eBay: The Internet’s Auction Leader By: Rachel Taylor  Zach Evans
Brief History of Auctions <ul><li>Babylon 500 B.C. – women were auctioned on the condition that they be married </li></ul>...
Company Overview <ul><li>Founded in September 1995 </li></ul><ul><li>2003 Employees: 6,200 (annual growth: 55.0%) </li></u...
Unique Characteristics <ul><li>“ eBay [is] running an enterprise unique to the Internet rather than trying to improve upon...
Corporate Management <ul><li>Pierre Omidyar – Founder & Chairman of the Board </li></ul><ul><li>Meg Whitman – President & ...
Top Competitors
Visitor Metrics – March/April 2004 <ul><li>23,638,000 visitors from work </li></ul><ul><ul><li>#6 ranking </li></ul></ul><...
Financial Performance
Revenue Sources
Users (millions)
Merchandise Listings (millions)
Merchandise Sales (millions)
Fees <ul><li>For the Seller </li></ul><ul><ul><li>$0.30 to $4.80 insertion fee </li></ul></ul><ul><ul><li>$1.00 to $100.00...
Feedback Forums <ul><li>Keeps levels of trust among users high </li></ul><ul><li>Adds to sense of community </li></ul><ul>...
eBay Oddities <ul><li>User attempted to sell one of their kidneys </li></ul><ul><ul><li>Auction read “Buyer pays all trans...
‘Do it eBay’ Ad Campaign <ul><li>Late 2002 eBay returned to TV advertising for first time in two years </li></ul><ul><li>C...
Questions? <ul><li>Why do you think eBay has been as successful as they have? </li></ul><ul><li>Do you think buying someth...
Upcoming SlideShare
Loading in …5
×

eBay: The Internet’s Auction Leader

825 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
825
On SlideShare
0
From Embeds
0
Number of Embeds
27
Actions
Shares
0
Downloads
17
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Active users are those that have bid, bought, or listed an item within the previous 12-month period
  • eBay: The Internet’s Auction Leader

    1. 1. eBay: The Internet’s Auction Leader By: Rachel Taylor Zach Evans
    2. 2. Brief History of Auctions <ul><li>Babylon 500 B.C. – women were auctioned on the condition that they be married </li></ul><ul><li>Ancient Rome – bids were not called out in the open but through ‘discrete’ actions such as a wink or wave </li></ul><ul><li>Reference in Oxford English Dictionary of auctions taking place in Great Britain in 1595 </li></ul><ul><li>Sotheby’s is founded in 1744 </li></ul><ul><li>Christie’s is founded in 1766 </li></ul><ul><li>Auctions migrated to America and were used to liquidate goods at the end of a season </li></ul>
    3. 3. Company Overview <ul><li>Founded in September 1995 </li></ul><ul><li>2003 Employees: 6,200 (annual growth: 55.0%) </li></ul><ul><li>Mission: “…to provide a global trading platform where practically anyone can trade practically anything.” </li></ul><ul><li>International sites that serve: Australia, Austria, Belgium, Canada, France, Germany, Ireland, Italy, Korea, the Netherlands, New Zealand, Singapore, Spain, Sweden, Switzerland, Taiwan, and the U.K. </li></ul><ul><li>Has investments in Latin America and China through MercadoLibre.com and EachNet </li></ul>
    4. 4. Unique Characteristics <ul><li>“ eBay [is] running an enterprise unique to the Internet rather than trying to improve upon a business you could successfully plant in a strip mall.” </li></ul><ul><li>“ The reason for eBay’s success is that it has taken on the same role that the government plays in the broader economy: setting the rules for commerce and enforcing them so that transactions are cheap, fair and predictable.” </li></ul>
    5. 5. Corporate Management <ul><li>Pierre Omidyar – Founder & Chairman of the Board </li></ul><ul><li>Meg Whitman – President & CEO </li></ul><ul><li>Maynard Webb – COO </li></ul><ul><li>Rajiv Dutta – CFO </li></ul><ul><li>Jeff Jordan – Senior VP, U.S. Business </li></ul><ul><li>William Cobb – Senior VP, International </li></ul><ul><li>Matthew Bannick – Senior VP, Global Online Payments </li></ul><ul><li>Mike Jacobson – Senior VP, Legal Affairs, General Counsel & Secretary </li></ul>
    6. 6. Top Competitors
    7. 7. Visitor Metrics – March/April 2004 <ul><li>23,638,000 visitors from work </li></ul><ul><ul><li>#6 ranking </li></ul></ul><ul><ul><li>Just behind the U.S. Government </li></ul></ul><ul><li>45,369,000 visitors from home </li></ul><ul><ul><li>#5 ranking </li></ul></ul><ul><ul><li>Just behind Google and in front of the U.S. Government </li></ul></ul><ul><li>#1 electronics site </li></ul><ul><li>#1 home and garden site </li></ul><ul><li>#1 clothing, shoes & accessories site </li></ul>
    8. 8. Financial Performance
    9. 9. Revenue Sources
    10. 10. Users (millions)
    11. 11. Merchandise Listings (millions)
    12. 12. Merchandise Sales (millions)
    13. 13. Fees <ul><li>For the Seller </li></ul><ul><ul><li>$0.30 to $4.80 insertion fee </li></ul></ul><ul><ul><li>$1.00 to $100.00 for reserve price </li></ul></ul><ul><ul><li>$0.15 to $1.00 for additional pictures </li></ul></ul><ul><ul><li>Closing Value fee </li></ul></ul><ul><ul><ul><li>$0 – $25 : up to $1.31 </li></ul></ul></ul><ul><ul><ul><li>$25 - $1,000 : up to $28.12 </li></ul></ul></ul><ul><ul><ul><li>Over $1,000 : $28.12 for first $1,000 in value plus additional 1.50% of balance > $1,000.01 </li></ul></ul></ul><ul><ul><li>Other listing fees </li></ul></ul><ul><li>For the Buyer </li></ul><ul><ul><li>There are no fees associated with setting up an account </li></ul></ul><ul><ul><li>Buyers only pay the price of the auctions then win </li></ul></ul>
    14. 14. Feedback Forums <ul><li>Keeps levels of trust among users high </li></ul><ul><li>Adds to sense of community </li></ul><ul><li>Increases (perceived) switching costs </li></ul><ul><ul><li>Users are less likely to use another auction provider because they would have to start over again </li></ul></ul>
    15. 15. eBay Oddities <ul><li>User attempted to sell one of their kidneys </li></ul><ul><ul><li>Auction read “Buyer pays all transplant and medical costs.” </li></ul></ul><ul><ul><li>Turned out to be a hoax </li></ul></ul><ul><li>eBay pulled the underwear category after users found ‘attractive’ individuals offering dirty and sweaty (or worse) garments </li></ul><ul><ul><li>Sellers tried to get around regulations by offering to ‘customize’ their wares </li></ul></ul><ul><li>Other fraudulent offerings: </li></ul><ul><ul><li>Right to witness an execution </li></ul></ul><ul><ul><li>Triplets </li></ul></ul><ul><ul><li>A young man’s virginity </li></ul></ul>
    16. 16. ‘Do it eBay’ Ad Campaign <ul><li>Late 2002 eBay returned to TV advertising for first time in two years </li></ul><ul><li>Campaign cost: $15 million </li></ul><ul><li>Campaign purpose: to break into the retail mainstream </li></ul>
    17. 17. Questions? <ul><li>Why do you think eBay has been as successful as they have? </li></ul><ul><li>Do you think buying something on eBay can have a negative effect on its perceived value? </li></ul><ul><li>Do you think that ‘eBayers’ have always existed or do you think that eBay has created a new way of thinking online? </li></ul>

    ×