future strategies of ebay started in term paper
Excerpt from Term Paper:
Future Tricks of eBay
eBay was founded in 1995 by simply Pierre Omidyar as “AuctionWeb, ” element of a larger personal site that included, among other things, Omidyar’s homage to the Ebola virus (Wikipedia, 2004). The website belonged to Echo Bay Technology Group, Omidyar’s consulting firm. He had attempted to register the domain name “EchoBay. com” nevertheless found it already taken, so he shortened this to his second choice, “eBay. com. ” craigs list is based in San Jose, Washington dc. Meg Whitman has served as eBay’s president and CEO seeing that March 1998.
eBay has transformed traditional businesses through technology and understanding consumer needs (Cohen and Lopez, 2002). auction web sites transformed the ideas of low expansion, private get together newspaper labeled businesses into an public auction business. amazon has also revitalized traditional automotive advertising. Realizing that businesses needed to maneuver obsolete or perhaps slow-moving things, but not to “advertise” commonly, eBay made new retailers for significant business-to-business and business-to-consumer players.
The eBay marketplace helps to ensure profound results and more cost efficient to connect buyers and sellers (Cohen and Lopez, 2002). It has connected millions of people worldwide, allowing them to communicate and exchange merchandise by a minimal price.
eBay has its own creative advertising programs concentrating on the company’s a lot of registered users (Meyers, 2003). For example , buyers of Star Battles toys and collectibles can easily enter unique codes at a unique Jedi Master section of the eBay site and accumulate points which can be used for future purchases. Additionally , through eBay’s strategic promoting partnership software, branded firms like Dell and IBM have created eBay “stores. “
One of the main ingredients towards the success of eBay is definitely the rating program that marks every individual and organizational retailer and client (Meyers, 2003). Ratings are developed based on the number of efficiently completed orders, providing an assurance program to stop unethical ventures. Consumer self-confidence in amazon is the ideal advantage which allows brand marketers to confidently entrust their very own brands to eBay’s exclusive auction-based promoting experience.
At the moment, eBay’s smaller sized merchants feel that they are having difficulty competing with popular companies in the same market. When potential bidders find two diverse computers presented on amazon with one auction using a single seller named “techietom” and the additional being backed by a large organization like Dell, intuition keeps that it will have a higher status with Dell (Wells 2002). Some primary investigation helps the observation that the smaller firms and individual retailers are having a difficult time making their reputation solid because they don’t have the support and reputation of a well-established organization.
From eBay’s perspective, it truly is in their best interest to keep developing and most critics agree that “eBay must move over and above these small merchants, devoid of abandoning them. ” (Wells, 2002). Smaller businesses perceive firms like Target as a threat, but eBay’s argument is that they get cured like every various other merchant and must pay out the same commissions and fees. However , a good alternate strategy for the near future would be to retain smaller retailers and enhance their businesses, perhaps by cutting them a break.
eBay’s strategy so far has been to draw mass-market vendors of customer products (Steiner, 2002). Yet , it has recently increased their strategic focus to include client services. For instance , in 2002, eBay has announced a new travel-booking service within a deal with Priceline. com. The newest travel reservation service gives eBay consumers the ability to book flights, resort and car reservations in an auction file format or a “Buy it Now” fixed-price file format. The company in addition has added a “timeshare marketplace” in its craigs list Real Estate category, developing interactions with 3 major players, including a consortium of vacation ownership builders and among the largest resellers of timeshares in the industry.
Providing services can be one more part of eBay’s technique of heading from “World’s Largest Flea Market” to “World’s Major Mall” (Steiner, 2002). However , there is a immense amount of room intended for the company to expand and explore alternative strategies.
Relating to auction web sites CEO Meg Whitman (Business Week On the web, 1999): “We started with commerce, and what grew out of that was community. So we believe of ourselves as kind of a community-commerce model. And what we’ve basically completed is put in place a area where people can be powerful dealing and communicating with the other person. But we all also want to expand the varieties of merchandise offered on craigs list. The Butterfield Butterfield [Auctioneers Corp. ] acquisition helps us increase the speed of our entry into the superior segment. After which we also want to get into the sort of merchandise that is definitely not necessarily shippable because it’s not monetary to dispatch or you want to see it before you buy it. So cars, boats, RVs, things like that. We’re as well looking at the kind of merchants whom sell upon eBay. In the beginning, this was totally about individuals doing business with each other. What happened is that some of those people actually started to be small traders. They quit their day jobs to market full time about eBay. Today, we have a whole lot of retailers who keep their stores but in reality their the majority of profitable syndication channel is usually eBay. inch
As part of its strategy for the near future, eBay features making various changes to the site and improving its usability. Since eBay is escalating, usability is definitely the key to stability and performance. Consequently , eBay key strategy ought to be making the website easier to use and consistent.
amazon began solely as a great auction site. However , quarterly and annual reports demonstrate that a huge portion of you can actually sales are by set price and get It At this point sales, instead of solely by auction.
ebay’s initial attraction was the opportunities that it offered. The thrill of bidding on an auction and competing was a major draw for customers. For those providing, the seller loves full control of the lowest cost that they acknowledged, yet likewise had the opportunity to sell their very own items for a much increased cost than anticipated. For retailers, amazon provided usage of a worldwide marketplace and allowed even smaller businesses the opportunity to turn into international.
eBay’s monopoly with the online auction industry gave it a serious advantage. Virtually all buyers flocked to one particular place to buy and sell. This meant that listing in eBay reached just about the whole online public auction industry. If an item was desirable, it might very likely be seen by those who wanted it, if these people were online.
Nevertheless , recently auction web sites decided that expansion lay down in full, and the change to full has changed the face of eBay significantly, as retail and auction vendors have different requires. In a nutshell, auction sellers need a simple market place that presents buyer to seller and allows the market to dictate the real value of the item being offered. Retail sellers, on the other hand, appeal towards the impulse customer and the customer seeking quick gratification.
This has created to some extent of a discord, as sellers’ needs today differ for the point that auctions as well as the listing of different items have recently become bad on the Auction web sites site. Consequently , as a fresh strategy, craigs list could separate retail coming from auction simply by creating two sites – one specifically for the use of market type sales and for full. Because the devices employed could be far more basic structures, could keep the auction site the two more efficient and cheaper to run, and having a simplified real estate process tends to make sellers even more productive and mean more fees for craigs list.
Customer support is actually a major part of eBay’s strategy (CRMXchange, 2000). You’re able to send recent surveys show that almost all its users would recommend eBay to a good friend. And eBay recently received the “Best Customer Satisfaction” award from Satmetrix. You’re able to send accomplishments had been largely obtained on a strong and powerful technology system that consistently delivered at least 99% up period. However , while the company has turned significant technology progress, it is ongoing strategy should include frequent efforts to
