Ebay Analysis the Rapid Growth

EBay Analysis

The rapid growth of eBay provides a strong foundation of evidence showing the value of relying on Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), Business-to-Business (B2B) and Consumer-to-Business (C2B) as e-business categories. Each of these e-business categories have been instrumental in defining how reputation management, referral, distributed order management and fulfillment strategies can be successfully coordinated across broad transaction groups (Kostandini, Mykerezi, Tanellari, Dib, 253). Early reliance on each of these e-business categories also put into motion the use of more advanced analytics and financial reporting to determine which specific products by price band would be the most profitable (Kostandini, Mykerezi, Tanellari, Dib, 251). In addition to the pricing and profitability benefits of eBay testing and gaining expertise in each of these e-business categories, the company also began to gain valuable insights into how to best maximize the user experience of shopping on their site as well (Kostandini, Mykerezi, Tanellari, Dib, 253). The unique nature of shopping on an eBay site can be directly tied to the experiences gained and lessons learned when the company was working on these e-business categories as distinct, highly separate business models.

Over time, the approach to completing transactions became more engrained into the process workflows within the eBay site across each of the four dominant e-business categories. Based on an analysis of shopper satisfaction and unmet needs, eBay realized they could spin out the B2B category and create a much more streamlined approach for businesses looking to buy from each other, using a variety of transaction techniques. The continual modifications to the B2B website and inclusion of advanced auction methods are a case in point (Katok, and Alvin E. Roth, 1045, 46). eBay began to modify its approach to auctions in response to the needs of B2B buyers who wanted to purchase in larger quantities than B2C and C2C had a need for. 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. Roth, 1061, 1062).