Business Revolution – Online Auctions   The  Experience [email_address] November 2000 THINKING
What’s the problem? <ul><li>didn’t want? </li></ul><ul><li>couldn’t inspect goods? </li></ul><ul><li>was it value? </li></...
eBay – some facts and figures … <ul><li>Operating, profitably, since 1995 </li></ul><ul><li>18.9 million registered users ...
eBay – model … <ul><li>NEW MODEL – electronic one-to-one trading in an auction format  </li></ul><ul><li>electronic listin...
eBay – how does it work … <ul><li>anyone can look  </li></ul><ul><li>buyers and sellers must register </li></ul><ul><ul><l...
eBay – bidding (simplified)… $5 $10 $15 $20 $25 System sets top bid to $19.00 Seller sets $5.00 minimum ($1 bid increment)...
eBay – payment … <ul><li>eBay charges Seller $US0.25 to $2.00 to list, +1.5% to 5% for successful sales </li></ul><ul><li>...
eBay – experience … <ul><li>18 months, 3-person household, buyer only, 80+ things  </li></ul><ul><li>“ the mother-load” </...
 
 
 
 
 
 
 
 
 
 
 
Feedback rules? <ul><li>can only be posted by the successful buyer, seller in a transaction </li></ul><ul><li>once posted,...
 
 
 
 
 
 
 
 
 
 
 
 
 
Important to buyers? <ul><li>trustable, impartial, transparent system </li></ul><ul><li>critical mass, find things  (despi...
Important to sellers? <ul><li>trustable, impartial, transparent system </li></ul><ul><li>critical mass of bidders </li></u...
Changing the world? <ul><li>NEW – market which didn’t exist </li></ul><ul><li>global, with global prices  ($A = ouch) </li...
Challenges for eBay … <ul><li>litigation - really an Auction House? </li></ul><ul><li>fraud - >10% (20%?) of all internet ...
Lessons, and fun
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Business Revolution – Online Auctions The Experience

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Business Revolution – Online Auctions The Experience

  1. 1. Business Revolution – Online Auctions The Experience [email_address] November 2000 THINKING
  2. 2. What’s the problem? <ul><li>didn’t want? </li></ul><ul><li>couldn’t inspect goods? </li></ul><ul><li>was it value? </li></ul><ul><li>no trust? </li></ul><ul><li>remedies if something went wrong? </li></ul><ul><li>did I get the best price? </li></ul>
  3. 3. eBay – some facts and figures … <ul><li>Operating, profitably, since 1995 </li></ul><ul><li>18.9 million registered users - buyers and sellers (was 7 million 18 months ago) </li></ul><ul><li>Around 4 million items at any time - 4,500 categories - 600,000 items added/auctions per day </li></ul><ul><li>2.1 million unique visitors per day - use 2hrs/month </li></ul><ul><li>$US0.01 to $10K’s – average $US50 </li></ul>
  4. 4. eBay – model … <ul><li>NEW MODEL – electronic one-to-one trading in an auction format </li></ul><ul><li>electronic listing/bidding/introduction system (Pez container trading) </li></ul><ul><li>NOT a traditional Auction House - doesn’t handle money or goods </li></ul><ul><li>most litigious society on earth </li></ul><ul><li>issues faced – trust, ease of use/training, payment, adding new value, ethical, global market </li></ul>
  5. 5. eBay – how does it work … <ul><li>anyone can look </li></ul><ul><li>buyers and sellers must register </li></ul><ul><ul><li>Name, address, contact details, email </li></ul></ul><ul><ul><li>“ nickname” </li></ul></ul><ul><ul><li>Sellers – account for paying eBay fees </li></ul></ul><ul><li>sellers “list” an item, with a finishing date/time, starting price </li></ul><ul><li>buyers bid up to the finishing date/time </li></ul><ul><li>notification, Winner and Seller agree shipping, payment (by email, 3 days to contact) </li></ul>
  6. 6. eBay – bidding (simplified)… $5 $10 $15 $20 $25 System sets top bid to $19.00 Seller sets $5.00 minimum ($1 bid increment) System sets top bid to $11.00 Seller’s minimum Bidder 1 bids $10.00 (max.) System sets top bid to $5.00 Seller’s minimum Current top bid Bidder 2 bids $22.00 (max.) Bidder 3 bids $18.00 (max.) Current top bid
  7. 7. eBay – payment … <ul><li>eBay charges Seller $US0.25 to $2.00 to list, +1.5% to 5% for successful sales </li></ul><ul><li>Buyer pays Seller direct, inc shipping </li></ul><ul><ul><li>Cash, or </li></ul></ul><ul><ul><li>Money order/cheque (usually $US), or </li></ul></ul><ul><ul><li>Credit card direct – email or secure server or </li></ul></ul><ul><ul><li>Billpay, Bidpay, Paypal, or </li></ul></ul><ul><ul><li>iEscrow </li></ul></ul><ul><li>Seller then sends the goods </li></ul>
  8. 8. eBay – experience … <ul><li>18 months, 3-person household, buyer only, 80+ things </li></ul><ul><li>“ the mother-load” </li></ul><ul><li>exposed to most behaviours </li></ul>
  9. 20. Feedback rules? <ul><li>can only be posted by the successful buyer, seller in a transaction </li></ul><ul><li>once posted, can’t be changed – by anyone - (can respond) </li></ul><ul><li>overall negative and you’re out (???) </li></ul><ul><li>some sellers say they won’t deal with ANYONE with negative feedback </li></ul>
  10. 34. Important to buyers? <ul><li>trustable, impartial, transparent system </li></ul><ul><li>critical mass, find things (despite poor grading) , and tracking </li></ul><ul><li>(“good buy”/bargain) </li></ul><ul><li>seller who </li></ul><ul><ul><li>describes accurately </li></ul></ul><ul><ul><li>communicates clearly </li></ul></ul><ul><ul><li>easy to pay, won’t abscond </li></ul></ul><ul><ul><li>ships promptly, economically, safe and sound </li></ul></ul><ul><li>privacy </li></ul><ul><li>recourse if things go wrong </li></ul>
  11. 35. Important to sellers? <ul><li>trustable, impartial, transparent system </li></ul><ul><li>critical mass of bidders </li></ul><ul><li>best price </li></ul><ul><li>bidder who </li></ul><ul><ul><li>communicates clearly, promptly </li></ul></ul><ul><ul><li>pays </li></ul></ul><ul><ul><li>won’t falsely claim goods didn’t arrive, damaged </li></ul></ul><ul><li>privacy </li></ul><ul><li>recourse if things go wrong </li></ul>
  12. 36. Changing the world? <ul><li>NEW – market which didn’t exist </li></ul><ul><li>global, with global prices ($A = ouch) </li></ul><ul><li>service industries/spawning </li></ul><ul><ul><li>middlemen - payment, escow </li></ul></ul><ul><ul><li>umbrellas – AuctionWatch </li></ul></ul><ul><ul><li>postal and shipping calculation online </li></ul></ul><ul><li>(training?), ease of use, clear process maps </li></ul><ul><li>balance of trust – look mum, no certificates </li></ul><ul><li>NEW – track sellers, buyers, prices, market intelligence, tools (eg sniping) . </li></ul>
  13. 37. Challenges for eBay … <ul><li>litigation - really an Auction House? </li></ul><ul><li>fraud - >10% (20%?) of all internet fraud estimated to be in Auction envt. </li></ul><ul><li>responsibility for listing: </li></ul><ul><ul><li>guns </li></ul></ul><ul><ul><li>body parts </li></ul></ul><ul><ul><li>soul? </li></ul></ul><ul><li>flawless 24 x 7 </li></ul>
  14. 38. Lessons, and fun

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