1503 Words Mar 21st, 2012 7 Pages
Current Strategies of eBay * Fixed-price listings would be favored over auctions * A new fee structure would drop the cost of listing an item but increase eBay’s cut when the item is sold * A new search engine algorithm would give top billing to items based on price and customer satisfaction rating * Seller feedback to buyers would be eliminated * Fee reduction for highly rated sellers, fixed-price listing, and sellers offering free shipping is implemented
Q: Do you agree or disagree with Donahoe that eBay’s current strategy doesn’t mean that certain sellers will lose?
A: No, I disagree.
Let’s look through some of the strategies and analyze them.
To compete in the fixed-price marketplace, eBay enacted a series of
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| $50.01–$1,000.00 | | $1,000.01 or more | |

Fixed price format listings Buy It Now price | Insertion fee | $0.99 or more | $0.50 | Fixed price final value fees | Total cost to buyer | Electronics* | Clothing, Shoes and Accessories | Books, DVDs & Movies, Music, Video Games | All other categories | $0.99– $50.00 | 7.0% | 10.0% | 13.0% | 11.0% | $50.01–$1000.00 | 7.0% of the initial $50.00, plus 5.0% of the remaining | 10.0% of the initial $50.00, plus 8.0% of the remaining | 13.0% of the initial $50.00, plus 5.0% of the remaining | 11.0% of the initial $50.00, plus 6.0% of the remaining |

eBay’s challenges are multi-faceted, and it remains to be seen whether by simply returning to its roots as an auction site it can win back buyers and sellers who have long since given up on using the site. Online retailing has evolved significantly since eBay was founded over a decade ago. Savvy consumers have learned how and where to find deals online, but value intangibles beyond price when making their purchase decisions. Consumers expect a level of service that in some respects is beyond eBay’s ability to control in its role as middleman. Given that, eBay would be better served looking beyond product strategy and focusing instead on improving the shopping experience for buyers and sellers as its constant tinkering seems to be doing more harm than good.

eBay allows buyers to rate any

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