Strengths And Weaknesses Of Ebay Essay

1417 Words Mar 15th, 2015 6 Pages
Strengths – EBay
I. EBay has more than 150 million live listings with over 105 million active users globally spread across 37 countries. It is the largest online marketplace, which empowers online sellers and buyers trade freely.
II. Business Model – It acts as a mediator between the seller and the buyer and does not stock any inventory like Amazon. They are the pioneers in online auction and there are few companies who would be able to compete with them. Thus, they have a model which is sustainable in the market
III. Economies of scale – Initially, EBay had made a huge investment in developing their Technology. Now they have are using their knowledge and skills to cater to the larger set of customers, over 100 million.
IV. Localization – They sell mostly the local products to their local people, which add value to the product. This gives to connect with the people better.
V. Payment system – EBay uses Paypal for all the online transactions. This ensures that there is security and tight integration of technology, which makes all their transactions fraud free and gives the buyer peace of mind.
VI. Brand Reputation – It is a trust worthy company, which has an estimate value of $11 billion
Weaknesses - EBay
I. High Fees – EBay charges high fee for the listed products, sold products, adornment fee and paypal transaction fee, which significantly increases the price of the product for the seller and the buyer. In the end of each transaction the seller ends us selling the product…

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