Page 181 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

E-Commerce and E-Business

1.4.4.2 Ebay.com

Case Study Ebay.com
e Bay which has become the leader of the online auction industry was founded in 1995 by

Pierre Omidyar. It has created a powerful platform for the sale of goods and services by a
passionate community of individuals and businesses.

eBay aims to increase its gross merchandise volume and net revenues. Detailed objectives are defined to
achieve these aims, with strategies focusing on:
1. Acquisition: Increase the number of newly registered users on the eBay Marketplace.
2. Activation: Increase the number of registered users that become active bidders, buyers or sellers
on the eBay Marketplace.
3. Activity: Increase the volume and value of transactions that are conducted by each active user on
the eBay Marketplace.
At the end of 2007, eBay had approximately 83 million active users, compared to approximately 82
million at the end of 2006. An active user is any user who has bid, bought, or listed an item in the
current 12-month period.
eBay is famous for its core service which enables sellers to list items for sale on an auction fixed price
basis. It gives buyers an opportunity to bid for and purchase items of interest.
Software tools are provided, particularly for frequent traders which include Turbo Lister, Seller’s
Assistant, Selling Manager and Selling Manager Pro. Tools that are used to help automate the selling
process include the Shipping Calculator, Reporting tools, and so on. Today, over sixty percent of listings
are done with the help of the software. This proves the value of automated posting for frequent trading.
eBay has developed “Trust and Safety Programs” which are very important to give assurance to the
customers since online services are prone to fraud. In case of any fraud, eBay works with law
enforcement and government agencies to enforce its policies. eBay has developed many programs and
resources to ensure the safety of trade and to help in building trust.
eBay Feedback

Each member of the eBay Web site has a feedback score that is displayed in the seller information box of
the item listing page. It helps to build trust among the people involved in trading.
Spoof Web site Protection
The eBay toolbar enables its members to protect their accounts by warning them when they are on a
potentially fraudulent or spoof Web site.
eBay Security Center
The eBay security center provides guidance to its members on buying, selling, and paying safely. It is a
valuable resource for all the users. To protect the user from threat, Rapport online browsing protection
is provided by the security experts at Trusteer. Rapport secures the user communication with eBay. It
blocks malicious programs from stealing the financial information.
To take advantage of the protection offered by Rapport, the user needs to download and install the
Rapport plug-in for Windows or Mac.
Rapport doesn't alter the user’s experience on eBay. Once installed, it operates quietly in the
background to protect the user’s communication with eBay’s site and participating financial sites.
Rapport works in conjunction with the user’s existing antivirus software and firewall.

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