SWEETIE

About eBay:

eBAY is the largest and most popular marketplace on the Internet, allowing members to buy and
sell almost everything. Launched in 1995 in the USA, about 147 million people now use eBay.
An estimated 430,000 people in the USA make all or most of their living by selling on eBay.
They proclaim “trust” between buyers and sellers as the key to the success of the marketplace.
The objective at eBay was to “to develop the work ethic and culture of eBay as a fun, open and
trusting environment and to keep the organization focused on the big picture objectives and key
priorities.

In the following years, eBay grew rapidly, especially after they started accepting credit card
payments. In 2002, eBay acquired PayPal, a large online payment company, to make the
payment process on their website easier.

In the years that followed, eBay continued to grow and expand its operations globally. In 2015,
eBay split from PayPal to become an independent company. Today, eBay has become one of the
largest online marketplaces in the world, with millions of products listed and purchased daily.

"The main competitors of eBay in the online retail market include Amazon, Walmart, Alibaba,
and Etsy."

1.Why has eBay succeeded as an online auction marketplace while so many others have
failed?
("First-mover advantage: Before eBay's emergence, there were not many online auction sites,
which helped eBay pioneer the market and build a dominant position in the market earlier. When
other competitors entered the market, eBay already had a large user community and was
recognized as a more reliable brand.
For example, before eBay's appearance, companies such as Sotheby's and Christie's were mainly
traditional auction houses, only allowing buyers to bid in person. eBay created a new playing
field for buyers and sellers anywhere in the world, which quickly made eBay a leading choice in
the online auction industry. ) 1slide

(User-friendly interface: eBay has an intuitive, user-friendly, and attractive interface, allowing
users to easily search, register, list products, participate in auctions, and purchase items.
For example, eBay's interface is designed to be simple and clear, allowing users to search for
products easily through categories, keywords, and filters. Sellers can list their products easily and
simply, providing detailed information and product images. Buyers can track auction status,
participate in bidding, and make online payments. ) 1 slide

(Trust and safety measures: eBay has implemented various measures to protect both buyers
and sellers, such as the feedback system that allows users to evaluate their experience with each
other and the secure payment system through PayPal.
For example, eBay's feedback system allows buyers and sellers to rate and rank each other after
completing transactions. Trusted sellers with many positive ratings will have a higher chance of
attracting more buyers. In addition, using a secure payment system through PayPal helps reduce
risks for both buyers and sellers.) 1 slide

(Diverse product offerings: eBay provides a wide range of products on its website, from used
items to new products, from common items to rare ones.
For example, on eBay, users can find everything from clothing, jewelry, toys, books,
electronics, household items, sports equipment, vintage items to unique and rare products. This
helps eBay attract a large customer base and keeps them coming back to the website to search for
new products. ) 1 slide

(Global reach: eBay is a global company, present in most markets around the world. This helps
eBay reach customers and sellers from all over the world.
For example, eBay has a website and application specifically designed for many different
countries, from the United States, the United Kingdom, Canada to Japan, China, and India. This
helps eBay attract customers from all over the world and helps sellers reach a global audience." )
1 slide

( Low costs: One of the key advantages of eBay is that it allows both buyers and sellers to save
money. For buyers, they can often find products at a lower price on eBay than they would at
traditional retail stores. For sellers, they can avoid the high costs of running a physical storefront
and instead operate solely online.
For Example: Many sellers on eBay are individuals or small businesses that may not have the
resources to open a brick-and-mortar store. By selling their products on eBay, they can reach a
wider audience without having to pay for rent, utilities, and other expenses associated with a
physical storefront. ) 1 slide

(Flexibility: eBay offers a lot of flexibility for both buyers and sellers. Buyers can shop from the
comfort of their own homes and choose from a wide range of products. Sellers can set their own
prices and shipping options, and they have the ability to reach customers from all over the world.
For Example: A seller on eBay can choose to offer free shipping on a product to attract more
buyers, or they can choose to charge a higher price for a product with expedited shipping. Buyers
can choose to bid on an item in an auction or to purchase it outright at a fixed price. ) 1 slide

(Overall, eBay has many advantages that have made it a popular choice for both buyers and
sellers. Its first-mover advantage, user-friendly interface, trust and safety measures, diverse
product offerings, global reach, low costs, and flexibility have all contributed to its success in the
online marketplace.) phần này ko cần bỏ zô slide

In a nother hand, Ebay has succeeded in its marketing campaigns by focusing on developing
customer relationships through attractive advertising campaigns and promotion programs.

One of the most successful campaigns of Ebay is "Shop Like a Boss", which focuses on
introducing Ebay as an ideal online shopping destination for those looking for unique, diverse
and reasonably priced products. This campaign created a series of short advertisement videos,
highlighting the special products and unique shopping features of Ebay.

Ebay has also succeeded in using promotion programs to attract new customers and maintain
the loyalty of existing customers. For example, their eBay Bucks program provides customers
with reward points to use for future transactions on Ebay, thereby encouraging customers to
continue using Ebay's services.

In addition, Ebay has also succeeded in utilizing social media platforms such as Facebook,
Twitter, and Instagram to promote their brand and generate customer engagement.

These advertising and promotional campaigns have helped Ebay increase brand awareness and
attract more new customers. They have successfully maintained and developed relationships
with their customers by providing value and an excellent shopping experience."
2.Evaluate eBay’s fee structure. Is it optimal or could it be improved? Why? How?

Ebay's fee structure has both advantages and disadvantages, and whether it is optimal or could be
improved depends on the perspective of different stakeholders:

To begin with, eBay doesn’t sell or buy anything itself. It earns its money by collecting fees: an
insertion fee for each listing plus a final value fee based on the auction or fixed price.This pricing
structure was developed to attract high-volume sellers and deter those who list only a few low-
priced items. This price setting is also known as second degree price discrimination: eBay
charges less to buyers who buy in a larger volume. Additionally, eBay offers various discount
programs for sellers who meet certain criteria, such as high sales volumes or offering free
shipping.

However, the fee structure still has multiple disadvantages. One of the most significant bad
points is that it can scare off smaller consumers since it usually cuts their earnings and profit
considerably. Smaller consumers sell less than high-volume sellers do, but they still constitute a
great part of eBay visitors, and their needs should also be taken into consideration. Otherwise,
they can either go to competitors or just sell less than they could have sold. Moreover, the fee
structure can make many visitors confused because it is complicated.

In terms of the profit, which the organization gets due to its current fee structure and, first of all,
due to high-volume sellers, it can be concluded that the possible risk of losing small consumers
is less important. That’s why we think that eBay’s fee structure is optimal.

Overall, while eBay's fee structure has its advantages, there is room for improvement to better
serve the needs of both buyers and sellers. By introducing more flexibility and differentiation in
fees, eBay could better align its fee structure with the needs of its users and potentially attract
more sellers to its platform.

3.Discuss Donahoe's vision for eBay. Is moving away from online auctions sustainable for
the company?
Donahoe's vision for eBay was to draw out the best of the firm to the clients. He had thought of
expanding the dealer's opportunities to sell their items and to give the purchasers extraordinary
choices and qualities.

Donahoe created innovation organizations and extended the online market to oblige brought
products back. He broke down both on the web and disconnected highlights of shopping. His
concept of moving eBay from an online sale was intended to overcome any issues between
disconnected shopping and internet shopping. He contended that moving to eBay was an
innovation organization, and it was difficult to rival entrenched retail firms; since web-based
shopping had a few shortcomings. From my point of view, moving eBay to disconnected was
impractical for eBay. If eBay moves disconnected, it will lose center around its center objective,
which is an online carport of products. Likewise, disconnected retailers can execute better
thoughts that eBay can't actualize subsequently causing a competition.

Donahoe’s vision centered on bringing the best out of what eBay has always offered to its
customers. This implies giving sellers the opportunity to sell at high volumes and offering buyers
a great selection and value.

Donahoe moved eBay beyond being just an online auction company. He developed technology
partnerships and expanded the company’s online marketplace to incorporate returnable goods.
Specifically, Donahoe considered the features of both online and offline auctioning or shopping.
Online auctioning’s major weakness is that it tracks customers and their information sometimes
without their consent. The website knows the customer, when they visit, how they get to the site,
the pages they click, and how long they stay. On the other hand, offline auctioning lacks this
technology and the business does not know the customer. As such, Donahoe’s idea of moving
the business away from online auctioning is meant to close the gap between online and offline
practices.

Donahoe contends that eBay is primarily a technology company and it is difficult to compete
with well-established retail firms. Yet, moving to offline auctioning provides a good platform for
matching normal retailers because the firm has the technological capabilities of money transfer
and e-payment. Even so, I think that moving away from online auctioning may be unsustainable
in the long-run.

One reason is that eBay will no longer focus on its core competency-an online garage of goods,
the idea for which many people know eBay. Furthermore, offline retailers can implement better
ideas and business practices to match eBay’s switch, which only increases competition.

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