ebay-e28093-online-auction final

Report
EBAY – ONLINE AUCTION
Group members :
-Nashrah Hanum Zainal
- Raja Ainul Bismi
- Fathilah Aris
Introduction of eBay
Information
Details
Founded:
September 3, 1995
Founder:
Pierre Omidyar
Headquarters:
San Jose, California, U.S.
Area served:
Worldwide
Key people:
Pierre Omidyar (Chairman)
John Donahoe (CEO)
Lorrie Norrington (President of eBay Marketplaces)
Industry:
Auctions
Products:
Online auction hosting, Electronic commerce, Shopping mall
PayPal, Skype, Gumtree, Kijiji (Now eBayClassifieds),
Slogan:
Come to think of it, eBay. Whatever it is, you can get it on eBay. Shop
victoriously! From collectibles to cars, buy and sell all kinds of items on
eBay. Buy it, sell it, love it
Website:
www.ebay.com
Type of site:
Online auction
Available in:
Multilingual
FOUNDER OF EBAY:
Pierre Omidyar
•
Items
Details
Race
Persian
Born
June 21, 1967 (1967-06-21) (age 43)
Paris, France
Occupation
Founder and Chairman, eBay Inc.
Net worth
US$5.5 Billion (2009)
Spouse(s)
Pamela Kerr Omidyar
Website
pmo.vox.com
(Persian: born June 21, 1967) is a French-born Iranian entrepreneur and
philanthropist/economist, & the founder/chairman of the eBay auction site.
Early Life & Work







Born in Paris, France to Iranian immigrant parents.
Mother Elahé Mir-Djalali Omidyar (doctorate in linguistics at the
Sorbonne, is herself a well-known academic). Father was a surgeon.
Growing up in Washington, D.C., Pierre's interest in computers
began at the Potomac School, which started to increase when he
was in the 9th grade.
Graduated from St. Andrew's Episcopal School in Potomac,
Maryland in 1984.
Graduated with a degree in computer science from Tufts University
in 1988.
Work for Claris, an Apple Computer subsidiary, where he helped
write MacDraw.
In 1991 he co-founded Ink Development, a pen-based computing
startup that was later rebranded as an e-commerce company and
renamed eShop.
eBay & Later Career
The site was launched on Labor Day, Monday, September 4,
1995, as "Auction Web"
 It was hosted on a site Omidyar had created for information
on the ebola virus.
 The word 'eBay' was made up on the fly by Omidyar when
he was told that his first choice for his web site, 'echobay,'
had already been registered and later he came up with 'eBay.'
 The service was free at first, but started charging in order to
cover internet service provider costs.

AUCTION TYPES

Auction-style listings: allow seller to offer 1 or more items for
sale for a specified number of days. The seller can establish a
reserve price.

Fixed price format: allows seller to offer 1 or more items for
sale at a Buy It Now price. Buyers who agree to pay that price win
the auction immediately without submitting a bid.

Fixed price format with best offer: allows seller to accept
best offers.
If a buyer submits a best offer, the seller either rejects or accepts
the best offer. If the best offer is not satisfactory, a seller may
submit a counter offer to the buyer.
Best offer is not available for auction style listings. In addition, best
offer is not available in every category. Sellers also meet specific
requirements in order to sell with best offer.


Bidding

Proxy bidding: bidding on eBay's auction-style listings.
Essentially equivalent to a Vickrey auction, with the following
exceptions.

The winning bidder pays the second-highest bid + one bid
increment amount .
(i.e., some small predefined amount relative to the bid size),
instead of simply the second-highest bid.

However, since the bid increment amounts are relatively
insignificant compared to the bid size, they are not considered
from a strategic standpoint.

The current winning bid is not sealed, but instead is always
displayed. However, at any given moment, the highest bidder's
bid is not necessarily displayed, since this amount may be
higher than the amount required to win the auction.
Seller ratings






On January 24, 2010 Auctionbytes.com held an open survey. Sellers could
effectively rate eBay itself, as well as competing auction and marketplace
sites. In the survey, users were asked to rank 15 sites based on five criteria:
Profitability
Customer Service
Communication
Ease of Use
Recommendation
After the results were published, eBay had finished 13th overall, edged out
by established sites such as Amazon and Craigslist, as well as lesser-known
upstarts like Atomic Mall and Ruby Lane.
 In individual category rankings, eBay was rated the worst of all the 15 sites
on Customer Service and Communication, and average on Ease of Use.
 A number of respondents said they would have given eBay a rating of ten 3
to 5 years ago. eBay was rated twelfth out of fifteen in the Recommended
Selling Venue category.

PROFIT & TRANSACTION

Generates revenue: various fees
The eBay fee system, there are fees:
 to list a product (Insertion Fee)
 fees when the product sells (Final Value Fee),
 several optional adornment fees, all based on
various factors and scales.


Eg.The U.S.-based eBay.com takes $0.10 to $4 (based on the opening
price) for a basic listing without any adornments and 8.75% or less of the
final price (as of May 2009).
Profit and transactions

Current business strategy includes increasing international trade.
eBay has already expanded to over countries including China &
India.

Expansion failed: Taiwan & Japan, (Yahoo!) & New Zealand, (TradeMe)
owned by the Fairfax media group is the dominant online auction
website.

For most listing categories, eBay sellers are permitted to offer a
variety of payment systems such as Paypal, Paymate, ProPay, and
Moneybookers.

Affiliate payout system that calls Quality Click Pricing, affiliates are
paid an amount determined by an undisclosed algorithm.

The total earnings amount is then divided by the number of clicks
the affiliate sent to eBay and is reported as Earnings Per Click, or
EPC.
Prohibited or restricted items
eBay was essentially unregulated.
Now, it became necessary to restrict or
forbid auctions for various items.
 Some of the restrictions relate to eBay.com
(the U.S. site), while other restrictions apply
to specific European sites (such as Nazi
paraphernalia).
 Regional laws and regulations may apply to
the seller or the buyer.
 If the sale or ownership of an item is
regulated or prohibited by one or more
states, eBay will not permit its listing.


BUSINESS MODEL
Core business for Ebay is Online Auction;
selling auction transaction service through the
World Wide Web, which creates diversity in
typical auction business.
 Using the web, the bidding is more widespread,
reaching far to both sellers and buyers, and a
wide diversity exists in the categories and
products available. The market is global and
more competition is present than it would be at
traditional auctions or traditional stores.

BUSINESS MODEL
eBay did not stand alone. eBay not only serve
their customers; sellers and bidders, but also
with their respective partners.
 It has been partnered with other organizations
to make eBay more ‘complete’ and attractive,
such as payPal for trusted payment transaction.
 eBay can be illustrates as a business that serves
Customers to Customers (C2C), Customers to
Business (C2B), Business to Business (B2B).

BUSINESS MODEL
BUSINESS MODEL
BUSINESS MODEL
Security are assured.
IT APPLICATIONS
• Registration System.
This system is important as it gathers
the users information in order to proceed
the auction and as the record.
IT APPLICATIONS

Transaction System
Transaction system helps eBay in managing transaction
between the bidders and classified the item based on
the bidding. Transaction system is essential since it is the
essence in auction business.
IT APPLICATIONS

Inventory System
Inventory system is important in managing inventory for
eBay. Although eBay don’t exactly store physical items,
but inventory system needed in order to manage
inventory of each items that has been bid.
IT APPLICATIONS

Shipping System
Shipping system essential in managing shipping items to
the winning bidder based on the correct item, address
and time. This system also should align and connecting
with inventory system for stating record of items in and
out.
IT APPLICATIONS

Payment System
Payment system on the other hand manages payment.
eBay partnered with PayPal as their referred payment
method.
IT APPLICATIONS

eBay pluggins important for the ebaying experience.
eBay partner with various popular mobile company,
such as iphone and blackberry, free apps such as
Auctane, Auctiva and vzaar, and even eBay desktop.
IT APPLICATIONS

eBay in iPhone application:
Key Features of eBay iPhone apps:

Buyer alerts:
Stay up to date on the status of your auctions and watched items
with timely alerts.
My eBay activity:
Dashboard view of all eBay activity with quick access to the details
Sharing:
Share items on your favorite social network
eBay Messages:
View and respond to your eBay messages



IT APPLICATIONS


eBay Feedback:
Leave feedback scores and comments while you are on
the go
Paying with PayPal:
Pay for most transactions right from your phone using
the convenience of PayPal.
SUCCESS STORY
•Stated in the Adam Cohen's 2002 book, The
Perfect Store
•January 1997 the site hosted 2,000,000 auctions,
compared with 250,000 during the whole of 1996
•February 2002, the company purchased IBazar, a
similar European auction web site founded in
1995
•October 14, 2002, the company bought PayPal
•In early 2008, the company had expanded
worldwide, counted hundreds of millions of
registered users, 15,000+ employees and
revenues of almost $7.7 billion
LESSON LEARNED
a) APPLICATION PROGRAM
•
HR
•
ACCOUNT&FINANCIAL DEPARTMENT
•
MARKETING
•
LOGISTIC
b) E-Commerce allows diversity in making business by
transparency the boundaries. eBay with the help of
emerging IT and technologies allows eBay keeps
competitive.
THANK YOU

similar documents