.30, depending on the seller's opening bid on the item.
? A fee is charged for additional listing options to promote the item, such as highlighted or bold
listing.
? A Final Value (final sale price) fee is charged at the end of the seller's auction. This fee generally
ranges from 1.25% to 5% of the final sale price.
eBay notifies the buyer and seller via e-mail at the end of the auction if a bid exceeds the seller's minimum
price, and the seller and buyer finish the transaction independently of eBay. The binding contract of the
auction is between the winning bidder and the seller only.
One of the best online shopping click www.ebay.in/ and enjoy
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