E Business Model : The Marketing Model

Ebay is primarily service providers who connect the sellers and buyers by providing platform to sell and buy any goods.

This widely-recognized corporation, as it is known today, has its roots back in 1995 when a man named Pierre Omidyar founded the company. The company focuses on a transaction based business and revenues are generated through marketing services, transactions that are successfully completed and advertising. eBay has a primary focus that can identify customer needs and efficiently provide global commerce and payments on behalf of its users, merchants, retailers and brands of all sizes.

eBay’s most effective barriers are its large network and credible reputation. It is rather difficult for a new entrant to build a new network starting with no users. (We can verify this by how new air ticketing companies grow.) The only way to start a network from a reasonable size is to derive an online auction market from an existing

EBay has paved the wave in this industry and being in a billion dollar industry making things happen to benefit consumers in many ways.[5]

eBay.com began with auction type selling but eventually the company expanded into the “buy-it-now” mode of selling as well. This gives eBay, a competitive advantage over companies such as Amazon, which only provide “buy-it-now” services. Thus, the company has a mixed blend of business sellers and individual sellers.

eBay is an international online marketplace with a global customer base of 233 million. It is a multibillion business operating in 37 countries. There are millions of items listed on eBay, including antiques, toys, books, computers, sports and electronics, amongst many others.

“EBay Inc. enables commerce by delivering flexible and scalable solutions that foster merchant growth.” The business mission statement of eBay is a visualization of global, social, and entrepreneurial trading that is making achievable by eBay 's Internet commerce systems and services. The mission statement of the eBay company plainly describes the visualization of what eBay has and will maintain to produce for buyers and sellers associated in the virtual world:

EBay started off as a horrible website some guy made in his living room, so changes were needed. When Meg Whitman joined eBay in 1998 there were 30 employees at eBay. When she left in 2008 there were 15,000 employees. She changed the foundation by dividing it into 23 business categories. EBay was originally named AuctionWeb and the first item sold was a

On September 3, 1995, Pierre Omidyar founded eBay in San Jose, California. Pierre and his wife, Pamela Wesley, had a vision that included creating a marketplace online where people could share the same interests. This vision also included a format that could create a fair and open meeting ground where prices were determined purely by the market. The site was based on five main values: people are basically good; everyone has something to contribute; an honest, open environment can bring out the best in people; everyone deserves recognition and respect as a unique individual; and you should treat others the way you wanted to be treated.

Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can be attributed to Taobao’s edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay received one million page hits per

eBay is an international online marketplace with a global customer base of 233 million. It is a multibillion business operating in 37 countries. There are millions of items listed on eBay across thousands of categories,

The company eBay Inc. is an American multinational Internet consumer-to-consumer corporation. Founded in 1995 by Pierre Omidyar in San Jose, California, it is now a multi-billion dollar business with operations localized in over thirty countries including China and India. It’s main enterprise is eBay.com, an online auction and shopping website that allows people and businesses to buy and sell a broad variety of goods and services internationally. Millions of collectibles, décor, appliances, computers, furnishings, equipment, domain names, vehicles, services, intangibles and other miscellaneous items are listed, bought, or sold daily on eBay. Anything can be auctioned on the site as long as it is not illegal and does not violate the eBay’s Prohibited and Restricted Items policy.

In an economical perspective, eBay have a positive and negative effect towards our economy. An individual person can generate revenue and profit by selling their good straight through the eBay website. The positive view of eBay is that anyone can be apart of the business with a small fee 10% on top of the listing’s ending sale price. eBay lets their users build a supply and a demand solely based on their internet marketplace where anyone in the world that has access to internet could go on the website and the view listings. eBay is a gateway for people to become potential

On Labor day in 1995, the founder of eBay, Pierre Omidyar, conducted an experiment. Omidyar tested the auction site and was stunned that his broken laser pointer was sold. This was the beginning of the booming industry in e-commerce. eBay had expanded their company internationally for the past few years. eBay is considered the world’s largest online trading website and one of the leading market leaders in the world. We will focus on comparing eBay to its best performer, Amazon, which are two of the largest businesses in the e-commerce industry. According to the NASDAQ, eBay and Amazon are noted as the market leaders of online business. Amazon sells a broad range of products to their customers such as DVDs, CDs, multimedia devices, as well

For Lewis (2001), a business model means “all it really meant was how you planned to make money” (Lewis, 2001, p. 254). This definition reiterates in simple words the previous “theory of business” by Peter Drucker (1994) who described the term business model as a set of suppositions about what a business will and will not do to get paid for. These suppositions are about the market and external environment, customers, competitors, technology and the company’s strengths and weaknesses (Drucker, 1994). These explanations are very close to the famous definition of strategy by Michael Porter which is the formation of a unique and valuable position by linking different set of the company’s activities (Porter, 1996; Ovans, 2015). In online business, the business