ebay Inc.

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eBay Inc. is the world’s largest online marketplace and auction website, with more than 90 million active users globally. Founded in 1995 in San Jose, California by Pierre Omidyar, the first item sold on eBay was a broken laser pointer for $14.83(cite). eBay’s first target market was antique collectors and sellers. Now eBay connects a diverse community of buyers, sellers, and many small businesses all over the world. Practically anyone can buy and sell anything on eBay. eBay has a heavy impact on e-commerce, in 2009, the total worth of goods sold on eBay was $60 billion that is $2,000 every second (cite). Even though eBay strive in e-commerce, system failures, lack of control over counterfeit products, and exposure to Internet fraud pose as threats for eBay by turning away buyers and sellers from using eBay.com. Issue 1: System failures Cause: Third party services are not accessible Impact: Reduce current and future revenges and hurt customers’ businesses Recommendation: Improve system monitoring and provide adequate notice System failures lead to unavailability of many of eBay’s services like PayPal and Skype. eBay Inc. acquired PayPal in 2002. Since then, PayPal's customer base has grown both on eBay and across e-commerce (cite). eBay use PayPal for one of their payment methods online. System failures for long duration increase operational risk for eBay. In 2008, the eBay.com site has been interrupted for periods as long as 22 hours, and PayPal was unavailable for five continuous days (cite). Another one of eBay’s services is Skype. The company was acquired by eBay in September 2005 for $2.6 billion (cite=dm). eBay users use Skype for faster means of communication, allowing the users to have video calls and voice ... ... middle of paper ... ...atings are unlikely to have much success in garnering significant bids for merchandise. In addition, eBay maintains a comprehensive fraud protection program, with a staff that monitors the company’s sites for questionable activity. The company also offers escrow and insurance services for higher-priced items (Standard and Poor’s cite). eBay has always done very well in focusing its company’s goals and has been fast in grabbing onto opportunities like acquiring services, such as PayPal and Skype. Meanwhile, the weaknesses and threats mention above; system failures, lack of control over counterfeit products, and exposure to Internet fraud are the major issues that affect eBay and its target market. These issues have a negative effect on eBay and can lead to many users to stop using eBay.com. eBay must resolve and address these issues in order to attract new users.

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