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Ebay Case Study

explanatory Essay
1469 words
1469 words
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History EBay was founded by Pierre Omidyar in 1995. The purpose of Auction Web, now name eBay, was to sale online goods for individual buyers and sellers. Mr. Omidyar also wanted for people to be able to interact about the products just like you would in a regular store. After spending the weekend writing codes on his personal computer, Mr. Omidyar launches the website, the site was “dedicated to bringing together buyers and sellers in an honest and open marketplace”(EBay Inc, 2013) . By July 1996, Mr. Omidyar quits his job to be dedicated full time to his auction website. He then brought Jeff Skoll as president of the company. By September of 1997 the company was renamed from Auction Web to its official name EBay. In 1998, Pierre and Skoll …show more content…

In this essay, the author

  • Explains that ebay was able to provide new business opportunities for other companies such as skype. the company signed a deal with skype and is now using this form of communication.
  • Explains that ebay and mercado libre have a similar payment system, similar to paypal.
  • Explains that ibrazil was purchased by ebay in february 2001. this is a great opportunity for ebay to expand in europe since it works for all europe.
  • Opines that e-bay has a competitive advantage overall competitions. with the investment in over 33 international countries, ebay will continue to increase their ability to gain market knowing the demographics of specific countries.
  • Opines that technology for me is a major weakness. if the system crashes or technology malfunctions would have me going crazy, especially because of my personal information.
  • Explains that ebay was founded by pierre omidyar in 1995. the site was dedicated to bringing together buyers and sellers in an honest and open marketplace.
  • Explains that ebay has experienced some fraud by some sellers, which has resulted in legal issues and negative feedback from consumers.
  • Explains that the internet is becoming more popular and people want to make money from their home. amazon is big since its ebay biggest competition right now since is right behind in profits.

Like any other website eBay has experienced some fraud by some sellers. EBay as well as its buyers are award that there is a potential for some sellers to try to sell counterfeit products. Which has result in legal issues for eBay and some negative feedback from consumers. Allowing this can affect eBay because they are known to deal with some major companies, direct companies, meaning they sell items that come from those companies and there is no possible way for the items to be counterfeit. However, we do have some sellers that do take the risk and sell things that is counterfeit, not a good image for neither the seller nor eBay. Another weakness I see is that over the years the company has increased their fees receiving it from sold goods, and PayPal transactions fees, which is a problem for some sellers because they might make zero profit if they sell their goods for a low amount of money. If the seller continues to make zero profit this would probably discourage the seller and he/she wouldn’t want to continue to make business. However, you might say “Why not just increase the price on the items that are being sold?” Well, some people to go on websites like eBay to obtain things for cheap. Therefore, is no point of them coming to the website to buy when they can actually go buy it at the store for the same amount and they can actually see what they buying and know if it’s real or

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