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9/18/2014 Slide no. 1
Agenda 
• eBay – The Company 
• Business Model of eBay 
• Acquisitions 
• Pricing Methods 
• Auction Methods of eBay 
• Strengths 
• Vulnerabilities 
• Recommendations 
9/18/2014 Slide no. 2
eBay – The company 
• eBay’s mission is ‘to provide a global trading platform where 
practically anyone can trade practically anything.” 
• The online auction website was founded as AuctionWeb in 
San Jose, California, on September 3, 1995, by French-born 
Iranian computer programmer Pierre Omidyar. 
• The company officially changed the name of its service from 
AuctionWeb to eBay in September 1997 
• eBay is the world's largest online marketplace, where 
practically anyone can buy and sell practically anything, with 
more than 90 million active users globally 
9/18/2014 Slide no. 3
Business Model of eBay 
• eBay is an online person-to-person trading community on the Internet, 
where buyers & sellers come together 
• sellers are permitted to list items for sale, buyers to bid on items of 
interest and all eBay users to browse through listed items 
• Browsing and bidding on auctions is free of charge 
• Revenue generation : sellers are charged two kinds of charges 
– Insertion Fee 
• additional listing options 
– A Final Value fee 
9/18/2014 Slide no. 4.
Acquisitions 
• A total of 26 companies have been acquired as of April 2008. 
Few of them are: 
– PayPal: PayPal has made it possible for people to pay and 
get paid online across different locations, currencies, and 
languages. 
– Skype: connect people around the world & expanded its 
customer base 
– StumbleUpon : StumbleUpon is a discovery engine that 
finds the best of the web. It uses positive and negative 
user ratings to form collaborative opinions on website 
quality. 
9/18/2014 Slide no. 5
Pricing Method 
• 6 types of pricing methods 
– Markup Pricing 
– Target-Return Pricing 
– Perceived Value Pricing 
– Value Pricing 
– Going-rate Pricing 
– Auction type pricing 
• English auction 
• Dutch auction 
• Sealed-bid auction 
9/18/2014 Slide no. 6
Auction Methods of eBay 
• Normal Auctions 
• Reserve Auctions 
• Fixed Price or ‘Buy it Now’ auctions 
• Multiple items or ‘Dutch’ auctions 
9/18/2014 Slide no. 7
Strengths 
• eBay, worlds largest online auction website with more 
than 90 million active users globally. 
• The term 'eBay' has become a generic term for online 
auctions. 
• Effective use of Customer Relationship Management 
• EBay now controls the biggest share in the Customer to 
Customer e-market 
9/18/2014 Slide no. 8
Strengths 
• Provides extra ordinary search tool 
• EBay.com was rated to be the easiest website to 
navigate by special rating websites like Gomez.com 
• Business Model : No issues of managing inventory 
• eBay’s Intellectual property 
• Diversification of products & markets 
• Acquisitions 
9/18/2014 Slide no. 9
Vulnerabilities 
• Fake Auctions 
• System breakdown could effect the trading activities of eBay 
• Competitors 
– Bonanzle 
– Amazon.com 
– Yahoo 
– Overstock.com 
– Google 
• Payment method 
• Shipping of products 
• Inability to control the contents of the auction and auction items 
• Expansion into Different Geographies 
9/18/2014 Slide no. 10
Recommendations 
9/18/2014 Slide no. 11
Recommendations(Contd.) 
9/18/2014 Slide no. 12
References 
Marketing Management 13edition-Philip Kotler 
http://pages.cs.brandeis.edu/~magnus/ief248a/eBay/history.ht 
ml 
http://techcrunch.com/2009/09/04/ebay-acquisition-map-shows- 
where-it-got-on-the-wrong-track/ 
http://www.ebayinc.com 
http://en.wikipedia.org/wiki/Criticism_of_eBay 
9/18/2014 Slide no. 13

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E bay strategy

  • 2. Agenda • eBay – The Company • Business Model of eBay • Acquisitions • Pricing Methods • Auction Methods of eBay • Strengths • Vulnerabilities • Recommendations 9/18/2014 Slide no. 2
  • 3. eBay – The company • eBay’s mission is ‘to provide a global trading platform where practically anyone can trade practically anything.” • The online auction website was founded as AuctionWeb in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar. • The company officially changed the name of its service from AuctionWeb to eBay in September 1997 • eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything, with more than 90 million active users globally 9/18/2014 Slide no. 3
  • 4. Business Model of eBay • eBay is an online person-to-person trading community on the Internet, where buyers & sellers come together • sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items • Browsing and bidding on auctions is free of charge • Revenue generation : sellers are charged two kinds of charges – Insertion Fee • additional listing options – A Final Value fee 9/18/2014 Slide no. 4.
  • 5. Acquisitions • A total of 26 companies have been acquired as of April 2008. Few of them are: – PayPal: PayPal has made it possible for people to pay and get paid online across different locations, currencies, and languages. – Skype: connect people around the world & expanded its customer base – StumbleUpon : StumbleUpon is a discovery engine that finds the best of the web. It uses positive and negative user ratings to form collaborative opinions on website quality. 9/18/2014 Slide no. 5
  • 6. Pricing Method • 6 types of pricing methods – Markup Pricing – Target-Return Pricing – Perceived Value Pricing – Value Pricing – Going-rate Pricing – Auction type pricing • English auction • Dutch auction • Sealed-bid auction 9/18/2014 Slide no. 6
  • 7. Auction Methods of eBay • Normal Auctions • Reserve Auctions • Fixed Price or ‘Buy it Now’ auctions • Multiple items or ‘Dutch’ auctions 9/18/2014 Slide no. 7
  • 8. Strengths • eBay, worlds largest online auction website with more than 90 million active users globally. • The term 'eBay' has become a generic term for online auctions. • Effective use of Customer Relationship Management • EBay now controls the biggest share in the Customer to Customer e-market 9/18/2014 Slide no. 8
  • 9. Strengths • Provides extra ordinary search tool • EBay.com was rated to be the easiest website to navigate by special rating websites like Gomez.com • Business Model : No issues of managing inventory • eBay’s Intellectual property • Diversification of products & markets • Acquisitions 9/18/2014 Slide no. 9
  • 10. Vulnerabilities • Fake Auctions • System breakdown could effect the trading activities of eBay • Competitors – Bonanzle – Amazon.com – Yahoo – Overstock.com – Google • Payment method • Shipping of products • Inability to control the contents of the auction and auction items • Expansion into Different Geographies 9/18/2014 Slide no. 10
  • 13. References Marketing Management 13edition-Philip Kotler http://pages.cs.brandeis.edu/~magnus/ief248a/eBay/history.ht ml http://techcrunch.com/2009/09/04/ebay-acquisition-map-shows- where-it-got-on-the-wrong-track/ http://www.ebayinc.com http://en.wikipedia.org/wiki/Criticism_of_eBay 9/18/2014 Slide no. 13