Analyzing the Ebay Strategy Case Study

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eBay

Why has eBay succeeded as an online auction marketplace while so many others have failed?

It is noteworthy that eBay has been the pioneering online shopping place on the Internet. In particular, it is a platform that offers convenience for sellers to retail their products to people across the globe. In addition, it facilitates buyers to get a hold of sellers worldwide for products that they might not have the capacity to obtain or gain access to in their prevailing marketplace or position. The success of eBay emanated through undertaking a pricing revolution, which enabled the consumers to instigate the price they were ready to part with to buy an item. In the same manner, the sellers were able to make proper margins, owing to the efficiency and comprehensive reach of the site. This is what is regarded as perceived value pricing (Kotler and Keller, 2012). In addition, another key reason that enabled eBay to succeed as an online auction marketplace when other entities failed is for the reason that others were incapable of producing a special business model which generated satisfaction for both the consumers and merchants. Therefore, most of them ended up having to shut down or merged with others (Raj, 2015).

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Evaluate eBay's Fee Structure. Is it optimal or could it be improved? Why? How?

The company does not retail or purchase anything on its own. It generates its revenues by accumulating fees. These fees encompass an inset fee for every listing together with a final value fee centered either on the fixed price or auction. This structure for pricing was established and instituted to appeal to high-volume retailers and dissuade the individuals that solely enlist a few low-priced items. This particular price approach was also referred to as second-degree price inequity, in the sense that the company would charge less amounts to the buyers or consumers that purchase items in large volumes. More so, this strategy is an effective way to appeal to greater volume purchasers. However, it is imperative for eBay not to forget the small consumers that will also purchase more and more items online. This is largely for the reason that constantly charging them high fees will cause them to opt for the company's rivals (Kotler and Keller, 2012).

What's next for eBay? How does it continue to grow when it needs both buyers and sellers? Where will this growth come from?….....

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"Analyzing The Ebay Strategy" (2016, July 08) Retrieved July 7, 2025, from
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https://www.aceyourpaper.com/essays/analyzing-ebay-strategy-2161556
   

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