Swot Analysis

With the widespread Internet usage, the amount of trade conducted electronically has grown overwhelmingly. From management perspective, the e-commerce will take important impact on its whole process for all companies on the entire business market. For many online selling companies, the eBay has most competitive compared with other online selling companies in the world. We will analyse using the online selling is mainly giving more effective information to users to deal with the business transaction.

And supplier and customer service can be solved more quickly through the use of network. eBay has built an online person-to-person business relationship on the Internet. Buyers and sellers are brought together in one platform where sellers are permitted to list items for sale, buyers to ask items of their interests and all eBay users to browse through listed items form the interface of eBay in automated way. The items are arranged by topics, where each type of auction has its own category. Bay has both streamlined and globalized traditional person-to-person trading, which has traditionally been conducted through such forms as garage sales, collectibles shows, flea markets and more, with their web interface. This facilitates easy exploration for buyers and enables the sellers to immediately list an item for sale within minutes of registering. The main revenue of the eBay comes from three areas which are advertisement, on commission sell and interest of the transitory deposit capital.

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And the third one is the particular and main sources of the revenue of eBay. Between the times which buyers pay for the goods and the seller verify the received it, the capital for this deal will keep in the eBay for transitory settle. The interest for the capital will be considerable by the huge flow of capital investment. For eBay, it built a new relationship of each factors in business, the typical shopper at eBay. com is customer. The most obvious model is that of selling products or services online.

This model is especially efficient for digital liable products and services. (Turban, King, Viehland, Lee, 2006, p. 22)And the e-commerce model in which businesses sell to individual shoppers (B2C). In addition, eBay also provide us consumers transact directly with other consumers (C2C). For example, individual customers could sell personal property and other stuff to the others. And eBay online sites allow individuals to place items up for auction. EBay offers several types of auctions. (Turban, King, Viehland, Lee, 2006, p. ) Firstly, Auction-style listings allow the seller to offer one or more items for sale for a specified number of days. The seller can establish a reserve price. Secondly, Fixed Price format allows the seller to offer one or more items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid. Thirdly, Dutch Auctions allow the seller to offer two or more identical items in the same auction. Bidders can bid for any number from one item up to the total number offered.

From make revenue from e-commerce perspective, the eBay jointly announced a definitive agreement for eBay to combine Gmarket, Korea’s leading e-commerce business, with eBay’s existing online marketplace in Korea. According to John Donahoe, eBay’s president and chief executive officer, “The combination of Gmarket and IAC establishes an exceptionally strong leadership position for eBay in one of the world’s largest, most dynamic and innovative e-commerce markets, this deal creates strong operational synergies between the two market leaders, offers more opportunities for sellers and enhances our ability to serve complementary consumer segments. (Anonymous, 2009) Young Bae Ku, Gmarket’s president and chief executive officer report states that “This transaction will provide us an excellent opportunity for our next growth stage in Korea and will also help accelerate our expansion strategies beyond Korea. We look forward to teaming up with eBay’s leadership both locally and globally to drive our future growth and expansion. ” (Anonymous, 2009) For developing good rapport requires to meet customers’ needs, the product items descriptions should be detailed and should anticipate bidders’ questions about product, company, or services.

Display clear photos that fully capture the condition of the item. And always describe the items accurately. Make the transaction as convenient as possible and list all terms up front, including shipping charges and return and warranty policies. Provide as many payment options as you can comfortably accommodate. Obviously, the old established companies’ business model is largely relied on local stores of distributors and retailers to sell their product to customers. This may lead to increase the product price and logistic costs.

Consequently, it could be less competitively to the other competitors in the industry. However, compared with old industry business model, eBay is an original e-business platform based online shopping company. It provides online shopping services to internet customers major with B2C and C2C business models. Generally, in real B2C business applications of eBay, it has its own supplier to customer trading platform to operate this function. For example, clothes companies like Nike, CK jeans, and Puma can sell their products in eBay’s B2C system directly provided to the customer.

Customers could choose their preferred products in the web pages of eBay by checking the clothes information of each product to make their shopping choice interact directly to the clothes companies’ through eBay’s system. Another good case in point to specify eBay C2C model can be indicated as customers interact with other customer by individually. These C2C model may include used products selling and buying activities and small individual business operated by small group or one person in the internet by selling the products or service to other customers.

All these B2C and C2C business model are well organized in eBay’s online shopping system, which precisely represents the trend of e-business development. EBay provides new benefits to its suppliers and customers with the characteristics of instant online shopping service and more flexible product choice and payment method to each others. Building a good relationship between the company and the customers is one of the most important factors for built customer satisfaction; the web services can make the customers feel the product is what they want and also the best choice for them.

The online business can offer a more optional and convenient environment to the customer, give them more space to choice what they want. Such as eBay provides all of the professionalism of a legitimate offline business, respond quickly to bidder and buyer inquiries, and ship items promptly, the customer will develop a good reputation among the eBay community and increase the chances of customers returning and buying from eBay again.

It is obvious that the e-commerce business model has led to some new business opportunities to eBay with its online shopping system. Any knowledge on how to run your eBay business can be found through the eBay support system or from fellow eBayers. Beginners gather information by visiting the forums. They will find many eBay entrepreneurs willing to share what they know with you but remember if you are competition for them then you may not get the help you need. The internet is larger than life so what you need to know can be found elsewhere online.

The cost to list items on eBay can vary thus depending on the size of the item you are selling – for example if it be a car then expect to pay more than that of a salt and pepper set. Your dummy run at selling for the first time can include book sales even an e-book on a hobby of yours – the list is endless as to what you can sell. The eBay Business Opportunity will have restrictions and guidelines on certain articles or items they allow to be sold on the auctions – as in i. e. offensive materials etc. Maisy Day, 2006) The online business as the advanced selling manner plays an important role in the business currently. Especially for the eBay online selling company, It displays many advantages in the commercial competition compared with the traditional way, like the instant intercommunion between the clients and supply, the shortcut of the online payment, the more selective pace of the product for customers, the instant update of the products and more broad feedback information of the buyers of supply.

Consequently, using the web technology offer the business many advantages in the competition as an advanced business tool, it liberate many human and material resources form the traditional business. The eBay online selling company try to use online technology to be more competitive in the entire market, which is more helpful for their business. While, it is better to focus on some drawbacks in this marketing strategic combat. The main problems which e-bay faced is the security of the online payment and the personal information security. Security is reduced through introducing a network, since there are more access points to sensitive data. Data may also be intercepted when they are transferred from one site to another. ”(Bocij, et al, 2006, p193) For instance, if the e-banking or credit card payments, once the password being intercepted, the consumer will be a great loss, which is a big problem that the development of online shopping need to copy with. How to create a safe, convenient power in the business applications environment, to resolve the issue, provide sufficient information on the protection and business consumers are very necessary to be concerned.

PayPal as an online payment tool can pay to anyone who has an email address, and it is mainly used between the individuals on the internet exchange payment. Stan Beer’s report states that ‘People are less likely to end up in a dispute if they pay by PayPal than other payment methods such as bank deposits’. E-Bay plans to make PayPal the only payment option other than cash on delivery, eliminating choices such as direct credit card payments and bank deposits, as well as competing payment clearing systems.

In conclusion, eBay has become an online shopping service provider for buyers and suppliers in a way which traditional brick and mortar companies cannot touch. However, by using the web based technologies, it has also brought along with some challenges to the new business applications. These challenges are largely regarded as information security issues by online shopping concerns. This feature is especially evident in the consideration of regarding trust issues between buyers and sellers.

EBay seems to have dealt adequately with those trust issues, since users don’t seem to mind and continue to use their service. Basically, eBay is soundly operated in the business area. By considering the fact of it is still in its buildup period and it has a business model that scales extremely well, eBay leads the trend of the e-business shopping service in the ICT industry. Besides, the management of eBay has shown its competence of quick responding to the market and technology, and also constantly dedicates to expand the business in the industry.