Case Study on EBay

EBay Case Study:

EBay is the American multinational corporation which offers the services of online auctions (the primary activity), internet stores, shopping, money transfer, etc. The corporation manages the well-known web site ebay.com and its versions for different countries of the world and owns the company PayPal. EBay Corporation was founded in 1995 and has its headquarters in California in the city of San Jose. At first its founder created an online auction and made it a branch of his website. Vey soon the auction attracted many people and the idea was developed further. The main idea of eBay is to enable people sell and purchase any items: equipment, technologies, toys, furniture, vehicles, etc, but there is a special list of items which can not be sold through eBay. The corporation itself plays the role of an ordinary mediator between the seller and the customer organizing their buy. EBay does not take the active part in the shipping of the items, because the whole responsibility for this job lies on the seller.

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EBay earns money due to the number of sellers which use the platform of eBay and pay a certain percent received from the sale. Customers do not pay anything to the corporation while purchasing something on the website. Another source of profit for the corporation is advertising. The main reasons of the popularity of eBay are: the absence of the geographical and language barriers (eBay has created separate websites for different countries in different languages), absence of time barriers (the auction functions 24/7), a great number of sellers and customers (one can find everything he wants easily due to the enormous number of sellers who can possess the very item you require).

The successful business model of eBay has made it one of the most popular online auctions in the world and millions of people use it every day. In order to cope with the eBay case study a student should improve his knowledge about the corporation and the way of work of its business model.

Then, one should study the problem, think about its cause and weigh its effect professionally.

Finally, it is possible to brainstorm the most effective solutions to the problem and demonstrate knowledge and professional critical thinking skills.

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