Ebay: SWOT Analysis Of Ebay

716 Words 3 Pages
• Strength
Strengths are the advantages, experience, knowledge, resources, quality and reputation that eBay currently got. The biggest strength that eBay got is its brand name.

Brand name
Ebay was one of the biggest online marketplaces in the world. Ebay was established by Pierre Omidyar in 1995. The reputation of the company is well known. This is be proven by the fact that there have over 100 million of buyer and seller using eBay to sell and purchase things to each others. Therefore, it is common to hear that someone is “eBaying” and “eBayer”. Today, eBay had become a multi-billion dollar business with operations localized in over thirty countries.

Payment system
PayPal is eBay own payment system, ebay use PayPal to progress all
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One of the biggest enemies is Taobao.com. Ebay had competed with Taobao.com, an online marketplace on the upcoming years. A few years later, ebay shut down its website after a big success of Taobao.com website which established by AliBaba group.

Low profit
The fees for the producers display product list on ebay sometimes can be a burden for them. Before the seller want to use the services on the ebay online platform, the seller may need to pay some fees. For instance, PayPal fees, final value fees, and listing fees. Furthermore, if there have any disagreement between seller and buyer, ebay normally stand aside with the buyer rather than the seller. Next, it is very difficult to make a profit with the profit which is charge lower price by the seller. Therefore, the seller on the ebay online platform often makes losses than profit.

• Opportunity
New business
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The company has its IT and CRM systems in place already and could easily stake out a market share from Amazon and other online retailers. Ebay should open more retail in the countries which have the market of the online shopping behaviour. In addition, ebay can do more advertisement through online internet, television and radio in order to raise the awareness of the potential consumer. By doing this, ebay can sustain current growth levels.

• Threat
Ebay have no power to control over some cost like credit card charges and delivery charges. If the fuel price is to increase, fuel cost is charged on to the consumer in terms of delivery and postal fees. This could make the overall cost of a selling item too costly. Same goes to the online transaction payment. The total cost of the item would be expensive if there is a cost charges by credit card company such as Visa or MasterCard.

Illegal practice
Illegal practice is one of the threats for Ebay Company. The brand name of ebay is attacked by unethical individuals. For example e-mails are sent to trusting eBayers pretending to come from eBay. The outlook of the logos and the design of the pages look exactly the same to the original one. They are designed so that you input private information that the thieves can use to take passwords and

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