EBay - Case Study Example

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Unlike in the marketplace, eBay provides a market space which is not constrained by time and distance. Through the internet technology buyers and sellers from all over the world meet virtually in order to trade their products with each other.
In order to ensure the safety and convenience of the participants in each auction that the company hosts, the company has also designed value-added features and services which adds to the value that the customer receives. Thus, aside from bringing buyer and seller together, eBay also delivers safety to customers by ensuring convenient, fast, and safe online transactions.
Alongside the huge advantages of transacting online are the risks shouldered by the participants and challenges for eBay. The hesitance of individuals to trade their products and services through online portals, stems from the fact that unlike in the marketplace, that there is a huge information asymmetry in marketspace both on the credibility of the participants and the quality of the products which are traded. Thus, numerous contracting problems occur including shipped products which are unpaid, goods which do not meet the expectations of the buyer, joy bidders, and fraud. ...Show more


From its humble beginning, eBay.com has created a perfectively competitive landscape where sellers sell their products at their reservation value and where buyers willingly offer the price that they think is suitable for the products up for bidding. All the over the world, the company has established a single portal where buyers and sellers transact together with the value-added features which makes their transaction fast, convenient, and reliable…
Author : thielmatilde
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