U N I V E R S I T Y O F P U E R T O R I C O I N A G U A D I L L AE N G L I S H D E P A R T M E N TI N C O 3 0 0 6 / L 8 1
OBJECTIVES:Explain what is EBay.A briefing of the history of EBay.Business model of EBay.How to buy, bid and sell on EBay.
WHAT IS EBAY?A website people buy and sell things byauctioning them , or selling them to the personwho offers most money (biding).
HISTORY OF EBAY: eBay was founded in Pierre Omidyars San Jose living room back inSeptember 1995 (co-founded eShop), the worlds largest auction site.(He holds a 27 percent stake in eBay) It was from the start meant to be a marketplace for the sale of goodsand services for individuals.“I was pursuing whatI enjoyed doing, mypassion. It’s notreally work if you arehaving fun.” -PierreOmidyar
HISTORY OF EBAY: He also worked as a software developer for Apple Computers Clarisand communications software maker General Magic Inc. After earning an undergraduate degree in computer science from TuftsUniversity, Omidyar co-founded eShop, an online shopping forerunnereventually bought out by Microsoft Corp.
HISTORY OF EBAY: The ideafor eBay.com emerged whenOmidyars girlfriend Pamela,an avid collector of Pezcandy dispensers,expressed her desire tointeract with other collectorsin their area. In September 1997, Omidyarchanged his sites named toeBay
HISTORY OF EBAY: In 1998, Pierre and his cofounder Jeff Skoll brought in Meg Whitman tosustain the success. Meg had studied at the Harvard Business School and had learned theimportance of branding at companies such as Hasbro.
HISTORY OF EBAY: Meg culled her senior staff from companies such asPepsico and Disney, created an experienced managementteam with an average of 20 years of business experienceand built a strong vision for the company -- that eBay is acompany thats in the business of connecting people, notselling them things.
BUSINESS MODEL OF EBAY: eBay has built an online person-to-person tradingcommunity on the Internet, using the World Wide Web. Buyers and sellers are brought together in a mannerwhere sellers are permitted to list items for sale, buyersto bid on items of interest and all eBay users to browsethrough listed items in a fully automated way.
BUSINESS MODEL OF EBAY: The items are arranged, where each type of auction hasits own category, with more than 22 million registeredusers and roughly 8,000 product categories. eBay has both streamlined and globalized traditionalperson-to-person trading, which has traditionally beenconducted through such forms as garage sales,collectibles shows, flea markets and more, with their webinterface.
BUSINESS MODEL OF EBAY: This facilitates easy exploration for buyers and enables the sellersto immediately list an item for sale within minutes of registering. Browsing and bidding on auctions is free of charge, but sellers arecharged two kinds of charges:When an item is listed on eBay a nonrefundable Insertion Fee is charged,which ranges between 30 cents and $3.30, depending on the sellers openingbid on the item.A fee is charged for additional listing options to promote the item, such ashighlighted or bold listing.A Final Value (final sale price) fee is charged at the end of the sellers auction.This fee generally ranges from 1.25% to 5% of the final sale price.
BUSINESS MODEL OF EBAY: eBay notifies the buyer andseller via e-mail at the end ofthe auction if a bid exceedsthe sellers minimum price,and the seller and buyerfinish the transactionindependently of eBay. Thebinding contract of theauction is between thewinning bidder and theseller only.
HOW TO BIDSteps:1. Carefully review the listing.2. Click the Place Bid button. You may need to sign in.3. Enter your maximum bid, and then click the Continue button.4. Review your bid, and then click the Confirm Bid button.Bid Increments:A bid increment is the amount by which the current bid is raised every time it is passed.Automatic Bidding SystemE-Bay uses an automatic bidding system to facilitate the process. You do not have toconfigure anything, the system works only.
TIPS FOR SUCCESSFUL BIDDING Do not bid for the same item in different ads if you justwant to buy one. If youve been outbid on an item, waits until the auctionbefore bidding similar. To change the amount of the bid, enter a new amountand click the linkBack to Item" button at the bottom of the page
WHAT DOES IT COST TO SELL ON EBAY? Ad rate: to sell an item on eBay, you must create an ad with theSell Your Item form. When you list an item for sale, you charge afee for your ad. Value Fee: If the item sells, you will be charged a commissionfor sales made. The Value Fee is based on the final amount forwhich the item is sold. The Value Fee does not include shippingcosts. Listing Upgrade Options: In addition, if you add a caption or asecond image to the announcement, a fee is required for eachof these options. The rates also depend on the category and thead format.
RATES AUCTION FORMAT PUBLISHING As of October 2, 2012, if you are private seller, with orwithout eBay Store, you can benefit from a tariffpublishing ad suppressed for up to 75 ads (per calendarmonth) auction format in all categories .RATES AUCTION FORMAT PUBLISHINGStarting price Publication rateauction format - Forthe first 75 ads in thesame calendar monthPublication rateauction format -surpassed the first 75ads in the samecalendar month0,01 - 1,00 euros0,00 euros0,15 euros1,01 - 9,99 euros 0,35 euros10,00 - 24,99 euros 0,50 euros25,00 euros o + 1,00 euros
FORMAT PUBLICATION RATES BUY IT NOW (ORFIXED PRICE)PUBLICATION RATE ENTERTAINMENTCATEGORIESPublication rateentertainment categoriesPublication rate for theremaining categories0.00 euros for first 25 adsin the same calendarmonth0.00 for the first 25 ads inthe same calendar month0.35 euros overcome thefirst 25 ads in the samecalendar month0.15 euros overcome thefirst 25 ads in the samecalendar month