The document outlines an agenda discussing eBay as a company, its business model, acquisitions, pricing methods, auction methods, strengths, vulnerabilities, and recommendations. It provides details on eBay's founding, mission to provide a global trading platform, and status as the world's largest online marketplace. The business model allows sellers to list items and buyers to bid, with eBay generating revenue from insertion and final value fees. Acquisitions like PayPal and Skype helped expand its customer base. Different pricing and auction methods are also discussed.

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2. Agenda
• eBay – The Company
• Business Model of eBay
• Acquisitions
• Pricing Methods
• Auction Methods of eBay
• Strengths
• Vulnerabilities
• Recommendations
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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
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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
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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.
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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
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7. Auction Methods of eBay
• Normal Auctions
• Reserve Auctions
• Fixed Price or ‘Buy it Now’ auctions
• Multiple items or ‘Dutch’ auctions
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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
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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
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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
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11. Recommendations
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12. Recommendations(Contd.)
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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
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