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  • 1. eBay Business Case PresentationHannah ReillyMarketing 476
  • 2. What is eBay?• eBay Inc. is a multinational internet consumer toconsumer corporation founded by Pierre Omidyarin September of 1995• eBay Inc. manages eBay.com, an online auctionand shopping website that allows users to buy andsell goods and services over the internet• The first item sold on eBay was a broken laserpointer for $14.83• eBay.com started as a side hobby for Omidyar untilhe realized the potential• In 1996, Jeffery Skoll was hired as the first Presidentof the company
  • 3. What is eBay?• As President, Skoll lead eBay into its first third partylicensing deal, which enabled the company togrow from 250,000 to 2,000,000 auctions• In 1998, Meg Whitman was hired as CEO andPresident• Under Whitmans leadership, eBay went publicselling for $53.50 a share on the first day oftrading, $35 more than the target price• Today eBay has expanded world wide, hashundreds of millions of users, and over 15,000employees
  • 4. Decentralized Structure• eBay is the concept of agarage sale taken to aglobal level, it allowsusers to clean out theirgarage or attic andmake money• eBay brings buyers andsellers together throughauction style listingsbroken down intospecific categories
  • 5. Decentralized Structure• eBay allows users to rateother users performance• Through the use of thefeedback forum, userscan give goodrecommendations tohonest sellers and warnother users of dishonestsellers• Users interact with eachother to find out specificsabout items and shippinginformation
  • 6. Key Competitors• Craigslist: Online interface that brings buyers andsellers together, users can search for anything theywish to buy and sellers can list anything they wish tosell• Amazon: Users can search for most any item theywant to buy. Sometimes users are directed to eBaybut other times they are directed to other onlineretailers, at times making Amazon a partner butoverall a competitor
  • 7. Key Competitors• Etsy: An online buying and selling interface thatcaptured a niche category by specializing inhandmade items and crafts• Startups: eBay’s biggest competition right nowcomes from start up companies such asYardsellr, Gazelle, Fab, and B-Stock Solutions
  • 8. User Base• User base of 233,000,000• Global presence in 37 markets including the UnitedStates• Estimated that 1,300,0000 sellers around the worlduse eBay as their primary or secondary source ofincome
  • 9. Stakeholders• Over 15,000 employees worldwide• Business owners who rely on eBay stores to sell theirproducts• Buyers and sellers who use eBay as a source ofincome or to search for goods or services• Investors who have purchased stock in eBay• Venture capital group Benchmark, who funded$6,700,000 to eBay during its startup
  • 10. Assets and Tools• Buying and selling is maintained through auctionstyle listings unique to eBay• eBay maintains specialty sites for users such as chatrooms, an answer center where users can getanswers to all of their questions and discussionboards• eBay offers a charity auction feature allowing sellersto donate a portion of their proceeds to a charity oftheir choice• Detailed seller ratings which allow users to ratesellers in four different categories on a scale of oneto five stars
  • 11. Assets and Tools• In 1998, eBay purchased PayPal offering a safe andeasy way for users to pay for the products orservices that they purchase on eBay• Through PayPal eBay is able to offer their buyerprotection policy, which guarantees that buyers willreceive a full refund in the event that they do notreceive their product or service
  • 12. Assets and Tools• eBay offers buyers the opportunity to earn 2% backon everything they purchase through eBay Bucks• eBay Bucks are accumulated for a three monthperiod, at the end of the three month period eBayBucks can be used toward an eBay purchase• This tool serves to reward buyers and createcustomer loyalty
  • 13. Funding• eBay received their first funding in 1997 whenventure capital firm Bench Mark Capital invested$6,700,000 in the company• One year later eBay went public selling its shares onthe New York Stock Exchange
  • 14. Revenue• eBay’s revenue model is primarily fee based• eBay charges the seller a transaction fee for everysale that takes place on its site, the currenttransaction fee is 9% of the sale price includingshipping• Sellers can choose from optional fees to upgradetheir listing such as a bolder font, multiple photosand multi-category listing• eBay also earns revenue through owningPayPal, sellers are charged a transaction feethrough Pay Pal of approximately 3%
  • 15. User to User Distribution• eBay differs from many online retailers in the waythat it does not carry inventory• eBay does not actually buy or sell any product butinstead is in the business of connecting buyers andsellers• eBay provides technology for e-commerce throughplatforms and tools• eBay is maintained strictly through the use of userinteraction, the site would not exist without activebuyers and sellers
  • 16. Intellectual Property• The name eBay and the companys colorful logoare registered trademarks internationally• When talking about eBay, the name is always to bespelled “eBay” not “Ebay”, “e-bay”, or any otherway• Anything containing the eBay name is alsotrademarked for example eBay Bucks and domainnames such as ebaymotors.com