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Customer
Marketplace
Group 2
Nikhil Yadav (PGP31158)
Prakhar Agarwal (PGP31162)
Mihir Joshi (PGP31154)
Roshan Ranjan (PGP31169)
Abhinandan Das (PGP31124)
Kumar Saurabh (PGP31151)
Agenda
History
Pierre Omidyar
In 1995 Founded Auction Web with the idea of
Providing an Internet site where person-to-person trading could take
place
Buyers and sellers rushed to the site, and by 1997 Auction Web became eBay.
1996
15,000 auctions daily
2 million hits per week
Main category is collectibles
1998
Expansion
Benchmark Capital came on board
eBay-Timeline
1995:
1997:
benchmark capital
purchased 22% stake in eBay
for $5 mn
1999:
eBay acquired
Butterfield & Butterfield, Kruse
International, Billpoint, and
alando
2001:
eBay traded $ 9
billion worth of goods, which is
equivalent to 20% of the all e
commerce.
1996:
Hosted auctions of
15,000 daily and 2mn hits per
week
1998:
2000:
76.5 % increase in
operating profit and net
income increased by four
times.
Provided a description of
the item
Most provided pictures
Could specify
a minimum opening
bid
A bid increment
A reserve price
Not disclosed to
the bidders
Types of Auctions
Auction-style listings
Consumer Market
Evolution of eBay:
Consumer auction market for small segment of population to sell
collectibles
37 million users listing 12 million items daily with own laws,
feedback system, enforcement, payment processing unit
Voices- full day focus group sessions to obtain feedback from
users
Policing at eBay
Present Growth
1.00E+07
1.00E+05
Number (in thousands)
1.00E+03
1.00E+01
1996
1998
Years
Registered Users
Listed Items
Sales
2000
Comparative Analysis
eBay Fees
Listing Fee
Item
$0.30- $3.30
$40
Cars
$25
Motorcycles
$50
$75
Selling Price
Success Fee
$0- $25
$25-$1000
$1000Remaining
closing value
Cars
$40
Motorcycles
$25
eBay Fees
Optional Listing fee Additional Features
$0.15
$0.75
Supersize 1 photo
$0.25
$0.05
Buy-it-now Capability
$19.95 each
$5.00
$2.00
Issues
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
International competitors
competing in their domestic
markets may have the
cultural experience that
could
give
them
a
competitive advantage.
Yahoo! Dominates the
Japan market
Weight
Rating
Weighted Score
.20
0.80
.20
0.60
Generic Brand
.30
0.90
Weaknesses
Fraudulent activities
.10
0.40
System Breakdown in
.20
0.40
1.00
3.10
auction
Customer Relation
Management
trading activities
TOTAL
Weight
Rating
Weighted Score
Acquisitions
.20
.80
Market Development
.15
.45
Market Penetration
.20
.80
Threats
Success attracts
.15
.45
Illegal practices
.15
.60
.15
.45
TOTAL
1.00
3.55
competition
Recommendations
Reinforcing the Marketing department: eBay must reinforce the
marketing department to improve image in through advertising and by
global branding to make eBay a generic brand for consumers
Thank
You