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Overview of eBay Inc
- 1. “Overview of eBayInc. and Insights on Consumer Behaviour and Buying Preferences for Lifestyle Categories” Presented by SANAM DAS Department of Fashion Management Studies, NIFT, Kolkata A presentation on
- 2. Objectives ď‚š To givean overview of eBay Inc. and eBay India. ď‚š To explain the business model of eBay Inc. ď‚š To explain the functions of eBay India. ď‚š To discuss the insights on consumer buying behaviour in watches and mom and baby products. ď‚š To explain the average selling price of the products. ď‚š To suggest new strategies for improvement of the organisation.
- 3. E-Commerce in India ď‚šIndia first came into interaction with the online E-Commerce via the IRCTC.(2002) ď‚š In 2005 eBay entered the Indian e-commerce market. ď‚š In 2007 Flipkart introduced itself to the Indian market and gained popularity soon.
- 4. Reasons for Growthof E-Commerce in India ď‚š Increasing broadband Internet and 3G penetration. ď‚š Growing Living standards ď‚š Availability of much wider product range ď‚š Busy lifestyles and lack of time for offline shopping ď‚š Increased usage of online categorized sites ď‚š Evolution of the online marketplace model with websites like eBay, Flipkart, Snapdeal, etc.
- 5. Challenges for E-Commercein India ď‚š Lower average broadband speeds compared to other countries. ď‚š High failure rate of online payment transactions. ď‚š Lack of access to free internet facilities in public places like airports, trains etc. ď‚š Lower margins for e-commerce companies could be a potential threat to their survival.
- 6. eBay Inc. Company Overview BusinessModel Organisational Structure Functions
- 7. eBay Inc. ď‚š Americanmultinational corporation and e-commerce company, providing consumer to consumer & business to consumer sales services via Internet. ď‚š Founded by- Pierre Omidyar ď‚š Founded- 3rd September, 1995 ď‚š Headquarter- San Jose, California ď‚š Chairman- Thomas Tierney ď‚š CEO- Devin Wenig ď‚š Type- Online Retailing ď‚š Website- eBay.com, eBay.in
- 8. eBay India  eBayentered in India in 2004 by acquiring baazi.com.  India’s leading e-Commerce marketplace.  eBay India has 2.1 million active users from 4,306 cities in India.  Managing Director- Latif Nathani.  Head Office- Goregaon East, Mumbai.
- 9. Corporate Affairs ď‚š In2004, eBay acquired 25% of classified listings website, Craigslist. ď‚š In 2005 eBay acquired Skype. ď‚š In 2007 eBay acquired StubHub. ď‚š On October 3, 2002, PayPal became a wholly owned subsidiary of eBay. ď‚š eBay and PayPal have splitted their operations into two individual companies since 20th July, 2015.
- 10. Reasons for Separationfrom Paypal ď‚š Competitive landscape of online payment- Square, Visa and Apple Pay. ď‚š Overnight increase in value. ď‚š Very different set of strategic priorities.
- 12. Business Model ď‚š eBayenables commerce through three reportable segments. ď‚š Marketplaces ď‚š Payments ď‚š Enterprise
- 13. Marketplace Features ď‚š eBayis a leading commerce platform for users and merchants. ď‚š eBay provides a variety of access points for consumers to shop virtually anytime, anywhere. ď‚š eBay provides a large selection of inventory globally. ď‚š eBay strives to provide value to consumers. ď‚š eBay offers consumers choice. ď‚š eBay offers a variety of specialized vertical experiences.
- 14. Payment Features ď‚š eBayenables payments in the online and physical worlds. ď‚š Global reach and scale provides value for consumers and merchants. ď‚š eBay offers consumers choice by providing a variety of funding mechanisms. ď‚š eBay is focused on making solutions simple for customers and developers. ď‚š Payments solutions offer leading fraud prevention and protection.
- 15. Enterprise ď‚š Enterprise operatesthree primary lines of business: ď‚š Commerce Technologies ď‚š Omnichannel Operations Solutions ď‚š Commerce Marketing Solutions
- 16. Commerce Technologies ď‚š eBayEnterprise Retail Order Management solution ď‚š The eBay Enterprise payments infrastructure ď‚š eBay Enterprise Store Fulfilment solutions ď‚š eBay Enterprise Retail Associate Platform
- 17. Omnichannel Solutions ď‚š eBayEnterprise Fulfilment and Freight solutions ď‚š Provides scalable, market leading direct to consumer fulfilment with seven campuses across U.S., Canada and Europe ď‚š Provides scalability, operational efficiency and cost efficiencies that retailers cannot achieve on their own.
- 18. Marketing Solutions ď‚š Focusedon providing comprehensive, industry-leading marketing technology solutions as well as digital agency services. ď‚š Includes a suite of demand generation capabilities including: affiliate marketing; attribution; database and CRM; email & mobile marketing; online advertising display targeting. ď‚š eBay Enterprise Agency Services offers full-service digital marketing specializing in analytics and optimization; creative services; studio services; media services; search engine marketing; user experience design and usability research.
- 19. Business models offeredto sellers and customers ď‚š Yard sales ď‚š Consignment ď‚š eBay stores ď‚š Dropshipping ď‚š Wholesaling
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- 21. eBay Inc CFO CCO Communications Director,CMO HR, Chief People’s Officer Chief Technological Officer Legal, General Counsel Chief Product Officer Category Head Chief Strategy Officer CEO Chairman Director
- 22. Velocity Statistics  Apair of shoes sold every 2 seconds  Womens accessories sold every 3 seconds  Three woman's dresses sold every 2 seconds  A pair of womens jeans sold every 15 seconds  A pair of mens sunglasses sold every 16 seconds  A mens necktie sold every 22 seconds  A womens handbag sold every 5 seconds  A cell phone sold every 4 seconds  An MP3 Player sold every 40 seconds including Apple iPod, Creative Zen, and others  An LCD television sold every 2.5 minutes  Headphones sold every 16 seconds  An iPad sold every 15 seconds  An item in the home décor category sold every 4 seconds  A bedding item sold every 16 seconds  A bath item sold every 16 seconds  A major appliance sold every 17 seconds  A baby gear item sold every 2 minutes  Three parts or accessories sold every 1 second  A motorcycle part is sold every 2.3 seconds  An engine or component is sold every 7.2 seconds  A wheel or tire part is sold every 5.9 seconds  A snowmobile, ATV, or personal watercraft part or accessory is sold every 7.1 seconds
- 23. Functions of eBay India CategoryManagement Marketing Product Logistics Finance
- 24. Category Management ď‚š Categorymanagement is a frame-work and set of practices used to optimally manage supply categories to meet business objectives. ď‚š A category is a grouping of materials or services that have similar supply and usage characteristics to meet business objectives. ď‚š The head office of eBay in India, located in Mumbai, is responsible for the category management of the site eBay.in. ď‚š Its main function is to decide the categories to be put on the site and the items sold in each category.
- 25. Category Management Workflow KPI Dashboard Corrective Actions FollowUp Tactogram Category Management Analytical Tools Fact-based Actions Category Tactics and Execution Category Definitions Category Role Assignments Category Strategy Assignments Tactogram Definitions Category Plans Category Strategy Target Customer Strategy Financial Goals Format Strategies CategoryDeptS trategies Company Goals Consumers Trends Economy Competitors Suppliers Market Insight
- 27. Marketing ď‚š The marketingdepartment must act as a guide and lead the company's other departments in developing, producing, fulfilling, and servicing products or services for their customers. ď‚š Build relationship with the audience ď‚š Involve the customer ď‚š Generate income
- 28. Tools of MarketingDepartment ď‚š Marketing research ď‚š Product development ď‚š Advertising and promotional campaigning ď‚š Business development
- 29. Responsibilities of MarketingDepartment ď‚š Applying customer-centric approach ď‚š Keeping up with the competition ď‚š Branding ď‚š Finding the right partners ď‚š Being creative and innovative ď‚š Communicating with other departments ď‚š Budgeting ď‚š Being aware of ROI ď‚š Managing strategy ď‚š Managing research ď‚š Managing events
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- 31. Consumer Support ď‚š eBayEnterprise provides branded customer care services for commerce via telephone, IVR, live chat, email, and social support through three call centres and a network of customer support agents ď‚š The eBay Enterprise customer care platform combines proprietary and third-party technologies, including automatic call distribution, computer telephony integration, interactive voice response, email, workforce management, voice recording/monitoring, and customer relationship management systems. ď‚š eBay Enterprise call centre operations utilize business intelligence to optimize service, sales, agent and cost efficiencies as well as revenue enhancing services to help drive retail revenue through customer service interactions.
- 32. Finance Department The businessfunctions of a finance department typically include planning, organizing, auditing, accounting for and controlling its company's finances. Role of the Finance Department ď‚š Cash Flows ď‚š Accounts Receivable and Payable ď‚š Taxes ď‚š Investments
- 33. Competitors’ analysis  EBayis an open marketplace (OMP) — a technology-based, asset-light model. It merely hosts sellers, of new and, in a small percentage, used goods, and connects  EBay does not handle logistics beyond alerting its partners in this space via an automated process. When goods move from sellers to buyers, they don't pass through an eBay warehouse.  Flipkart, Amazon and Snapdeal — all follow the managed marketplace model (MMP), where they control delivery and returns, and don't do used goods. Snapdeal has opted the question of trust comes in OMP
- 34. Contd. ď‚š On anaverage day, while eBay India sells 18 products a minute, Flipkart clocks 20. ď‚š eBay believes in growth along with the retail industry whereas Flipkart, Amazon and Snapdeal believe in competing with the retail industry.
- 35. Contd. ď‚š eBay Indiahad revenues or income of Rs 107 crore calculated on commission earned from sellers along with advertising revenues for fiscal 2013-14, according to its annual filing to the Registrar of Companies. ď‚š Amazon Seller Services had revenues of Rs 169 crore and Flipkart Internet that manages the portal reported income of Rs 179 crore. A year earlier, eBay's revenue was Rs 81 crore while Flipkart trailed with Rs 15.4 crore.
- 36. eBay vs AmazonBusiness Model  Amazon makes a buyer feel that he is buying directly from Amazon  With fulfilment By Amazon, a seller can even have his items stored and shipped directly from Amazon’s warehouses.  On the other hand, a seller might prefer to use eBay in order to customize and personalize his listings.
- 37. SWOT Analysis STRENGTH OPPORTUNITY World’s largest internet marketplace  Business model (no strong direct competition)  Economies of scale  Localization  Payment system  Brand reputation  Growing number of mobile shoppers  Become a retailer  Increase services and product portfolio through portfolio through acquisition  Open more online stores in other countries WEAKNESS THREATS  High fees  No further growth strategy  Online security  Regional low cost online retailers  Increasing competition from Amazon, Flipkart Flipkart and Snapdeal  Exchange rates
- 38. Market Research on Insightson Consumer Behaviour and Buying Preferences for Lifestyle Products Watches and Baby and Mom Products
- 39. Objectives  Primary Objective find the consumers’ buying pattern in the categories of wrist watch and baby and mom products.  Secondary Objectives  find the ASPs of the product categories in various retail stores.  find the most preferred and most sold brands of these product categories.  analyse the consumers’ buying behaviour in various stores.  find out the attributes that influence the buying behaviour of the consumers.
- 40. Scope and Limitations ď‚šScope: This research work has scope for further utilization in determining market statistics for the company as well as the company as well as for other e-commerce companies. ď‚š Limitations: People might not be always willing to respond to all of the questions. Respondents tend to be confused in
- 41. Research Design andMethodology ď‚š Design: Exploratory research that focuses on the discovery of ideas and is generally based on Primary data. ď‚š Research is based on descriptive study that helps to know the characteristics of certain group such as age, group such as age, sex, education, level, income occupation etc. ď‚š Source of data : Primary data ď‚š Research method: Survey research (sampling method) ď‚š Research Instrument: Questionnaire ď‚š Type of questionnaire: Structured
- 42. ď‚š Type ofquestion: close ended ď‚š Measurement Scale: Ordinal scale ď‚š Scaling: Comparative and Non comparative ď‚š Types of scale: Likart scale ď‚š Sample Size: (240x2 + 50x2) ď‚š Sampling Frame: Population of Mumbai, Greater Mumbai and Navi Mumbai ď‚š Unit of analysis: Students, Executives, Businessmen and women, Housewives, Parents ď‚š Methodology: The sample size is 240 consumers and 50 retailers in each category of products. The report is based on only primary data.
- 44. Analysis based onconsumer’s responses Watches
- 45. Among Indian brandsTitan is preferred by the majority of consumers, i.e. 45.2% whereas Fastrack is preferred by 34.4% consumers. Sonata and Timex are preferred by 9.1% and 5.4% consumers respectively
- 46. The survey showsthat most consumers, i.e. 33.6% visit online stores in 1-2 years to buy watches.
- 47. Most preferred siteis Flipkart with 35.7% preference followed by Ebay with 22.8% and amazon with 17.8% preference.
- 48. Bar chart representsthe family members who make decision while buying watches .
- 49. The survey showsthat majority of the consumers, i.e. 29%, uses Titan brand for wrist watches followed by Fastrack with 21.2% users. In international brands Guess and Citizen are used mostly with frequency of 4.6% and 2.1% respectively
- 50. In international brandsArmani and Citizen are preferred mostly by 12.9% and 11.6% consumers
- 51. For fashion wristwatches majority of the women prefer branded wrist watches, i.e. 76.3% and unbranded low priced fashion watches are preferred by 23.7%
- 52. Analysis Based onRetailers’ Responses Watches
- 53. According to thewatch retailers, the most selling Indian brand is Titan (78%) followed by Fastrack (22%).
- 54. Among the foreignbrands, the most selling one is Fossil (52%), followed by Casio (10%), Xylys (8%), Tag Heuer (8%), Esprit (6%), Guess (6%), Rado (4%), Tissot (4%) and Tommy Hilfiger (2%).
- 55. ASP of variousBrands: ď‚š The ASP of Titan is Rs 5785 and most selling price is Rs 4500. ď‚š The ASP of Fastrack is Rs 1920 and most selling price is Rs 2000. ď‚š The ASP of Citizen is Rs 11020 and most selling price is Rs 1000. ď‚š The ASP of Armani is Rs 15930 and most selling price is Rs 15000. ď‚š The ASP of Giordano is Rs 5250 and most selling price is Rs 5500. ď‚š The ASP of Seiko is Rs 18129.40 and most selling price is Rs 15000. ď‚š The ASP of Rado is Rs 39620 and most selling price is Rs 38000. ď‚š The ASP of Michael Kors is Rs 13901 and most selling price is Rs 15000.
- 56. Other inferences:  Whenthe retailers were asked about the preferences of women between branded and unbranded watches, while buying fashion watches, 100% were in the favour of branded watches.  With respect to warranty offered, all the retailers surveyed informed that they offer manufacturer’s warranty.  According to the retailers, most preferred type of warranty by the customers is manufacturer’s (100%).
- 57. Analysis based onconsumer’s responses Baby and Mom Products
- 58. Flipkart leads themarket with 33.3% preference followed by Amazon with 26.3% preference for baby care products. Firstcry has a preference of 13.3% followed by Ebay with 11.3% preference for baby care products
- 59. In e-retailing themost selling is diapers with a frequency of 47.9%. The skin care products have a market of 17.1% followed by toys with 12.1%
- 60. In brick andmortar most bought baby product is diapers with 40.4% followed by clothes with 23.8% sales. Baby food account for 21.7% sales followed by skin care, toys and prams
- 61. In diapers mostpreferred brand is Pampers with 52.1% preferance followed by Huggies with 25.4% , Mamy Poko 10% followed by Libero with 6.3% and Charlie Banana with 4.6% preference
- 62. The most soldpack size in diapers is “36-60 pcs” with 37.9% preference. “18-36 pcs” pack have 29.2% preference followed by “above 60 pcs” pack with 21.3% preference.
- 63. The most sellingsize of diapers is M
- 64. In prams MeeMee is leading with 42.9% preference. Luvlap has preference of 12.1% followed by Dreambaby and Mothercare. Other brands like Gracco have 30% preference
- 65. Most preferred pricerange for prams is Rs. 3000-5000 with 34.2% preference followed by 33.8% preference for Rs. 5000-7000.
- 66. In toys developmenttoys and activity toys are most preferred by respectively 43.3% and 16.3% consumers. Soft toys also are preferred by 16.3% consumers.
- 67. Fisherprice is themost preferred brand of toys with 35.8% preference followed by Chicco with 24.2% preference. Funskool and Disney follow with respectively 16.7% and 13.8% preference
- 68. Analysis Based onRetailers’ Responses Baby and Mom Products
- 69. In the babycare product category, diaper is the most selling item (76%), followed by skin care (18%) and toys (6%).
- 70. In the preferencefor pack size of diapers, the most selling pack size is “18-36” (36%), followed by “36-60” (20%), “6-18”(18%), “below 6”(16%) and “above 60”(10%).
- 71. In the preferencefor diaper size, the most preferred size is “M”(66%), followed by “S”(26%) and “L”(8%).
- 72. In the categoryof Prams, the most sold brand is “Others”(42%), followed by “MeeMee”(40%) and Mothercare, Luvlap and Graco, each 6 %
- 73. In the Toyssegment, the most preferred type is the Activity toys (48%), followed by Soft toys (24%), Automobile (6%), Rattles (4%) and Bath toys (2%).
- 74. The most sellingToy brand is others (38%) followed by Mee Mee (26%), FisherPrice (24%), Funskool (8%) and Disney (4%)
- 75. Findings and Recommendations ď‚šThe survey revealed that watch brands like Invicta are not well known amongst the Indian consumers. Hence eBay India needs to come up with better promotion strategy to make the consumers well aware of the brands and offerings eBay offers to its consumers. ď‚š Consumers are not at aware of the fact that eBay India also sells baby and mom products through its online portal. Therefore the company should aim at making its consumers aware of the categories of products sold in its site by undertaking better promotional techniques. ď‚š It is seen that eBay does not participate in any kind of promotions or festive promotions. These are the weak points that eBay needs to work on.
- 76. Contd. o eBay Indiamust stop following eBay Inc., US’s business model and start aiming at making profits. o eBay can also change its logistics pattern by keeping inventory in its warehouses and control inventory supply process in order to gain control over the vendors which will prevent fraudulent activities. o The company website has many faults including navigation defects as well as product listing problems. eBay must make the web page more professional and relevant so that consumers do not get confused. o eBay was primarily a bidding site(C2C) where consumers could auction on products to be sold. This positioning of eBay has to be upgraded so that consumers become well aware of the fact that eBay also offers B2C and B2B selling services.
- 77. References: ď‚š https://www.ebayinc.com/our-company/our-history/ ď‚š PoojaVishant (2015)http://indianonlineseller.com/2015/05/ebay-updates-shipping-policy-for-four-categories-in-jewellery/ ď‚š Shelley Singh (2014)http://articles.economictimes.indiatimes.com/2014-09-09/news/53730647_1_ebay-india-latif-nathani- flipkart-and-amazon ď‚š Raghavendra Kamath (2014) http://www.business-standard.com/article/management/snapdeal-s-lessons-from-ebay- 114030200685_1.html ď‚š http://www.theofficialboard.com/org-chart/ebay ď‚š http://www.exampleessays.com/viewpaper/25348.html ď‚š http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/digital-media/11134139/The-five-reasons- behind-PayPals-split-from-eBay.html ď‚š http://www.wikinewsindia.com/tech-news/ciol/paypal-separates-from-ebay/ ď‚š http://www.strategicmanagementinsight.com/swot-analyses/ebay-swot-analysis.html ď‚š http://my.studyindenmark.dk/profiles/blogs/wahid-s-initiative-what-is-the-responsibility-or-role-of-the
- 78. Ms. Prabha Hariharan CategoryHead eBay India Goregaon East, Mumbai Contact no. 9823392433 I express my gratitude to:
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