Question 1
eBay is one of the only major Internet "pure plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so successful?
eBay's business model is the brokerage model. eBay has been successull for many reasons. eBay allows customers to buy items without leaving their home, it allows customers to easily compare different brands, prices etc. and eBay is known as a very trusted site.
Question 2
Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?
eBay has been able to maintain its dominant position partly due to the fact that people know its a reliable and trustworthy service. eBay is easy to use and has a high brand name awareness.
Question 3
What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?
In order to reduce potential freud among traders, eBay has developed the 'security centre' which gives tools and information needed to trade safely on eBay and ensure protection against online fraud. Some examples of online fraud include fraudelent emails and fraud involving credit cards.
Source: www.pages.ebay.com.au/securitycentre
Question 4
eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it?
By conceptualizing its users as a community this creates a sense of safety to users. By referring to users as a community this attempts to create a positive relationship between the buyer and seller.
Question 5
eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
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