Ebay's Impact on Economy and Term Paper

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The difference this time is that they are going about it in the same way that they run their businesses. They are selling to select areas and towns, just like a store located there, instead of trying to sell everywhere. This keeps their operating costs low, and because of this, they can expand to other markets as their profits increase - just as they would with traditional stores (Lee, 2003). Customers that shop online for groceries often shop for other items as well, finding the computerized version of shopping faster and more convenient. Since this is becoming a trend, online sellers such as eBay and Amazon are capitalizing on it and branching out into more markets as they realize that people are listing more and more things.

The main reason that eBay does so well is because it helps to make buying things very convenient, similar to large retailers that have 'superstores' which provide many goods and services in one place (Hof, 2003).

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A lot of eBay sellers are creating stores today because they are easy to set up and actually not that expensive - at least when a person considers what the overhead would be on a traditional store with rent and utilities and insurance, etc. However, not everyone likes to sell or buy online, and one of the largest drawbacks comes in with shipping costs for oversized or heavy items. Many of these are sold for local pickup only, and that restricts these sellers basically to having only the client base that a traditional store would have without giving people the opportunity to come to the showroom and look. Because these retailers and many others are doing so well online, though, it is likely that they will be around for a long time to come, despite some price and shipping concerns for some buyers and sellers......

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