1. eBay Par t ner
Net wor k
By Gr oup 7:
Deepesh Chat t er j ee
(P122009)
Neehar Bhar t iya (P122028)
Pooj a Gupt a (P122033)
Vidit J ain (P122051)

2. Objectives
• To manage (eliminate) frauds
• To deliver better tools and reporting to its
affiliates

3. Introduction
• Concept and initial coding done by Pierre
Omidyar
• ebay was initially introduced as
AuctionWeb
• Acquired PayPal in 2002, which improved
integration of payment functionality in
ebay’s services
• Problem
In 2006, sales increased to 12% while
transaction revenues rose to 19%  ebay’s

4. Impact on Business
• Due to increased in fee, many sellers moved to
amazon.com and few to free classified sites
• In 2007, ebay’s traffic dropped 10% and amazon
jumped to 18%; in 2008, ebay’s traffic fell by 2.5%
and amazon’s rose to 9.8%
• customer purchase frequency dropped, buying 4%-
5% fewer products per year
• sales growth of ebay was only 19% against
industry standards of 25% and loss in market share
from 13.1% to 12.7%
• ebay’s auction gross merchandise volume dropped
29% and fixed-price merchandise dropped 6%
• user signups slowed; increase active users was

5. Affiliate Marketing
• Cost per sale arrangement: paid when only
when user purchases from the merchant
within a specified time after by clicking on
the promotional link from the affiliate’s site
• Cost per lead program: paid for qualified
users who register on merchant site within
a specified time after visiting link on
affiliate’s site
• Considerably low-risk channel because
payment is made only after action

6. Affiliate Network
• Affiliate networks integrate tracking
systems with merchant’s site used to
calculate commission
• Network’s charge merchants setup fees,
monthly fees, and transactional fees

7. ebay Affiliate Program
• Relied largely on Commission Junction
affiliate network
• CJ had it’s own rule, ebay also added its
own on webpages describing its
recommendations and rules
• Provided a discussion board for interested
affiliates to communiccate
• Tracking data resided on CJ server but
ebay’s staff could log in to review standard
reports summarizing affiliates traffic

8. ebay’s Commission Policy
• monthly payment; 3-5 weeks delay to review transactions
and prepare payments or electronic funds transfer
• affiliate received payment only when its balance reached
$50 (CJ policy)

9. ebay Partner Network (ePN)
• In March 2008, ebay announced plans to
close its affiliate program on CJ and begin
operating the program using its own
technology
• Affiliates had to open accounts with ebay
Partner Network
• Each affiliate received ID and specially
coded links
• Replaced existing CJ links to ebay with ney
ePN links

10. ePN Benefits
• Align programs across ebya’s global
properties
• Gives affiliates expanded access to revenue
opportunities
• Align program with publishers need
• Could leverage the network to create most
robust affiliates networks
• Improved user experience and increasing
engagement
• ebay to establish direct relationship with
affiliates
• innovate faster and deliver new products &
tools in a more timely and efficient manner