This weeks topic is online auctions. I am sure you have all heard of eBay, and many of you may have bought or sold goods by online auction. The nature of (online) auctions has changed from selling mainly collectable goods, to selling everyday items. There are now thousands of businesses that get the majority of their income from auction listings.
Q1: eBay is one of the only major Internet "pure plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so successful?
In addition eBay is constantly researching ways for improvement and customer satisfaction. They constantly seek and use customer feedback which has formed a sense of community around ebay and has resulted in strong customer loyality. http://www.creatingcustomerevangelists.com/resources/evangelists/meg_whitman.asp
Q2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?
- strong powerful brand name
- sound reputation.
- Happy and loyal customers
- Cheap for sellers to use
- Customers in control of transactions
- used by millions of people
- ebay is for everyone, individuals can sell second hand goods while businesses can sell new items
- secure payment options for users.
- always updating and improving
- transparent transactions
- rating system for buyers and sellers
Q3: What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?
If you scrollto the bottom of the ebay home page you will find a heading 'inside eBay' . Under this is a section titled 'trust & safety'. It is here you can find solutions to certain buying and selling problems, and opportunities fro users to learn ways to help them protect themselves and how to report threats to eBay. They use procedural and technical safeguards like firewalls, encryption and secure socket layers to protect users personal informtion. eBay provides buyer protection through a pay-pal buyer protection policy which protects buyers on purchases up to $20,000. eBay has established a Global Asset Protection (GAP) team to promote the safe use of its platforms and to collaborate with local, federal and international law enforcement in apprehending and prosecuting criminals.
Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it? The purpose is to promote customer loyality by engaging them through information and feedback opportunities. On the home page of eBay under the tab COMMUNITY there is an eBay newsletter, discussion forum, question & answers forum, groups and a feedback form which allows users of eBay to communicate not only to eBay but also other users. This is a great networking strategy by eBay and they are clever to value their customer input as this is a major contributor to their success.
Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
Because of the high volume of eBay users. It is an opportunity to generate awareness of brand and to increase sales.
Because of the high volume of eBay users. It is an opportunity to generate awareness of brand and to increase sales.
Q6. I have a few businesses, and I have used eBay for about 12 years on and off. Currently I have about 600 books listed on eBay (seller name ozrural). I stopped selling on eBay for a few years but they changed the rules this July and it is viable again (for me). What do you think changed?
WHich July????
In July 2012, eBay sellers will face a number of policy changes about the photos that the use to sell goods in their eBay auctions. http://ebay.about.com/od/mistakestoavoid/a/Rules-And-Fees-For-Ebay-Photos.htm .
In July 2011, ebay changed listing requiremnewts for clothing. All new and revised listings in Clothing, Shoes & Accessories categories must include the following custom item specifics: Brand, Size Type, Size, Style, and Color.
In July 2010, eBay’s payment policy will be revised to include two new accepted safer payment options.
The revised policy will require sellers to offer one or more of the following three safer payment methods to buyers:
PayPal,Paymate, Merchant credit card
Additional (optional) task: If not already a member, join ebay and explore the functions of the site (optional). Consider making a purchase, or perhaps try your hand at selling. Auctions are impacting on all aspects of business so it is useful to understand how they work.
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