Week 8 topic questions

Q1: eBay is one of the only major Internet “pure plays” to consistently make a profit from its inception. What is eBay’s business model? Why has it been so successful?

ebays business model focuses on selling products in bulk instead of individually, and the products are usually sold to other eBay business owners.This has been so successful because with eBay customers can literally buy pretty much any product and usually the product would be cheaper then the businesses the a customer can by the product from.

Q2: Other major web sites, like Amazon.com and Yahoo!, entered the auction marketplace with far less success than eBay. Are they still offering auctions? How has eBay been able to maintain its dominant position?

Yes eBay is still offering auctions. Since eBay has other individuals selling products for them and they have become such a popular site with customers buying multiple products and also are a worldwide site they have been able to stay on top.

Q3: What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?

The method eBay uses is through the reviews of other customers and ratings stating if the sellers products are good or bad. eBay is susceptible to fake items, meaning items that are different from what the seller stated they were.

Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say “customers” or “clients”). What is the purpose of this conceptual twist and does eBay gain something by doing it?

Making everyone a community means that people feel included in something meaning they will most likely won’t to keep on using the site because of that inclusion.

Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?

They would set up shop because eBay has such a wide range of customers and also because eBay is pretty much 24/7 meaning anyone can shop at a any time.