Ebay is by far the most recognisable and most heavily used online auction site in the world. I think we would be hard pressed to find someone who had not used Ebay, either as a buyer or a seller. I have used it for both. I have been trying to think of a great experience and a terrible experience to highlight the pros and cons of such a site but am struggling. To be honest the best purchases I have made in the last couple of years have been from my local tip shop!
As a bit of side information, Ebay was first called Auctionweb, from there the founder went to register the business as Echo Bay Inc, but it was taken. So on the spot, founder Pierre Omidyar came up with Ebay!
The Ebay business model is consumer to consumer, via the internet. There are no limitations in relation to access, all members, both buyers and sellers have an opportunity to view and bid on all available items for sale. Ebay operates as a broker (Rappa, 2009). The Ebay business model has no inventory, low capital expenditure and global reach decreases geographical boundaries. (Lillie, 2006).
Ebay has taken the common garage sale and bought it into the 21st century. Rain, hail or shine, relaxing in bed or quietly at work while no one is looking. People have the flexibility to bid no matter where they are.
Why are they so successful? many say it is because of their first mover advantage. Meaning they were the first of their kind. It was a novelty for many and now it is a daily ritual for some. They continue to care about their community with upgrades and feedback options. The variety of things you can purchase is like no where else and the site is always up and running, meaning their back end is efficient.
For a long time the small starting price on items was appealing and the primary method for listing items. The tables have now turned and in 2010 59% of transactions were using the fixed price "Buy it now" model.
One of the biggest areas for Fraud for Ebay users is fraudulent emails and websites, better known as 'Spoof' websites. Ebay have a number of great resources for users to read through, they also have an online community forum where you can comment on your experiences. Most importantly Ebay have a great relationship with Paypal. Using Paypal to pay for your transaction provides you with a safety net in many cases.
This morning I logged onto Ebay to have a look around as it has been a few months since I have made any transactions and I was quite impressed by the amount of slick designer brands advertising on the home page. I think this is quite a smart move. For a lot of people shopping online is becoming the preferred way to buy things and if the general population are anything like me then, sometimes we might head to Ebay just to window shop, before you know it you end up with a pair of samurai swords you never knew you needed.
There is a spontaneous element to shopping on Ebay, so why wouldn't the major brands want to leverage off that. If you can buy all you need an only navigate one page, it is ideal.
I predict it is only a matter of time before Coles, Woolworths and Bunnings get on board
References
http://teamcaffeine.wikidot.com/a2-final
http://mashable.com/2010/08/07/ebay-facts/
McGraw, Hill, Irwin, (2008) E Business, Amazaon.com, not your average bookstore
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