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Product Data Entry

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Product Image Cut-Out

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eCommerce Data Entry

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eBay is an online marketplace built to enable trade on a local, national and international basis.
eBay
offers an online platform where millions of items are traded each day through Online Auction Formats, also called auction-style listings, or through immediate "Buy It Now" Fixed Price and eBay Store listings.

Why use eBay?

eBay serves two main purpose:

The first is to effectively expose your item to millions of people on the web. eBay is the first place many people go to look for items, both new and used, so placing your item here means that you have a much higher chance of people finding out about it.

The second, and equally important reason, is that eBay gives your site and company tremendous exposure at a very low cost. For as little as 30 cents, you can create an auction which highlights your product—and can direct people to your web site. That’s incredibly cheap advertising that’s totally focused towards people who are searching for what you have to offer.

eBay Mission

eBay describes their purpose as to ‘pioneer new communities around the world built on commerce, sustained by trust, and inspired by opportunity’

At the time of writing, eBay comprises three major businesses:

  1. The eBay Marketplace (approximately 70% of eBay net revenues in 2007). The mission for the core eBay business is to ‘create the world’s online marketplace’. eBay’s SEC filing notes some of the success factors for this business for which eBay seeks to manage the functionality, safety, ease-of-use and reliability of the trading platform.
  2. PayPal (approximately 25% of net revenues in 2007). The mission is to ‘create the new global standard for online payments’. This company was acquired in 2003?
  3. Skype Internet telephony (approximately 5% of net revenues in 2007).

This company was acquired in 2005. eBay has suffered an “impairment charge” from valuing the company too highly, but more recently it has started to provide the service for MySpace users.

Advertising and other net revenues represented just 4% of total net revenues during 2007

This case focuses on the best known, the eBay Marketplace.

 

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