But, you still must choose which big e-commerce site to list with: So how does eBay make money? First, and most importantly, is Paypal.
In this model the buyers have a liberty to consult services from affiliate online providers, which are essentially part of eBay grand consumer services portfolio.
In this model, in addition to the non refundable transaction fees, eBay has a buyer protection program that fundamentally covers purchase price and original shipping models. The model also includes an interaction component between prospective buyers and sellers with the managerial team.
What are the problems that eBay is currently facing? In the recent past eBay has been undergoing problems due to the inclusion of new marketing essentials in its services aimed at enhancing the person-to-person business model.
The facts that there are other significant industries existing in the online marketing busiess model, relatively similar concepts have initially been introduced into this market leading to the manifestation of copyright issues and competition variables in this predominantly changing business environment.
These have also led to the occurrence of trademark liability issues and customer satisfactory concerns. For instance, in regard to the customer satisfactory concerns, there has been a growing failure when it comes to offering customer support Hansell, Other issues arising over eBay involve the lack of significant protection of prospective customers especially when it comes to credit card frauds and exploitation from some sellers by presenting to the buyers imitative or fake products.
How is eBay trying to solve these problems? The managerial team of eBay proposed significant approaches aimed at formulating working long-term solutions on the problems.
This especially focuses upon issues arising regarding credit card fraud instances in which the eBay customer protection program, which has apparently not been successful. This also includes a component of credit card protection system in which details provided by the buyers cannot be fundamentally accessed by fraudulent sellers.
In addition, these solutions are aimed at enhancing better consumer response and counter the developing competition levels from other online providers like yahoo.When eBay first launched, the site immediately became a popular channel for auctioning collectibles, but it soon expanded into other markets such as automobiles, business and industrial equipment, and consumer electronics, where the average sales price (ASP) is higher.
Custom E-Bay Essay Writing Service || E-Bay Essay samples, help Contrast eBay’s original business model with its latest proposed business model. The inception of eBay as an online marketing platform has undergone significant changes overtime leading to introduction of different business perspectives, which essentially form additional elements.
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Amazon’s business model includes accommodating third party sellers who are able to offer their own merchandise on Amazon’s sites and whose products therefore compete against Amazon’s. Third party sellers are mainly attracted to because of the high volume of traffic on Amazon sites.
The eBay Business Model By AllBusiness Editors | In: Technology & Telecommunications In September , Pierre Omidyar created the online auction conglomerate known as eBay.
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commerce, eBay has quietly built an innovative business truly suited to the Internet. Initially, Amazon sought to merely replicate a catalog business model online.