New products are offered on the site as well as utilized products, and corporate sellers are actively recruited to use eBay being a method to market their products. In this way, the company is providing one more process of distribution that bypasses not merely conventional brick-and-mortar stores, but also corporate retail portals.
eBay has had significant accomplishment with its growth through acquisition strategy, but the company has also been forced to divest a conventional auction residence that failed to meet performance expectations. At this point, eBay needs to focus on maintaining its strategy of as being a distribution channel for any number of sellers, and maintaining its dominant position as the internet site of selection for shoppers and sellers. Its relationships with corporate sellers ought to also be strengthened to be able to continue to bolster its position inside the market and to create a lot more lucrative relationships due to the greater prices charged by these sellers, or due to the increased volume that corporate sales can bring to the site. The company can also set up a second branded website to cater to the needs of conventional tiny auction customers and sellers who could be feeling alienated from eBay as the company continues to court corporate customers and sellers.
Other threats come as the company tries to withstand outsiders stealing eBay accounts and making fraudulent transactions, and other forms of fraud over a site. Identity theft as well as other types of fraud involving clients and sellers but not the high quality with the solutions themselves were reported from eBay users. Surely the internet site is often a target for identity theft because of the big volume of transactions, but eBay claims that it's taking precautions to prevent this sort of issues inside future ("Security Alert," 2002).
Buyers are not charged for bidding on an item, nor are they charged for owning the successful bid at the end of an auction. Sellers are charged a placement fee in accordance with the minimum commencing cost (the highest placement fee is $3.30 for your commencing price of $50 or more). In addition, sellers can pay more placement fees for unique services, including utilizing boldface kind on the site to attract far more buyers or getting featured during the Featured Solutions section (2001 Annual Report, 2002).
It is recommended that eBay invest in creating a second brand to cater to the company's core auction shoppers and sellers so that you can reinforce the company's dominance in that arena and retain close ties to this group. Whilst eBay can and should continue to make relationships with corporate suppliers who use the web site to market new merchandise, it should not overlook its a lot bigger base of tiny sellers who have produced the company and provided a lot of its success. This remains a extremely lucrative market, specially in the way that eBay has structured its remuneration system, and results in small risk to eBay on the transactional level. Maintaining close relationships right here can also serve being a way to bring clients for the internet site who can then determine regardless of whether they wish to acquire applied solutions or new goods in an auction format or inside a far more conventional retail format.
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