The Networked Ebay Environment : Ebay

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The Networked Ebay Environment Ebay is the 2nd largest e-commerce retail industry globally which offers the facility to purchase an item online based on either fixed-price or auction mechanisms. It is purely a marketplace - just a platform for sellers and buyers to come together and sell goods. It has no products of its own and hence is a humungous network of buyers and sellers. The sellers can be businesses (large merchants like Apple, Nike etc. who have their digital stores listed on Ebay) or consumers (like all of us) and similarly the buyers can be businesses or consumers. That is one part of the network. Another major aspect is the network of Ebay and Paypal. Ebay acquired Paypal (sometime in 2002), which is a service facilitating…show more content…
Another network could be the partnering/investments in companies like snapdeal or chinese companies which allow Ebay access to the user base of these firms, and gauge the online user behavior more closely to identify opportunities. This is predominantly helpful where Ebay does not have its own marketplace (own marketplace is as compared to and is planning to enter eg. China. Other network examples are partnering with digital advertisement agencies for Ebay ADs, or with social media such that the favorite purchases of users can be shared. Emergence of the Organization Ebay started off as AuctionWeb when an Iranian-American computer programmer, Pierre Omidyar, designed an algorithm (in 1995) to sell used-items in a bidding process. One of the first items sold on AuctionWeb was a broken laser pointer for $14.83. Astonished, Omidyar contacted the winning bidder to ask if he understood that the laser pointer was broken. In his responding email, the buyer explained: "I 'm a collector of broken laser pointers." What started off as a free service soon gathered steam and Omidyar realized he could charge his customers for the service, ,which was not met with any animosity. It resulted in the hiring of Chris Agarpao as eBay 's first employee to handle the number of checks coming in for fees. Jeffrey Skoll was hired as the first president of the company in early 1996.
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