?

Agenda
1. Introduction
2.Overview of eBay
3.eBay’s Action Process
6.Product & Services
5. Analysis of competition
6.SWOT
7.Strategies
8.Competitors
Rajesh Satpute
Roll No. 47 (A)
What is eBay?

A place to buy

A place to sell

A place to shop

A place to collect

A website

Like the real world in many ways

Free for buyers and inexpensive for sellers

How eBay Started?
The first item ever sold on the online auction
giant was a broken laser pointer in 1995. At
that time, eBay was a domain name for
Omidyar's website that was named after his
consulting company, Echo Bay.
 Founded September 3 , 1995
r Pierre Omidyar .
sibilities Oversees strategic direction and growth chai
Pierre Omidyar
( Chairman )

John Donahoe

( CEO )

Lorrie Norrington

( President of eBay Marketplaces )

Industry Auctions

Employees 15 , 500 ( 2009 )

Website www . eBay . com

Headquarters San Jose, California, U.S.

Area Served Worldwide
 Overview
üFounded in September of 1995, eBay is a global online marketplace
where practically anyone can trade practically anything.

üeBay has a global presence in 39 markets, including the U.S.

ü
üeBay has approximately 276 million registered users worldwide.

üeBay users worldwide trade more than $2,039 worth of goods

on the site every second.

üeBay members worldwide have left more than 6 billion feedback

comments for one another regarding their eBay transactions
ü
Company Profile (Mission & Market)

eBaymission
eBay missionisisto
tohelp
helppractically
practicallyanyone
anyonetrade
trade
MISSION
MISSION practicallyanything
anythingononearth.
earth.
practically

eBayenables
eBay enablestrade
tradeononaalocal,
local,national
nationaland
and
internationalbasis.
international basis.ItItfeatures
featuresaavariety
varietyof
of
MARKET
MARKET internationalsites,
sites,specialty
specialtysites,
sites,categories
categoriesand
and
international
services
services

eBay
eBay
Vision
Vision Willbe
bethe
theBest
Beste-biz
e-bizLeading
LeadingCompany
Company
Will
Auction
An auction is a market mechanism by which buyer
make bids and sellers place offers.

Auctions are characterized by the competitive nature

by which the final price is reached
Types of E-Auction
eBay offers several types of auctions.

•Auction - style listings

Allow the seller to offer one or more items for sale
for a specified number of days.

•Fixed price format

Allows the seller to offer one or more items for sale
at a Buy It Now price.

•Fixed price format with best offer

Allows the seller to accept best offers. If a buyer
submits a best offer, the seller either rejects or
accepts the best offer.
Auction Process

Banking

(eB
Paid ay
D
e t irec 4.Pa

9.Pass account
G t Pa y
10. y /C Buyer
Seller red
it Ca
rd)

5.Notify
ic ation
6. N if
otif ry Not
payy
D elive ng
me 8.
. B iddi
1. R nt 2
egi
st e s fu l Bid
r s
S u c ce
3.

7. Delivery

4. Pay ( Check / Money order)

 Atul Shewale
Roll No. 52 (A)
Categories
On an average day on eBay…

A Diamond Ring is sold every two


More than 3 Watches are sold every minute


18
5 Women’s handbags are sold every


minute

19
 A makeup product sold every 2
minutes
4,827 Fragrance products sold per day

A hair product sold every
second
An automobile is sold every minute
Financial Analysis (Revenue & Net Income)

Revenue($)
Revenue($) Net
Net Income($)
Income($)

9 ,0 0 0 ,0 0 0 3 ,0 0 0 ,0 0 0 2 ,3 8 9 ,0 9
8 , 7 27 , 3 6 2
8 , 5 4 1, 2 6 1 2 ,5 0 0 ,0 0 0 1 ,7 7 9 ,4 7 7
8 ,5 0 0 ,0 0 0 4
2 ,0 0 0 ,0 0 0
8 ,0 0 0 ,0 0 0 1 ,5 0 0 ,0 0 0
7, 6 7 2 , 32 9
1 ,0 0 0 ,0 0 0
7 ,5 0 0 ,0 0 0
5 0 0 ,0 0 03 4 8 ,2 5 1
7 ,0 0 0 ,0 0 0 0
2007 2008 2009 2007 2008 2009
§First Mover advantage §Trust issues between buyers and
§Efficient CRM sellers
§No traditional retailing §Oriented in P2P market
cost structure §Fraudulent activities

S W

O T

§Simple and easy to IMITATE

§E - commerce §Fraud trading ( Trust Issues )
§Product §System Security &
§New & emerging market reliability
Mangesh Vaidya
Roll No. 58
Creating a new global standard for
online payments
How PayPal works ?
Senders
Senders Receivers
Receivers

Visa / MC , Bank
Amex , Account
Discove
r PayPal
Bank Debit
Account MasterCa
rd
Another
eCheck PayPal
account
Debit Paper
Card Stored Stored Check
( e . g ., Value Value
Switch - Account Account
Solo in
UK )
Why PayPal works for
buyers ?
F re e to use
P a y a n y o n e with a credit card or bank
a cco u n t: “ o n lin e w a lle t”
F a st, se cu re p a y m e n t – 1 w e e k → 1 m in u te
S to re s fin a n cia l in fo rm a tio n se cu re ly to
m a in ta in s u se r p riv a cy
W o rk s cro ss - b o rd e r eCommerce
Importance PP P2P/remittances
competitiveness
Cost

Network
Convenience

Rewards/loyalty points
Security
 Why PayPal works for
sellers
E n a b le s cre d it ca rd a cce p ta n ce
F a ste r p a y m e n t = fa ste r in v e n to ry tu rn
E a sy to sig n u p
N o se tu p , m o n th ly o r g a te w a y fe e s
C o m p e titiv e p rice w ith n o m in im u m tim e
co m m itm e n t
F ra u d p ro te ctio n – 2 5 b p v s . 1 1 0 b p
Complementary missions

The world’s
The world’s online online payments
Powering
marketplace standard
Online
Commerce
Symbiotic relationship
with eBay

•Increases velocity
of trade
•Enhances trust &
safety
•Enables innovation
•Provides the
aggregation point
for small business
•Drives critical
mass of buyers &
sellers
•Solved counter-
party problem
Preferred payment
methods
Cashless Payment Usage

100
90
80
70
% of Volume

60
50
40
30
20
10
0
US Canada France UK Italy Germany

Checks Cards Bank Transfer

Source: BIS Red Book

 What is Skype?
“Software that enables the world’s conversations”
Millions of individuals and businesses are members
Free video and voice calls, instant messages, and file sharing
Low-cost calls to landlines and mobiles
 What Does Skype Offer?

Features

Skype-to-Skype Calls SMS (Text Messaging)

Free Video Calls Online Number
Call Landlines and Mobiles Voicemail
Conference Calls Voicemail to Text
Skype To Go Number Call Forwarding
Instant Messaging Call Transfer
Group Instant Messaging Caller ID
Send Files Skype Access
Screen Sharing
Where Can You Use Skype?
Video Conferencing on Your Windows
 Rishi Dange
Roll No- 09 (A)
Business Model (reason for eBay’s
success)
Largest
LargestOnline
OnlineTrading
TradingForum
Forum

Compelling
CompellingTrading
TradingEnvironment
Environment

Trust
Trustand
andSafety
SafetyPrograms
Programs

Cost-Effective,
Cost-Effective,Convenient
ConvenientTrading
Trading

Strong
StrongCommunity
CommunityAffinity
Affinity

Intuitive
IntuitiveUser
UserExperience
Experience
Analysis of eBay’s Strategy &
Business Model
Corporate level
strategy
§eBay’s corporate level strategy was to become a
diversified business.
Business Level Strategy
§eBay competes in the online auction industry using
a broad differentiation strategy.
§
§eBay achieves broad differentiation through their
strong eBay community.
The Secret Strategies to
Success
GET SERIOUS ABOUT YOUR BUSINESS
ORGANIZE IT AND KEEP IT ORGANIZED
COMPARTMENTALIZE EVERYTHING THAT YOU
ARE WORKING ON
BUILD YOUR OWN WEBSITE
START WITH THE LOWEST BID POSSIBLE
AND AVOID RESERVE BIDS
Contd …
USE THE RIGHT PHOTOS

DON'T SELL AN ITEM JUST ONCE , SELL IT A
THOUSAND TIMES

" BULK LIST " YOUR AUCTIONS

KNOW HOW YOUR BUYERS WILL FIND YOU !

WRITE DETAILED AND ACCURATE " SALES
PAGES " FOR YOURDESCRIPTION
Distribution
 As export/import demand grows, eBay has to thinkabout what key
areas can further support our users….

 Customs: Partnerships or content support to help make customs

easier to be understood by both buyer and seller.

 International Shipping Support: Hope to be the leader in how

international shipping is done online.

 Translation: What technologies can help users scan the world

easier for global bargains?

 Global Matching: Can eBay get more involved in settling

international supply and demand imbalances?
Promotion
 EBay is now the most famous website basically it needs
not to be promoted.

 But for promotions eBay advertised itself by different

websites like on Google

 It also send its information’s to its account holders on

their account

 Has specification for the Logo

 Amey Sankhe
Roll No. 46 (A)
Physical
Evidence
 5 Force Analysis
(B2B, B2C, C2B,off-line…)

Threat
Threat of
of
substitute
substitute
Products
Products or
or
services
services
Bargaining
Bargaining power
power Rivalry
Rivalry among
among
Buyers
of
of Suppliers
Suppliers Existing
Existing
Competition
Competition
(Yahoo, Amazon …) (GE..)
(GM, HP…)

Barriers to entry
Competitors
eBay ’s broad-based competitors include the vast majority of
traditional dept and general merchandise as well as emerging online
retailers

Yahoo!
Auto Trader Google Store

Amazon U-Bid
Microsoft
 1 2 3 4 5
eBay versus Yahoo for Sellers

eBay Yahoo
Maximum
Duration 10 Days 14 Days
Ending eBay auctions end at the time the Yahoo allows you to set the ending
Time auction was created time within a one-hour range.
based on the starting or reserve not charge any fees for listing auction
Fee price of an item each time an item items to the buyer or seller
is listed
§up to five percent of the final to the buyer or seller when an item
Commis- closing price
sion is sold
§fee for reserve auctions
Chances of
Buy & Sell
More likely Less likely

When a a page for the item gets created a page for the item is created
new Item immediately,but it can take several immediately. The item is also added to
Is posted hours before the item gets added to the list of items and is searchable
the list of items and is searchable immediately.
eBay versus Yahoo for Buyers

eBay Yahoo
Items Over 6 times more items A lot fewer items

Charging Yes No
for posting
Unusual More likely to find
Thing
Not have as wide or deep of a selection

§Titles or titles & description §Titles or titles & description

Search
§Can limit within a category §Can limit within a category

Brows By title or by picture By title or by picture

items (if designated as part of the gallery )

Insurance Automatic insurance for sales Not offer insurance

Space Not provide space for pictures: Provides free space for auction item
for You must place your picture files Pictures, so more items have pictures
pictures On some other sit For you to see
 Threats or Issues ?
qEBAY'S TACKLE OF SECURITY

- Check the business practices or reputation of any

buyer or seller on eBay .
- Inspection of the product purchased before
payment is being sent .
- Make sure that items do not violate intellectual
property rights .
- Neutral dispute resolution options .

qPOPULAR SUBSIDIARIES

 Half . com - offers an organized online market place to

buy and sell high
quality previously owned mass market goods .

 EBay stores - expands the market place for sellers by

allowing them to
customize shopping destination to merchandise their
products .
Conclusion
üeBay is a growing company that experienced growth .
ü
üThey have been working hard at being the best that they can
be and they definitely proved and distinguished themselves
specifically in the online auction market .
ü
üeBay thinks ahead of time and think of how to make their
company better .
ü
üIn order to continue to grow the business , they must really
consider all the different problems that are occurring
with fraudulent exchanges and with competitors .
ü
üeBay truly has a great opportunity to continue to grow and
keep moving forward .
ü
üIn addition , the growth of international markets and
internet access has allowed eBay to maintain the standard
for online auctions and continues growth .
ü
üTechnology must stay a focus as the system must continually
adapt to increased volume and the emergence of fraud and
Thank You