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Ebay Is the World's Online Marketplace IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668 PP 23-29 www.iosrjournals.org Ebay is the World’s Online Marketplace Dr.Bijal Zaveri Amin1, Mr.Prashant Amin2, 1Director, Parul Institute of Engineering and Technology-MBA Department, Gujrat 2Research Scholar, S.P .University, V.V. Nagar Abstract: The alarm clock hasn’t even gone off yet,” Jeff Bezos,founder and chief executive of global e- commerce behemoth,Amazon, says of the US e-commerce market, about 20 years after it came about in that country. By that yardstick, the market in India isn’t even a peck, considering only 11 per cent of the country’s population uses the internet. But there are definite signs soon, Indian ecommerce, pegged at 47,349 crore in 2012 (including online travel bookings). According to a study by the Internet & Mobile Association of India and KPMG, would be a force that would take on physical retail head on, possibly forcing the closure of many brick- and-mortar stores. E commerce in India has grown from 19,249 Crore In 2009 to 47,349 crore in 2012 and expected to grow 62,967 crore in 2013. According to the study, by the end of this year shows the potential in this space. In India, the category took off with a deluge of portals, including those focused on travel, media and jobs, at the turn of the century, building into a bubble that burst systematically in ensuing years. Now, just a handful of serious players are left in this sector. Expected to contribute around 4% to GDP by 2020 .Online travel, which grew 30% last financial year, makes up for 71 % of e-commerce in India. E-tailing segment has increased 59% from last year; share in ecommerce rose to 16 per cent in 2012 from 10 per cent in 2011. Internet reaches 11% of India's population against 34% world average. eBay, Inc. is the largest and most popular marketplace on the Internet, allowing members to buy and sell almost anything. Launched in 1995, about 147 million people now use eBay. An estimated 430,000 people in the United States make all or most of their living by selling on eBay. eBay’s online payment service, called PayPal, enables transactions nearly anywhere in the world. eBay proclaims “trust” between buyers and sellers as the key to the success of the marketplace. EBay is the “The world’s Online Marketplace”, which is its positioning statement, and it means many things about the company’s identity. It enables trade on local, national and international basis, with a diverse and passionate community of individuals and small businesses. eBay offers an online platform where millions of items are traded each day. The objective at eBay was to “to develop the work ethic and culture of eBay as a fun, open and trusting environment and to keep the organization focused on the big picture objectives and key priorities. This case intends to study the click and click business model of eBay, whose competitive advantage lies in its pure play strategy, a breakthrough from the traditional brick and mortar model, which leads to Sustainable growth and a competitive edge over the other retailers. 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? 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 whole case will based on the above raised questions to achieve excellence in strategic management for improving the company’s strategy, sustaining the company’s growth and business performance, and potentially expanding from online auctions into general “etailing”, and to become “the world’s largest online mall- Ebay”. Keywords: Online marketplace, retailing, EBay, online auctions ,e-commerce Introduction: eBay is The World‘s Online Marketplace™. Founded in 1995, eBay created a powerful platform for the sale of goods and services by a passionate community of individuals and businesses. On any given day, there are millions of items across thousands of categories for sale on eBay, as well as on Half.com, eBay‘s site dedicated to fixed price trading. eBay enables trade on a local, national and international basis with customized sites in markets around the world. Pierre wanted to name the company Echo Bay. However, another company had registered echobay.com. As a result, he chose eBay. Pierre had strong opinions about the unfairness of many market arrangements IES MCRC presents International Case Study Conference 23 | Page Indian Education Society's Management College and Research Centre IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668 PP 23-29 www.iosrjournals.org eBay offers a wide variety of features and services that enable members to buy and sell on the site quickly and conveniently. Buyers have the option to purchase items in auction-style format or items can be purchased at fixed price through a feature called Buy-It-Now. In addition, items at fixed price are also available Half.com, an eBay company. eBay is dedicated to its community of members, and has numerous services which enhance the trading experience. Our marketplace services include: online payments by PayPal; wide array of Buyer and Seller tools; and Preferred Solution Provider programs. Pierre wanted to name the company Echo Bay. However, another company had registered echobay.com. As a result, he chose eBay. Pierre had strong opinions about the unfairness of many market arrangements eBay set out to create an intermediary that helps buyers meet sellers. Unlike the traditional retailer model adopted by Amazon, eBay has created a unique business model. The company makes money by matching buyers with sellers. Sellers ship the items directly to the buyers. As a result, eBay does not have any distribution or fulfilment cost which gives it a tremendous advantage. eBay -“The world’s Online Marketplace”: eBay establishes itself as the ―The world‘s Online Marketplace‖ .Coincidently, it is also the positioning statement of eBay,which itself means many things about the company‘s identity, it enables trade on local, national and international basis, with a diverse and passionate communityof individuals and small businesses, Bay offers an online platform where millions of items are traded each day. According to company lore, the idea for eBay came from founder Pierre Omidyar‘s wife, who wanted to trade Pez dispensers with other collectors over the Internet. In truth Omidyar had been pondering an Internet auction venture before he was ever aware of Pez mania. He says that he had been thinking about how to create an efficient marketplace-a level playing field, where everyone had access to the same information and could compete on the same terms as anyone else.‖ After writing the code for the site, Omidyar launched eBay from his home in mid-1995.the concept of an Internet marketplace caught on so quickly that by the end of the year, eBay was getting a few thousand hits daily. Even more impressive the website was profitable from its inception. The objective at ebay was to develop the work ethics and culture of eBay as a fun, open and trusting environment and to keep the organization focused on the big picture objectives and key priorities. Ebay went public in September 1998 at $18 a share. By early march 1999, the stock was trading approximately b$282 per share. The company market capitalization had surpassed that of even Amazon.com, making it the world‘s most valuable Internet retailer. eBay is the leading global brand for online auctions. The company is a giant marketplace used by more than 100 million people to buy and sell all manner of things to each other. Pierre Omidyar, a French entrepreneur, was just 28 when he sat down over a long holiday weekend to write the original computer code for what eventually became an Internet megabrand. The brand has grown tremendously over the decade or so since its conception. The world‘s largest online marketplaces, where anyone can buy and sell practically anything. Founded in 1995, eBay connects a diverse and passionate community of individual buyers and sellers, as well as small businesses. Their collective impact on ecommerce is staggering; in 2011, the total value of goods sold on eBay was $68.6 billion — more than $2,100 per second. PayPal is the faster, safer way to pay and get paid online, via mobile devices and in store. The service allows people to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. With more than 117 million active accounts in 190 markets and 25 currencies around the world, PayPal enables global commerce. PayPal is an eBay (NASDAQ:EBAY) company. PayPal is headquartered in San Jose, Calif. and its international headquarters is located in Singapore. More information about the company can be found at www. paypal.com. Acquired by eBay Inc. in 2011, GSI is a leading provider of ecommerce and interactive marketing services for the world‘s premier brands and retailers The company exploits the benefits of Customer Relationship Management (CRM). Buyers and sellers register with the company and data is collected by eBay on individuals. This is the Business-to- Consumer (B2C) side of their business. However the strong customer relationships are founded on a Consumer-to-Consumer (C2C) business model, where strong interrelationships occurs, for example where buyers and sellers leave feedback for each other, and whereby awards are given to the most genuine of eBayers.
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