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ebay strategy analysis
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Selling Experiment in eBay
Essentially, a trading is an activity when two parties do some exchanges of goods or services on value that had been agreed by both sides. In the past, barter was the famous method to do trading. Over the times, money and currency were discovered, and then barter is not popular anymore. Nowadays, while the Internet technology has advanced rapidly and reliable, electronic trading has started to replace the physical trading market in over the world (Massimb & Phelps, 1994, p.39). This phenomenal has led many businesses to change their traditional business model to be more adaptable with electronic trading environment, from physical shop to be virtual shop. A company or seller is not only have to show their existence in real world, but also in the online networks. However, there are some differences between strategy in traditional market and online market place, eBay as an example.. Therefore, this essay will discuss any critical aspects that need to be considered to start online business in online market such as eBay.
eBay is an online platform which works as market place. On eBay, people can do both selling and buy at the same time. Also, there are many variations of item that can be sold and buy as well. The way eBay works is letting users do a C2C business model on their platform. They provide features that ease the users to do trading activities. Some powerful features of eBay are secure payment gateway, product listing and categories, search engines, bid and buy now method, and also user’s reputation. To experience the reliability of eBay from seller perspective, an experiment have been done. The experiment is regarding of how a user selling products in eBay, including the strategy to selling it f...
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...mail in email settings. This enhancement is for avoiding the misunderstanding of reading email as a junk email by the email provider.
Integrating with social media
As we know the social media has growth fast nowadays. Therefore, those product listings should be integrated more with social media such as Facebook or Twitter.
Better analysis of market competitor
The first selling experiment was lack of market competitor analysis. The seller failed to indicate who are the biggest competitors. Therefore, it led to lack of confidence in putting the price and it ends up by selling it almost 50% lower than the expected selling price.
Choosing better method of selling (auction or buy it now)
For the next business, it should be put more consideration how will it be sold. The first experiment has shown that by put two buying option, buyers preferred to bid it than buy it now.
Conjoint Analysis is a must before you can decide which product to launch. Again the cross section (filter) must be chosen properly to get the right numbers. The utility value after taking into account both price and product factors must be used.
The object of this paper is to create a balanced scorecard for eBay based on the optimal approach for running an Internet-based auction business. Cases for both sides on whether eBay has met the metric goals as detailed in the balanced scorecard will be discusses along with a discussion on which argument was more compelling and the reasons why.
Proposed mission for eBay is to be the largest online marketplace that facilitate customer’s (1) shopping experience (2) from beginning to end, with a smart, searchable website(4), easy-to-follow instructions(7), clear and secure payment methods (5,6,8) at the same time enabling economic opportunity around the world(3) together with our associates(9).
Since its inception in 1995, eBay has become the market leader and innovator in the online auction industry and its brand has accordingly become synonymous with e-commerce. Rapid growth and being the first to market served eBay’s competitive strategy of differentiation well; there was really nothing like it out there: unique service, broad range of products and global reach. In addition, their target audience was quite diverse-on the buyer side you had everyone from hobbyists and collectors to the bargain hunters; on the seller side you had antique dealers, casual sellers, mom-and-pop businesses selling unique items and finally large well-known corporations liquidating their inventory. 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.
In a nutshell, the underlying reason for eBay’s success is as a result of offering a shopping solution that is quite remarkable, a link between the internet and everyday life with the ability to search for a world of objects. This is conceivably the main reason which accounts for eBay’s growing profitability.
...ount of untrustworthy and reliable sellers. EBay could counteract this problem by implementing a strategy where eBay would have the authority to terminate a user’s account if their rating in percentage dropped below 60%. This strategy may help the organisation to reduce the amount of unreliable seller resulting in a much more safer and reliable market platform where people would be able to purchase products at ease without any hassle.
A dominant position is held by eBay due to the trust that is built on the safety of the consumers and sellers. The trust is gained by consumers and sellers through the knowledge that eBay monitors fraud. This gives eBay user’s security and peace of mind knowing that eBay has such high security and a stringent and trustworthy trading regulations. Other than the trust built from security, eBay also maintains a dominant position due to it catering to such a large demographic. It caters to all wants and needs through its ability to sell a large range of items.
Always remember that the more specific attribute the better. This would make your customers’ search easier and will lead them more to your product. Maximize the resources on how you could promote your products. You need not spend lots of money on costly advertisements. Using social media such as Facebook and Twitter are effective ways on how many businesses today promote their offers and products online. Providing links online that directly goes to your website or that specific product is also a good way to expose your products. With this, you will now be guided on how to make effective and proper product listings that will surely benefit you and your customers.
Although it is easy for opponents to enter the industry, because of eBay’s great item identification, it makes it difficult for these new newcomers to be effective. Because there are not many limitations to access, the risk of competitors is great. There are few opponents that have grown large enough to competing eBay but they do cause a risk. The risk from providers and customers is little because of the company structure that eBay uses. The risk of alternati...
As the result, in round 3 our team (Blue) takes a place in the second. We did a better performance than the previous round because we sell a new product name (Boss) in the market that increases our profit. In the decision rationale that we decide in the first time we take the right decision also in this round include increase the competence and battery life for the product that make the company fast growth. For example, in previse round the competence is 129 while this round 164, and the battery life in previous is 130 but in this round is 167.The margin in Europe is 79% and in Asia is 75% that because increase in sales and customer demand in Europe more than Asia. In the market research we implement a strategic price for our product (Boss) best than the first product (KitKat), we put a less price for Asia customer than Europe that because the demand and the demographic such as income. For instance, the price in Europe for product (Boss) is 1000, but in Asia 899 that is good decision.
Now the country is getting advanced with the internet connection so many people are using the internet for the sale and purchase of goods online only. E-commerce is a process of purchase and sale made through electronic means. The processes involved such as advertising, ordering, delivery, payment and after-sales services for goods and services ( according Lee Foong Yeaw, 1998). With the existence of e-commerce internet for selling goods online. After the advent of e-commerce e-tailing around about it that individuals who sell goods online. E-commerce is the buying and selling process is made through electronic means. Through e-commerce traders can expand their business throughout international. E-tailing is sales intermediary, a seller that operates between manufactures and customers. Even through many manufactures sell directly to consumers, they usually supplement their sales through wholesaler and retailers. In the physical world, retailing is done in stores (or factory outlets) that customers must visit in order to make the purchase. Have a eight type of e-commerce in the concept of e-tailing implies sales of goods and services individual customers that is B2B (business to business), B2C (business to consumer) , B2B2C (business to business to consumer), C2B (consumer to business), C2C (consumer to consumer, Intrabusiness EC, B2E (business to employees), E-Learning and E-Government. After that, in a business e-tailing have a two type that is pure play E-tailer and click-and-mortar and bricks-and-mortar. Pure play e-tailer is the people buy the good and services at amazon.com, e-bay and other website, furthermore...
In recent years, selling online companies have mushroomed following the increasing popularity for internet and for distance purchases. However, these trading systems are more complex than traditional sales. Indeed, these sales virtually engaged, they are realized with great speed and are very numerous. Moreover, the online sales system facilitates international trade.
E-commerce application is a platform where there is buying and selling of products and services which are done by businesses and consumers via an electronic medium, mostly without using any paper documents. “E-Commerce applications support transactions between businesses and their customers. They provide 24/7 customer support, allowing customers to order products, check orders and track shipping, review previous orders, reorder products, and manage their accounts.” (Auburn SeeWolf llc , 2009-2012)
In today’s era “INTERNET” is playing a significant role in our daily life. People can walk through the internet to one who is actually living on the different side of the planet, can send mails round the clock, search information & even buy things online. With this invention of internet there is a shift in traditional way of shopping. Now there is no need to open a physical store. One can be active at any time and place and purchase products and services. The number of users of internet is increasing day by day which means that online shopping is increasing. Various characteristics of online shopping is making it more convenient for the customers, as compared to traditional way of shopping such as the ability to view and purchase goods and
This paper includes the process of online business; how to sell a product, advertising, various ways to create awareness and how to become a reseller. Laws and conditions for an online business.