Situation Analysis : Industry Analysis Essay
With the increasing rate of technology plus expansion of the World Wide Web, consumers can now connect to modern markets much faster than traditional markets. Traditional markets and auctions are typically built off of relationships between peers and family. In September of 1995, Pierre Omidyar founded eBay; a service that would connect consumers, allowing them to buy and sell products. A vision of connecting individuals together has lead eBay to host an average of 162 million users, 15% of which are sellers.
There are some perks that come with e-intermediary services including: its ability to save time; its ability to lower costs for sellers; it allows for greater product variety; it decreases the amount of gas used to transport goods and consumers to and from store fronts; it removes the annoyance of crowds; and it increases the ease of comparing costs. Since the beginning of eBay, consumers have made it the top service for buying and selling products online. In 2015, eBay consumers listed an average of 800 million items for sale. eBay also saw a growth in its gross value of goods by 3.6% totaling $8.895 billion by the fourth quarter. Regrettably eBay’s net revenue fell 2.4% from $8.79 billion to $8.582 billion that same year.
Consumers are looking for safe, new, trustworthy, high quality, and inexpensive goods. As e-intermediary stores continue to grow presenting a greater variety of products eBay will face the challenge of competing…