Assignment 2

www.eBay.com
eBay is the worlds online marketplace, a place for buyers and sellers to come together and trade almost anything. The business model of eBay is online Consumer-to-Consumer trading community on the internet, using World Wide Web. A seller lists items on eBay, Then consumer can bid on items. Both sellers & buyers are able to browse through all listed items. When the listing ends, the buyer with the highest bid wins. Under the above diagram we can clearly understand the process of eBay business model.

eBay has been able to grow by offering a lot of value to both buyers and sellers. They help facilitate transaction and maintain an trustworthy system. It also keep customer satisfaction high by creating and offering a range of community features. When we get Daily Deal" and "Fashion Vault" programs most buyers have come to appreciate the value that they can find on eBay.

Revenue model describes how the organizations will generates profits. There are five major revenue models nowadays are Sales, Transaction fees, Subscription fees, Advertising fees, Affiliate fees and other revenue sources. eBay has various revenue models. It earns transaction fee from owning Paypal, an online paying service for customers to buy items online. eBay also

has some advertisement fee because of sales of listing customerss product to be sold to other customers. eBay generated overall revenue from Auctions, Payments from paypal & communication by using skype. Any type of sites, they have competitors. Therefore eBay also has competitors. Amazon.com Yahoo.com Craigslist.com Overstock.com are the main competitors in eBay. A different kind of threat is not a direct competitor. Half.com is a good example. Half.com designed a site which allows people to sell used books, music, movies and games at a fixed price. eBay deal with that threat by buying the company and experimenting with adding their own fixed-price option to their auction listings. There are so many advantages that we can get by using eBay. Because there are no other online auction sites beats eBay. It is also cheap as compared to other online auction websites. One other advantage of selling on eBay is that you can virtually sell anything and everything. And also eBay offers a vast variety of auctions. But perhaps the greatest advantage is the security of the online transactions. And another one is simple process in , which can you can sell your items on the sites. Anyone who can read can easily follow the instructions and sell on eBay, as the site navigation is not complicated at all. Thats a reason why eBay stands out.

P.G.T.Dilhara S10179 2009/S/11743