• Helpline: +91-8058868746
  • Mail us:
    Tutorial Library

Learning Point


Previous Next

Type Of business: Public

Type of site: E-commerce, online auction hosting

Available in: Multilingual

Founded: September 3, 1995; 21 years ago (as AuctionWeb)

Headquarters: 2145 Hamilton Avenue, San Jose, CA 95125, United States

Founder(s): Pierre Omidyar

Industry: internet


About In EBay

As eBay is a large, publicly visible market, it has attracted a great deal of interest from economists, who have used it to analyze many aspects of buying and selling behavior, auction formats, etc., and compare these with previous intransigent and a posteriori findings.

Just as economists have shown interest in eBay's operations, computer information systems researchers have also shown savour in eBay. Recently Michael Goul, Chairman of the Computer Information Systems department of the W. P. Carey School of Business at Arizona State University, published an academic case based on eBay’s big data management and use. In the case, Goul discusses how eBay is a data-driven company that processes 50 petabytes of data a day.

         The company manages, an online chaffer and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. In addition to its auction-style sales, the website has since expanded to  comprise "Buy It Now" shopping; shopping by UPC, ISBN, or other kind of SKU (via; online classified advertisements (via Kijiji or eBay Classifieds); online event ticket trading (via StubHub); and other services. It previously offered online money handover (via PayPal), which was a wholly owned subsidiary of eBay from 2002 until 2015. The website is free to use for buyers, but sellers are charged fees for listing items and again when those items are sold.

Features of EBay

Leaving and Getting Feedback

Feedback is a valuable indicator of a user's reputation on eBay.

You can use calls that are analogous to eBay site pages to enable an end user to leave and retrieve feedback. LeaveFeedback (LeaveFeedback) enables a user to leave one feedback entry associated with a single order line item. The call must be made for each feedback entry the user leaves, so multiple feedbacks require multiple LeaveFeedback calls. GetFeedback (GetFeedback) retrieves a compendium of feedback data or summary data plus extended feedback entries.

Introduction to Feedback

Only sellers and winning bidders or buyers can leave or receive feedback. When leaving feedback, a winning bidder/buyer rates the order anubhav, as positive, negative, or non-aligned. A seller can only rate an order as positive or neutral or leave no feedback (they cannot give a buyer a negative rating). The user can add a comment explaining the score or expanding on it. If multiple items were sold, the marketeer can leave feedback for each buyer and each buyer can leave feedback about the seller.

History of eBay

eBay was founded in Pierre Omidyar's San Jose living room back in September 1995. It was from the start meant to be a marketplace for the sale of goods and services for individuals.

In 1998, Pierre and his cofounder Jeff Skoll brought in Meg Whitman to sustain the success. Meg had studied at the Harvard Business School and had learned the importance of branding at companies such as Hasbro.

Meg culled her senior staff from companies such as Pepsico and Disney, created an experienced management team with an average of 20 years of business experimentation and built a strong present for the company -- that eBay is a company that's in the business of connecting people, not selling them things.

They quickly shed the image of only auctioning collectibles and moved into an phalanx of upscale markets where the average sale price (ASP) is higher. ASP is a key metric in determining eBay's transaction fees, so increasing the ASP became an important item. By forging partnerships with namebrands such as GM, Disney and Sun, eBay has managed to do exactly that. Sun has sold

$10 million worth of equipment and it now lists between 20 and 150 items per day.


                                                                 school-chalao-ebay1 image


The Business Model

EBay has built an online person-to-person trading flock on the Internet, using the World Wide Web. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items in a fully automated way. The items are systematize by topics, where each type of auction has its own category.

Browsing and bidding on auctions is free of charge, but sellers are charged two kinds of charges:

When an item is catalogued on eBay a nonrefundable entry Fee is charged, which ranges between 30 cents and $3.30, depending on the seller's opening bid on the item.

A fee is charged for additional listing options to promote the item, such as highlighted or bold listing.

A Final cost (final sale price) fee is charged at the end of the seller's auction. This fee normally ranges from 1.25% to 5% of the final sale price.

EBay notifies the buyer and seller via e-mail at the end of the auction if a bid exceeds the seller's minimum price, and the seller and buyer finish the transaction freely of eBay. The binding contract of the auction is between the winning bidder and the seller only.


Very Useful (0)

Useful (0)

Not Useful (0)