Rivalry Of The Global E Commerce Market

Ebay, as a company itself, fits more in the category of an oligopoly, which is actually pretty common in any market. Other alternative websites include Yahoo!, Amazon, and Quibids, but there are only a small number of them, certainly not hundreds as in monopolistic competition. Also, eBay is interdependent on the few other auction website companies, competing with the fees they charge, as well as quality of customer support, and buyer/seller reliability. Another characteristic of eBay that coincides with it being considered an oligopoly is the fact that it has numerous entry barriers. It’s such a large company with many restrictions, and it would be hard for an up and coming substitute auction website to break into the market and compete with eBay or the other top companies in the industry. (6)

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]

Dembosky, A. (2012). Ebay moves beyond its dotcom roots. Available:http://www.ft.com/cms/s/0/df3723ca-1773-11e2-8cbe-00144feabdc0.html#axzz2EbzDqb5Y. Last accessed 10th Dec 2012

​A Porter analysis will be performed throughout this paper, on the internet sales industry. Included in the Porter analysis is six relative competitive forces; threat of new entrants, rivalry amongst firms, threat of substitute services, bargaining power of buyers, bargaining power of suppliers, and relative power of other stakeholders.

eBay has a choice preferred standpoint. Regularly contributed similar to the world 's greatest store, and have a bigger number of things available to be purchased than anyplace else. However its maintainability props on patch up unstable ground as omnichannel world envision, for arranging purposes, that everything is available to be purchased in each commercial center, each methods, and each channel. Partaking connected shoppers may never get to that world, yet it 's a helpful arranging presumption.

Carter, B. (2016, Feb). E-Commerce & Online Auctions in the US. IBISWorld. Retrieved on March 30, 2016 from IBS Industry Market Research

eBay needs to focus on several issues to become more competitive. One issue is the fact that their competitors, like Amazon, make website purchases less difficult. On Amazon a customer can make a quick buy instead of having to bid on an item, wait for the auction to end, and then see if they won the auction. Another issue for eBay is the customer’s perception that scams are more likely on their site since purchases involve individuals and not companies. Even though eBay has the buyer protection plan to counter this idea, some customers might still shy away because they do not want to take a chance of having to go through the dispute resolution process in case it is a scam. When looking at Amazon’s return policy, they back their buyers 100%. If the buyer is not satisfied with the product or it doesn’t match the description that was on the website, Amazon will give the buyer a full refund. Looking at this from a buyer’s perspective, it makes purchasing more convenient to return a product as opposed to having to track down the buyer and trying to work out a resolution. I think that if eBay changes the protection policy and would

Each and every client of web administrations may be a "player" of eBay. Along these lines, there are an endless number of suppliers and everybody can offer something as a potential supplier for eBay. EBay plan of action gives an administration that brings the purchasers and vendors together. The suppliers don 't have much power aside from on account of the exchange of the top of the line things at the end of the day costly products: land or autos or types of gear. It is clear that both the purchasers and merchants need insurance for their things (Cheng, 2005, p. 159). eBay utilizes PayPal as a part of a request to accommodate smooth and brisk installment of things where the vendors need to get their cash rapidly. Be that as it may, it is entangled to offer costly where the suppliers have more power. Keeping in mind the end goal to encourage the offering costly things, eBay acquired Skype where to side can without much of a stretch import and trade information. The suppliers all in all don 't have much power unless they are managing the top of the line things.

The major problem our company currently faces is the departure of our in-house payment service PayPal that will occur in the third quarter of 2015. First, and most obvious, the split of PayPal will cause loss of revenue. In 2013, PayPal accounted for 40% of our company’s revenue and 36% of total profit. PayPal also gave us a competitive advantage over the Amazon and ALbaiba. The simplicity and security of PayPal is very hard to replace, and the consumer data we receive from PayPal allows us to accurately target specific markets. eBay will continue to accept other forms of payment but there will be no advantages for us accepting PayPayl. The departure of PayPal will also affect our projected future growth of the company. A problem that eBay faces with or without PayPal is the growing completion and loss of market share for online retailing. eBay’s main marketplace division grew

As eBay expands into more foreign markets, eBay will have to further evolve and allow for a more country centralized execution of its policies and manager control. I can certainly see that in countries that have a high religious influence, such as the Muslim dominated hierarchy, religious dictates will control how eBay presents itself. In the Koran it states that you are not allowed to profit off another. This holds true in examples like banking. However in some democracies eBay is being stifled in its ability to require payments thru PayPal, as the book states an example of Australian government, curtailing eBay’s ability to require payment thru PayPal (Griffin, 2012). To further accommodate expansion into these diversified markets eBay will of course have to follow religious precepts, government regulations and allow for more targeted products. It would be unwise of eBay to allow many items that are permitted in democracies and free thinking countries to be purchased in a more conservative nation. In the conservative nations, the potential buyers can still buy off eBay USA. This type of targeted selling of their system has created eBay of Canada, eBay of USA, and eBay of Australian, eBay of Belgium and so on (whoweare). Because of eBay’s presence in over 30 countries, yet PayPal is only used in 16 countries,

The market eBay takes place in is primarily the Internet market. Around 1995 the Internet market was just beginning. “there will be more than 500 million users by 2003 and a rapid increase in e- commerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004” (Fichter, 2003) EBay was a pioneer in Internet market until competitors such as Amazon and Wal-Mart began to sell products online as well. “Online marketing is now the fastest-growing form of marketing” (Armstrong, 2013). The difference between eBay and its

Based on the analysis of the five competitive forces affecting eBay, it appears that the online auction

The degree of rivalry among established companies within eBay industry is very high. This high degree of rivalry is very common in discount retail industry due to the high concentration on being the price leader. EBay competition is very broad and varies with each of its different products. eBay competes closely with many well know broad-based companies such as traditional department and general merchandise stores, as well as a large variety of online retailers. Due to this complex competitive industry, eBay must concentrate on many competitive factors such as: ability to attract buyers, volume of transactions and selection of goods, customer service, system reliability, brand recognition, and many others to keep their edge.

eBay is The World’s Online Marketplace®. Founded in 1995, eBay created a powerful platform for the sale of goods and services by a passionate community of individuals and businesses. On any given day, there are millions of items across thousands of categories for sale on eBay and its subsidiaries, half.com and shopping.com, to name a few (“eBay Inc Outlines Global Business Strategy”, 2000.) Retrieved October 31, 2008 from http://investor.ebay.com). eBay enables trade on a local, national, and international basis with customized sites in markets around the world. eBay is leading the way in Internet auctions over competitors, Amazon.com and Yahoo.com. The Internet brings together a larger number of

The fact that eBay does have some successful competition means that its strategic capability has become less unique. There is a hint in their competitor profile that innovation and perhaps adaptability to different cultures as they innovate is not core to eBay and something which has been developed more successfully by others working within their own national culture. Indeed, eBay rules in its own territory of North America and in Europe. The search capability of eBay also means that niche players do not really make sense, whereas the consumer trust that comes from being a big player is worth everything when trading on-line, as is the notion that whatever you want it will be on eBay because of its size. Thus, the so-called network effects of eBay (the bigger the company, the more successful it will be) and its first mover advantage that has led to this level are key to its success.