Ebay: SWOT Analysis Of Ebay

Decent Essays
• 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
…show more content…
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
…show more content…
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
Cost
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

Related Documents

  • Improved Essays

    Unit 9 P2

    • 1782 Words
    • 8 Pages

    Task 1 – Introducing e-commerce into an organisation E-commerce is the actions of trading electronically through the internet. E-commerce has been implemented into most businesses in the modern day and there are many impacts when doing business over the internet. The benefits of introducing e-commerce into your organisation There are many significant benefits to the business when introducing e-commerce into it. Some entail:  The business can accumulate customer information …

    • 1782 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    INFO 290: Final Exam

    • 1200 Words
    • 5 Pages

    INFO 290 – Final Exam Name (Print) Cristian David Ramirez-Loaiza Signature______________ Date:____________ Answer any FOUR questions 1. Explain in detail with examples as to why a business needs a disaster recovery plan and Business Continuity plan?…

    • 1200 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    P3: Explain the potential risks to an organization of committing to an e-commerce system Risks 1. Hacking In computer interacting, hacking is any technical effort to operate the normal performance of network links and connected systems. A hacker is any person engaged in hacking. Today, however, hacking and hackers are most commonly associated with malicious programming attacks on the Internet and other networks.…

    • 1208 Words
    • 5 Pages
    Decent Essays
  • Improved Essays

    Business Analysis Of Ebay

    • 889 Words
    • 4 Pages

    If a sale is made by a buyer that was driven to eBay’s site and makes a purchase should have a longer time frame for the initial purchase to…

    • 889 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Annotated Bibliography

    • 1863 Words
    • 8 Pages

    Gilliam 1 Annotated Bibliography Lesonsky, Rieva. "Study Shows Consumers Prefer Shopping In A Store, Not Online." . N.p., 20 Aug. 2014. Web.…

    • 1863 Words
    • 8 Pages
    Great Essays
  • Decent Essays

    Essay On BBB Complaint

    • 359 Words
    • 2 Pages

    Hello Vilma, Thank you for the quick follow up and allowing me the opportunity to address your BBB complaint today. I understand you have an issue with the DJI-INSPIRE-1-Quadcopter-Drone-w-4K-HD-Camera-single-remote-and-free-case. I understand that this has been a frustrating experience for you, and appreciate your patience. I will be happy to review your concerns and provide my findings. I understand you are upset with the feedback your buyer has left along with the fees for a sale that was never completed and I apologize for any frustrations this has caused.…

    • 359 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Argomall Swot Analysis

    • 441 Words
    • 2 Pages

    4. The presence of the store is only online -Since Argomall is an online store, there will be no place to visit personally and the transactions and concerns will only be reached through email or calls. 5. Higher cost because of the delivery fee -The…

    • 441 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    The prosperity generated by e-commerce is mainly limited to people living in developed countries, because those living in developing countries often don’t have access to the technology and information needed to enjoy the benefits…

    • 432 Words
    • 2 Pages
    Improved Essays
  • Great Essays

    Legal risk #7: Financial issues for the users How the risk could arise: The cash flow problem of sellers; financial disputes between sellers, sellers and their customers would also influence the platform’s normal…

    • 1784 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    SWOT Analysis: Gamestop

    • 2103 Words
    • 8 Pages

    This strength is product knowledge and customer satisfaction. Their employees are so knowledgeable about their products. The employees will tell the consumer their opinion about a game. They will also tell them what to look for in the game. These employees will tell the consumer what kind of console they should buy and how each console is good for a certain kind of quality.…

    • 2103 Words
    • 8 Pages
    Improved Essays
  • Great Essays

    In this we can easily see that eBay did not exercise much control other than financial and some control in the board of directors. PayPal was free to pursue its own strategy as per its own wish. While the aim for eBay was economies of scale and market entry into payment systems. We can easily see in through the framework that the degree of acquisition was not in alignment with the acquisition motive of the companies. Hence a demerger was inevitable after the PayPal grew stronger and…

    • 1797 Words
    • 8 Pages
    Great Essays
  • Superior Essays

    Ebay Case Analysis

    • 1652 Words
    • 7 Pages

    Based on eBay’s SWOT analysis, its resources are valuable because they enable eBay to “exploit opportunities and minimize threats” by penetrating into new markets to reduce competition and lead the market share. Also, its resources can be considered rare because competitors do not possess the similar valuable resource (e.g. online auctions) and customers have established that eBay is the one who develops and owns online auctions. Unfortunately, eBay’s resources are easily imitated by its competitors. This, as a result, only create temporary value. Lastly, eBay’s resources are easy to substitute due to the fact there are other options that customers can opt for, such as retailing and eBay’s competitors (Yahoo, Amazon,…

    • 1652 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Advantages of Online Shopping: Online shopping has become a trendy shopping method ever since the Internet has made the incremental advancement. Many people are looking for other amazing alternatives shopping and online shipping is just the fix for that. Because of the many advantages and benefits of shopping online, more and more people these days prefer Online Shopping rather to go and shop. There are various reasons why people think that they buying on the internet is the best option too and why online shopping business is boosting day by day. 1.…

    • 1013 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Effects Of Online Shopping

    • 1399 Words
    • 6 Pages

    Does online shopping cause us to spend more money? : Isn 't it phenomenal how convenient online shopping is? Shoppers can browse through items without deserting the comfort of their own house. The world is being augmented constantly.…

    • 1399 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    Setting up an e-commerce is no longer a difficult tasks, it even can be done at home. Nowadays, anyone can start an e-commerce even without the need of paying for website costs like using Facebook or eBay. Therefore, Otto Group is facing competition on business as the others can copy their selling concept in the market. T3.…

    • 1544 Words
    • 7 Pages
    Great Essays