How eBay Has Succeeded as Online Marketplace - Coursework Example

EBAY CASE STUDY By Presented to EBay’s Case Study How eBay has succeeded as an online marketplace eBay has succeeded as an online auction marketplace while others have failed because it had better methods of attracting new customers for its products. eBay also offered various types of collectibles unlike other online auctions and customers were able to grow significantly for the products offered. EBay was also successful as it was an effective way and large companies used it in selling their goods in bulk therefore as a result of this enabling the company to become the world’s largest online marketplace.

Joshi (2005) shows customers find it easy in selling and buying any product ranging from real estate to appliances and carts. Sellers are also able to list any of their products though they have to observe the rules and policies of the company (Nagle & Holden 2002, p. 84). Evaluate eBay’s fee structure. Is it optional or could it be improved why? How?EBay’s fee structure is in such a way that it improved the profitability of online sales. The fee structure could be improved as the company uses value-based pricing and therefore once the value is increased the price could also be increased (Philip & Gary 2010, p. 293). As eBay earns money through the collection of fees, the fee structure could be in a way that for the first $25 the value should move from 8.

75 percent to 10 percent and for the remaining, it should be improved to 5 percent. This increase should, however, go hand in hand with the improvement of the value of selling and finding products on the internet. Once this is effective, buyers will be willing to pay for any amount as long as their services are effectively conducted (Kent 2003, p. 41). What’s next for eBay? How does it continue to grow when it needs both buyers and sellers? Where will this growth come from?EBay should continue using a price strategy that attracts high-volume sellers and discourages sellers with low-priced products.

This method has been effective and has increased demand for using eBay online services is influenced by price inelasticity. Carolin (2001, p. 16) describes that the continued growth will come from improved efficiencies such as improved services, investments, and partnerships. The developed social sites could also help eBay in getting new customers and new ways of operation.