Can Ebay Continue Growing Essay Example

integrity. While the company does exert some influence in this regard, complete control remains elusive.

Several issues arise with online sellers on eBay. Some buyers allege being defrauded, while others express concerns about sellers charging excessive fees for collectible or antique items. Identity theft scams have also victimized eBay users and led to fraudulent sales. As eBay is the platform facilitating these transactions, it has a responsibility to provide a secure online trading environment for its customers. Additionally, customer service problems at eBay can be attributed to the company's large size.

EBay has two main types of customers: sellers and buyers. These two customers often have different needs. However, eBay encourages customers to handle any issues they may encounter themselves, without involving eBay in the process of recovering goods or receiving proper payment. The downside is that if eBay were to improve customer service responsiveness, costs would also increase. This, in turn, would lead to an increase in the commission fees charged by eBay in order to maintain the current level of net income.

However, if costs are increased and commission fees remain unchanged (as desired by customers), net income decreases, causing concern among investors regarding the company's success and investment. eBay has made efforts to address these issues through various solutions. An effective solution is the significant expansion of its operations, which has helped offset the hindrance caused by increased seller fees through its expansion into other countries. Additionally, eBay has implemented additional protective measures. It is worth considering whether these solutions are sufficient or if there are alternative measures that eBay should explore.

eBay has introduced various measures to enhance customer satisfaction and

protection. They now provide additional vehicle warranties and purchase protection of up to $2000 for vehicles purchased through their platform. Furthermore, eBay has established partnerships with prominent competitors like Yahoo! and Google, enabling them to advertise on eBay's websites without direct competition. Additionally, eBay acquired PayPal, a peer-to-peer payment system that simplifies the process of buying, selling, and receiving payments for its users.

eBay has expanded its customer base, thanks to the Voices program. This initiative, held 10 times a year at corporate headquarters, enables buyers and sellers to engage in dialogue with management. Users have the opportunity to express their preferences, criticisms, and suggestions regarding eBay. The Rules, Trust and Safety committee serves as the determining body for allowing certain items to be sold on the platform. Items that pose medical risks, such as human organ donation, are strictly prohibited.

EBay has implemented a strategy to foster customer engagement by introducing a wiki platform for customers to exchange tips on buying and selling goods. Additionally, EBay is designing a website feature where users can discuss collectible items. These initiatives aim to reduce fraudulent transactions. EBay's effective problem-solving approach is rooted in prioritizing customer satisfaction, as the company strives to uphold merchants' selling capabilities and customers' confidence.

EBay acknowledges the need for multiple solutions to address its various challenges. By diversifying its approach, the company increases the likelihood of satisfying customers. Focusing solely on enhancing security, for instance, overlooks issues related to customer communication, which can result in dissatisfaction. Additionally, eBay should consider acting as a mediator between buyers and sellers to prevent fraudulent purchases.

The text suggests that eBay could establish rules requiring the

purchaser to pay the item's amount (plus any commission) to eBay. After the item is delivered to the purchaser, the payment would then be transferred to the seller. In terms of management, organization, and technology factors, eBay must acknowledge problems within the company and develop solutions. Additionally, management must determine how to allocate its 8000 full-time workers as new technologies and programs are implemented on the website and require support.

Management needs to communicate with buyers and sellers to assess the satisfaction levels of users regarding the company's new services. In terms of organizational factors, it is crucial to have sufficient employees to implement the necessary changes within the company. Additionally, the business model should be adapted to meet new demands that arise. Adequate financial resources are also essential for acquiring new programs and services to address any issues. Technology-wise, eBay will rely on various components and programs like PayPal, Half. com, Shopping. com, and Skype.

EBay will likely require more storage space to support its upcoming programs. In addition to developing the necessary technologies, eBay also needs to develop programs for its AdContext program, which will rival Google's AdSense. AdContext displays contextual online ads based on website keywords. Although eBay is expected to succeed in the future, achieving this success will require substantial effort. The case also mentions the decrease in transactions and sales experienced by eBay.

eBay sellers are worried about attracting new buyers to their transactions on the website. Currently, eBay is investing in Voice Over Internet Protocol (VOIP), which is not widely used. To improve accessibility, eBay could partner with computer manufacturers and offer financial assistance to incorporate VOIP technology into

computers.

When individuals purchase new computers, they will find that their devices already possess VOIP components. As eBay enters new markets, it has the chance to encourage the use of VOIP on its platform. Once customers are attracted to eBay, they can make use of the available VOIP service to communicate with online sellers and enhance their overall transaction experience. It is crucial to mention that this is only a suggestion, but it is important to address the absence of conversation regarding eBay's plans for Skype, the recently acquired VOIP service.

Despite the significant investment that eBay has made in VOIP technology, the absence of a well-defined business plan for its implementation could potentially result in both financial losses and a decline in future customers, ultimately leading to failure for eBay. However, it is worth noting that eBay currently enjoys a substantial market presence across numerous countries worldwide, thereby providing an extensive customer base which facilitates convenient and efficient product selling. As part of their efforts to improve interactivity, eBay intends to integrate Skype into their platform to facilitate direct communication between customers and sellers.

EBay provides abundant price transparency, making it convenient for customers to easily access market prices. EBay has recognized the profitability of partnering with competitors like Yahoo! and Google, leading to revenue generation through advertisements. The utilization of wikis empowers customers by providing them with more information, enabling wise purchases and reducing fraud risks. Moreover, the acquisition of PayPal, a peer-to-peer payment system, has further simplified money transactions between buyers and sellers.