eBay PayPal Merger
Growth in business comes from the joining of synergy to produce savings and necessarily growth, which lead to better profits. EBay is one of the greatest creations of the Internet in buying and selling, and it seems to be a continuously growing operation. The approach to the potential user is extremely friendly; the site gives good quality products which builds up the faith of the customers about the site, and there is regularly an interaction between the buyers and the sellers which also helps to a large extent in advertising the site. The user pays only a small fee for listing the product to be sold on the site and then a fee to be paid on completion of sales. It is possible to sell practically anything and everything on the site, from things like old cars to tickets for baseball games. The prices that can be realized….

eay: A Case Study Analysis
Letter to the CEO

Dear CEO:

The face of ecommerce has been changed by the creation of a global online marketplace. eay has provided consumers an opportunity to not simply survive, but to thrive. eay has established a forum for buyers and sellers to untie in and form a community. The online marketplace has established a safe and secure online marketplace where traders can exchange goods and services in a secure environment.

eay provides an exceptional model for continuing service to consumers. The company is continually expanding and growing into new regions. The online marketplace created by the corporation is one of the most well-known and well trusted globally. eay is unique in that it provides consumers with a means to explore a variety of products and services without limitation; the community does not focus on the interests of one group vs. another; rather it promotes the best interests….

New methods like the peer-to-peer bump technology and mobile payment systems in offline stores are aimed at the future. EBay has been developing applications for popular devices like the iPad and the iPhone along with specific sections dedicated to clothing, electronics etc. which indicate a positive step towards the future (Donahoe, 2010). Since EBay has its revenues coming mostly from North America and Europe (48% and 41% share respectively), any future decisions made need to be keeping customers from these places in mind (Conneally, 2009).
Conclusion

The performance of EBay has seen several stages of improvement since its launch. The minor weaknesses can be overcome by formulating an approach targeted towards them. These include strengthening the methods to deal with phishing using the EBay brand name, introducing a better content filter to identify undercover illegal auctions and a fair shipping estimator to protect the customers from getting cheated. The international aspect….

Further, eay's gross merchandise volume - the amount of goods passing through eay's various marketplace platforms -shrunk by 22% in the last quarter (uley, 2009).
The company had misjudged the potential compatibility between Skype and the Marketplace business (urrows, 2009). Eay sellers were uninterested in phone chats with customers (arret, 2009). Although the company has announced that it will spin off Skype via an IPO, next year, the economic environment may make this difficult.

eay sellers are angry over fee increases that favor fixed-price sales. Those users also are incensed generally over eay's decision to place less emphasis on auctions. (urrows, 2009). Further, sellers have been upset with what they believe are poorly conceived ratings policies that unfairly revoke their ability to conduct business on eay (Klein, 2008).

eay does a very poor job of controlling fake and illegal auctions. This negatively impacts customer satisfaction with the service and invites lawsuits with….

In October 2009, "eBay announced layoffs of 10% of its 16,000 workers" (Fowler 2009, p.1).
Because eBay makes more money from expensive transactions, it is shifting its 'common standing' or overall plan to focus more on large sellers, rather than small, quirkier, or independent businesses. "Mr. Donahoe is shifting the site's emphasis away from auctions and toward fixed-price listings. The moves have divided sellers, some of whom complain that big merchants now have an edge. Some longtime sellers, including those with unusual inventory that draws people to the site, are giving up on eBay and moving their business elsewhere. Of the top 100 U.S. eBay sellers in January 2008, 16% were no longer active in the first quarter of this year" (Fowler 2009, p.1). However, the focus on larger sellers, Donahoe believes, will allow eBay to shift to a model customers increasingly prefer, with "fixed price, quick service and free….

EBay is an online auction website, and pioneered this business model. eBay runs its website, in multiple countries, and acts as an intermediary for buyers and sellers. The company earns its revenue by charging for listings and taking a profit on transactions. eBay has 128 million active users around the world. It also owns PayPal, which is a leading online payment site. eBay was founded in 1995 and has remained the leader in its industry since then (eBay, 2014). eBay has long been a technological follower, however, as other e-commerce sites leapfrogged eBay. The popularity of the eBay brand, however, and the efficiency of its marketplace, have helped it to succeed over time, and it has recently begun to update its technology to be more competitive going forward.
Business Model

eBay operates its business entirely online. The company's flagship brand is a set of websites that act as intermediaries for buyers and….

Also, fraudulent sellers and buyers can be banned.
What are the contracting costs at eBay?

A eBay must maintain the site and provide insurance and monitor complaints, feedback on the forums, and also the types of items that are sold.

A eBay claims that it has only a small problem with fraud and misuse of the system. Does this imply that it is over-investing in addressing potential contracting problems? Under-investing? Explain.

Over-investing? Not at all. Since eBay profits every time someone becomes a member, it is in eBay's interest to create a reputation that the site is secure. Without this security, buyers would sell their goods personally online. The benefit conveyed by eBay, besides additional 'hits' from buyers, for sellers, is that it offers some security and insurance to all of the involved parties in a sale. However, there are limits to how much eBay can police the site, and to include more….

EBay vs. Bidder's edge
What Bidder's edge did that was different from eBay's customers and the reasons why it mattered to eBay.

Trespass

In this paper, we analyze the lawsuit filed by eBay against Bidder's Edge. We also explore what Bidder's edge did that was different from eBay's customers and the reasons why it mattered to eBay. We also explore the definition of the otherwise traditional trespass to personal property and how trespass to personal property is different from the Californian definition of trespass to computer services as well as how it is different.

December, 1999 saw eBay file a lawsuit against Bidder's Edge in San Jose, California's Federal District law courts. This lawsuit saw Bidder's edge being charged with trespass on the eBay website through as process that involved the compilation of auction data without seeking prior and due permission from eBay (Masterson,2000).The lawsuit prompted Bidder's edge to file a counterclaim against the….

Once this occurs, is when the firm will be able to reach out to a bigger audience and increase the number of people who are purchasing products from them. (Ahmed, 2009, pp. 142 -- 149)
A second strategy that EBay could utilize is to have customizable products that will reach out to specific demographics of the population. The way that this could occur, is the company could install programs that will allow users to translate the site into different languages. Then, they could offer products that are most in demand to specific demographics of the population. If this kind of approach is utilized, it will help EBay to adapt quickly to changes in demand from various demographics of customers. (Ahmed, 2009, pp. 142 -- 149)

For example, between now and 2050, there will be large changes in population demographics. What is happening is minorities are more dominant inside America. By 2050,….

eBay, Inc.
Company Overview

Founded on Labor Day weekend in 1995, eBay now operates the world's largest online trading community. The first sale by founder and computer programmer Pierre Omidyar was a broken laser pointer that was slated for the trash can; he sold it for $14.83. As of December 2010, 94.5 million users were active globally buying and selling practically anything. That user list compares to 90.1 million the previous year end. eBay brings together a diverse community of individual and small business buyers and sellers that trade goods worth more than $2,000 every second. In 2010, the total value of goods sold on eBay was $62 billion. (eBay, 2010)

With a highly active corporate development function, eBay has acquired such innovative businesses as PayPal (online payments), Bill Me Later (deferred payments for customers such as Borders, Continental Airlines and Walmart.com), Shopping.com (comparison shopping), ent.com (home and apartment rentals), StubHub (online ticket….

Ebay
The recent (or ongoing) recession has provided an excellent external opportunity for eBay, as the company has long offered many consumer products at discounted rates in addition to higher end auction items. The recession means that more individuals will be seeking bargains for many more expensive consumer items, and eBay can offer used or even new alternatives to paying full retail price for these goods. Growing Internet availability throughout the world is another significant opportunity, as more consumers are able to join eBay every day. At the same time, this increase in availability makes it easier for competition to surface, and this creates something of a threat for eBay. The recession has also reduced the overall demand for discretionary items, which includes pretty much everything eBay deals in.

2)

Internally, eBay is very strong in its knowledge and in the consistency of its operations, Having been in business for quite some time….

The difference this time is that they are going about it in the same way that they run their businesses. They are selling to select areas and towns, just like a store located there, instead of trying to sell everywhere. This keeps their operating costs low, and because of this, they can expand to other markets as their profits increase - just as they would with traditional stores (Lee, 2003). Customers that shop online for groceries often shop for other items as well, finding the computerized version of shopping faster and more convenient. Since this is becoming a trend, online sellers such as eay and Amazon are capitalizing on it and branching out into more markets as they realize that people are listing more and more things.
The main reason that eay does so well is because it helps to make buying things very convenient, similar to large retailers that….

Chinese consumers are as yet unaccustomed to online purchases, the banking system is not as wired, and there are issues with Chinese characters that eBay will need to address. Until Internet security matches estern levels, eBay's ability to penetrate the Chinese market could be inhibited. Information security in China is struggling to keep up with the explosion of the Internet there, including Internet crime (AsiaInfo, 2009).
The competitive environment will also be a challenge for China. Google and other American companies have met with strong competition in China, in part because Chinese consumers prefer Chinese companies and in part because the market is so large that competition is intense. The degree of competitive intensity that develops in the Chinese online auction market will help determine the success of eBay's new venture in the country.

Lastly, a critical component of the external environment is the development of ancillary industries that serve to….

EBay Contracting Case
eBay Creates value not by actually producing, distributing, or selling any goods and services, but rather by facilitating this sale through its online site. This is a service provision of sorts, however it is a service that depends on their being another buyer and another seller at both ends of the service and would be considered simply a supportive element of the value chain in a more traditional construction (QuickMBA, 2012). As a facilitator of the sale of goods in a more traditional setting, eBay creates value by matching buyers with sellers in a secure environment that optimizes price for all involved in the auction model (Case, n.d.). Although the company only serves as a facilitator and thus avoids many contracting issues, there are still potential problems that eBay could face. Because the company offers a guarantee of a certain measure of security to both buyers and sellers,….

The result was a completely redesigned B2B site from the process workflow layer up, including distributed order management systems that provided for businesses to treat eBay as part of their procurement and supply chain partners (Katok, and Alvin E. oth, 1061, 1062).
In addition to the lessons learned by eBay with regard to segmenting their customer bases based on e-business categories, the company also learned how to differentiate the customer experiences by category as well (Kostandini, Mykerezi, Tanellari, Dib, 253). An example of this is how eBay Auto began to rapidly grow once the online catalog, buyer validation, and reputation systems were all designed to more precisely align with B2C and C2C selling needs. Another example is the breadth of auctions that eBay supports today as part of its B2B selling and brokering efforts (Katok, and Alvin E. oth, 1060). The development of automated purchasing and credit management systems, including….